Two. That's it. A recent article seen on Yahoo Finance claims that there are only 2 Financial Rules one must live by in order to create financial freedom. What are those rules? Are you sitting down? This isn't rocket science, but unfortunately many will be shocked. Those rules are:
- Pay yourself first
- Practice Mindful Spending
I told you it was simple, but it is true. "Pay yourself first" refers to saving. As an American we are conditioned to spend what we have. Most of us don't have the ability to save anymore. Those of us who do, will get ahead. I learned this trick 12 years ago. Realizing at the time that I was incapable of disciplining my saving habits, I would simply record in my checkbook my deposits each week, but would do so in error on purpose. I would record the amount at 10% less than it actually was. It worked. I remember after one short year of doing so, I had to close my checking account to move to another state and I was utterly shocked to learn I had thousands more in my account than I knew I had. Now, this might not be the most accurate way to do it, but the principle is the same. Pay your savings before paying living expenses. This will prevent your wants and needs from destroying your future.
"Practice Mindful Spending". This is a tricky one. We live in a micro-wave society. We want it and we want it now. We don't want to wait for it to cook, we just want to eat! Nevermind the fact that a micro-waved meal is less appealing to the palate or that it is possibly healthier to eat a slower prepared and more love-laced meal. Woefully, we have become a society that has forgotten the wisdom of our elders and this also applies to finances. We no longer save for the future let alone for the smaller desires we have. It used to be that we would save for weeks and months if not years to purchase that car, television, bike, etc. Not anymore. Now, we want, we buy and we worry about the cost later. This is irresponsible and is reflected in our personal spending all the way to the leaders of our nation. This must stop. I believe that we could go without most things we consider as "wants" or even "needs" . If we were to force ourselves to go without that want or need for a couple weeks rather than appease our appetite, we would learn that we function just fine...if not better, without them. A trick I use is just that. I deny myself for a month or two and then, if I am still feeling the urge to purchase, hopefully I have saved the money needed for such a purchase in the meantime.
It's simple folks...or it can be. Lastly, I want to point out that saving money is fun and it is addictive. I don't support the proposal of being a miser, but if you can find the balance between living/enjoying life and frugal spending, you have arrived. It is a constant battle, but one that yields long lasting results. Read the article. Read it again. Put it to practice. Two Rules...It is that simple.
1 comment:
Great advice. Simplicity in the rules, and in the way we live our life will help us be less encumbered....with bills, and unneccessary stuff!
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