Submitted by wonkitime on September 29, 2008 - 7:45am.
By Won Kim
Let's face it; we live in a consumer-driven world. Whether it's the latest Apple gadget for ourselves or the latest toy-craze for our kids, the act of fishing out our credit card for the purpose of buying is second nature.
The phenomenon of keeping up with the Joneses pushed many to take on mortgages disproportionate to their financial health. The matter was only compounded by the fact that banks and financial institutions were willing to give out loans to almost any taker, which directly led to the current crisis we are in today.
This type of shortsightedness is evident everyday for a lot of families in the U.S. It can range from expensive vacationing to pricey schooling to brand buying to eating out frequently (guilty!). Throw in fuel prices, bills, diapers, annual gifts and unforeseen rainy days, and it becomes all the more crucial for us to be wise with our money.
I'll be the first to say that I'm no financial advisor. Although I'm not loose with my money (which for me is a paradoxical concept altogether, for to be one who is loose with money that is to predicate one has money), I definitely don't exude wisdom when it comes to how I spend or budget my finances. My wife will be the first to confirm this notion.
However, I know that even if I am a budget-challenged individual, I need to attempt to become savvier in this area. So, here are a few simple steps I've taken to become more financially informed:
- Weekly Allowance: Yes, this makes me feel like I'm in middle school, but it forces me to not only limit how much I spend on a weekly basis, but it makes me aware of my own
spending habits.
- Credit cards: Leave home without it. This will stop any impulse buying that exceeds your weekly allowance, and will also greatly reduce the chance of identity theft.
- Piggy Bank: Nothing is more annoying than having jingling, leftover change. Out of annoyance, I usually use the change to purchase gum or other small treats. Now, I try my best to bring home change to place inside my son's piggy bank. Not only does this constrain my knack for snacking, but it also illuminates my son's growing knowledge on the importance of saving money.
- Stop Playing Online Poker (or Offline): Okay, this may only be relevant to like three of ya'll, but if you're thinking your money and time could be better spent elsewhere, well, you're right.
- Keep the Receipts: Much like the first point, it helps you keep a tab on what you're buying and may help tame your creature of habit-spending.
- Ignore the Dollar Menu: First of all, it's not healthy. Second, you may think it's cheaper, but if you end up ordering fries, a frosty, 5-piece chicken nuggets, a
soda and a junior bacon cheeseburger, well, you just spent a nice chunk of your weekly allowance.
