Things have been totally nuts around here still... It's driving me crazy not being able to be on here as much as I'd like. I find myself narrating posts in my head as I'm driving around running errands... I'm a loser... And Mike has taken some time off of work, and we are enjoying some family time until Friday... So, after that hopefully things will be back to normal and I can be on here at least once a day again.
So thanks to the lesson in relief society {based on this Ensign article} Pointing out 6 aspects of our life that we can be provident in... Education, Health, Employment, Family home production and storage, Family finances, and spiritual strength. Thank you wonderful Stephie Gross, for This article. It caught my attention... It will focus on the family finance aspect of provident living. We need to be self reliant financially, and here's a few tidbits to help us get there...So the article is in black and my thoughts are in PINK.
Saving money isn't all about whether or not you know how to score screaming bargains.
It has more to do with your attitude toward money.
Just think of those who don't fit the filthy-rich stereotype. People like Warren Buffett.
As explained in the book The Millionaire Next Door by Thomas J. Stanley and William D. Danko, personal finance has as much to do with people's traits as it does with money. Many millionaires, in fact, have frugal ways. {Have I told you the 10 cents for lettuce story? My dad (Steve, I have 2) is the cheapest man alive... You know how a plain chick fil a sandwich doesn't come with lettuce? Well, Steve ordered one not knowing that it doesn't come with lettuce and the girl told him it would be 10 cents extra for lettuce, And he freaked out! "10 cents for lettuce?!?! What you want me to pay a penny for every seed on the bun too??" Through the drive through... He decides against the lettuce, and proceeds to pull around to the drive thru window... Here's the kicker... In a $50 or $60 thousand dollar Mercedes Benz. Really? One of the most embarrassing moments of my teenage life. Could he have afforded the 10 cent lettuce, Yes. But it was the principle...and he's cheap. He doesn't spend unnecessarily. Why do you think the millionaire next door is a millionaire... Because they are frugal and don't spend money. Seriously, I could tell you a million stories of mike selling cars to millionaires, and he hates negotiating with them because they are SO freaking cheap and put up such a stink about 30 or 40 dollars a month.
Understanding how personal traits can influence your finances is an essential ingredient for building wealth.
Here are 10 key traits:
10. Patience
Patience is one of the most important traits when it comes to saving money.
This means waiting until the first wave of product hype has passed, keeping a car for an extra few years before getting another one and waiting until something you want fits into your budget instead of putting it on credit.
Patience is often the difference between creating savings and being in debt. Having the patience to wait until you find a good deal is a cornerstone of good finances.
{I don't impulse buy anymore... It's not all that bad. perfect point in case, I just got a new dress at Cache and have wanted it for months... I almost bought it 4 or 5 months ago, Mike even told me I could! (The second cheapest man alive) But I decided to wait, and think it over. Well, I just wanted to make sure it was something I really wanted and not just something I'd wear once. I waited until just last week, and Guess what?!? Its was 50% off. I still got it, I just had to wait a little bit.}
9. Satisfaction
When you're satisfied, there is no reason to spend money on nonessentials. The sole purpose of commercials is to make you believe that buying a product or service will make you happier, wealthier, better looking or improve whatever isn't bringing you satisfaction.
People spend because they want to capture the excitement shown in advertisements. When you are satisfied with what you have and your life (not trying to live like those on TV), your finances will be in a lot better shape.{Be satisfied with the things that matter, Family, fun activities, your spouse. Focus on the things that are important and pretty soon you'll be quite happy without a closet full of things you never wear or use}
8. Organization. Being organized can make you more productive and ensure that all the many issues pertaining to personal finances are addressed.
It means not paying late fees, not buying two of everything, knowing deadlines that can affect your finances and getting more done in less time. All these can greatly benefit your finances.
You know how I feel about organization. Why on earth would you throw money in the toilet by paying late fees or Buying 2 of something because you can't find the other that you already spent money on, or pay an overdraft fee because you forgot to check your account?
7. Discipline
You need the discipline to continue to save money for specific, long-term goals every month. Personal finance isn't a way to get rich quick, but is a disciplined execution of your lifetime plans.
We treat our savings like tithing NON NEGOTIABLE. It comes out with the bills and we make the household budget work around it accordingly. Yep, Some months are tight, But one look at that bank receipt makes it ALL worth it.
6. Reflectiveness
It's important to be able to look at your financial decisions and reflect on their results. You're going to make financial mistakes. Everyone does. The key is to learn from those mistakes so you don't make them again, or recognize if you keep repeating them.
Heavens to Betsy, I feel like I could write a novel on this category... Let's just say, I / we have made lots of mistakes and don't intend to repeat them... I was born a spender, a BIG spender. I've been hammered and molded into a saver.
5. Creativity
The economy and our earnings don't always match our expectations.
Unexpected developments wreak havoc to elaborate financial plans. When this happens, changes are needed to deal with the new circumstances. Creativity is essential to accomplish this.
Creativity allows you to make something last longer rather than purchasing it when you don't have the money. It means juggling money to stay out of debt rather than simply paying with a credit card. It means finding a cheaper alternative when money is tight.
In these ways, creativity plays a large role in keeping finances in order.
I totally love this part. If we don't have enough money in the budget, It's fun to make the kids clothes with leftover fabric, or one of my old shirts, or create a dinner with whatever is in the fridge and pantry, does it always come out wonderful? No, but it meets our needs and gets us through until there is money to adequately fill the need.
4. Curiosity
Having curiosity helps you learn, study and improve yourself.
The curiosity of wanting to know more, to take the time to study and then take what is learned and put into practice is an important process that is driven by curiosity.
If you aren't the greatest budget-er, Learn about it. If you don't know how to invest, educate yourself. Seek help. Shoot, My parents are worth their weight in gold because of the knowledge they have gained through their financial education... The school of hard knocks baby... LIFE. They have way more experience with investing and budgeting than we do. Utilize them. Ask questions. Actually Mike is having lunch with my dad right now discussing some investing opportunities.
3. Risk-Taking
To build wealth, one needs to be willing to take risks. This doesn't mean uncalculated risks. It means weighing all the options and taking calculated risks when appropriate.
The stock market has risks involved, but over the long term, history shows that it provides good returns on money that is invested wisely. Those who fear risk altogether end up saving money in accounts that likely lose money to inflation in the long run.
You win some, You lose some. Now, don't be dumb and put all your eggs in one basket, but it's okay if you lose a little and learn a lot.
2. Set goals. The importance of setting and working toward goals is obvious. If you don't know where you are going, it's difficult to get there. It helps your personal finances immensely if you have money goals and are motivated to reach the goals that you have set for yourself.
Those who lack goals don't have a road map to take them to the financial destination they want.
There is no better feeling than achieving a goal. Write them down!!!
1. Hard- and Smart-Working
Creating wealth and staying out of debt rarely comes about without a lot of hard work.
Many people might hope that the lottery will solve all their financial problems. The true path to financial freedom, however, is to work hard to earn money while educating yourself to continue to have more value and increase your salary.
You may not possess all of the above traits. But knowing them can help you make changes so that you nourish the ones that you have and obtain the ones you're missing.
Ultimately they will help you with your personal finances and create a plan to accumulate the wealth you desire.
According to the lotto report 70% of powerball winners go bankrupt. Because they have the same attitude toward money as they always did.
Want to know a few other interesting facts???
Toyota has one of the best reliability ratings of any manufacturer. Yes that’s even factoring in the whole unintended acceleration mess. High reliability means two things. 1. If you own a Toyota you’re probably not going to spend much on repairs. 2. When you go to sell your Toyota you are going to get more for it than similar vehicle types from other brands.
You see, most millionaires have become so not because they are trust fund babies or because they are CEO’s of large corporations. They have become millionaires by living modestly and investing a good portion of their income.
Here’s another amazing fact from Dr. Stanley’s research. 86% of people who drive luxury brands (Mercedes, Lexus, BMW etc..) are NOT millionaires. That is fascinating to me. Roughly 9 out of every 10 luxury cars I see flying down the highway are driven by people who AREN’T WEALTHY!
The real way to be financially secure is to live beneath our means and invest wisely a good portion of our income.
So the next time you see a 2005 Toyota Camry parked next to a shiny new Mercedes Benz CL65 AMG, you’ll know which owner probably has more money sitting in the bank! Unless you see me in Marsh Landing parked next to a Mercedes, They probably have more money than I do...LOL.
Ok, You already knew we love Toyotas, And even though we drive 2 Toyota's, No we aren't millionaires. But the facts don't lie folks... The rich are rich because they are smart, frugal and plan for the future... That's going to be us one day... Not because Mike makes a million dollars every year, But because that's our goal, to be financially independent...forever. We're going to get there by being diligent in our savings, not buying everything we want, and getting by with our needs, because the long term goal is much much more important than a pair of cute Louis Vuitton heels.
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