It Is Only Money

How often have you heard this phrase? It is usually uttered by those who have little of it - or by those who take it for granted. We are pushed to spend every day. Commercials tell us that we "are worth it" and that "we deserve it." This attitude helps no one. It blurs the line between wanting and needing. A frugal mindset is essential in dealing with our consumerist culture.

Frugality benefits us no matter what we consider buying. In the grocery store we can choose less expensive brands. We can be more economical when car shopping. A vacation is just as nice while staying at a cheaper hotel. Some repairs around the house do not require an expensive handyman. How we prioritize our funds is also a sign of frugal living.

The first consideration when budgeting is our needs. You do keep a budget? You must use some method to reconcile your finances. We need to know what we have and where it goes. Our immediate needs must come first. Rent or mortgage, car payments, food and utilities are due each month. The goods or services that enable us to live and work are on the top of the list.

Debts are next in line. We can save a lot of money by paying them off and related interest before the amounts become staggering. It is a simple calculation. The interest you pay on a credit card is greater than the interest gained via savings. It should be no surprise that, in the long run, we will have more later if we pay debts sooner.

Saving for the future is a sound policy. The proverbial "rainy day" and our eventual retirement require funds that have been smartly invested. We all must educate ourselves about the various investment vehicles available. Risk must be assessed. Do not take the word of any banker or investment advisor. Do your homework. Be sure that the choices you make are in your best interests.

Lastly we have the wants. We want a nicer television or a better home. Some of you may wish to splurge at a favorite casino. There is nothing wrong with spending money on ourselves. There are questions that need to be asked. What will this money do for me? Can I truly afford it? Is what I gain worth what I give? These questions are good when spending or when making any life decisions.

We hate discussing our finances with others. It is a private matter that is usually kept within the immediate family. To some extent this makes sense. What we make is no one's business. On the other hand, if we were to discuss some aspects of our finances with others, we may learn a lot. Many life issues are better understood in relation to others whom have been there. Learn from others' mistakes so that you will never have to make them.