Posted by: blondechief | July 23, 2008

SAGE Wisdom

S – Save First

A – Automatic Debt Re-payment plan

G – Get off the treadmill of consumerism

E – Enjoy your life right now, this minute.

Above are my four basic steps to achieve “simple wealth”.  You have to start somewhere, sometime, so it might as well be now.  Step #1. Save first.  This means each and every week you are to pay yourself first.  This is as important as any other financial commitment you have.  You need to keep a portion of the money you earn for yourself.  I don’t care if you start with $5.00 a week, the important part is to start and to make this a habit.  For now, it is not important where you put this money, as long as you know it is savings and not to be touched. With todays wonderful world of online banking and direct deposit you can make this a simple priority.  What you don’t see, you won’t miss. I use ING Direct, which for no fees and no minimums, automatically takes money from my checking account and deposits it to my savings account.  I do not have to think about this or worry about it, and it is kinda “cool” to see your savings grow.  I guarentee you will get hooked on this before you know it.  Step # 2. Automatic debt re-payment.   Okay, now that your savings are on auto-pilot, do the same with your debts.  Pick one bill that you have and focus your efforts on paying it off.  You can have automatic withdrawals, or you can just decide to add $5 -10 or 20 extra dollars on it each month.  Choose a credit card with the highest interest rate, or to keep you motivated, concentrate on one with the smallest balance so you see quicker results.  When this bill is paid off, add the minimum payment plus your extra 5, 10, or 20 to the next bill in line.  Do this all the way up to and including your mortgage.  You will be amazed at the results of this basic, simple, automatic plan to become debt-free.  Plain and Simple, it “WORKS”.  Step #3 – Get off the treadmill of consumerism.  Stop spending money you have not earned yet, to buy things you do not need, to impress people you do not like.  Which came first, the chicken or the egg?  Which lasts longer, the new car smell or the payment book?  You know the answer to the latter.  Step #4 – Enjoy your life right now.  Stop wishing for things to be better in the future, a better job, a nicer house, etc. (See the post titled “Gratitude”) Find ways to enjoy today.  You have set up a plan of action for savings and to pay down your debts.  Be proud of yourself, and stop focusing on anything negative. Stick with this very basic, but effective plan, and you will see amazing changes in your attitude, the attitude of people around you, and your entire life. Aren’t you and your family worth it?  Of course you are.

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