Money On My Mind

Long gone are the days spent feasting on Ramen noodles, passing discount pasta from a wrapper off as fine dining.

Even if we have little more saved up than when our grocery list consisted of beans and water, how can we reassure ourselves that our financial situation is looking up?

Spend less, save more is the key to financial success. Some experts recommend saving at least six months’ worth of living expenses, while others feel it’s wise to keep a year’s savings tucked away in case of a medical emergency or unemployment. Here are some tips on how to do that.

BE YOUR OWN BOSS . Act as if you own a company. You are the boss—so pay yourself first. That money will go directly into your savings, while the rest gets distributed between bills, pleasure or other expenses you may encounter along the way.

PESSIMISM IS KEY. Life never will go as planned, so always be one step ahead. Factor in how much weddings, children, pets and other major expenses will affect your lifestyle. A budget should be realistic. As an added bonus, while examining certain expenditures, you may realize some are expendable.

WHAT DEBT? While saving and paying off debt at the same time sounds more like sorcery of sorts, it’s actually possible. High interest debt is priority and should always be paid off as soon as possible.

LIVE TO RETIRE. The goal is to have a retirement fund equivalent to your annual salary by age 35. You’ll thank yourself at age 62.

GIVE YOURSELF CREDIT. Get a head start and build your credit when you’re young. Pay 100 percent of your payments on time, not only your credit card bill but also other accounts, too, such as utility bills and even phone bills.

A LATTE A DAY. Living life is still of paramount importance. If what you really want in life is one latte a day, go for it. As long as you are cutting costs in other areas, your sweet tooth can be our little secret.

CONTINUED EDUCATION. If you feel like school will never stop coming back around to haunt you, you’re right. The more you educate yourself, the better your finances will be. Check out some books at your local library with topics relating to personal finances.

GOOD HABITS. No financially stable person spends seven dollars on juice in a fancy container, nor feels it’s OK to purchase new shoes on a daily basis. Financial stability can only be attained when we control and monitor our impulse spending.