An Important Recipe

If you want the outcome of your recipe to be a good one, you must follow all of the directions carefully. Leaving out even one step or one ingredient can mean a total failure. This goes for any goal we may set for ourselves as well.

Do you use coupons? When my children were young, I had no choice but to use any (legal) means I found to save whatever I could whenever I could. Clipping coupons was a part of that. Shopping for the best bargains, visiting (and planning) yard sales, watching for store sales, etc. were all utilized.

As difficult as it may seem when you live paycheck to paycheck, there is just no way to know when some unexpected expense will create havoc in a budget. If you are only able to put aside $5.00 each payday, that will add up over time. I read a suggestion recently that said we should think of it as “paying ourselves.” Great idea!

Begin immediately to eliminate credit card debt. Begin with the card with the highest interest rate. Pay more than the minimum amount each month until it’s paid off. Move to the next card and so on. Recognize that when you don’t have the cash to pay for something, you can’t afford it.

Since I had been self-employed so much of my working life, I realized I would need to play catch-up. I did so in a number of ways. Some of the most important included investing the maximum allowable each year in Roth IRAs. I did this with my tax return. My employer offered a matching tax deferred plan that would match a certain amount each pay period. I had this amount PLUS taken out of my pay twice a month. Not only did I not have to pay tax on it at the time, but for every dollar I invested, I got two back. Why would anyone NOT take advantage of a plan like that?

Anyone not living under a rock knows that the economy is in sad shape. We’ve heard for years that Social Security is going to run out soon. Now we are also looking at the ACA (Obama Care) which will put even more strain on the nation’s budget and the pockets of those who work for a living. If we don’t plan for our own retirement, it is highly unlikely that there will be much help from Uncle Sam in another few decades.

You may argue that your child must come first. I agree that our children are so very important. Think! Does little Johnny need those high-priced, size 1 Weeboks, that he MAY wear for a month, more than he will need for you to be able to take care of your own finances when he eventually gets out on his own? Looking out for your own future IS putting your child first. It’s all part of the recipe for financial health.

It may also mean that you: cancel cable, or at the very least, cut back to a smaller package, stop eating out as often, or buying processed foods that have such high prices. It could mean that you have to spend more time cooking, but your family will be eating better as you save on the food bill. Good luck and Financially Healthy Parenting!

© 2014 Brenda Holland-Robinson