Health & Fitness
Seven Priorities of Your Economic Relief
Tough times have been plaguing all of us. From extremely high gas prices, to ever increasing food and clothing costs. What can we do to gain some R-E-L-I-E-F?
Being that it's a New Year and Valentine's Day is just a bit away, I thought it was a good idea to speak from the heart this month. I am a small business owner and a father of three boys that like to eat, play sports, shop, go to movies, go out to eat…and did I mention they like to eat?
I am certainly not ignorant about the cost of things these days or the current situation of our economy. Everything around us has been going up. Higher and higher prices are climbing. From the price of gas to grocery bills and clothing, I've seen everything increase except my income.
Instead of whining and stressing out even more, I decided to focus on the positive aspects. One of the good things that came from these tough financial lessons is that I am financially smarter. I manage my household and business affairs smoother and tighter than before.
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That doesn’t mean I won't welcome economic relief, but I have learned some things along the way! All my experiences (both good and bad) have made me a better businessperson and household manager.
Priority #1: Always save!
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Getting a loan isn't easy today. Every paycheck, every contract paid, every monetary present, coupon or refund you get, put away something. My goal is to have at least 10 percent of annual income in my savings accounts.
Start off small and put a few dollars away in a jar. Sometimes only a few cents goes into the jar. Over some weeks I only saved a few dollars, others times I saved a few hundred. Before the hard times and recession, I lived with minimal savings and threw sudden expenses like car repairs on my credit card. No more! The point is, do what you can. NO MORE EXCUSES!!
Think you are above using a coupon? Ever buy something on sale, or do you always pay full price? If you do pay full price and have no regrets, you are one of the few that can actually do it and sleep at night. For the rest of us, we like the coupons, discounts and sales. A very wealthy and wise person once said me: “You know how the rich stay rich, right? They don’t spend what they don’t have to!” Boy, does that make sense. If it’s good for them, why not for me?
The whole family should be involved in saving and protecting your financial future. Have your spouse and kids help find ways to save, cut coupons, look for discounts and shop to see where the best prices and values are. Don’t be ashamed to use a coupon or discount. Using these will save YOU money, and that’s what is most important!
As always, remember to save for your retirement and take advantage of any Employer Sponsored Retirement Plans. Definitely take advantage of Employer Contributions. Free money is just that--FREE MONEY!!
Priority #2: Pay debts early or at least on time.
In this extremely tight economy every dollar counts and paying high interest rates are not option. Why pay more than you need to and prolong the agony. A healthy amount of debt is good for your credit rating, but I feel better knowing my debt load is small. Always pay your debts on time and if you can pay more than the minimum do so, it will save you money in the long run!
Priority #3: Price match-aisle 3
Prior to these hard financial times, I saw what I wanted and bought it. Today, we don't make snap decisions about buying. Check out your options. Ask when the next sale is. Ask for a discount or look for a coupon (the internet is amazing and has lots of great sites for coupons.) Ask if the store will match a lower priced item from a competitor (saves you time, money, gas). Do a web search, call and visit stores for the best deal. Do not ever rely on just one store to give you an honest "best" price. Do your own homework, it will save you money!
Priority #4: Question purchases
When the money was flowing, I was an impulse buyer. I went into stores shopping even when I didn't really need those items. I wanted to have them! Guess what, I don't do that anymore. I don't buy it unless I need it. Plus I will ask about upcoming sales, discounts and coupons (see Priority No. 3 above). By the way, even the “discount stores” have sales and coupons.
Priority #5: Know more
Never really followed the stock market unless it affected the shares we owned. I know that's crazy since I am a business owner but it all seemed so far away from me. Today, I watch business shows at least once a week and I know what basic terms mean. Learning how the financial markets work makes me feel better and not so helpless even when paying for gas!
Priority #6: Plan ahead
Today, financially I am 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 and helped to build a security net for my family.
Priority #7: 'Home Sweet Home'
Own your own home? Is your mortgage loan working for you, or do you work for the mortgage loan? Why pay more interest than you need to?
Interest rates are the lowest they have been in decades. You need to take advantage of this and refinance your home now! Take these savings and pay off your high interest credit cards, car loan and any other bills you have. After these debts are paid off, you will only have your mortgage loan and ongoing home expenses such as utilities and upkeep. Then start taking the savings and pay down on your mortgage. Make sure your Lender will apply extra amounts towards your Mortgage Principle Balance. Interest is charged on your unpaid loan balance and as that balance goes down, the amount of interest you pay will be lower as well!
Once completely debt free it’s amazing how much money you can save and invest in your future!
Know anyone who needs or wants to refinance, have them call me!
Call me today to see how much you can save!
Steven Goldman
763.202.8145 direct
763.746.9921 office
