You don’t have to live paycheck to paycheck
We all are doing good in life. Food, shelter, and clothing — Paycheck! Love..! And how many of us aren’t worried about the next paycheck? Bills to pay? No matter how much we have in our statements, savings or stocks, we are only as rich as the capability that lets us get a morsel of food when hungry — credit exceeded, transaction declined, ATM network outage. There have been days when we had to go hungry for straight 10–12 hours because we didn’t have card/cash (or time for food — we just are too busy) at that point in time, days when we had to walk few kilometers because we were short of few cents. And it’s certain that these scenarios can happen again. What’s more concerning is that can we let it happen to our mom? dad? siblings? spouse? or friends?
Say even if this happens with them, this is certainly a small thing to worry about. But what if we can’t secure the future of our family? Make them feel desperate with each passing day. And knowingly or unknowingly this is what the majority of Gen Y is doing.
I marvel at people who have so much confidence to go on credit that they will pay for the next 20–30 years of their life. That’s a very serious commitment. Bigger than marital vows. People just don’t think before taking credit. My mom was contemplating on taking a loan just because she was flooded with messages of pre-approved loans. And, this shocks me. I observed one of my friends say the same thing. All the fancy degrees at the end of the name goes for a toss when we can be this moronic about finances. We have to agree that there are situations genuine enough to opt-in for credit. But most of us exploit it just because we have an opportunity. The worst part — a good majority of them don’t have a life cover! Knucklehead, seriously!!!
We all have big dreams — That brand obsession, Porsche and other super expensive locomotives, the fancy vacation to Europe and others must go places before you die. An article that I read in the past, made me realize how much of our life we are living a lie. When we don’t start to work for our dream, it just implies that we don’t really want to live the dream. The article goes like if we ever wanted to be a rock singer but we never put in an effort towards it — all the long day practice and lessons. All that we are seeking is the attention that a rock singer gets and not really to be a rock singer. Anything requires an effort. Simple. A European vacation and credit for 3 years! Meh! That’s even worse. Live your dream and regret later!
Savings, to most households, starts with grocery shopping. Most people check which brand of washing detergent is cheaper, in which store and call it being money-wise. Maybe — in a way. But not totally.
Being money-wise is very significant in the cycle of life and it’s often a hard topic to bring up. Ask yourself this question, “Can I survive the same lifestyle without a month’s paycheck? Pay all the bills and not be worried about the future?”
We all hold a positive attitude with life which is great. But practicality should surge in as well. Everyone is behind lifestyle at the cost of the future. A phone at credit for 6 months is a strict no!
Unless conveyed by the right person, the discussion around money might be perceived wrong, might cause a sense of embarrassment. Finance management is a kind of self-discipline which needs to be inculcated as part of family virtue.
There are enough articles out there which say how to invest smart, start saving small. But how much of our time do we invest in our future? A 3-hour movie is more pleasing than an hour’s time in educating self.
There are routines that one has to follow. Sharing a few of the routines from personal experiences.
Budget is the key. If you plan to live a month with say $500, that’s it. No crave-ins. No credit from next month budget. Even if that means that sale is over today. This is where I started. You could start from anywhere as it’s suitable for you. Living by means is all that it takes to build discipline.
Debts, clear them off first. Firstly, try avoiding it by all means unless it’s crucial. Saving comes later.
30% minimum. Longtime read advised that 30% of the income should be auto accrued on the savings account. And that’s something that everyone should follow. And remember that’s just the minimum number, the higher the better. But no lesser.
Don't’ save. Invest. Here comes the true part of financial advice. All the savings’ interest will not help when inflation kicks in. Think about the cost of food 10 years ago, and now. This is where all the hard work has to go — Mutual funds, stocks, Bonds, Term insurance etc.
The sale is a no-no. Never go shopping when there’s an S-A-L-E. We end up buying things that we don’t need. And this is what Warren Buffet says about such yearnings. “If you buy things you do not need, soon you will have to sell things you need.” Resist that temptation. Unless you have been holding your year’s shopping list for the sale to begin. And most importantly, go with a list. That’s a clever thing to do.
Above all, Do it yourself — Father is taking care of the finances. Or Spouse. Seriously? You don’t let others take care of your shit. Girls, that includes you!
Act now. No matter what’s running in your mind, yeah there are a million articles similar to it, yeah I’ve been wanting it to do it for long time. If you aren’t being money-wise, do it now. Right now. Everything else can wait.
