Archive for April, 2007
Our needs consist of food and shelter and true needs associated with those. Perhaps there are a few others depending on where you live, your religion, etc… but we should not be getting to the point where we need the big screen TV.
I heard it said the other day that all guys need a big screen TV. Of course it was said as a joke, but it highlights the mindset many people have. We confuse our wants with our needs and end up being unable to prioritize our spending properly.
Even food can be tricky. I’m a freezie fanatic. Gotta have my freezies. But when it comes down to it they are obviously a want, not a need. I could go without (although life would not have the cool soothing pleasures I love so much!).
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Until we are independently wealthy, we all have to borrow money to get ahead in life… there’s no escaping it. Its important when borrowing money (taking on debt) that you understand the difference between “good debt” and “bad debt” and try to avoid bad debt.
Budgeting can be rephrased as “living within your means”. When you plan to spend less than you earn, you plan for success. The phrase “live within your means” is one shouted by prophets and the financially prudent; a clarion call that oft falls on deaf ears. Looking at a typical budget, you see income at the top, followed by expenses and your net income at the bottom. If your net income is either negative (in the red) or below a comfortable threshold you have only 2 options:
- Earn more money
- Reduce expeneses
Instant cereal.
Instant message.
Instant pain relief.
Instant credit.
We live in an Instant Gratification society!
Every day, our minds are bombarded with messages that not only can we instantly get what we want, but that we deserve to instantly get it. In the words of one of the all time most successful commercial jingles “You deserve a break today.”