We say it all the time: The only recession that matters is the one at your house. You’ve probably heard the news: We owe more to the Chinese than you or I can imagine (actually, more than a group of senators can spend).
Welcome to the saving and investing generation.
Here are the four steps to a better future:
1. Reduce and then eliminate credit card debt. If you cannot consolidate your credit cards (safely) into one card, start with the highest interest credit card. Pay the minimums on all cards but the highest interest rate card. The highest interest rate card should be receiving the most payment – much more than the minimum.
2. Make sure you have a proper emergency savings fund for 2010. That means having 15 to 18 months of expenses in a money market savings account or certificates of deposit (make sure you are using an FDIC-insured institution). If you don’t have 15 to 18 months of expenses in savings, set it as your goal and start toward it. Check out our “1% Savings Plan” in previous blog entries for details on how to get their quickly.
3. Work to use any excuse to remove money from checking and push it to savings. Checking accounts are money laundering accounts for other people’s money.
4. Use coupons and negotiate, but only use coupon on things you normally purchase or really need (using coupons otherwise is marketing – not saving). When you save 10% on an item, pull the 10% out of checking and put it in savings. If you don’t actually save the money, you are actually saving NOTHING.
You can save more than you think. You can get ahead. You can help your family in this economy.
HELPING YOUR KIDS GET AHEAD
In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.
You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.
If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at http://www.middleclassmoney.com.
Thank you for reading our blog and good luck!