The biggest lie in personal financial affairs

I’m broke and I was not able to … (fill in the blank … save, add to my retirement, going on vacation, and pay my bills). The truth of the matter is that most people simply broke in the way they spend money and the big news is that it can be fixed. So stop complaining and let’s get started.

 Take the daily challenges below 7 days. Each day has a different pressure and different questions we answer that until you know what you are doing you can not change it.

 Keep track of everything you do. The first is easier, because all you have to do is keep a diary of everything you spend whether it is cash, debit card, check or credit card. Here there is only one daily right or wrong.

Then take your monthly bills and break them down into what is charged per day. Things like groceries, cable TV, newspaper subscriptions, car payments and utilities.

The following is a little harder. Back in the past year and make a list of all the unexpected expenses that hit you. Things like tires blew, unexpected car repair and related health problems.

 After a week to bring their daily living expenses and put on a list to add the total of each item. Now look at each of them and think about how important they are to you. Look how they affect your life. Not being preached here, but things like products snuff and alcohol to add not only our costs of health care, but also for things like the amount of time spent in the gym to eliminate some of the beers that we have a day .

 Just think if you can delete only one element you spend $ 35 per week for single pulses article. This will save $ 1.820 per year and if you have broken for 10 years, this is $ 18.200 plus interest. Not bad for cutting a single $ 5 per item one day.

Now let’s see what kind of monthly invoice items. You really go to l channels you can watch on your TV. Can you reduce your bill of $ 20 per month for eliminating some of them? What is your monthly electric bill. Can you move the thermostat a few degrees and see savings of $ 20 per month? What about food? Most of us do not miss the $ 20 per month from the shopping cart.

 If you can find 5 items you can save $ 20 per month then you have to save $ 1,200 per year. Or better yet $ 12,000 in 10 years. Not much, but if you are “broke” was a great solution.

 Now let’s see unexpected costs. Most come from do not do something we have done or not done. In fact, some of them would only maintenance. But if we pay more attention to our health spend less on prescriptions and health care. If we take better care of our house, we had some maintenance items that cost more than if we had taken care of them quickly. And if we have to do routine maintenance on our cars is a simple solution prevent further damage occurs.

 Most people can find $ 1,500 per year in unexpected costs that can be eliminated if only … .. Again, not much, but in the 10 years was $ 15,000.

 All these are small things, but if only … then you will save $ 45,200 over the past 10 years, plus interest will raise to $ 59.867. I know it sounds easy, but hard to do. But it is not hard to live your life “broke”?

 Now is the time to “fix” their personal finances. Building the future with savings and retirement plans.

 To learn more about how to “fix” their personal finances and build a savings plan and retirement plan see resource box.