Save Now Or Pay Later
Posted 15th May 2009 at 01:23 PM by KathleenWalter
It's too often that we find ourselves living day-to-day and spending like there's no tomorrow. How many of the following questions have you and your spouse found yourselves asking:
Do you or your spouse complain that one of you spends too much money? Are you surprised each month when your credit card bill arrives at how much more you charged than you thought? Do you have every new electronic toy available on the market? Do you buy things and then find them in the closet untouched months later? Do you buy things on impulse rather then based on need or being within financial reason?
If you find yourself reviewing the above questions and saying "yes, that's me to a tee", you are an impulsive spender.
This is and can be financial suicide. It will prevent you from saving for the important things like in life like a house, a new car, college fund for your children, vacation or retirement. You must set some financial goals and resist spending money on items that really don’t matter in the long run.
Advertisers bombard us using various modes of media with their products all day and all night. The trick is to step back and give yourself a cooling-off period before you buy anything that you have not planned for.
Impulse spending will not only put a strain on your finances but potentially your relationships, as well. To help overcome this problem, the first thing to do is learn to separate your needs from your wants and make a budget.
When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home!
If you see something you think you really need, give yourself at least a week to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and maybe your relationships.
You say you know where your money goes and you don’t need to keep a list of what you spend. Try this; keep track of every penny you spend for one month and I do mean every penny.
You will be shocked at what your everyday $1.00 here $1.00 there adds up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.
The little things really do count. Just cutting back on what you spend $2 a day adds up to $60 a month, $720 a year, $3600 in five years, $7200 in ten years, plus whatever the prevailing interest rate is. That $7200 would make for a nice vacation(s) or a down payment on a car, help with college loans, you get the idea.
If you can control of the small expenses for things you really don't need and focus on spending within our means, we can enjoy financial success.
As any financial planner will tell you, you need to set some specific long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important period.
The key is getting a handle on your financial situation and controlling your spending today for a brighter financial picture tomorrow.
About The Author:
Kathleen Walter is the owner of Make Money On The Web
Do you or your spouse complain that one of you spends too much money? Are you surprised each month when your credit card bill arrives at how much more you charged than you thought? Do you have every new electronic toy available on the market? Do you buy things and then find them in the closet untouched months later? Do you buy things on impulse rather then based on need or being within financial reason?
If you find yourself reviewing the above questions and saying "yes, that's me to a tee", you are an impulsive spender.
This is and can be financial suicide. It will prevent you from saving for the important things like in life like a house, a new car, college fund for your children, vacation or retirement. You must set some financial goals and resist spending money on items that really don’t matter in the long run.
Advertisers bombard us using various modes of media with their products all day and all night. The trick is to step back and give yourself a cooling-off period before you buy anything that you have not planned for.
Impulse spending will not only put a strain on your finances but potentially your relationships, as well. To help overcome this problem, the first thing to do is learn to separate your needs from your wants and make a budget.
When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home!
If you see something you think you really need, give yourself at least a week to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and maybe your relationships.
You say you know where your money goes and you don’t need to keep a list of what you spend. Try this; keep track of every penny you spend for one month and I do mean every penny.
You will be shocked at what your everyday $1.00 here $1.00 there adds up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.
The little things really do count. Just cutting back on what you spend $2 a day adds up to $60 a month, $720 a year, $3600 in five years, $7200 in ten years, plus whatever the prevailing interest rate is. That $7200 would make for a nice vacation(s) or a down payment on a car, help with college loans, you get the idea.
If you can control of the small expenses for things you really don't need and focus on spending within our means, we can enjoy financial success.
As any financial planner will tell you, you need to set some specific long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important period.
The key is getting a handle on your financial situation and controlling your spending today for a brighter financial picture tomorrow.
About The Author:
Kathleen Walter is the owner of Make Money On The Web
Total Comments 1
Comments
-
Amazing how a little saved now grows down the road!
Great post Kathleen! If everyone would read your message, and first begin to cut back on their own expenses and save, then and more importantly teach this concept to their children what a difference it would make!
I look back now and sadly consider all the things money was spent on over the years, and think if only I would have have saved that money how much different my life would be now....
Parents, we need to learn from our own mistakes and be diligent to teach our kids not to make them. This is especially true in this critical area of finances. If we will do this, and manage to get our kids to learn the concept of delayed gratification, then next generation will be better off financially.
Again, great post I hope everyone will read it!Posted 22nd May 2009 at 10:50 AM by kmjbrown
