Buy More Stuff
We buy "stuff". We don't need most of the "stuff" we buy yet we buy it anyway. It's fills our homes, our shelves, our offices. I've seen bookshelves filled with tchotchkes and trinkets and collections of little ceramic frogs...stuff, stuff, stuff. And what does that stuff cost us in the long run? A LOT.
For those of you who are living paycheck to paycheck and I know there are some of you out there who are and even for those of you who are not living paycheck to paycheck I want you to take a look some of these figures below and then think about how important the "stuff" is that you buy in relation to your financial reality.
The average price of a Grande (medium) coffee at Starbucks is $1.95. That's just a regular coffee and not one of the fancy dance kind like an Iced Carmel Macchiato (Grande costs $4.45)
So if you get one cup of coffee every day for a year you're spending $709.80 each year on coffee or if you get the Iced Carmel Macchiato that's $1619.80 for the year not including tax.
According to Value Penguin in 2014:
- The average yearly cost of car insurance was $907.38
- The average cost of homeowners insurance was $978.00 (That's average). For those of you living in metropolitan areas...it's MUCH higher.
- According to eHealthInsurance's 2011 Annual Insurance Survey, the average monthly premium for individuals in the United States was $183 (or $2,196 per year). Furthermore, the average monthly premium for families was $414 (or $4,968 per year). Between 2010 and 2011, average premiums increased 9.6% for individual policies and 5.6% for families.
- Balance of $5,000
- APR of 15.99%
- Current minimum monthly payment of $110
- Almost 25 years to pay off
- Total payments of $12,006
- Total interest paid $7,006
- CONFRONT YOUR SITUATION. Look at it squarely in the face and confront the reality of your finances. I know this can be hard, especially if you're really underwater. But you MUST do this step. By confronting it (and this holds true for everything in our lives) we can gain control over it.
- MAKE A LIST of the "stuff" you buy that you don't need. I mean REALLY don't need and remove those items from your buying lists. I did this once and ended up saving myself close to $150 each month on just frivolous things that I "thought" were important or that I "rationalized" away as something I like to call an 'it's just.' "It's just a Starbucks...I can treat myself to that." NO, if you're facing financial issues...you can't. (Besides it's full of GMOs, Sugar and is NOT healthy for you! You'll be saving money in medical bills in the long run so this is a double savings here!)
- MAKE A BUDGET of what you REALLY have to spend money on. Things like:
- Weekly food (What you NEED)
- Insurance (Home, Health, Car)
- Car Payments and Gas
- Student Loans (don't get me started on this one)
- A Fun Fund (This is your time for the movies or a date night with your spouse. We have to keep these things in our lives. But keep the expenditures within reason.)
- LIVE WITHIN YOUR MEANS. Once you've made that budget stick to it! DO NOT spend more than you have. Seriously...DON'T
- STOP RELYING ON CREDIT. It will get you nowhere but further in debt.
- MAKE MORE MONEY! I know, I know...I hear it all the time the "But I can't..." "But I try..." "But there's not enough work!" Wrong. There's a TON of work and a TON money out there and you CAN make as much as you want. (I'll be addressing different ways to do this in the future as part of the new program we're rolling out. I'm excited about helping you reach your goals in whatever field you've chosen!)