February 4, 2017
CNBC: A couple who spent $30,000 eating out last year highlights a critical money lesson
The life lesson is obvious. If you are spending $80+ per day to eat out then it is very easy to forget exactly how much you are spending. Make it an even $100 though, and you'll never forget. Neither will your waiter! Round up, I say. Round up! It's a win-win for everyone!
"What most people do when they earn a dollar is pay everyone else first. They pay the landlord, the credit card company, the telephone company, the government ..." writes financial adviser David Bach in "The Automatic Millionaire," and at the end of the day, they pay themselves whatever is left over. Oftentimes, that's not much.
Pay yourself first. If there is anything left over then send a few dollars to the landlord, the credit card company, the telephone company, and/or the government. It's a vastly superior plan. None of those entities need the money as much as you do. What's the worst that could happen? Eviction notices? Penalties? Collections? Liens? Lawsuits? Summons? Oh, please. That only happens in the movies!
It's usually wise to pay the extortion racketeers first.
ReplyDeleteHere's my advice for saving money. If you earn $5, save $2. Keep doing this and you will be amazed at how saving just 2% adds up!!!
ReplyDeleteI don't understand the math, but trust me it works!
dearieme,
ReplyDeleteER - Emergency Room
ER - Extortion Racketeer
One fixes your broken leg and one uses a fixer to break your leg.
mab,
ReplyDeleteDrinking 2% really adds up. I had to switch to skim at some point.
Switching to skim also helps some financial advisors make a little extra money.
Client: Why did you switch me to this higher fee fund?
Advisor: The more you spend, the more I save?