Here’s the bottom line: Make sure you have more money coming in than you have going out. If you’re interested in buying something and you don’t have enough money saved up, or you don’t have a plan to pay the money back if you buy it with a credit card (or some other kind of loan), don’t buy it. Enough said.
However, if you have a job and you know you’ll have regular income as well as some monthly expenses, it’s a good idea to grab a pencil and paper and do something like this:
Be sure to pay yourself first. Remember, paying yourself first means putting a little something away from each paycheck before you start spending money on anything else. It can be a set amount (like $20) or a percentage (like 10%). Think of yourself and your future as a bill that needs to be paid. This is one of the most important decisions you can make and is an essential part of the MoneyStrong movement to help you make smart financial choices.
