Helpful tips for surviving a tough economy
1. Don’t be a spendthrift. Simply put: If you can’t afford it, don’t buy it. Sure we all want those designer clothes, bags and shoes or the handsome sports car, but the fact of the matter is most of us just can’t afford to make the purchases. The simplest answer to this problem is: If you can’t afford it, just don’t buy it. Learn to control yourself. This is often the most basic of things to understand, but it is one of the most difficult to do when all those “things” are staring you right in the face and all your credit card and financing companies are telling you that it’s OK.
2. Just because everyone is doing it, doesn’t make it a good idea. In today’s credit crazy world, accumulating massive amount of debt is no longer a disgrace. Everybody has a car to pay, monthly payment on a house and credit card payments. Buying something you simply can’t afford, especially in this tough economy, can double your suffering of paying later. If you cannot pay it with a cold hard cash, you probably cannot afford it.
3. Making someone else rich by paying interest on almost anything. You probably know by now that when you pay interest for something you purchased, you are actually overpaying that item for the benefit of having to use it now. The act of paying interest simply means that the price you are paying in order to make the purchase is more than than the actual sale price of the item. You are throwing away more of your hard-earned money to own that item than the product’s producer thought the item was actually worth. For example, if are able to buy a new car for $30,000 with a loan with a 6% interest rate for 5 years, you’ll end up paying over $35,000 for the car.
4. Don’t expect somebody else, especially the government, to save and bail you out. In times of economic downturn like this recession, people often turn to the government to help them out, but more often than not this is also the time when the government has the least flexibility money-wise, with its ballooning deficits and spending, to help its own people. In most cases, the government’s help will be temporary, so in your own ingenious ways you’ll have to save and bail yourself out.
Always remember . . . Nothing works until you follow it up with ACTION. Enjoy & prosper!