Where do I get my ideas to write this blog? I get them from my friends, people around me, business affiliations, and other real-life circumstances!
The world we live in has changed. Our jobs, interest rates, housing prices, home loans, car loans have all become much more expensive. The credit card companies play games with us, and honestly, It’s incensing and unfair at best. I recently paid off all of my lines of credit with zero balances. I was amazed that my credit score dropped 54 points. How can that make sense? My wife’s credit score is about 800, and she has 10 home loans and other balances on her credit report. Go figure!
So a few basic elements of building credit, saving dollars, and creating your retirement one day at a time.
- Take careful note of your earnings, and if you have a partner that contributes, his or hers as well.
- List all of your basic expenses in the left column of a legal pad or do this on a database. Include an entertainment column and a miscellaneous column as well.
- Apply formulas to these columns or simply add up the columns to discover how much you’re spending monthly.
- Look at the different amounts and see how much you are taking home vs. what you are spending.
This can be an eye-opener for many. Obviously, if you are spending more than you are taking home, you’ll see the problem easily. If your mortgage or rent exceeds or just meets the amount you are taking home, you have a good idea of what you’ll need to do to either make more money or decrease your spending. while this can be a bit of an unpleasant task, it needs to be done.
Getting a solid grasp of your “finances” is key to a successful financial plan and retirement. So many people just buy without considering their future needs and retirement goals. Are you thinking about the cost of living increase of 3% per year or the current inflation rate of 9%?
Many people come to me daily asking for help figuring out why they have no savings and how hard it is to live paycheck to paycheck. Surprisingly, they have little knowledge of how money works in their life and what interest rate they pay on their house, car, and credit cards. So many people close their eyes and bite the bullet of ignorance. They complain about bank fees with no knowledge of why the bank is charging these fees for mandatory checking balances, credit cards, and loan fees.
In this volatile financial climate with Stocks and bonds failing, we need to understand where our money is going and whether we are on track to retirement, our children’s needs, and our own.
It’s nothing more than obvious, but so many of us shy away from reality. Maybe it’s just painful or uncomfortable for so many? There are many ways to remedy this shortfall. So many creative methods of earning more money and creating residual income. Stay tuned. I will be offering several ways to up your income and help save for retirement. Creating wealth is not only about putting cash away in a savings account. There are many ways to build wealth.
your financial Junkie
email: theFinancialJunkie@gmail.com
Remember: Don’t spend the money you will have. Spend only the money you do have, provided spending money doesn’t interfere with your retirement plan!
WEALTH CREATION, YOUR LIFE, YOUR RETIREMENT 