How to Fix your People Problems

Frugal Finances

How many of us live pay check to pay check?  No one ever plans to barely make the bills and buy food so why would they plan for retirement or illness.  If you were lucky enough to be born before 1970 you might have something coming from the Social Security Administration when you turn 65 but i wouldn't count on it.  What if you get injured and can't work or contract a serious illness that prevents you from living normally?  The problem with us is we intend on doing things but put them off until the very last minute.  Use the excuse that you have plenty of time before you hit retirement age to save money and you'll end up burdening your children with the cost of supporting you.  If you don't have children you will end up and the mercy of the welfare system to help you or in a homeless shelter somewhere. 

We are a society drowning in credit card debt and student loans for a degree we never could finish because a job was more important than class so you had enough money to survive on and not starve.  It all seems to me like a dammed if you do dammed if you don't life we live in today and no matter what you're not going to come out on top. 

The baby boomers some how learned at a very early age the value of a dollar and the importance of saving not spending.  It might have come from growing up very poor with 8 brothers and sisters in a 2 bedroom house.  They were taught that you must work hard to become successful in life.  They had very little possessions and when they got things they had complete appreciation and regard for them.  No chore to much for the kids back then either which made natural workers out of them who weren't afraid of getting their hands dirty. 

Spend less save more so we ensure our self the bear necessities in times of crisis or disaster.  If your fortunate enough to have a job that offers you retirement plans, profit sharing and 401k's take full advantage of them.  That means what ever they give you as a maximum contribution amount they will match invest it.  No matter how long you stay with the company that money is yours if you decide to leave.  Of course there are penalties and fees for most early withdraws if you choose to cash in on the value before a certain age so If you absolutely don't need the money to survive don't cash it out. 

In a perfect world we would all have retirement accounts, health insurance, life insurance, and a few stocks and bonds for out kids and grand kids but this is far from a perfect world and Wise guys know that.  Wise guys was a name the Italians had for each other back in the early 60s right?  If you've ever watched the old mafia movies than you know what I'm talking about.  If not you can remember this lesson like this wise guys save money and prepare for the future.  Every one who's seen those old mafia movies knows that a wise guy in Las Vegas in the 1960's had plenty of money all the time.  Wise guys will survive when others around them will wish they had been wise as well.

Frugal Finances simply means to live with your future in the front of your mind when spending money and taking out loans.  If your able to make a list of the pro's and the con's of each specific loan or debt your thinking about taking on it will help you make a more informed decision.  Impulse buying causes millions of dollars worth of credit card debt that usually winds up in bankruptcy court.  If you can't afford it you probably don't need it.  If it is something you really need than you will figure that out when you create your pro's and con's list. 

By living a frugal financial lifestyle you invest your money in savings accounts, bonds and annuities which help you in those times when you really need something.  You won't have a need for things like credit cards or department store cards that cost you thousands of dollars each year in interest.