Everything in our society is geared toward how you can afford it.
Low payments are the key. If they can just get you to think you can afford it and make it easy, they know you will buy.
But what are you really purchasing?
Life long debt.
Reconsider your life. Think about all the things you have, what you need and your debt. What do you have that is important? Your home? Your car? Check out recommendations on true debt levels on the internet. Remember: These recommendations are likely to be higher than your debt should actually be, but looking at them and calculating the percentage of your after tax income it takes to pay your mortgage or rent and your car note should give you an excellent starting point.
Review all your bills. Look at your spending for the last three (3) months. Put your spending in only these three categories:
1. Spending I have to spend to live (groceries, et all).
2. Spending I could do without.
3. Bills (that must be paid).
Be honest with yourself.
Ask yourself the most important question: Are you ready to begin an adventure in boosting savings and building wealth on your current after tax income?
Yes, I said it. Start where you are. Begin to build your own plan. Don’t believe you can start where you are? See our past blog entries for our “1% Savings Plan” or check it out at www.MiddleClassMoney.com.
Take a hard line with your bills. Call everyone who sends you a bill. Tell them you are having a difficult time and “want to keep them.” But tell them you need to reduce your expenses 12 – 15%. Ask for a supervisor right away if they give you grief. Be persistent. Call back. Ask for the supervisors’ supervisor. Be patient. Be nice. Ask for help. Be open to their suggestions – as long as it results in a reduction.
Take the money from any reduction and add it to a new spending category. Call it “Essential Bill” and pay it at the first of each month. Take the “essential bill” money and put it in ACTUAL SAVINGS away from your checking account.
Then, come back here and get more suggestions. Why? Because we are at war with the corporate American culture of debt and spending.
We want to be helpful to anyone who wants to put in the work to save regularly. You can do it, too.
You should be saving 15% of your after tax income. If you are not, you need to “make room” by eliminating spending, reducing and then eliminating debt and/or boosting income. And you can. You will be shocked how quickly it can add up.
Your emergency savings in 2010 should be 15 – 18 months of expenses in money market savings and certificates of deposit (FDIC insured). If you start saving regularly – even small amounts – you will be shocked how quickly it can add up.
Your checking account is a MONEY LAUNDERING ACCOUNT for other people’s money. Use any excuse to pull money out and stick it in savings (real savings). You will be shocked how quickly it can add up.
Are you ready? Start right now. Call a family meeting. Time is on your side. We are a consumer society. Take charge because YOU HAVE THE POWER.
YOU CAN CHOOSE
You can choose to take specific and steady actions to change your life, change the lives of your children and change the future of your family tree. Yes, you have the power yourself.
All the corporations, the private equity companies, crooked politicians and rich people can’t stop you if you really have a systematic plan that starts with regular savings and steady investment along with your regular bills.
If you are willing to take the time with your family to make a plan for reducing and then eliminating debt over time, you can gain more control over your finances and you can teach your children how to become wealthy over time.
If you are willing to make people work for the money you spend with them, you can build savings and then wealth.
These things are within your reach. You just have to start and you have to be encouraged.
You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.
If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at www.middleclassmoney.com.
Thank you for reading our blog and good luck!