More Tips to Achieve Financial Success
by Tim Mershon
First of all I would like to recommend a system that my wife and I use to this day to some extent. It is called the Envelope System. Some of you may have already heard of it, it is not my invention, but I do use it proudly because we had tremendous financial success with it. Basically you make an envelope out for every major expense. We used it mostly for our weekly expenses though, but it works for everything. Once you determine what your weekly expense is for groceries, for example $150, then you would label the envelope Groceries and add the the amount. Next, get cash from you bank on payday for that amount and put it into the envelope. Repeat the process for all your weekly expenses like gas and activities or whatever. Now you have your "budget", I don't like budgets per se, however knowing what you spend is important. Then you shop for your items using the cash for each corresponding envelope. The great thing about using this system is it literally prevents overspending. Whats in the envelope is all you get for that expense. When its gone its gone. Its a great tool to gain financial success and control of your money. Another plus though is that my wife and I would make a game out of it to see who could spend the less for each area. Because whats left can be used anyway you want. So if you save a few bucks on gas and food you may be able to go out to dinner this week. Or save it for a few weeks and really have a great date night. After all, you have been working hard to manage you money, you deserve to be rewarded. You can also tie this tip into using the banks as envelopes. Most banks have a Christmas Club and Vacation Club where you put money in weekly to save for those events. Also, most banks we let you have as many checking and saving accounts as you want. Make an account for insurance, mortgage, utilities or whatever is an ongoing expense for you. When you put the money away at payday, and have places for it to go, you will see the bill pressure begin to fad. When that 6 month insurance bill comes your not panicing, its already in the bank waiting for you. NOw thats freedom. The next tip for financial success is about insurance. If you have been with your current provider for close to or over 5 years you may not be getting the best rates. It never hurts to shop around, It is very competitive arena and you may do better somewhere else. Also, raise you deductables up to $1000.00. This will save you up to 40% a year without having to do anything but make a 2 minute phone call. I was shocked at how much I saved on our 3 vehicles and house. Besides, I have never had a claim to begin with, why worry about an extra five hundred out of pocket if something does happen. And I saved that much the first yer with the bigger deductable anyways. Ok, we are gatting into some of the tougher decisions now. But they may actually save you the most right away and get you closer to getting out of debt and financial success. If you are buried in car payments, especially on big SUV's that get crappy gas mileage, it is time to economize. I know it hurts, you love that car. BUT, do you love it enough to let it control your money any longer? My wife and I were getting killed by our SUV. The payment was $350 a month, not bad because we bought used. We spent between $70-100 a week in gas. I'm not even sure what the insurace was, around $60-70 a month. All tallied upwards of $800 plus a month. Are you kidding me, all for a a vehicle that averaged less than 15 mile a gallon. Its just doesn't make sense. Do not let your pride get in the way of your common sense and you financial success. Its just a car. When your rich you can buy whatever you want, for now you need to get control. Yes, we hated to see it go but the next month when we were in positive cash flow of around $800 we didn't mind as much. We got to realize the total savings because we also found with a little planning we could actually make it without the other vehicle at all. I realize that a mini van doesn't exactly say "Millionaire" But millionaires do not waste their money either. If you are getting control of your debt and spending, everything that is not helping you is moving you backwards, especially cars since they lose value. As we discussed before, the only good debt is one that appreciates in value. Cut loose of the other debts as quickly as you can and you will see your savings grow like crazy. Once you have control again and have healthy money habits, you can do so much more that you will see how silly it was to have that expensive set of tires in the first place. We are always growing, so check back here often to get more Financial Success information.
Success is a choice, you need only decide.
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