Financial Choices today Impact Future Generations

I am not the Grinch, just a positive reminder that you need to think wisely as you spend this holiday season.

Keep on trucking, do not get discouraged, this must be done.

I know this budgeting thing is a painful process for many, I am listening to pleas however I must encourage you to keep on going tough as it may be, there is light at the end of the tunnel. 

Remember every choice you make today will impact the next generation in a positive or negative way. That BMW that you think you must have today with money that you have not yet earned could very well be the college tuition for a son or daughter down the road. Are you jeopardizing their future with a selfish act? Do you really want to pass on that legacy?  What are you sacrificing to live in Alamo Heights today? And that career path you are on, is it being done to the detriment of your family? Think about this today, what financial decisions are you making today that will positively impact your next generation? What financial decisions are you making today that will negatively impact the next generation? 

Sometime back in 2002 I read somewhere that the definition of debt is: Spending today what you expect to earn tomorrow. Don't do it! Remember you are always free to check in with me privately whenever you need help or consultation with your budget. I have been helping people for as long as I can remember and the ones who stay on course always win in the long run! Don't give up, if you fall off track, get back up again, you will make it, I promise!

Start Your Budget

Goodday to you. So, you are on day 8 of your journey to becoming debt-free. How does it feel? Are you fully committed? Do you think it is impossible to start during the holiday season? Have you slipped up and used your credit card to buy gifts? Well, if you decide to wait until the holidays are over, that's OK, however you must commit to a maximum spending budget and try your very best not to go over no matter how challenging it may be. Absolutely no vacation planning on credit. If you plan on going on a vacation, first you need to secure a rainy day fund or an emergency budget, once that is in place then you can start saving for a vacation. To do this, you must have a clue as to your total monthly expenses. This is the very first step in formulating a budget.

Your assignment this week is to sit down and write out all your expenses for the month. Here is a sample list of items you might want to start with:

Tithe (If you are christian and tithing, this means 10% of your income - Mal 3:10)
Housing expenses (mortgage or rent)
Car Loan

Car Insurance

Gas

Food

Utilities

Student loans

Life Insurance

Other loans

Clothing

Gifts

Medical costs

Savings
Other

 

Once you have decided on this monthly amount, we will then move on to determine the monthly income. Then we will have some guidelines as to how much each expense should be relative to the income. (example: Food should never run more than 12% of your income, etc.)

 

By the way, if you are married this exercise is best done as a couple, two cannot walk unless they agree.

I'm back with a vengance! Are you ready??

Okay so I started this blog back in 2007 when I began my journey to get out of debt. I can safely say I am debt-free expect my mortgage which I am working on. As you can see it has been awhile since I created a new post, reason, I allowed life to get in the way, period. Well I am back now, willing and ready to share some of my experiences with you, hoping that you will share yours with me as well. Have you started the journey as yet? If not, what are you waiting for? I will not kid you, it is a painful process. While you are going through this process, you might have to drive a not-so-great-car, no "eating-out" for a bit, etc, etc., but remember it is a journey, there is a destination. What I can safely say is, once you are out of the hole and start really saving, it is the greatest feeling and you will say it was well worth it.  It is only then that you can you can truly help someone in need and not worry about it. You will stop living from paycheck to paycheck; you will smile more; you will be able to face life's incidentals without having to go borrow from Tom, Dick or Harry, if they exist! Murphy's Law will not be such a fear anymore, you can truly live like God intended you to live. I am hoping you will start this journey or tell me where you are in the process. Let's do some damage to this "credit" mentality! Are you ready?! Let's do this!

Step #1:  Assess the damage: This is done by figuring out how much debt do you have? It's time to face the music. Lay it all out on the table. All the secret credit cards, with the balances you have been hiding from yourself and who know who else. Let's get real! Any store cards?  Today is assessment day! You need to know the true balance of your debt, including your mortgage. The mortgage and the student loans are the only debt which we will "wink" at for now. All others are inexcusable. How about that car loan or the loan from your sister, brother, job, coworker, payday loans or a friend. If you borrow and promised to repay, it is a loan, include it. Write it all down on paper, no trying to figure it out in your head, you need to see it in ink.  Now, make yourself a promise: I will not use another credit card or borrow anymore money until I know the true balance of my debt. 

Okay so you are one of those really organized individuals who already have the answer to this question, very well then, make yourself a promise not to use your credit card to buy any Christmas gifts! Is that too harsh? No, it is not, how can we borrow money we do not have to buy a gift?

Remember this is a step by step process so we are working on step 1 this week. Let me know when you are ready for step #2. Remember no Christmas or birthday gifts on credit. Get created and make something or give promissory notes indicating that you will get a gift at a later date. Be kind, share your love, the people in our lives need more love than gifts. Let me hear your creative ideas. Living debt-4ree rocks!!