Most of my posts have to deal with personal budgeting ideas and how to make, keep, and succeed with a specific budget. Many of these ideas include every day spending and how to save at the grocery store or in going out to eat…stuff like that.
However, I think one of the most important thing to remember when living your financial life, is that simple rule of provident living. This weekend I listened to a speaker who emphasized this point, and I thought it was so good that I wanted touch on those things for a quick minute.
We all know that there are different classes of individuals based on a financial level. There are the wealthy, middle class, lower class, and those living in poverty (and many other small levels in between). A fundamental rule in finances is to live within your means.
Trying to keep up with the Jonses or the Smiths will put you in debt faster than you can say “money, money, money”. Our neighbors (or the guy down the road) will always have something we want or think we should have to look as “prominent” as they look.
The key is to realize that, yes-that’s a pretty cool toy and a very nice house, boat, jet skis, cabin, etc.-but, you can’t afford it! It’s hard for some people to distinguish between, “I want that”, and “I can afford that”. Sometimes, even if you can afford it, you don’t actually need it, so why waste your money?
A lot of people fall into financial troubles because they purchase things that they can’t afford just to keep up with their friends, family, or neighbors.
My advice to you is to realize that you don’t need to keep up. Having a cool toy is not worth going into extreme debt. It never will be. Live providently-live within your means. After using some of these personal budgeting ideas, maybe you’ll eventually get to that point, but it’s essential to recognize when you are or are not in that situation.
This is a good post!
The only problem is that it’s nothing new. Financial experts from the beginning have been saying live within your means. However, there still going to be people who have “selective” hearing.
Your absolutely right most of the crap you don’t need. Self-Discipline is probably the most underrated trait there is.
Excellant post. Easy to say “be disciplined” much mor difficult to do so. You are one smart cookie.
Great article full of common sense wisdom. You are a very sensible person and should get a raise.