We often insist we don't have money to put in savings then we fritter what money we have away. How much better to salt a little cash away rather than spending it on 60% mark downs that we don't need, remember retailers wouldn't offer deals like this if they didn't know they could make money off us. They run these sales to improve their bottom line, not ours. When we are enticed with discounts to open a store credit account, we almost always buy more than we need or items we would not have bought otherwise. Remember something we don't need is expensive at any price.
How much do we really need restaurant take-out, professionally done manicures or Starbucks coffee? These things cost big bucks in the long run, your hard earned money is gone, and what is there to show for it? If you go out to eat lunch from work everyday the price at the end of the month is enormous, but if you brown bag it, it is very economical. Meals can be easy to prepare at home. Pop the chicken in the oven while you bake a potato in the microwave, steam a few vegetables, serve a piece of fruit for dessert, and you have a healthier meal for much less than take-out.
Getting a mortgage you will have trouble paying for is a big mistake. When hard times come you will lose everything you have paid on your house during foreclosure. Buy a house you know you can afford even if it doesn't have the latest appliances or the most space. You will be glad you did when the payments are due. Don't ever stretch yourself to thin. Your mortgage payments, insurance, and taxes should not be more than 25% of your income, and less is better.
Don't borrow on your house to pay off credit cards, instead cut all your other expenses to the bone and pay everything you can on your credit cards. When you do get them paid off, resolve to put no more on your credit cards than you can pay off each month, and stick to it. If you think you can't do that, cut them up. If you charge $5,000 a year on your credit card at 18% APR and pay only the minimum each month which is 2% of the balance, In 30 years you will have paid $280,000 in interest and still have a balance of 74,000. Scary, isn't it?
Little things like movies, hairdressers, restaurants, and the like can run into money that you can use to pay off your credit cards and any other debts. Take a look at all your expenses and see where your money is going. See how much you can cut out, and put your money to the best use possible. After all you work hard for your money. Make it count.
