Thursday, January 15, 2015

KIS - Money & Debt

Let's tackle this subject right now and just get it out of the way.  Money is a tough one to talk about and I think debt issues even more so.  I'm sure we can all agree that living within our means and eliminating debt is something we should all aspire to.  It is often easier said than done, however.

I firmly believe it is less about the amount of money you earn and more about what you do with it.  In my experience I find that the people who complain the most about the amount they earn also have the greatest money woes, while those in control of their money are content with their current wages.  No matter how much money a person earns, if one is not in control of their money there will never be enough.

Here are four key principles I have regarding how I handle my money:

Pay my bills on time or early - avoid late fees and penalties.

Have a savings plan - standards savings account, emergency fund, retirement.

Work diligently to eliminate debt - mortgage, loans, credit cards, etc.

Track every penny - earned and spent.

The easiest way to have more money is most often by simply spending less.  Overspending is a compulsive habit that can be overcome.  I like to say that adding to my savings accounts and eliminating debt is my compulsion.

Sometimes we have to sit down and ask ourselves some serious questions:

Do I know how much I spend every month?

Do I know how much debt I truly have?

Do I have a plan for my retirement years?

Do I know what my net worth is?

We have to look at what we do and where we are with regard to our current financial situation.  We can't just guess or assume and it really isn't wise to try and just wing it.  We really need to know, no matter how unpleasant that may be.  But once we know then we can do something.

We also need a plan.

Here are some links to posts I've written on the subject of budgeting and debt elimination:

Have any ideas you want to share?  What has worked for you and what hasn't?


  1. This is a great post. We all need to check it out thoroughly. Thank you.

  2. Yep... I agree. My best advice would be to save *first & foremost*. Work your budget around your savings. :)

  3. This is a great post! I feel that anyone can live within their means and even save their money by budgeting their income, no matter how large or small it may be. In the last several years we have made it a priority to reduce our debt and we are so happy at where we are now. We are actually making a lot less money than we were years ago, due to circumstances we couldn't control, but now we are in a much better place in our lives with less debt and more security. I would say that, in our experience, the biggest key to get on track with your spending and paying off debt would be to set it in your mind to be willing to make sacrifices and to stay on top of everything you spend. With that in mind, you should start to see the ways you can build up your savings. :)

    1. Great advice Dawn. It truly is a mindset isn't it? And once I set my mind to something.... :)

  4. I completely agree with you! Financial independence is acquired when you know what to do with your finances, such as where to put it, when to spend it and where to invest it on. People who have trouble with money are usually the ones who don't have control over it, and I'm glad you're aware of that. At any rate, I love how engaging you are about the topic. I do hope to hear more from you soon. Thanks for sharing that! Keep us posted, and all the best to you! :)

    Naomi Cruz @ 4 Pillars


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