Some Sage Financial Advice

[ABM]

Pulled this off of Yahoo. Thought it was rather sage....

COMMENTARY | As a small business owner and the parent of two children that like to shop, I'm not ignorant about the economy. From gas prices to grocery bills, I've seen everything increase except my income. Instead of bemoaning my situation and falling apart, I've decided to focus on the positive aspects. One good thing that has come from these hard economic lessons is that I'm financially smarter. I manage my household and business affairs smoother and tighter than anytime before.

That's not to say I won't welcome economic relief but I have learned a thing or two. Today, many things I've experienced have made me a better businessperson and household manager.

I make saving a priority. Strangely enough, getting loans isn't easy today. Lesson one, always save. Every paycheck, every contract paid, squirrel away something. Some weeks I could only save a few dollars, others times I saved a few hundred. Before the recession, I lived with minimal savings and threw sudden expenses like car repairs on my credit card. No more! (As a side note, I've noticed my kids save more now too. Not only am I smarter, but they are too.)

I pay debts on time or ahead of time. When every dollar counts, high interest rates weren't an option. I pay my debts on time and pay them down as quickly as possible. I know a healthy amount of debt is good for your credit but I feel better knowing my debt is small. That's good for me mentally.

I know how to price match. Prior to the recession, my husband and I saw what we wanted then purchased it. Today, we don't make snap decisions about high-priced items. We've adopted a two-day price match rule to any big ticket items. We web search, call and visit stores for the best deal. Never, ever rely on one store to give you an honest "best" price. I do my own homework.

I question my purchases. Before 2008, I was an impulse buyer. I loved walking into stores shopping for "sales" even when I didn't need the items. I don't do that anymore. I don't buy it unless I need it and I stay away from sales and discount store.

I know more. Until a few years ago, I didn't care less about the stock market. I know that's crazy since I am a business owner but it all seemed so far away from me. Today, I watch a few business shows at least once a week and I know what basic terms mean. Learning how the financial markets work makes me feel empowered and less helpless--even when I'm pumping $4 gas.

I plan ahead. Anyone that knows me will tell you that I'm a freewheeling, spontaneous kind of gal, in all things. Today, I'm much more careful. I don't just hope and expect a good future, I plan for it. I've even met with a financial planner. I think about what the next five, ten and twenty years will bring and I have a plan. That lesson has kept me sane.

 

[Denny Crane]

I have one credit card with a $1500 limit on it. I haven't charged anything on it in years. I figure if I'm in a bind it might be useful to charge airfare, rent a car, and hotel.

Otherwise I save for things I want. I haven't had a car loan since 1985. I tend to drive my vehicles until they won't go anymore and it's not worth fixing them. When I can tell I need a new one, I save up for it and pay cash. Rarely a new car all my life, just used ones.

The only debt I feel is worthwhile is a mortgage.

A good rule is always pay yourself first. So take 10% of each paycheck and put in savings. Live off the rest.

Never spend 100% of found money.

 

[ABM]

I have one credit card with a $1500 limit on it. I haven't charged anything on it in years. I figure if I'm in a bind it might be useful to charge airfare, rent a car, and hotel.

Otherwise I save for things I want. I haven't had a car loan since 1985. I tend to drive my vehicles until they won't go anymore and it's not worth fixing them. When I can tell I need a new one, I save up for it and pay cash. Rarely a new car all my life, just used ones.

The only debt I feel is worthwhile is a mortgage.

A good rule is always pay yourself first. So take 10% of each paycheck and put in savings. Live off the rest.

Never spend 100% of found money.

Good stuff.

I do use a credit card and charge everything I can pay off that month on it (i.e. groceries, gas, auto insurance, utilities, etc.) - in other words, carry no balance. In turn, I get cash back....usually around $50 every other month. The "free" money factor is nice.

 

[Ed O]

I do use a credit card and charge everything I can pay off that month on it (i.e. groceries, gas, auto insurance, utilities, etc.) - in other words, carry no balance. In turn, I get cash back....usually around $50 every other month. The "free" money factor is nice.

This is what I do, too. When I need to travel for work, I get a little money back, too... which doesn't suck

Carrying credit helps one's credit rating, too, so it makes sense to have some cards even if you don't plan on using them.

Ed O.

 

[ABM]

This is what I do, too. When I need to travel for work, I get a little money back, too... which doesn't suck

Carrying credit helps one's credit rating, too, so it makes sense to have some cards even if you don't plan on using them.

Ed O.

When I'm back up there over the Thanksgiving weekend, let me buy you a beer on said credit card.

 

[Ed O]

When I'm back up there over the Thanksgiving weekend, let me buy you a beer on said credit card.

Sounds good (although I don't drink beer, I'll take another form of booze ).

Did you see my friend this past weekend at the Ram?

Ed O.

 

[ABM]

Sounds good (although I don't drink beer, I'll take another form of booze ).

Did you see my friend this past weekend at the Ram?

Ed O.

A libation of choice would work fine, just fine.

Actually, you're not gonna believe this.....we watched the LSU/Alabama game at her house, then cuddled on the couch and listened to the Ducks game on the radio. (She recently fired Comcast and is in the process of deciding if she wants satellite, or not. Meanwhile, she pulls in local stations on an electric antenna.)

She lives right of 24th and Market in Ballard. You near there?