MONEY & DEBT MANAGEMENT

CONTROLLING IMPULSE BUYING
ASK YOURSELF THESE QUESTIONS BEFORE BUYING:

1. Do I NEED it?
2. Do I have to have it TODAY?
3. What will HAPPEN if I DON'T BUY IT?
4. If I really have needed it, how did I MANAGE THIS LONG WITHOUT IT?

SET UP A SAVINGS PLAN
Save and invest 5-10% of your gross monthly income, put it in an "untouchable" account the moment you receive the money.  Of course, for most of us, this is easier said than done. If you're currently living from paycheck to paycheck, begin by creating a solid spending plan after tracking all of your monthly expenses. Your family will one day thank you for your discipline.

SET UP A SPENDING PLAN
The math that lies at the root of a strong spending plan is so simple that it actually sound ridiculously common sense:

The amount of money going out must always be less than,
or equal to, the amount of money coming in.

Wondering where your money has gone to?
Most do not know how much they spend each day. They may know about the big-ticket items, the rent and mortgage payments and the utility bills but they lose track of extras like restaurants, dry cleaners and taxi fares.  If you take a piece of paper and write down everything you spend, not including the change, you'll be shocked by how much money you go through that you don't realize.

For one week, record all of your expenses no matter how small.  At the end of the week, you should have a slightly clearer idea of where those extra dollars could be hiding.  In the future you can use the funds you are currently frittering away to increase savings, pay off bills or even buy something special.

RULES TO LIVE BY:-

If you're in a hole, stop digging.
How much good could you accomplish just by stopping doing something bad?

It will not get done unless you do it.
If you've been relying on others to get you where you want to go, then stop. No one will execute your personal interests better than you will. So take control of your life.

When it comes down to reasons to do something versus excuses not to do it, there will always be more excuses.
Starting now, direct your thought processes into a U-turn. Live with the words, "I will do this because . . .

You cannot save $5000 until you save $1000. You cannot save $1000 until you save $500. You cannot save $500 until you save $10.
Even the greatest accomplishments start out small.  If you're looking ahead and getting frustrated because all you can see is how daunting your tasks/goals are, break them down.  Make it into a game, imagine you are teaching your child to save, how would you go about it?

You shall not count on future earnings to pay present debt.
For most of us, as we make more money we suddenly find we "need" more and more things to keep us happy.  It's simply human nature to spend what we make.  This can guarantee only two things: bigger debts and more worries.

You can't out-earn stupidity.
The money you make (or the lack of it) doesn't cause money problems.  When they happen, it's caused by the way you spend the money you make.

Expenses will rise in proportion to income.
Without a change in mindset and a strict financial discipline, the "more money" that occurs every so often via a pay raise, an inheritance or a windfall will always be accompanied by a proportionate rise in expenditures. Thus the saying: "All I want is to make ends meet - but someone keeps moving the other end."  More money does not solve the problem; financial intelligence does.

Know the difference between assets and liabilities.  Acquire assets.
The majority of people go through life without truly understanding the difference between assets and liabilities.  The rich got where they are by purchasing assets.  Low- and middle-class people got where they are (and stay there) by buying liabilities.  The worst of them all are those who willingly pay interests on diminishing 'assets'.

Being in DEBT is the WORST FORM OF POVERTY.
If you're in debt now, get out of it.  Do this as fast as you can.

Best saying that we have come across:

"We spend money we do not have, on things we do not need, to impress people we do not know"

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