Just Saying
Tuesday, June 29, 2010
To be able to understand your financial standing, you must know exactly how much money is coming in (income) and how much money you're spending in a monthly or weekly basis. If you can, save 20% of your income and spend the rest for your needs and wants. Make sure that your needs don't exceed the wants.
I know someone knee deep in debt and he's regretting ever needing (wanting) all those credit cards which he could not afford to pay after months of over swiping. The trouble with credit is that you are fooled to believe you have more to spend than you actually have. That is why as much as possible I operate on a cash basis. This way I know exactly how much money I have and how much I can spend. If there's extra cash at the end of the week after buying all the necessities then that's the time I can use the money for my wants. It's as simple as that. So far, I have no money trouble.
Sad to say, this friend has closed his ears for some of my advice. I guess he's still in denial or something. Sayang. If he would open up his mind, I'd tell him to stop investing in shoes or clothes next time and start to buy gold coins instead. I've read that they are solid investment which appreciates in value over time. It is also easy to store and everyone knows it is a wise move if you want to protect your wealth. Just saying.
I know someone knee deep in debt and he's regretting ever needing (wanting) all those credit cards which he could not afford to pay after months of over swiping. The trouble with credit is that you are fooled to believe you have more to spend than you actually have. That is why as much as possible I operate on a cash basis. This way I know exactly how much money I have and how much I can spend. If there's extra cash at the end of the week after buying all the necessities then that's the time I can use the money for my wants. It's as simple as that. So far, I have no money trouble.
Sad to say, this friend has closed his ears for some of my advice. I guess he's still in denial or something. Sayang. If he would open up his mind, I'd tell him to stop investing in shoes or clothes next time and start to buy gold coins instead. I've read that they are solid investment which appreciates in value over time. It is also easy to store and everyone knows it is a wise move if you want to protect your wealth. Just saying.
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