Money Sense
YOUR LESSON PLAN FOR FINANCIAL SECURITY
Money lessons are often learned the hard way......by trial and error. As a child, you may have spent all your money on candy and "junk"...Lesson learned: Don't spend your money all at once!
As a teenager you may have spend your money on trendy clothes that went out of style soon after you got them home.......Lesson learned: Buy quality products that will last a long time.
Your first car may have been more rusty than racy......Lesson learned:
Save more money means you can afford nicer things.
Now that we are earning and managing our money more wisely its important to make wise choices to protect your finances...
The first step is to prepare an outline...... This will help you to map out your moves......I think most of us spend without realizing just how much we are spending......a clear picture of what goes out may shock you....
The balance between spending and saving can mean a successful financial plan or living from paycheck to paycheck.
You have to began to study your money habits, start by tracking where your money goes.....I mean EVERY single penny you spend......get one of those small notepads to write things down daily....
Separate expenses into essential and discretionary, add up the money that's directed to saving goals, or what you would like directed there.......and total your income.
After you've dissected your monthly budget, it's time to analyze the data. Ask yourself if you really need another pair of black shoes, or if the ones you have now will last another season.
Bring your coffee and lunch from home instead of buying them while you are at work.
Everything that you could delete from your list as unnecessary, and I am talking about, snack foods, cigarettes for those that smoke ( thats a good thousand dollars a year), going to sales and buying those "I got to have items" that end up sitting somewhere unused,
I know I had a list that blew my mind when I saw it written down.......... take that money and put it in a savings account.....this is for that CD that you are going to buy in the near future.....
Now you must assign deadlines for your financial goals. Determine what you can comfortably afford to put in that savings account.....
Now once you purchase the CD you will be unable to touch it for at least a year.....the longer you keep it the more interest you will get......
Three years will gain you the most interest, check around and see what bank gives the best rates.....
Now a side note here......if you do need the money for an emergency, you can borrow money using the CD as collateral. Its so much easier to get a loan when you use your money as collateral......the benefit is that after the loan is paid you still have your money and its never stopped gaining interest.......smile.
Now be patient and stick with your plan and you will be pleasantly surprised a few short years down the line.......
