Life In These Troubled Times

In these troubled times people are especially prone to lay blame upon others, such as ‘the greedy business owner’ or ‘the government’, but the truth of the proposition is that we find ourselves in the jams we are in because of a variety of reasons – which one factor is “our own irresponsibility”. In today’s world almost everyone is ‘feeling the pinch’ and are concerned about ‘their future’ or ‘their current situation’, but on the other hand there are millions of people who are going through these ‘troubled times’ with little trouble. Those who seem to have it easy are not always ‘the rich’ or ‘the wealthy’; they are sometimes ‘the middle class’ or ‘the worker class’. Now why do you suppose this is? The answer is simple, they have practiced something called “Financial Responsibility” and for now their efforts are paying off. If things get worse then they too may have deep concerns and worries, but for now they are doing well enough to have a good chance at riding these times out.

Over the past few weeks I racked my brain and did a little research about how the individuals can help themselves. I realize that not everyone will agree with me for one reason or another, but that doesn’t make what I saw any less valid. I will simply point out some of the things that have been time tested as true and where I cite new ideas then I will make that clear. The rest I leave up to you, feel free to add your input upon how we can make things better for ourselves. Thanks.

Pay Yourself First!

Over 25 years ago a man once told me that the key to successfully keeping to any budget is “Paying yourself First”. He said that you by paying yourself first could give you a sense of accomplishment in your life, no matter how little that feeling of accomplishment is. You can ‘pay yourself” by incorporating into your budget the buying of a pack of cigarettes every payday or a can of beer, and if you can truly afford it then you can set the money aside for more expensive things like going out to dinner once a week or taking a class at the local College.

You should know roughly what you could afford with out outlining it in a budget enough to know what you can easily spare for yourself. If you think that you can afford a carton of cigarettes every week, then write that down in your list of things that you are going to incorporate into your budget – you can always readjust that item later when you find out if you truly can afford it or not.

Know the Difference Between “A Need” and “A Want”

:”A Need” is something vital to your existence, something necessary to your survival. A roof over your head (A place to live), food in your belly, and clothing to keep warm are all good examples of “A Need”. Although these things are generally thought of as “Needs”, just because something fits the general category doesn’t mean it’s actually a need.

For example: That $300,000 2,000 square foot, 4-Bedroom Home that you are thinking of buying may not be a need, not if you could suffice with a smaller or less expensive place.

“A Want” is something that you could do without, yet you would like to have it anyway. Computers, Cell phones, Cars, Cable TV and Tickets to the Super Bowl are all good examples of “A Want”. Once again, just because something fits into the category doesn’t mean that it’s “A Want”.

For example, if you live in a place where the nearest Public Transportation is 3 or 4 miles away then a car may actually be “A Need” or “A Necessity”. This doesn’t mean that you have to go out and buy a $50,000 car to fill that need, perhaps something that costs 1/3 to ½ the price would suffice.

So set up your budget in two lists. Make one list “Needs” and make the other “Wants”. Budget the “Needs” first and then fill the budget in with the “Wants” after your needs are covered.

Don’t Fear The Banker!

Don’t fear storing your money in banks, they are still one of the safest places in the world to keep your money… but don’t blindly trust them either. Keep aware of how well your Bank is doing and if things really look that bad then you may opt to withdrawal your money or move it to a safer bank. Normally I would advise trying to keep a small amount of money at home, but in today’s world if a portion of the populous knew people kept $100 or more in their homes then that could increase the crime rate for home robberies or home invasions. So to be on the safe side I will say, “Don’t keep large sums of money at home or in your car.” – instead find a bank that is relatively stable and place that money you would keep at home in a normal savings or checking account. Today’s world gives us things like Debit Cards and Credit Cards to use; also banks are now open 6 days a week (with Saturday being a short day). We can access our money a lot easier than we could 30 years ago. Just keep in mind that even though I urge utilizing the banks, I also urge to not blindly trust them as well.

Use of Credit Cards

Avoid using your credit cards to buy things you could not normally afford otherwise. I know I won’t make friends in the credit industry for this, but that really isn’t my problem… it’s theirs. When you use credit cards, use them wisely. Check to see how the credit company charges interest and if you can avoid paying interest by paying off your purchases as soon as payday arrives, then by all means use the card if you want… but remember to pay off what you place on the card as soon as possible and before any interest kicks in. If at all possible use your debit card instead of a credit card, if you don’t have the cash on you at the moment of purchase. There is no greater feeling than being “Debt Free”.

In certain cases you can make bigger purchases that you may not be able to afford in one or two paychecks, like computers, and there is nothing wrong with paying the Credit Card company interest on using their money… but remember, you can use your money as much, or more, than they can.

Save A Portion Of Your Own Income

I suggest that everyone tries to save 10% to 25% of the money they make for the future, but I realize that not everyone can do this. This doesn’t mean that just because you can’t save 10% that it means you can ‘blow it’, even if you can only save $5 or $10 a paycheck – you will find that it adds up over time. When times get better you can save more and in the meantime you will get the training to not spend every cent you make.

Spend Your Money Wisely

Don’t pay the high dollar for what you want or need and don’t buy when you can get what you need for free legally. Look around and spend a little time researching, quite often you can get some pretty good deals. Where information is concerned then take the time to research things yourself, most often you don’t need to pay someone for information you want – odds are it’s out there somewhere for free. If the item or information isn’t out there for free then look around to get the best price you can.

Don’t let ego stand in your way, find and utilize coupons for the items you want. Coupons can save you a ton of money in the long run.

Join ‘Discount Clubs’ at places like the Grocery Stores you visit, these things are often free and can save you lots of money.

Look into places like Price Club, Sam’s Club or Costco. Most often these types of clubs really don’t save the average person money because of their membership fees and the amount of items you have to buy to get the savings… but they may be worth your while and it costs you nothing to investigate the possibility.

Don’t fall prey that by going to several stores to save a few dollars is saving your money. Remember there is a cost for gasoline and ‘wear and tear’ on your car. Shop wisely, sometimes it’s better to pay more for one or two items at one place that offers you a lot of savings on most of the things you are buying than it is to go to 3 or 4 stores for a few items.

Don’t Fall Prey To The “Seller’s Gimmicks”

It seems as if ‘everyone’ wants your money and sometimes they will devise some pretty ingenious ways to get your hard earned dollars from you… “Don’t become a victim”. You are the master (or mistress) of your money, it is you who decides what you need and want and due to you being the one in control of your money – you hold a certain amount of power.

Every day I get saturated with Internet Marketers telling me that I ‘have to buy this item” for whatever purpose they opt to use. The fact is that I don’t need their product or service to survive, but they need my money. It doesn’t hurt to see what anyone has to say, but keep in mind the question of “Do I really need what they are offering?”.

Don’t Let Ego Get In Your Way Of Getting What You Are Entitled

If you are eligible for Food Stamps then don’t let Ego stop you from missing out on what you are entitled. There are millions of people across America that could work, but don’t, and these people take advantage of benefits that you also are entitled to get. Check out your benefits and entitlements, they are there for a reason.

I realize this sounds as if I am saying “Live off the Government”, but I am not. No one is more against the abusive of services like Welfare than I am… but I also feel that if others utilize these services for benefits, they why shouldn’t you be able to get what you are entitled. Once again, it doesn’t hurt to check things out and then decide what you wish to do.

Don’t Make Trips That Are Unnecessary

If you walk or ride a bike, then this really doesn’t apply as much as if you are using a car or motorcycle. Try to combine the trips you make, especially if the places you have to go are ‘on the way’. Every time you use your vehicle then you are not only using gas or some type of petrol… you are placing some ‘wear and tear’ upon your car. If you are able, then walk to that corner store for your six-pack of beer or soda… the walk will do you some good.