Path to the Penthouse: Brick #3

Brick #3

IMMEDIATELY STOP

buying furniture, clothes or personal items on credit!

If you can not pay CASH you should NOT buy these items.

Our family got in trouble pretty quick by using the credit cards to buy what started as major home items to smaller things like clothes and services.

As our credit limits got higher and our minimum payment requirements got lower, we became more frivolous, sinking further and further into debt.

The key here is to ask yourself:

Do I REALLY need this? Or is this a want?

Here's where you have to learn to be honest with yourself.

I found myself saying I NEEDED a new pair of shoes. Really? I had a closet full of shoes. I just WANTED a pair that matched that outfit perfectly. What I found was I probably had several pairs that would go with the outfit just fine. 

Does your living room REALLY need a remodel? If the dog has eaten your sofa cushion, you may have to replace that piece. But, SAVE your cash and buy it outright. 

I promise, you will IMMEDIATELY feel the freedom when you start paying in cash for these items. You won't be dreading the monthly statements or hiding receipts and purchases.

So what do we ask ourselves?

Let's practice.....

Do I REALLY need this? Or do I WANT this?

PS.... this is a great thing to practice with our kids! Showing them that everything we WANT is not really a NEED is a great way to preparing them for a world that doesn't think they are entitled to what they don't earn.

Oh, my... that means we aren't either! Tough pill to swallow, but true.......

Path to the Penthouse: Brick 2

Brick #2

DECIDE WHERE YOU WANT TO BE IN 5-10 YEARS, 

AND SET FINANCIAL GOALS TO GET THERE.

I know this sounds obvious and simple. We all say I want a house.

I want a car. I want a big screen TV.

But what actions are you taking to make these dreams come true?

Take our family for example. Our first dream, the house.

We can right down house on our piece of paper then toss it in a draw, but we had to go further than that.

What do we need to do get the house?

Increase our credit rating was crucial. Pay off existing debt.

So, we can get a loan? What's our game plan for paying off that loan?

Put some time and energy into this. Talk and communicate with your spouse and your family. You may even consider making a game plan with a financial adviser.

So, grab your pen and paper and get to work! What are you waiting for? Things won't happen until YOU take action!

Path to the Penthouse: Brick #1

Brick #1

Make your budget and stick to it!

Yes, a budget that we can stick to is hard to do.

We're used to spending at will so learning to not spend is quite a feat.

It takes a commitment from everyone!

Explain to the

WHOLE family

that there are new rules to spending in your home.

Learning to say "no" to unnecessary purchases takes time.

I know that YOU CAN DO IT!