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Tuesday, July 15, 2008
Monday, July 14, 2008
Beginnings
When young people are beginning to set up their own first apartment or home, they are excited and full of anticipation. Furnishing the new digs takes money. Paying the utilities takes money. Buying groceries, clothes, and gasoline to get back and forth to work takes money, not to mention the car payment and insurance. It usually doesn't take long to realize that there is no cushion. The responsiblity for all the monthly rent and utilities falls on you.
Here are some tips that can help:
1. Create a reasonable budget. Realizing that you must live within your means.
2. Don't rely on credit cards to buy things you cannot afford. Instead learn to live without some things and buy others at second hand stores, thrift shops and garage sales.
3. Learn to pay yourself first. The very first day of employment is the day you should begin to manage your retirement funds. If your company has a retirement, 401K, annuity or other pension plan make sure you sign up.
4. Save for a rainy day. It is important to have some money that you can fall back on. Health plans do not cover 100% of medical bills as they did when I was raising my children. Today you need to save for the 20% or so that it will cost for the medical bills. Also there will be other emergencies that need to be taken care of. Saving the money on the front end will prevent a credit card bill with high interest later.
All of these things are important to living in the economy of our world today. The present economy is going to give all of us time to pause and rethink just what we think is important. Should we continue to purchase things we want on credit just because we want them? I think not. Can we tighten out belts and live within our means? I hope so. Now is the time for all of us to recognize that there is a better way to live, shop and save. It starts with the three points above. Live within your means, pay yourself first and owe no man (eliminate credit card debt)
Wathe
vwathe@yahoo.com
Here are some tips that can help:
1. Create a reasonable budget. Realizing that you must live within your means.
2. Don't rely on credit cards to buy things you cannot afford. Instead learn to live without some things and buy others at second hand stores, thrift shops and garage sales.
3. Learn to pay yourself first. The very first day of employment is the day you should begin to manage your retirement funds. If your company has a retirement, 401K, annuity or other pension plan make sure you sign up.
4. Save for a rainy day. It is important to have some money that you can fall back on. Health plans do not cover 100% of medical bills as they did when I was raising my children. Today you need to save for the 20% or so that it will cost for the medical bills. Also there will be other emergencies that need to be taken care of. Saving the money on the front end will prevent a credit card bill with high interest later.
All of these things are important to living in the economy of our world today. The present economy is going to give all of us time to pause and rethink just what we think is important. Should we continue to purchase things we want on credit just because we want them? I think not. Can we tighten out belts and live within our means? I hope so. Now is the time for all of us to recognize that there is a better way to live, shop and save. It starts with the three points above. Live within your means, pay yourself first and owe no man (eliminate credit card debt)
Wathe
vwathe@yahoo.com
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