Go for the Big Wins
Spending less than what you make is arguably the easiest concept to understand in the world of personal finance. If credit cards/loans didn’t exist, then we’d all be forced to adopt the cash method and personal finance would be super easy. However, we live in the real world. And specifically, real-world America. The land of reward point credit cards, easy personal loan access, 30-45 year mortgages, 7-year car loans, the list goes on and on.
It’s no wonder we all get ourselves into trouble and spend more than what we make. Debt is all around us. Constantly being advertised to us in the form of that big trip we SHOULD take. Constantly being emailed to us in the form of promotional rapid reward points on our credit card that we SHOULD take advantage of by spending more. It takes an extremely disciplined individual/family to not fall prey to all the temptations around us.
Now, if you’re one of these people who have been trapped by the “Debt Machine,” first and foremost, don’t feel bad…don’t feel guilty. Debt is a part of everyday Gen X and Gen Y life. It’s almost impossible to afford a house today by saving and paying cash for it. The same goes for an automobile that’s either new or even 5 years old. And forget about paying cash for that shiny new college education.
But if you’re someone who has a significant amount of credit card and personal loan debt, I’m here to tell you that the only way you get out of it is by “Going for the Big Wins.” Enough of trying to save money by canceling that Spotify and Netflix account. Or by eliminating that daily latte at Starbucks. IT WON’T MATTER. You need to take a step back and analyze your financial situation from a birds-ey view.
The cost of a roof over your head, transportation, and food expenses are the largest places I see for the “Big Wins” in your life. Getting these three areas of your life right affords you the ability to not feel so stressed about the little indulgences in your life. They are also areas of your personal finance life that provide the largest savings so that you can save more.
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