subject: Money Madness-More Money Does Not Make One Money Savvy [print this page] Money Madness-More Money Does Not Make One Money Savvy
Money Madness-It Even Happens To Celebrities
We have all heard the stories of multi-million dollar celebrities and athletes who lose everything. You think they must be crazy and stupid, right? Well, if you are carrying a huge mortgage, credit card debt, student loans and a car payment, then you may be more like them than you think.A rich celebrity who loses everything and whose home winds up in foreclosure is guilty of the same mistake as many of us. They spend more than they make. If you want to stop the money madness, then you must take a good hard look at yourself and your expenditures in order to set about setting things right for yourself and your own financial future.Money Madness-Set A Monthly Budget
One of the most important things that you can do for yourself if you care about your financial well-being is to set a monthly budget and then stick to it. Set aside specific amounts of money for things like groceries and entertainment. When that money is gone, make do on what you have left in the pantry and don't go out to eat. Look for free or cheap entertainment.Did you know that your public library has movies and music CDs? In order to stop the money madness, you must take stock in what you are spending and set clear goals for yourself and your family in the form of a monthly budget.Money Madness-How To Deal With Credit Card Debt
What about credit card debt? The best advice for getting out of credit card debt is to first stop using credit for any purchases whatsoever. That's right! Don't use those credit cards. Then take a look at the various interest rates for your credit cards. To systematically pay them off, first focus on the card with the highest interest rate.Pay as much money as possible on that card per month until it is paid off. Then move to the next highest interest rate and do the same. If you stop making purchases using your credit cards, you will stop the money madness and will eventually pay them off.If you need to make a big purchase such as a car or a piece of furniture, plan your purchase and save for it. You may be able to save all of the money for a piece of furniture and in paying cash for it, will avoid paying interest on your purchase. With a car, you may only be able to save a down payment before you need to buy it. In that case, educate yourself about the manufacturers' invoice price and then enter the dealership ready to negotiate with the salesman regarding the amount you are willing to pay over the manufacturer's invoice.Dealers like to start the conversation with monthly payments, but you should never talk about the monthly payments and instead focus on the over invoice price you are willing to pay. If they want to sell a car, they will negotiate. You just need to hang tough in order to stop the money madness.
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