Tag Archives: Finances

Live Within Your Means

To achieve your goals and dreams you are going to need money.

Back in the day I worked in banking and finance, and I saw first-hand just how much of a mess most people could make of their finances ~ usually due to buying things they couldn’t really afford.  The three main culprits when it came to unaffordable and expensive purchases were; cars, clothes / shoes, and vacations ~ none of which are essential.  (There’s a caveat, in that you may actually need a car and you do need clothes and shoes, but you can buy the cheapest used stuff you can find, rather than flashy and expensive.)

You do not need to be a millionaire, or act like a millionaire, to be successful or feel successful.  Financial wealth is only one indicator of success.  However, you’re going to need money just to live day-to-day, and no successful person has ever ignored their finances.  Conversely, all successful people know how to manage their money and plan their finances.  And rule #1 is Borrowing is Bad, especially if you borrow money you can’t easily pay off.

Financial planning begins with these 4 questions;

  1. How much money do you take home each month?
  2. What are your regular bills; mortgage, utilities, taxes, loan repayments?
  3. How much do you spend each month in the various stores you use; clothes, groceries, gas, booze, cigarettes, etc?
  4. What assets and debts do you have?

If you are in the fortunate position of making more money than you regularly spend, then you should also be able to work out how much you are saving each month.

You need to write all this down, either just pen and paper, or on a spreadsheet.

If you are regularly spending more than you earn, then you are heading for deep shit.

If you are regularly spending more than you earn, then you need to totally cut out some of your expenditure.  Stop buying booze, cigarettes, chocolate, and anything else you may be addicted to; gambling, porn, sex, drugs…..  Always buy the cheapest gas, buy less expensive groceries, stop eating out, stop using the deli to buy your lunchtime sandwiches and make them at home instead…..

Borrowing is Bad.  Some borrowing is worse.  PAY OFF YOUR CREDIT CARDS.  Credit card debt is ruinously expensive.  In this day and age if your paying more than 10% as an annual interest rate on a loan, then stop eating until that debt is paid off.

Some say that they can make money playing online poker.  And, that its good to go to the pub most nights a week.  All I know is that some people end up on the street.

~

jack collier

jackcollier7@talktalk.net

 

life on the street is no fun

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