Sam loves quotes from authors and wise folks. As W. Somerset Maugham so sadly pointed out, "The unfortunate thing about this world is that the good habits are much easier to give up than the bad ones." Someone else observed, "Bad habits are like a comfortable bed, easy to get into, but hard to get out of."
Discipline is not fun. However, discipline is required to treat your money properly. If you treat your money well, your money will be good to you. Here are some ways to treat your money well:
Get a good return on your money
Everyone wants to get a good return on his or her money. How would you like to make 10% to 20% on your money? Here is an easy way: pay off your credit cards! If you do not have to pay your credit card interest rates of 10% to 20%, it is the same thing as saving or earning that money. Do not be one of the vast numbers of credit card holders who are paying interest on their balances. Be smarter than they are.
Verify your expenses
Open up each bill when it arrives and analyze each bank and credit card statement to check if it is accurate. Put each bill in its own file or envelope.
For your checking account, use check stubs that make a copy of the checks you write. This helps you keep your checkbook balanced because it provides a copy of all the checks you wrote, in case you forget to note it in your records.
Avoid ATMs
Avoid automated teller machines. Sure, ATMs are convenient, but convenience costs. If you use an ATM at a bank branch that is not your own branch, many banks charge a fee for using that ATM. Some banks have been raising these fees. The fees can add up fast. The cure for ATM dependency is to plan ahead, go to your bank during bank hours, and withdraw the cash you need.
Do not hide your spending behind "saving" with coupons or sales
When you buy something, if it is a "want" rather than a "need," it is not a savings, even if you used a coupon or got it on sale. You did not really "save" money; you spent money. This reminds us of the story of the spouse who proudly returns home from a shopping trip and tells his or her mate how much money all the sales at the store "saved" them. The response from the mate is, "If we saved so much, why do I feel so broke?"
We encourage you to use coupons and shop at sales. Just do not let yourself be carried away by all the spending opportunities.
Earn extra money
To reach your goal of having extra money, you may need to explore beyond your "comfort zone" and look for new ways to make more money.
Weekend or evening jobs can supplement your earnings. You can share your home or apartment with a friend, relative, or tenant and split expenses with them. For extra spending money, you can tell friends and family that you are willing to house sit, pet sit, walk dogs, run errands, or provide other occasional services.
Sleep better at night
There is an old saying, "Make good habits and they will make you." Soon, your new savings habits will become easier and you will start to see how they make good things happen in your life. In addition, the peace of mind you will gain will help you sleep better at night.
Heidi Clingen is a long-time resident of Stevenson Ranch. She and Samuel K. Freshman are authors of The Smartest Way™ to Save, Why You Can’t Hang on to Money and What to Do About It. They offer only their opinion, which does not constitute professional, financial, or legal advice. To receive a copy of The Principles of Financial Independence or submit questions, email them at http://www.blogger.com/goog_1674118699
Discipline is not fun. However, discipline is required to treat your money properly. If you treat your money well, your money will be good to you. Here are some ways to treat your money well:
Everyone wants to get a good return on his or her money. How would you like to make 10% to 20% on your money? Here is an easy way: pay off your credit cards! If you do not have to pay your credit card interest rates of 10% to 20%, it is the same thing as saving or earning that money. Do not be one of the vast numbers of credit card holders who are paying interest on their balances. Be smarter than they are.
Open up each bill when it arrives and analyze each bank and credit card statement to check if it is accurate. Put each bill in its own file or envelope.
For your checking account, use check stubs that make a copy of the checks you write. This helps you keep your checkbook balanced because it provides a copy of all the checks you wrote, in case you forget to note it in your records.
Avoid automated teller machines. Sure, ATMs are convenient, but convenience costs. If you use an ATM at a bank branch that is not your own branch, many banks charge a fee for using that ATM. Some banks have been raising these fees. The fees can add up fast. The cure for ATM dependency is to plan ahead, go to your bank during bank hours, and withdraw the cash you need.
Do not hide your spending behind "saving" with coupons or sales
When you buy something, if it is a "want" rather than a "need," it is not a savings, even if you used a coupon or got it on sale. You did not really "save" money; you spent money. This reminds us of the story of the spouse who proudly returns home from a shopping trip and tells his or her mate how much money all the sales at the store "saved" them. The response from the mate is, "If we saved so much, why do I feel so broke?"
We encourage you to use coupons and shop at sales. Just do not let yourself be carried away by all the spending opportunities.
To reach your goal of having extra money, you may need to explore beyond your "comfort zone" and look for new ways to make more money.
Weekend or evening jobs can supplement your earnings. You can share your home or apartment with a friend, relative, or tenant and split expenses with them. For extra spending money, you can tell friends and family that you are willing to house sit, pet sit, walk dogs, run errands, or provide other occasional services.
There is an old saying, "Make good habits and they will make you." Soon, your new savings habits will become easier and you will start to see how they make good things happen in your life. In addition, the peace of mind you will gain will help you sleep better at night.
Heidi Clingen is a long-time resident of Stevenson Ranch. She and Samuel K. Freshman are authors of The Smartest Way™ to Save, Why You Can’t Hang on to Money and What to Do About It. They offer only their opinion, which does not constitute professional, financial, or legal advice. To receive a copy of The Principles of Financial Independence or submit questions, email them at http://www.blogger.com/goog_1674118699
No comments:
Post a Comment