- Recent events have shown that life can suddenly change. When the Pandemic broke, many living from paycheck-to-paycheck learned painfully how difficult it is to survive. One cannot count on Government assistance.
At anytime, everyone should have a Comfort Bump. This is 3–4 months of your total household expenses, including rent, food, car, gas, insurance, cloathing and incidentals.
It is so import to learn early on good Money Management skills.
Live within your means.
You must always save no matter how little you make.
Know the difference between want and need.
Being frugal doesn’t mean stingy. It is setting priorities, without sacrificing necessities.
Shopping is not a hobby. It is paying for things you need, by buying at an optimum price without compromising quality.
Don’t buy things only because they are on sale. Remind yourself that the money always looks better in your wallet than in their cash register.
There will always be another Sale.
Buy things you need off season. The stores rather sell you at 75%+ off than store them in a warehouse.
Use Credit Card only if you can pay the balance due in full.
Don’t incur unnecessary debts.
Shop for phone, TV and Internet deals. Keep these expenses to a minimum.
You don’t every year need the latest iPhone.
Save up for vacations and your next vehicle.
Most big ticket items depreciate almost immediately.
Furnish your apartment from Estate Sale finds.
Think of modular furniture like the way Europeans live. Buy things which double up other functions. For instance, get a sofa that opens up into a bed; use your kitchen table as the desk.
Pack lunch, carpool, carry snacks and coffee. You will be surprised how much all this adds up to.
Once you have your Comfort Bump, treat yourself to something nice. Something you always wanted… of substance and lasting value.
- You want to predict your future…instead of that why not plan it now…have you considered a micro business to develop your idea that you been thinking about way to long?
Put 8% of your pay check into a savings not to be touched, tell yourself your spent it already…the first thousand is the hardest to get , after that it seems easy to grow. Anything that says pay me is a luxury…refrain from all fast foods and coffee places…bag a lunch and bring a thermos. I stick to a rule…if you can’t eat it you don’t buy it…I also asked myself what do you want the most, Cable TV, phone or the internet…I chose the internet…I save a tidy bundle every month that way…No more credit cards…stop and pay them off completely…why are you giving those billionaires your money they call interest, service fees, join fees, banking fees…do you even realize how much of your money is wasted every year giving it to the man…
To train yourself…first month live as you usually do…with one exception, you get coffee receipts..gas receipts, bus fares, taxi…even groceries..you spend it, get a receipt…at the end of the month…tally them all up…then sort them out…now you know where all your money is going to live the life style your accustomed to…take 8 % of your total…now lose the same in expenses…not so bad…the following month, do it again…get rid of the wastes…you adjust to everything and since your taking little steps…its not an impact on your well being…like stopping it all at once…that’s a shocker if you do, yet you won’t regret it. Once one credit card is paid off…now that interest is your pocket money…and all those fees paying every month…and only then will you feel like you taken back control…imagine when your get rid of them all. Always reward yourself a little something special…like 20 bucks to go live high on the hog…for paying off a debt completely.
You keep your first 8% in the spent money pile…the next 8% you pay down your credit card…talk to me at the end of the year…I’ll be talking to someone who has confidence in making the right choices.
There are no guarantees in life as much as we all wish there was…good luck.