Stupid Money Moves
Man people are stupid about money. They see something, they want it, they buy it. Well they sort of buy it. Purchases go on a credit card with a crazy interest rate. And the we wander around wondering why we are broke.
“Oh boo-hoo. I have no money. I can’t pay my bills.”
Well suck it up sunshine. It’s your bed, your made it, you have to sleep in it. And it doesn’t matter how much money a person makes, they typically overspend. They live beyond their means.
It kind of makes me laugh.
I make a whopping 35000.00 a year. Minus taxes which are about a third. I am single dad with a teenage son. But we live within our means. I do not have a credit card. I do not have a cell phone. I try to live a minimalist lifestyle. This means I really try to live within my means. I examine every purchase, big or small. I live simply. I do have to spend money to make myself happy or to feel better. Life is enough.
So what are the stupid money moves people make that help them to stay poor?
Buying a house you really cannot afford. If your mortgage or rent payment eats up much more than 30% of your gross income or your vehicle costs you more than 10% (including financing, repairs and gas), you’re going to have a tough time making ends meet.
Considering only the monthly payments. Whole businesses thrive on getting you to ignore the total cost of your purchase. Payday lenders, rent-to-own shops and car dealerships, cable TV and cell phone companies want you to focus on the short-term payments, not the long-term expense. Avoid the first two.
Anytime you consider a loan, bring a calculator so you can multiply payments by the number of months you’ll be on the hook to get the real cost of what you’re buying.
Carrying credit card debt. You probably didn’t mean to do it, but what the hell are you thinking?? You just ran into a jam one month and couldn’t pay your whole bill, and somehow it has snowballed from there. But carrying credit card debt costs you a fortune and puts you at the mercy of credit card companies.
Do you even know your total debt amount. Do you know your interest rates? How long will it take you to pay off all of your debt? Most people do not know the answers to these questions.
I just don’t understand how people even live with the payments they must have. Good grief!
My son and I are moving to a different apartment. This means more money. I struggled with the decision to do this. It makes me nervous. We will not be getting cable at the new place. What a money-suck. Not to mention the time wasted watching useless shows and reruns. We will still have phone and internet. We can watch stuff online if need be.
I know I can do better in regards to money. I could live even more of a minimalist lifestyle.
I could track my spending more than I currently do.
So do you know the answers to the money questions for yourself?
What do you do to not be stupid about money?
Maybe it’s time for a change, time to get real about your personal finances and start making better money choices.
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