Wednesday, November 12, 2008
This is basic, but seriously, it could save you.
I knew some of this from my upbringing, and some from the Dave Ramsey classes. It's simple, sound advise.
1. Don't use credit cards. You know that 10% you saved at the checkout when you signed up? Yeah, they charged you 13%, 16% , 23%, EVEN UP TO 32% to use that card.
2. Don't spend money you don't have. (This takes care of number 1)
3. Have $1000 in the bank for emergencies, like car repair, not a good boot sale. This also takes care of number 1.
4. Have savings that can take care of 3-6 months expenses, if something happens to your income you can live off of this for 3-6 months while you find new income. Simple, basic, smart.
5. Pay your savings off the top. We tithe, pay self employment taxes, and then savings...then everything else. Even if it's $5, it's still worth it.
6. Take a month and write down EVERYTHING, that you spend. The coffee, the soda, a little snack at work, a treat for the kids whatever. Break down the grocery bills too, decipher what was food and what wasn't, and what is real food, and what isn't.(That's a whole other post). If you can't manage a month, try a week. You might be surprised where it all goes.
7. And never under estimate the power of; Use it up, wear it out, do without: and: Recycle, reuse, renew.
Most Americans spend 125% of what they make.....125%!
Even in our darkest, poorest moments, these things still worked for me. Even when we couldn't fully utilize this advise, it still worked for me.
See other fabulous tips at Shannon's Dryer.
I know the plans I have for you. Plans to make you prosper, not to harm you, to give you a future and a hope.