#1 Should be:
LIVE BENEATH YOUR MEANS
Time wounds all deals.
Make your money when you buy.
In living beneath your means, you will then be able to save money. Things happen in life which come up unexpectedly, and which cost money. You are better able to deal with such things, if you have some savings, as opposed to pulling out the credit card, and then wondering how you are going to pay off that credit card.
I feel knowing the dif between needs and wants takes care of that.
An occasional want is a way of treating ourselves, occasional being the operative word and making that want a lower priority of our needs is good too.
TV Refrig upgrade to the home ect
This is what I told my children and they listened. It has worked out well for them and me. Live below your means, you don’t have to live like a pauper to do it.
We never had a house payment, including taxes and insurance, over $1,000 a month until we started paying cash for houses and cars. We drove our first cars until they were paid for and then until we had enough to pay cash for another one.
I also told them that you save for houses, cars, kids and school. You invest for all other things. Regularly, at least 25% of your gross income, quality companies that make things people need, use and that wear out. Watch them, be aware of problems and have a plan to deal with them as in sell and move on but not on every blip of the ticker or bad quarter. Business is cyclical and so are stocks.
My biggest failing in finances is we have too much stuff. Part of the reason is that it was hard to come by and hard to let go of. Focus on quality over quantity and do without if you can’t afford quality worth keeping.
Exactamundo.