This is a guest article from Tammara Nelson. She writes over at Phishy-Pedia Guide (Tips to avoid identity theft, fraud, phishing, and work at home scams. Plus financial money tips for insurance, mortgages, loans, debt, & stupid criminal stories just for fun!) and also runs the Link and Blog Challenge site.
Volatile Financial Cocktail
Americans are known for their appetite for shopping and materialism. For some it’s the need for the newest luxury car, latest fashion, or the most technically advanced electronic gadgets. We are bombarded every day with advertisements enticing us to buy more, and to borrow more for major purchases.
Unlike the generations before us, technology pressures us to pay monthly fees for Internet service, cell phones, satellite radios and more. Add that to the already large appetite for more goodies, and you have a volatile financial cocktail for going broke. At the very least it’s a recipe for never getting ahead, and for failing to invest for retirement.
If you’re in your twenties or even thirties you may be saying, “Retirement? Who’s worried about retirement? I have plenty of years before I retire, so I’ll live it up now!” Unfortunately waiting to invest for retirement means you will not have the time value of money on your side later, and you may never be able to save enough if you fail to save now. Having enough for retirement means you need to become disciplined with other expenses, which can be difficult!
For many the current choice is to look cool in the latest luxury car while wearing the hottest designer fashions, yet ignoring how those choices may affect their financial future. Life is filled with difficult decisions, and consequences for the wrong choices.
If you’re ready to reduce your spending and debt, here are some tips to help you live within your means, and shake up the volatile financial cocktail until it fizzles out!
- Avoid impulsive buying decisions. Go home and think about it before you buy
- Thrift stores and consignment shops really do have cool stuff, so look for bargains there first
- Agree to only purchase new items when they have gone on sale
- Purchase a used car rather than new, allowing the prior owner to pay for most of the depreciation
- Learn to live without using credit cards for purchases. Yes, it’s tough at first, but it pays off in the end
- Are you a dual income household? To save more, learn to rely on only one income for all your expenses
- If you use a 90-day, 6 or 12 month same as cash plan, charge only the amount you can pay off before the interest free period ends, otherwise pass up the same as cash plans and don’t make the purchase!
When it’s all said and done you may not be driving the hottest car or wearing the latest fashion, but your chances of accumulating more cash will be far greater. You’ll have the last laugh on the way to the bank, and a hope for a brighter future!
Thank you Tammara for guest posting 🙂