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Plan for your Future

Saturday, August 29th, 2009

Planning for your future is one topic that is being neglected these days due to our current economy. It’s something that is so important yet more times than not one of the first things to go out of the budget when times get hard; or even neglected from the very beginning. Yes, people are trying to save every dollar they make. Yes, times are harder now than they were, say two years ago. And yes, it’s important to be frugal with your money. But it’s also just as important to continuing planning and saving for your future.
Here are a few suggestions to help you stay on track:
1. Take a close look at your budget. What do you include in your monthly spending that is not absolutely necessary? Eliminate those items first before you stop contributing to your retirement account.

2. Get a part-time job. If at all possible, maybe it’s a good idea to search for a second job where you would only need to work for a few hours here and there. That way you can still contribute whatever money you already set with your current employer and are making up the difference/earning a little extra with the part-time job.

3. Look at your goals.  Sometimes it’s helpful to re-evaluate what you ultimately want in your future. Do you want to travel? Do you want to live comfortably? Do you want to be able to help your children out financially if you can? (not going overboard, of course) If your goals are on your mind constantly it will help you focus and stay on track in the long run.

Aaron and I are still years and years away from our retirement age, but we already have ideas of what we would like to do. We hope to live comfortably and be able to do things that we maybe missed out on earlier in life, like traveling to exotic locations. They are vague ideas now but it’s a start. They will only be more concrete the farther we move along in life. Because we have solid goals in front of us at all time it’s an encouragement to stay on track and continuing saving for the things in life that we value. Our money is tight just like everyone but we are still determine to save a considerable amount of money each month; which we do.

I encourage you to keep plugging away and to look positively at your future and the things that you want out of life. Don’t be discouraged about your current situation. Use this time to truly motivate you to move towards your goals and dreams. Once you do that, get a game plan together to do whatever you can to reach those goals and have a comfortable retirement.

Don't Pay Attention to Your Neighbor

Saturday, August 29th, 2009

A huge trend of our culture has been to constantly compare your house to your neighbors. Or, your car, lawn mower, kids…education, etc…
What about debt? Bankruptcy? Is it OK to try and achieve the same level of insolvency that your neighbor has? We all know the answer to that question. So, how can you avoid getting stuck in the same trap that your neighbor has? Read on…

1. Don’t Have a Car Payment
Did you know that a majority of American’s believe that a car payment is just a part of life? Yup, they do. And you know what, I don’t blame them. Generations have embedded this thought process into our current and most likely future generations. BUT, just because everyone else has a car payment DOES NOT mean that you need to. Buy a car WITH CASH and win. Get a beater car that you can AFFORD and drive it until it won’t anymore. You’ll save yourself thousands in the process.

2. Have a Rainy Day Fund
On a normal day, you wouldn’t take a long walk outside while it’s raining, so why should your finances be any different? I don’t know, but the average savings account today sucks. Plan and simple, folks just don’t know how to save. So you can be wiser just by saving a percentage of your income each month. Start with saving $1,000 to be used for EMERGENCIES, then move to saving 2 to 6 months of living expenses. That’s the best umbrella money can buy.

3. Get on a Written Budget
Yup, a budget. I know they aren’t fun to get started, nor are they too much fun to stick to each and every month, but they will save you boat loads of cash if you work at it. As Dave Ramsey says, spend every penny on paper before you even have it in your checking account. This way you don’t even give yourself to spend money on things you shouldn’t.

4. Cut out the Crap
Examples of crap: cable TV, eating out multiple nights every week, vacations you can’t afford, etc…Once you have a budget written out you’ll begin to see areas of it where you can probably cut to help save you some cash each month. This way you can beef up that savings account, or if you have debt to pay off, get crazy about paying off that debt. Look at your expenses each month and create two categories, NEEDS and WANTS. If you’re really good and crazy, get rid of the WANT category and roll that money into savings or debt payments.

5. Cut up that Plastic
Another painful one for folks, but a great way to get ahead in your personal finances. Cut up the credit card and if you carry a balance pay those suckers off! Start paying off the lowest balance and work up through the highest. You’ll be surprised how much extra cash you have laying around when you don’t have payments to make anymore! So get cut’n and start pay’n!
Hope these 5 tips help you avoid the ditch your neighbor is in! Any other tips? Share them in the comments!

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