| You can take control of your personal finances by | | | | cannot answer with a resounding "YES " let it go. |
| applying the lessons listed below. | | | | 2. Don't buy things JUST because they are on sale. |
| Problem #1. Spending Without Knowing Your Limits | | | | Only buy things you need. If you do need them wait |
| As in business, you will not last long financially if you | | | | a few weeks the price may fall even further. |
| spend without regard to your income. Knowing your | | | | 3. Don't buy the latest fashion items at the height of |
| spending limits is not hard to do. Just find the | | | | the season. Just wait a while. The prices usually |
| answers to these 4 easy questions: | | | | reduce. |
| Question #1. What is my take-home income per pay? | | | | 4. Don't compare yourself with others and what they |
| (that is your total income less taxes) | | | | have. They may have purchased making the same |
| Question #2. What do I need to spend to live? | | | | finance mistakes as you. |
| Question #3. What is the difference after taking | | | | 5. Set yourself a savings target. Put this money aside |
| spending from income? | | | | each payday BEFORE spending any of your pay. |
| Question #4. Can I save enough for my future from | | | | Problem #4. Spending Without Feeling Satisfied |
| the answer in Question #3? | | | | Spending can leave you feeling pretty shallow and |
| There are many tools to help you gain answers to | | | | unrewarded when you purchase on a whim or fancy |
| these questions. You can find many on the Internet. | | | | when you really know you cannot afford the item. |
| Helpful Hint: Find one that helps you set your savings | | | | What's more you may not even use it. What a |
| targets, checks your ability to meet the targets and | | | | waste! |
| then shows your progress towards your goals. | | | | To really FEEL GOOD ABOUT SHOPPING and |
| Problem #2. Spending Without Setting Savings | | | | spending you need to know these 4 things: |
| Targets | | | | 1. My budget allows me the freedom to purchase this |
| It's OK to spend to the limits of your income but | | | | item |
| that does not provide you with any buffer for urgent | | | | 2. I have the cash put away already for this purchase |
| purchases, or protect you from a financial | | | | (even though I will use my credit card for the |
| emergency. Urgent purchases could be renewing a | | | | transaction). |
| broken fridge or stove, calling a plumber to fix a | | | | 3. This purchase is something that I really want and |
| broken pipe or having to spend for major car repairs. | | | | will use. |
| Financial emergencies could be temporary loss of | | | | 4. I have purchased this item at the best possible |
| income or hospitalization of a family member. How | | | | price, saving as much as I can. |
| would you survive financially in any of these | | | | Problem #5. Spending Without Caring About Your |
| situations? | | | | Future |
| You can begin to save today, it's easy. What if you | | | | Unless you are planning for your future and financial |
| went without your bought lunch each day at work? | | | | security, you cannot be really happy. There are |
| That saves you $1,000 per year on $5/day. What if | | | | always worries lurking in your mind about how you |
| you reduced your Starbuck's coffee by 1 each | | | | would survive in a financial emergency if you have no |
| working day? That's another $1,000 per year on $5 | | | | savings. It can be very rewarding to see how quickly |
| day. Just those two amounts alone can mean a | | | | your savings multiply over time with only a small |
| holiday for you, the beginnings of a savings plan, or | | | | investment each payday. |
| an emergency buffer. | | | | Did you know that by saving just $5 every day this |
| If you set a target of 10% of your take-home pay | | | | would grow into $1,867 in 12 months at 5% interest |
| each payday that would be a good start. If you think | | | | and then it grows into a whopping $10,343 in 5 |
| creatively, you are sure to come up with ways to | | | | years? Isn't your future worth investing in? |
| achieve this. Think of the peace of mind that would | | | | Why not start to overcome your personal finance |
| bring. | | | | problems today? Looking back you'll be so glad you |
| Problem #3. Spending Without Knowing How to Save | | | | did! |
| There are many easy ways for you to save money | | | | If you click on the links below you will be taken to a |
| that allow you the freedom to spend when you see | | | | great budget solution. It helps you set your savings |
| something you really want. Some of these are: | | | | targets, checks your ability to meet the targets and |
| 1. Don't buy on impulse. Ask yourself 2 or 3 times | | | | then shows your progress towards your goals. |
| "Do I really NEED this?" before you buy. If you | | | | |