BALANCE YOUR MONEY
(The way to a successful and debt free lifestyle once and for all.)
The big question is, why I don't have enough money to enjoy if I have a steady job?
This is a very common question, and the common answer is, "we have bills to pay".
If I have a steady job, why is this happening to me? Most of us still use old beliefs and strategies that do not work anymore our parent thought us. Once before, about 100 years ago those strategies worked just fine. Now is a new generation and the first reason why are we still "just over broke"(JOB) is by following the old beliefs and strategies.
The Main Reasons Why People Are In Debt:
1) Those people don't have a good financial knowledge as a result of unbalanced budget.
2) They spend their money that they don't have (credit cards)
3) They tend to buy what they want not what they can afford.
4) They rely on commercials, and advertising when it comes to buying decision not from their own.
One of biggest mistake is by trying to appear rich for the money that I don't have. Believe it or not, most Americans do. I also believed that this is just normal, in fact it is a well known bad habit, bad strategy and lead me to fall behind in life (broke).
If I have a steady job, why is this happening to me? Most of us still use old beliefs and strategies that do not work anymore our parent thought us. Once before, about 100 years ago those strategies worked just fine. Now is a new generation and the first reason why are we still "just over broke"(JOB) is by following the old beliefs and strategies.
The Main Reasons Why People Are In Debt:
1) Those people don't have a good financial knowledge as a result of unbalanced budget.
2) They spend their money that they don't have (credit cards)
3) They tend to buy what they want not what they can afford.
4) They rely on commercials, and advertising when it comes to buying decision not from their own.
One of biggest mistake is by trying to appear rich for the money that I don't have. Believe it or not, most Americans do. I also believed that this is just normal, in fact it is a well known bad habit, bad strategy and lead me to fall behind in life (broke).
After months and months of research trying to find out the missing piece of the puzzle, this is what I found out. My monthly net income should be divided into three groups by percentage.
MUST HAVE = 50%,
SAVINGS = 20%, and
WANTS = 30%
MUST HAVE
Mortgage or rent, car payment, car insurance, life insurance, some part for food, electricity, telephone, water, and gas bills. The basic needs that I need to keep my family safe. I need my car to get me where I need to go and I don’t want my family and myself to sleep in the street. If my must have is in balance, I can sleep well at night without worrying about my car or house to be taken away.
SAVINGS.
This is my security fund in case of emergency, and secures my future. I can use this fund to pay off my old debt. If my savings is in balance, I don’t have to worry if there is an emergency or my car breaks down.
WANTS.
I want to make sure to use my wants money to buy for things that I need first, because if my WANTS money will go out of balance, I can’t enjoy my money because it comes from my WANTS budget.
Note:
Most people are out of balance in Must Have budget. If you can’t afford at the moment, it’s not for you. Wait till next time.
Article Source: http://EzineArticles.com/?expert=Mariano_Novales_Bautista
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