If I knew then . . . .
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If I knew then . . . .
| Wed, 04-27-2005 - 2:50pm |
Recently a younger family member asked me for adivce as she set out on her own for the first time. I told her "if I knew 10 years ago what I know now, my life would be so different." The funny thing is I sort of knew the same things, I just didn't believe them. I knew I should save money. I knew I shouldn't charge. But I always used the excuse that I was young, didn't make much and there was plenty of time to save and pay up later.
So my advice to her was "There is never more (extra) money." Your money is finite and therefore your spending and savings should be too. "Found money" (gifts, bonuses etc) is too easy to spend. And as you make more money, your spending and expenses will go up as well. For me the realization that there was never going to be more money is what woke me up to living within my current means. I also recommended I found it useful to keep a price book for groceries, and to write the prices down as I shop. I find that I pay more attention to what I am buying if I write down its cost before it goes in the cart.
Anyway, with all the cummulative experiences of the people on this board, I thought this would be a good question to pose to the board. What advice would you give to someone just starting out or starting over?
Sandra
So my advice to her was "There is never more (extra) money." Your money is finite and therefore your spending and savings should be too. "Found money" (gifts, bonuses etc) is too easy to spend. And as you make more money, your spending and expenses will go up as well. For me the realization that there was never going to be more money is what woke me up to living within my current means. I also recommended I found it useful to keep a price book for groceries, and to write the prices down as I shop. I find that I pay more attention to what I am buying if I write down its cost before it goes in the cart.
Anyway, with all the cummulative experiences of the people on this board, I thought this would be a good question to pose to the board. What advice would you give to someone just starting out or starting over?
Sandra

This is a big question....and oh, if only someone would ask! Or IF ONLY someone would actually listen to the advice we give them even though they haven't asked......
Anyhow..........I have a lot of advice to give that no one ever listened to...they just want me to hand them money after the situation is out of control...SO my advice (debt- and finance-wise) is to pay attention to details like loan payment dates and how much you spend ....... and SAVE YOUR MONEY BECAUSE THAT RAINY DAY DOES EVENTUALLY COME ALONG!!!!................I am going to stop here because I could rant all day about living well from the start........I really could.
Littlesbigs
Here's my $0.02....
Before you buy anything (especially substantial buys) decide if this is a NEED or a WANT.
SAVE! SAVE! SAVE!
Know exactly what you are spending....track your spending....know where you stand....know where your money goes.
SAVE! SAVE! SAVE!
Don't try to keep up with the Jones....the Jones are broke.
SAVE! SAVE! SAVE!
Christie
Did I mention SAVE!
I wish I knew then what I know now......
Plan for emergencies, I like the saying "sh!t happens!" because it does, and it is much easier to cope with when you are prepared.
Have a budget, and then save. I like the 60% solution, your committed costs 60% of your income, 10% retirement, 10% savings, 10% charity, 10% fun money. Learn to live within your means. If you don't like your means figure out what you can do to change that.
Student loans are great when you are a student, Paying back student loans sucks royally when you have two kids a mortage, car payments, and daycare costs. Don't borrow more than you need.
Don't buy fun stuff on credit, no clothes, no toys, no food. Pay off you balances ASAP, and always pay your minimum.
A sale is not always a sale if it is something you don't need. Learn to differentiate between wants and needs.
Oh, I could go on and on and on and on......
I hope my kids are smarter than I was....