Well, the time has finally come for me to grow up. The realities of life have finally caught up with me… OK so maybe I am being slightly melodramatic here, however as I get older my response to responsibilities becomes a bit more mature…I think.
Going through a financial reorganization just now as I take stock of past choices, decisions and habits and looking to do better with money management. Here are some things I have learned so far:
1. Have an emergency fund. 3-6 months of cash saved preferably somewhere where you have access to it but not so easy you use it for a whimsical desire for pizza. Of course when I mention this most people immediately think, if not say, right I can barely meet my current expenses and I am supposed to go ahead and save 6 months worth of income!
It is possible… not easy, but possible.
2. Every dollar of income needs a name attached to it. Even if the name on it says throw it out the window fund.
3. Without a written plan and an accountability partner it is highly unlikely you will change your current set of habits and beliefs about money.
4. When you have debt you the debtor are enslaved to the creditor.
5. Using a bit of discipline and being willing to sacrifice what you want for what you need, it is possible to never have a car payment again. ( The average American has a car payment of $464.00 a month!)
The reality is just like dieting, debt consolidation is a scam. Lifestyle changes are the only way to win for the long-term.
On my way to rearrange some life…