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...
Ok, you're sooooo going to have to help me with this coupon thing!! lol
ReplyDeleteWhile I agree and disgree with some of you points. I think its a great thing is to take charge of your finances! I can personally speak of how rewarding it is to get out of debt and how hard it was but a year of sacrafice. But it's worth it in the end.
ReplyDeleteWhile I'm not CFP I do have some licenses and have a knowledge of porfolio planning. And the one thing I'd say do before you invest one dime (after tax) is start a "Emergency Fund"! One that is liquid in a bank or credit union you can get to if you need it without penalities. All the investment accounts in the world are useless if you keep dipping into them when you're car breaks, you get sick, a family member dies, you can't work! Most experts reccomend you have 6 months living expenses saved up. You can start one very easy by setting up a regular transfer from your direct deposit in an amount you can afford to miss no matter what.
One more thing is purchase some type of life insurance (independent of you job). So if you never get a chance to build up your 401k , you're family will still be taken care of.
Thats just my two cents... But on the real, can you help me with the coupons... :)
Lee
You are amazing!! xoxoxo
ReplyDeleteLee, I agree with you 100%. I'm not a CFP by any means I'm just speaking from my experience. The long term spending I mentioned above, I use as my "regular savings" for those emergency situations you mentioned. You make some very great and valid points. Thanks
ReplyDeleteI'm willing to help anyone with coupons. I will try to post a blog on that specifically since people are asking about them. The key thing is only clip coupons for items you normally buy. Often times there will be coupons for items that are new items that are being introduced to the market. That can be a trick to spend money on something you normally wouldn't purchase.
Thanks Chris ;~)
ReplyDelete