Our economy probably needs us to shop irresponsibly again and “live beyond our means” in order to give the economy a boost. I never understand why North Americans are the only people where the average resident consumes more than their income. Some people blame the educational system for not having personal finance classes, but there are ways to learn outside of school too! It’s not like my teacher taught me how to use the toilet. I don’t know about you, but I learned because:
I had to (out of necessity) and was told about this fact
It never occurred to me that there was an alternative
I did it enough times so I could do it without thinking
Toilet Training (Personal Finance Style)
If you need to toilet train yourself again, here are some tips that expands from what I talked about above:
The Need to Save Money In case you are lucky enough to not know the importance of saving money, let this post be the wake up call. You need to save for your own sake! Can you imagine what will happen if you lose your job and can’t find work for 6 months? How will you pay for your mortgage? Do you know what it’s like to live in your car? Do you know how cold it gets at night if you live off the streets?
Stop Getting Further Into Debt It’s so strange that so many people just borrow, borrow and borrow. It didn’t matter where either, be it credit cards, home equity line of credit, RESP or others, people just keep taking out money they don’t have! I just don’t get it, but why does it seem like rocket science to buy something only if you have the means? Do you really need that car, the TV, or even that new pair of shoes? What happened to what you already have?
Knowing What to Do with Money Without getting into details, you know what to do when you need to go. Money is exactly the same way. Once it becomes second nature to save, you just do it. You don’t think, you don’t regret and you certainly don’t ask why you save.
Getting started is always harder though, so here are some common tips that always works:
Save up all the income you receive as soon as it gets into your bank accounts
Treat your savings like a high security vault that requires maximum clearance before you ever withdraw
And best of all, lay out a logical plan (if you want, consulting with someone else could work too) so you can just follow it.
At first, you might not be perfect but with practice, everyone can become an expert!