Ample savings + Minimum Expenses = A Life
Two things that say: “I have it together”. Having ample savings and max out expenses is not a life.
Some people cringe payday because they have so many payments due, they know once their check is cashed the money is removed the same day to pay creditors beyond your rent/mortgage, utilities, insurance you will start to sink financially.
It’s usually our wants that gets us in trouble, not our needs.
So if you want a life, make sure your net income matches your common expenses.
The reason why I am in a good financial position now is because I delayed gratification when most of my friends started to folly with debt. Therefore, [as Warren Buffett said] “you know who is skinny dipping once the tide goes out”.
Use your paycheck to invest/save not to consume all the time.
Tips:
- Pay yourself first (save)
- Pay your expenses (keep them low as possible)
- Invest systematically
Then you can have your fun !
February 23rd, 2010 at 4:03 pm
Nice post. I take it every financial bloggers keeps their money act well together. Or atleast they have a sense with prioritizing our money. I have currently all 3 of your steps down. I pay myself first before all debtors. So many people forget that “we, ourselves” are like companies. We work hard for our money, so we should save and pay ourselves first for that hard work.
February 23rd, 2010 at 4:08 pm
It took me years to get my financial situation together. The important thing is that you are paying attention to your money, which is good
February 24th, 2010 at 2:32 pm
Simply put but so hard to practice. Saving is not happening very much right now but I hope to wipe out a chunk in the next few months.
February 24th, 2010 at 2:43 pm
Jack money from yourself. Start with $50 a paycheck, have it transferred to an account far away you . An account that will be hard for you to get to. Same as federal taxes-the government seem to get paid, so should you
The purpose of this is to practice discipline –force yourself to live on less. Make up the money with some type of side hobby
February 24th, 2010 at 7:32 pm
Simply put but so hard to practice. Saving is not happening very much right now but I hope to wipe out a chunk in the next few months.
February 24th, 2010 at 7:43 pm
Jack money from yourself. Start with $50 a paycheck, have it transferred to an account far away you . An account that will be hard for you to get to. Same as federal taxes-the government seem to get paid, so should you
The purpose of this is to practice discipline –force yourself to live on less. Make up the money with some type of side hobby