• Organized Lifestyle

Let’s talk about peoples’ money choices.

Updated: Feb 27, 2019

Why is it that some people can make thousands of dollars monthly, but still have to borrow money for their purchases? We all know these people that think life is never going to happen to them. They somehow think they are always going to be passed by any of life’s challenges.

These maybe the people that have great jobs or high producing companies and they think their jobs are secure or their businesses are never going to hit a low patch.

My husband and I were in that situation.

My husband had a great job.

We were downsized.

Nothing wrong that we did, but he was still without a job.

Lucky for us, we are the strange couple that prepares for tough times. We had saved even though we did not think we needed to. So many say, why save. We would say, why not.

If you cannot pay in cash for something, can we really afford that purchase? America is one of the richest countries in the world, yet as a whole we live paycheck to paycheck.

Maybe you live in a home that your payment and insurance is more than 25% of your take home pay. Our dream home three houses ago, was 38% of our take home pay.

We don’t plan for an emergency surgery or an accident that takes us away from work for months.

We don’t plan for our jobs to change or our companies to merge or be sold.

We think because we are doing well, we will always do well.

Don’t get me wrong, being optimistic is great. However, I am focusing on the lack of planning. We don’t have a money issue because we can all go eat out or go to the movies or have our Starbucks.

Have you ever added all those extras up per month.

At one point, I was getting a coffee five days a week to the expense of $30/week which is almost $1,500 per year.

Maybe for you it is not coffee, but cable. We also went from $150/ month down to $55/month. May not sound like a huge difference, but almost a hundred dollar savings is $1,200 per year.

Maybe you live in a home that your payment and insurance is more than 25% of your take home pay. Our dream home three houses ago, was 38% of our take home pay.

By America’s standards we could afford it, but we really couldn’t because there was nothing left of our paycheck at the end of the month. We were counting the days until the next paycheck.

Do you know what percent of your take home pay your home payment represents?

I would say instead of a money problem,

we have an allocation problem.

We have enough money,

we just need to start spending it wisely.

If one of our children needed a life saving procedure, we could change our lifestyle to get the money to save their life.

I would caution you to continue to borrow money.

Think can I afford this item?

By afford I meaning can I pay cash for the full amount or can I afford the payment? Affording the payment is how you live paycheck to paycheck.

This concept of putting everything on payments is how you live a stressed life.

For me and my family, I want to know that no matter what happens with the economy or life, that we can afford our purchases. I want my family to lead a stress free life around money. I enjoy the peace I receive when I know that we are not living paycheck to paycheck.

Just try paying cash for your items and living on a monthly budget. A budget is freeing and heals marriages.

Try it for a few months and see if you don’t check your bank accounts less. See if you don't worry less if something is going to clear your account.

My husband, Juan Paredes, a certified Dave Ramsey Financial Coach. 316-218-8543

If this all seems too difficult or if you need one on one help with your finances and want to bring your marriage closer than you have ever been, my husband can help with that. He has been meeting with hundreds of families over the past 10 years. His character and life experience can change your life one baby step at a time.

Try living on what you make if you want more peace around your money and life. Once you change, you will not go back to your old ways.

Have you tried budgeting? Use our tool to help get you started. We can't wait to share it with you. Add your email below to get this tool delivered straight to your inbox.

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