Archive for the ‘Lower Your Standards’ Category

There are many people out there in the world who try to live like they are wealthy although they may not be. This can very much affect someone’s personal finance in a hurry. It is very easy to spend more money than you make each month, but one of the main problems is people spend too much time trying to keep up with what other people have and not enough time worrying about what they have. It makes no sense for a someone to go into debt to get things they cannot afford. Why do we do this? If we go into debt to finance something then won’t it be taken away anyway when we can no longer afford our payments?

I have seen people get raises at work and be happy, which they should be, but these people are happy for the wrong reasons. They are not happy because now they can start paying down their debt a little easier. They are happy because now they can start getting themselves into more debt. Along with that pay raise comes a raise in standards for a lot of people. For example, if someone only has about $200 left at the end of the month to cover expenses not in their budget and they are given a $200 raise per month at work they then make things harder than they already are by going off and financing something with a $300 payment due each month which tightens the budget more. This makes no sense. We need to sit down and look at how much money we are making and how much we are keeping then figure out what items are necessary and what we can afford. We cannot expect for our personal finances to be straight if we are trying to spend more money than we are making.

In order to get to the point in our lives where we can live rich and be rich there are a lot of things we must first do. We must set up a budget so that we can control our money each month instead of letting our money control us. We must not overspend the money that we have. We need to live within our means. We must stick with our budget. Until later on down the road we must buy the basics. We will be able to afford more later once we gain control over our money and start making it work for us. Finally, we must save as much money as we possibly can each month. If we follow these simple things we can actually be rich and live the way we want. There is no sense in living like we are rich if we are going to be in debt. Let’s grow rich and let everyone else try to be like us.