Advice that forever changed my life

By Joshua Becker via becomingminimalist.com   Article

7 Pieces of Financial Advice That Forever Changed My Life

1. “Most people who overspend their income do so in one of three ways: 1) Too much house, 2) Too much car, 3) Too much entertainment.” //  Financial adviser, 2008.

… generally speaking, if you have a hard time living within your income, check your spending on your home, your car, or your entertainment (dining, tickets, trips). I have tried to keep all three modest ever since.

2. “Begin your marriage living on just one income.” // Boss, 2000.

… My wife’s income each pay period went immediately into savings and my income went into the checking account. One year later, that savings account became the down payment on our first home. And four years later, when we had our first child, we were still living on one income which freed up my wife to choose to stay home if she desired.

3. “Buy your car with cash.” // Friend, 2004. 

… begin making a monthly payment to yourself for your next car. Whatever you would have paid for a car payment, put into a savings account. …

4. “If you can’t keep a monthly budget, use a spending plan instead.” // Writer, 2009.

… First, determine your monthly take-home pay. Second, subtract your fixed monthly costs. The money left over is your monthly discretionary income. With that number in hand, you are in a good place to determine where you’d like that money to go. Here’s a more detailed explanation.

5. “You are never too poor to give.” // Parents, 1979.

… No matter how tight my money situation has been over the years, I don’t think I have ever missed the opportunity to give away at least a small portion of every paycheck I have received. This is not because I made lots of money. Quite the contrary, it is because I learned from a young age that generosity has rewards of its own and is always worth the sacrifice.

6. “Never take a job just because of the money. Always consider the money, but never let it be the determining factor.” // Mentor, 1998.

… ‘A job that pays too little or seeks to take advantage of you will ultimately add stress and worry to your life and keep you from doing your best work. So you have to consider it. But never let it be the most important, determining factor in your search. Always consider your talents and skills and strengths and the opportunity to make a difference in the world first.” …

7. “One extra monthly payment per year on your mortgage shortens the length of your loan by years.” // Real Estate Broker, 2001.

… we’ve worked hard to add a little extra each month to our mortgage principle—even if it’s just $50. In the end, most years it’s added up to a full extra monthly payment.”

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