Tuesday, August 12, 2008

What if you got money smart?

There are plenty of things that we should all do - eat our broccoli, floss our teeth, rotate our tires regularly, and manage our money well.  However, even though we know that we should do these things we often just don't do them.

Liz Pulliam Weston has a great article about what would happen to the U.S. and world economy if suddenly all U.S. consumers got "money smart"and paid off all debt, did not overspend on houses and cars, saved for retirement, and had adequate savings on hand for emergencies.  It is an interesting piece and I encourage you to read it (but not yet - finish reading this first!).

Take some time today to think about what your life would be like if you started doing all of the things that you know you should be doing with your money.  What would your life be like if you:
  • Had a plan to save for retirement and children's college expenses
  • Followed that savings plan
  • Paid off all of your debt
  • Never spent more then you earned
  • Had adequate life insurance
  • Made sure that you had several months of living expenses in your savings account
  • Regularly supported charities that you believe in
How would your life change?  Would you have less stress, less worry?  Probably.  Would you need to cut back on spending?  If you are saving, do you know how to tell if you are saving enough?  Too much?

Take a moment to think about what your life would be like if you knew that you were doing all of the things listed above.  If you are already on this road, congratulations.  If not, once you finally start down the path of making good decisions about your money you will probably find that the costs are not so great as you expected and the rewards are far greater.  If you need some incentive to get started now, take a look at this earlier post.

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