Of course I had to go read it to find out what the advice was. Turns out the author of the article was divulging the four top methods of attaining what she termed was financial peace and I asked myself: 'What ta heck is that anyway?'
...so read on....
1. They know exactly where their money goes.
The suggestion is to write down everything you spend for two months until you know where every penny goes. Apparently you'll be more aware of your bank balance and not go into overdraft or run up your credit cards on things you don't need if you write everything down. The expert said it's harder to spend cash than it is to swipe a plastic card. If you're not worrying every minute about how much everybody in the house is spending, you'd feel better.
Personally, I like to hide the odd thing from Dick. Keeps him on his toes if he can't explain every nickel away in our bank account.
2. They know what they want their money to do.
We are supposed to focus on two or three big goals we value, like a house, set a time line, and then break the goal into smaller steps. Set up an automatic transfer from your checking account to a saving vehicle weekly or monthly or to an RRSP. Pay attention to your own goals instead of what the neighbors are doing so you don't feel like you're always behind. Remember the grass is always greener on the other side? It might look like the neighbors have more than you, but they likely lied about the amount of their debt too!
3. They don't carry revolving debt, (credit cards,) or they have a specific plan to pay it down.
This means don't just pay the minimum on your credit cards every month. Did you know that if you put $1,000 on a credit card at 18 percent and make just minimum payments, it will take 12 years to pay off and cost $1,100 in interest? (Totaling $2,100.00 out of your pocket!) Put $20 more a month toward that card and it would be paid off in two years and a few months, with only $226 in interest.
Used to be that credit cards were for emergencies only and now people seem to use them every day to live on. They have trapped us by offering points and low introductory interest rates.
4. They invest in their job skills, and don't expand their lifestyles as fast as their salaries.
ie: If you have an opportunity to send out resumes or take a course to better your job and hence your income... do it.
... and don't live above your income. If you have to use a credit card every week just to buy food, gas, cell phones or another of your 'necessities' you can't afford them! To get anywhere, you have to have money left over every month. You just have to is all!
I know most of this, you've heard a million times before and really, it's just common sense, but if just one person says eureka! And gets a little ahead of the wolves that are always at our doors, then it's worth going over it again.
Remember I'm not an expert and I'm hardly a responsible adult let alone anything else, even at my age! So take my advice with a grain of pepper and use it as you see fit.
Oh! And if you want to link this or paste it... Fill yer boots!