Like all women, I love to shop. I love clothes, shoes, handbags, etc. I know several men who love to shop as well for clothing, shoes (i.e. Jordan’s, Dunks etc.) & electronics. We work hard every day and we should be able to enjoy the fruits of our labor however we shouldn't get in debt as a result. This is why I decided to write this. It's by the grace of GOD that I'm debt free. So I wanted to share some of the tips that I use and the information that I've learned to help my readers out as well.
1. Simplify your lifestyle meaning; decrease your cost of living. I know several people who live beyond their means purchasing things they don't need, with money they don't have to impress people they don't like. If you decrease the amount of money you need to live you can increase your savings and/or money available to invest.
1. Simplify your lifestyle meaning; decrease your cost of living. I know several people who live beyond their means purchasing things they don't need, with money they don't have to impress people they don't like. If you decrease the amount of money you need to live you can increase your savings and/or money available to invest.
2. Don't be afraid of coupons. Personally I love them. I don't shop without them. You would be amazed how much money you can save. I've gone to Kroger on several occasions and between sale items and coupons I left with 5 bags of groceries spending $9. I do the same at Macy's and Victoria's Secret. Yes I can afford to pay full price but why should I when I don't have to? The money I save could be put to use elsewhere (we'll get to that later).
3. Seek a good financial planner. The best way to do this is by referrals from friends and family but still ask questions. Why do they like the planner? Does the planner educate them on various types of investments or just one? Is the planner willing to tell you how they personally invest their funds or show you their statement? If the planner won't do this, I consider that a red flag. If they believe in the products they're trying to sell you they should own it & they should be willing to show you what it is they invest in themselves.
4. Allocate funds after taxes into the following accounts:
- 50% into an account for normal living expenses & necessities
- 10% into a long term spending account
- 10% to an educational account for either yourself or your children
- 10% for charitable donations
- 10% into a "play" account to purchase clothing, shoes, a new handbag, go to the spa etc.
- 10% into an account for investments
Learn to think long term when it comes to purchases as opposed to instant gratification. Make an effort to create balance between enjoyment today and getting and/or remaining debt free for tomorrow. Eliminate emotional spending. Often times spending money you don't have stems from expending emotions you do have as a result of lack of fulfillment in some area of your life.
When making large purchases ask yourself, "Do I really need this?", "Is this an asset?", "Is this creating value?", or "Is this creating debt?"
Learn to collect assets, not bills. Until next time...
