When you’re in the midst of battling your debt or saving up for your eventual retirement (yes, even in the midst of this economy), it may be tempting to search for financial advice that’s as long and complicated as the path to a debt-free and financially comfortable lifestyle. After all, if the process of getting rid of debt can take years, the best financial advice should be equally as long and complex, right?
Actually, some of the best financial advice comes from the oldest proverbs and wives tales around. Get ready to simplify your financial struggle by following these little pearls of wisdom, all of which are written in ten words or less:
Always put aside money, no matter how much. It can be easy to think that defeating your debt is all about making as much money as possible, or winning a huge sum from the lottery. However, even the smallest contribution towards your bills is a step towards the financial freedom that you deserve. Small but steady steps will always take you where you need to go, and will turn that raging river of bills into a small trickle in no time.
Know the difference between your needs and wants. Sure, this may sound like an easy one to figure out; yet many consumers have forgotten the difference between items we truly need, and purchases that we think we need. Needs are things like food, shelter, utilities and other things that help us to survive; wants are the added luxuries that will just plummet you further into the debt cycle, making it impossible for you to get out.
Buy quality when you can. Being smart with your money is about finding good deals when you can; however, it can be more financially savvy to purchase a high-priced yet quality item than to downgrade to a cheaper purchase (clothes don’t count!). A high-quality item will be backed by a great company who will fix the product when it breaks down or doesn’t work – you won’t find these kinds of deals with the cheaper companies.
Save today what you want tomorrow. Your credit cards make it easy to go out and purchase whatever it is that you want; yet if you want that big-ticket item, save up for it instead of putting it on your plastic. You’ll feel better whenever you look at that new HDTV knowing that it’s completely paid off instead of accruing interest on your credit card!
If you need money, make more money. Feel like you don’t have enough money to take on your credit card bills? Instead of hoping to win the lottery, go out and make more money! You don’t have to get a second job to see a new income stream; try selling secondhand items to family members and friends, and applying that money to your debt.