Financial Planning, Budgeting, Saving. This is what works for our Large Family.
Thursday, October 3, 2013
Tip of the Day
Think first, then think again and then act.
According to Connie Kilmark, a financial counselor and consultant in Madison, WI. Consumers’ spending decisions are processed “5% by the numbers and 95% by emotions".
Before making any purchase, especially the large ones, ask yourself if this is a want or a need. If it's a "want" ask yourself if you can really afford it and if you could make do with something you already own or maybe borrow. Will you be jeopardizing your financial stability because you can't control your purchases? Wait a few days/weeks before making the purchase, then see if you still really want it. Impulse buying is a curse that most of us seem to suffer from at times. I have at least 25 pairs of running shoes in my closet, now I do use them and pass them on to my kids when I have worn them out, but still, 25 pair! Really? Really!
The reality is, that with a large family you are gonna have to purchase less of your wants. This may change over time as the kids get older and move on and as your income rises. But for now we are playing it safe and being careful with our purchases and maximizing our retirement savings. No living in a trailer park and eating Alpo for us.....I hope. But once the kids are out of the house I'm getting a dozen more pairs of running shoes.
If it is truly a need, then ask yourself if you are getting the best deal possible. Could you get a less expensive one (house, car, appliance etc...)?
And don't kid yourself, not everything on your "need" list is really a need.