- Personal Finance
Money; the ins and outs
What I did for myself
Money; money is one of those things that is glorified in the world.
We see it all around us. It is spoken about everyday by some person somewhere using some sort of media or even in person. There is a love and a hate for money.
Most people don't have much money and most people work to live, to make ends meet. That is not a good way to live.
Wages are low and the cost of living is high and is going higher. Politicians speak of how great things are, how prosperous the nation is...yet, when we look around, all we see is suffering. Politicians are out of touch with reality.
Over the past many years I have come to the realization that corporations want us to spend so that they become wealthier and politicians want us to spend to make the government and themselves wealthier as well. I feel that we are the slaves working to prop up the few at the top--to keep them living in luxury.
We spend because we are told to spend. We spend because we are told that we need those products and that we will be happier if we do. Look at the commercials. They not only sell products, they sell happiness.
Well they sell lies. Spending is foolish if we spend on 'wants' not on 'needs'. We need to prioritize.
Here are a few foolish things to spend on: (in my opinion)
-New vehicle if your current one works
-Newer house if current one is fine
-New smart phone or other electronics
-New clothes when not needed just because you want to be in fashion
-Cable TV/Satellite TV
There are many ways to spend foolishly.Ask yourself if you truly need that item. Is it absolutely necessary?
Here is what I did.
I got rid of TV. I don't drink alcohol, I don't smoke and I don't buy electronics. I have a computer and a smart phone which work fine. No need for a new one every few years. I cut out everything that was not a necessity and only spend money on needs. My bills are my house bills; mortgage, property tax, water/sewer bill, electricity, gas for heat, phone bill, internet and food. What I do with my savings is this: I put my savings into a good savings account and whenever I am able, I put extra on my mortgage to pay my house off a lot earlier.
When I began to live in this minimalist manner, I became happier. I was no longer worried about finances month to month. I have money saved. I do not worship money, but I also have a healthy respect for it. I know we need it in our society, so I do not throw it on foolishness...I save it.
Many people make a mistake when thinking about money. Oftentimes I have heard people tell me this (After speaking to them about saving) "If I don't spend it on this, I will spend it on something else". That is such a dangerous way of thinking.
Also when someone goes to look at a mortgage, they get the maximum they can afford. When I got my mortgage, I went lower, rather than higher and this left me with extra money every month. Sure I don't have a palace. My house was built in 1923, but it is a fine house. Good enough for me.
The same goes for any loan. Don't get the maximum you can afford. If you are looking for a new car, don't get the most expensive you can afford. Remember, cars don't last. They wear out. So why get an expensive flashy thing. Get what you need to get you around. Who cares what other people think? Don't fall for the lies on commercials. Don't worry what your neighbor , co-worker think. Think about your finances and how strapped you might become.
Also plan for the 'what if's'. What if the cost of living increases? What if you lose your income or your income gets cut? What if you need to pay for repairs on something? Will you still be able to make payments?
Think about needs vs wants. Think about the worst case scenario. Plan for the future.
Don't line the pockets of the greedy corporations, politicians etc. Look after yourself and your family. Plan for the future, the future is yours and so is your money. Don't throw it away.