The Road to Nowhere

So many in our society seem to be content or intent upon heading down the road to nowhere, so I thought I’d take the time to help them. Below are ways to be successful at being unsuccessful. In case some want to change below are some suggestions how to get on the track to somewhere.

1. Avoid having a goal You should decide exactly what it is you'd like to accomplish; then remind yourself of that goal early and often. Whatever it is, write it down, picture it and share it with anyone else who you're counting on to help you accomplish it. Your goal isn't money, but what money can do. Create goals — both short-term and long-term — then decide how much money you'll need to reach them.

2. Continue spending more than you make Tracking and categorizing your expenses with a budget is the single greatest tool you have to accomplish your money-related goals. A plan that includes what you intend to spend on things like entertainment, food, housing, etc., vs. what you actually spend allows you to fine-tune your finances and find places to save..

3. Keep relating self-esteem to possessions Although we all know that money doesn't buy happiness, very few of us act that way. Instead, we seem to go out of our way to appear successful by driving the right car, living in the right house, and wearing the right clothes.

4. Starting to save large and late rather than small and soon The best time to save is right now and in comfortable amounts. Increase amounts early and be determined to keep with the plan.

5. Paying interest to buy things that drop in value There are only two situations where paying interest makes sense. The first is when the purchase goes up in value at a rate greater than the rate of interest you're paying to finance it. Another examples might be a business loan that's going to return more (at least potentially) than it costs in interest payments.

6. Buying a new car Everyone knows that cars drop 10-20 percent before you get them home from the showroom. If you're buying a car for transportation, it doesn't have to be either new or loaded. Cars are depreciating assets: the less you spend on one the better, especially if you're borrowing money to do it.

7. Buying more house than you need or can afford Some rules of thumb say spend 25 percent of your gross income on a mortgage, regardless of what size house you really need. When you buy more square feet than you're going to actually live in, you're required to insure them, furnish them, clean them, heat them, and cool them. All of that costs money, time and some level of stress. So all that is left is for you to choose the track you want to pursue. One is easy, the other more difficult. Remember, “The journey of a thousand miles begins with a single step.” Don’t try to do it all at once.