Welcome to Monday’s Cent$Able Budget Report. Today we are going to get into some real meat of budgeting. I am referencing from Get Rich Slowly. I have really come to enjoy this blog and all that the writer/author, J.D. Roth, has to offer in the way of financial advice and building a strong and sold financial base .
Mr. Roth has 12 key beliefs that form the core of his Get Rich Slowly philosophy:
1. 1. Money is more about mind than it is about Math
2. 2. Goals are Important
3. 3. Spend Less than you Earn
4. 4. Pay Yourself First
5. 5. Do what works for you
6. 6. Small Amounts Matter
7. 7. Large Amounts Matter , too
8. 8. Slow and steady wins the race
9. 9. The perfect is the enemy of good
10. Failure is ok
11. It’s more important to be happy than it is to be rich
You can read more about his 12 core beliefs HERE. I wanted to throw my own 2 cents into these beliefs, which I think we can all apply to our own financial lives.
It’s easy for us to justify certain expenses, that in reality we probably can’t afford at the time. I know I have fallen victim to my own justifications on numerous occasions. I talk myself into making large purchases without have the finances to really back up what I am buying. I’m sure many of your are familiar with some of the more popular justifications out there: “I’ve worked hard and deserve this.” – “It’s been awhile since we bought something nice, and I really want this. This once won’t hurt” – “I can handle the $50 a month extra bill to pay this off over time” – “If Jane could afford this, then I’m sure we can afford it as well”, and so on and so on.
It’s time to escape from the justifications and begin thinking financially logically, with our heads and not our hearts or emotions. It’s time to set our own financial course and not let the world of debt and poor money management or jealousy control how we spend our money.
Today we are going to set financial goals over the next week, I am too. Next Monday I will begin posting my financial goals and how I expect to achieve my financial dreams. We are all at different financial stages, but all of us can continue to expound upon our financial dreams and grow our net worth even more.
Most experts will tell you, that you should have 3-6 months worth of expenses saved up, in the case of a financial emergency. This is money that you can’t touch unless you lose finances, and need something extra to get you through the rough times.
Another, savings funds you may want to consider is a Backup Savings Fund that has $1,000-1,500 in an account, for smaller emergencies, such as auto repairs, small home repairs, health emergencies, ect... This account will actually take the place of a credit card. You are building up your own financial resources and not depending on the ‘assistance’ of high credit card interest.
Sit down this week (with your family) and put together your debt goals and your savings goals, more particularly savings for your Emergency Funds.
Next we will discuss how we can find ways to fund these goals.
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