After Alex and I were married I have slowly been noticing that too many people are trying to "keep up with the Jones's" as my mother always called it. We have started looking to buy a car, but every auto salesman tries to get us to buy the most expensive and newest model. I'm thankful that my parents taught me about credit and how poisonous financing really is. Everything my parents have bought, they have paid cash in full. They are wonderful role models and my dad works hard to bring in the "bacon." My mom is the business queen. Almost every morning through my childhood I would see her balancing the checkbook. She taught us about savings and interest rates and bad buys. I thought that she was balancing the checkbook because we had no money, but it was just the opposite. She was balancing the checkbook to MAKE sure we had money. In Shaq's own words, "It is not about how much money you make. The question is are you educated enough to KEEP it." I never went without as a kid. I was given everything I needed and almost everything I wanted. I never saw my parents fight about money. I actually don't believe I have ever seen them fight. I just want to emphasize how much I love my parents for teaching me good money habits!
Getting back on topic, I have learned a few things along the way and I read too much Dave Ramsey! Here are my thoughts on a few financial things:
1. "Don't buy things you can't afford with money you don't have to impress people you don't like." -Dave Ramsey
This is so true! The quote says it all. Don't get into debt just to have the newest or coolest car. When I see someone driving a new car I don't think "oh wow! They must be rich!" I think "oh wow, I bet that $1,000 car payment a month really puts a hole in your wallet and in your family fund." When I hear people say they don't want a used car because "someone else has used it" I just think "so you would rather put your family in extreme debt?" ok... kinda selfish... When you finance a new car from a dealership chances are that there is somewhere in your contract that states that you have to have the best insurance, which is more money, and you can only get your car maintained by them for about 100,000 miles, which is most likely going to be more money than having a regular mechanic or yourself maintain it. Don't try to rationalize an expensive car purchase. Millionaires mostly buy reliable used cars. You can save up, buy a used car, and put that extra money you would have saved instead of buying a new car towards your education, or your kid's education, or even towards a nice down payment on a house. My mother always said "the ONLY two things you should finance: your house and your education." Which brings me to my next Dave Ramsey quote...
2. "You know what you can do when you don't have any payments? ANYTHING YOU WANT!"
Debt is NOT a tool. You are just a slave to the lender. You could put your money towards anything! I would suggest a nice savings account :) just a nice safety net so that when trouble strikes, that emergency just becomes a minor inconvenience.
3. Getting out and staying out of debt is not just math, it's BEHAVIOR! You have to learn to control yourself and your spending habits. It's not about how much you make, it's about sticking to a budget and as Alex says "living within your means" or in other words: ACT YOUR WAGE!
"The goal isn't more money. The goal is living life on your terms." -Chris Brogan
Every month is different so you need a new budget every month. When you think about it at the end of the month when you're running low on funds, if your bills are paid, they're are clothes on your back, and there is food in your fridge.. you aren't poor! You just took care of business! Being "broke" and "poor" are two different things though. Being "broke" is just a phase that will pass!
"A budget is telling your money where to go instead of wondering where it went." -Dave Ramsey
Make your money have a purpose! Budget before each month!
4. Tithing... I have always seen my parents and my grandparents pay tithing to the church. I have read many talks and articles on tithing and church financing. I know for myself how important it is. This should be a priority every month. It should come first!
"Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it." Malachi 3:10
And a few of my favorite quotes...
"You'll never be happy if you chase money and stuff all of your life, but you can find true joy through giving and serving others." -Dave Ramsey
"If you want to feel rich, just count all the things you have that money cannot buy." -unknown
"No one has ever become poor by giving." -Anne Frank (my favorite)
Alex and I do struggle to stick to our budget. It isn't easy! It's all about self control. We save money by budgeting at the beginning of each month and eating at home. (yeah, sometimes we have mac -n- cheese for dinner!) We never blow money on expensive dates. For instance, we feed the ducks at a local lake. We did the free tours around St. George and it was awesome! We toured the old Tabernacle, the Brigham Young Winter Home, and Jacob Hamblin's home in Santa Clara! We always go to dollar theater to see a movie and we frequently have picnics in the park. Sometimes we go to Snow Canyon for hikes (but last time we kinda got lost) and we frequently have movie nights at home.
I know this is random but I have been thinking about this for a couple of months now. Alex and I discuss these issues a lot. I just wanted to finally write down my thoughts.
-Ashlan
