No one ever said money was easy, whether you’re talking about actually getting it or, more importantly, being able to save it, stroke it, and maneuver in such a way that it actually starts to work for you.
When you talk about money mistakes and missteps as far as handling it, you have a few key indicators that you might not be as slick with money as you believe to be, namely not being able to budget accordingly.
There really should be no reason a person doesn’t have money leftover at the end of the month, as long as they’re doing one thing right: living within their means. If you only make a $1,000 per month, then you have to assume you have about $800 to play with when you think about expenses and how you’re going to have the happy medium between the two.
But yet more than half of the population doesn’t have a savings account to speak of and instead lives paycheck to paycheck. More of the masses today more than ever are worried about not having enough for retirement, and credit card debt average per household is around $20,000.
That doesn’t sound like too much in the way of budgeting, does it?
The truth is we are making big time mistakes with money, and we don’t even realize what is happening. Take for instance your home and car. Ask yourself a very important question: Did you buy too much house or too much car? If your answer is no, think about. The overpaying for homes or cars is an epidemic that leads to most of your income being sucked in by those two line items, when in actuality you should be buying not only used but thinking more along the lines of worst case scenario with your house payment, should something happen to your income. The general rule of thumb on the housing market is you should be in the neighborhood of 30 to 35 percent when it comes to buying a home.
And if you’re still buying (not leasing) a brand new car, come to your senses now. A used car, only a few years older than the new one, is going to save you a small fortune on that sticker price. This isn’t to suggest you need to have a 20 year old car that barely can churn up the driveway but instead thinking more along the lines of the huge markup new vehicles get versus old ones.
Money can be difficult to manage but if you’re thinking about the simple expenses versus income equation and that is your real driver for how you spend, then you should never have any concern about debt or not being able to save.
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