Do you feel like people are constantly taking advantage of you? Or perhaps you feel like you’re always giving more than you’re getting? If so, it might be time to set some boundaries.
Boundaries are limits that we put on ourselves and others to maintain our mental and emotional health.
In this blog post, we will discuss the following:
Definition of boundaries
Different types of boundaries
Benefits of setting boundaries
How to set healthy boundaries with others
This post may contain affiliate links; please see our disclaimer for details.
What are Boundaries?
Boundaries are psychological and even physical barriers we create to protect ourselves from being emotionally and/or physically hurt by others. We all need boundaries in our lives to feel safe and respected and to maintain our sanity. They help us protect our time, energy, and resources. We all have different comfort levels when it comes to setting boundaries.
Some of us are comfortable setting very strict boundaries, while others are more flexible.
There is no one size fits all way to set boundaries – it’s all about what works for you.
Types of Boundaries
There are four main types of boundaries: physical, emotional, mental, and spiritual. I have also added another boundary related to finance.
Physical boundaries: These are the limits we put on others in terms of our physical space. For example, you might not be comfortable with someone standing too close to you or touching you without your permission.
Emotional boundaries: Protecting your emotional space can be just as important as protecting your physical space.
Emotional boundaries could involve setting limits on how much you share with others. Consider how much you need to let certain people into your life.
Mental boundaries: Mental boundaries are all about protecting your thoughts and feelings. This might involve setting limits on how much you think about someone or something. Think about how much you allow yourself to be affected by others.
Spiritual boundaries: These are the limits we put on others regarding our beliefs and values. For example, you might not enjoy it when someone is trying to proselytize you. Or when others are telling you that your beliefs are wrong.
Financial boundaries: It’s important to make the best financial decisions for yourself and your family.
Try not to worry about what friends and family think regarding how you manage money, especially when making wise money decisions such as preparing an emergency fund or investing.
Benefits of Setting Boundaries
Many benefits come with setting boundaries in life. For one, it can help to improve communication with others.
When you know your own limits, it becomes easier to communicate those to others and explain why you may need certain things from them.
Additionally, setting boundaries can help to promote healthier relationships overall.
It can also make it easier to stick to personal goals and commitments and better manage time and energy levels. Finally, boundary-setting can also lead to increased self-respect and confidence.
Of course, there may be times when setting boundaries feels difficult or uncomfortable. However, keep in mind that these challenges are often temporary and typically lead to long-term benefits for both yourself and your relationships.
If you’re unsure where to start, keep reading because we discuss various ways to set boundaries.
We all have different comfort levels regarding how much we share with others in terms of physical and emotional space. And while it’s perfectly normal for these boundaries to shift over time, certain signs indicate it might be time to set some new, healthier ones.
If you feel constantly overwhelmed, resentful, or taken advantage of, it might be time to reevaluate your relationships and set new boundaries.
Here are a few specific signs that indicate it’s time to set healthy boundaries with others in your life:
You’re Always Saying “Yes”
If you constantly say yes to things you don’t want to do, it’s a sign that your boundaries need some readjusting.
Whether you’re saying yes to social invitations out of a sense of obligation or agreeing to requests at work beyond your scope, consistently putting yourself in situations you don’t want to be in is a sign that your boundaries need to be reset.
You Feel Resentful
It’s common to feel irritated with others when you feel violated. When your boundaries are crossed, it’s frequently a sign that someone has done so deliberately. resentment is a common emotion we feel when our needs are not being met, or we’re being taken advantage of. If you find yourself feeling resentful towards someone, it’s a sign that you need to have a conversation with them about your expectations and boundaries.
You Feel Overwhelmed
If you’re constantly feeling overwhelmed, it’s likely because you’re taking on more than you can handle. This can be in the form of overcommitting to too many things or saying yes to things outside your comfort zone. If you find yourself in a constant state of overwhelm, it’s a sign that you must start setting some boundaries.
You Feel Taken Advantage Of
If you feel like you’re always the one giving and never receiving, it’s a sign that your boundaries need to be reset. This is often the case in relationships where one person feels like they’re always doing all the work. If you find yourself in this situation, it’s important to have a conversation with the other person about your needs and expectations.
You’re Constantly Comparing Yourself to Others
If you find yourself constantly comparing yourself to others, it’s a sign that you’re not setting healthy boundaries. Comparison is often rooted in insecurity and can lead to feelings of inadequacy. If you find yourself constantly comparing yourself to others, it’s a sign that you need to focus on your own happiness and well-being.
You’re Not Prioritizing Your Own Needs
When you notice that you are prioritizing the needs of others above your own, it’s an indication that you need to set some limits. This is often the case for people-pleasers who have difficulty saying no.
While it’s important to be considerate of others, it’s also important to ensure you’re taking care of yourself.
You Don’t Feel Like Yourself
Not feeling yourself can signal that you’re not setting healthy boundaries.
We often allow others to dictate our lives when we don’t set boundaries. This is often the case when we’re around people who are toxic or who bring out the worst in us. If you find yourself in this situation, it’s important to distance yourself from those people and set some healthy boundaries.
Setting boundaries can be challenging, but it’s important if you want to live a happy and healthy life. Here are a few tips if you find yourself in a situation where you need to set some new boundaries.
How to Set Boundaries?
There is no one-size-fits-all answer to setting boundaries; how you set them will be unique to you and your situation. However, here are a few tips to get you started:
1) Be Clear and Direct
When setting boundaries, it’s important to be clear and direct. This means being assertive and firm in your request.
For example, if you’re setting a boundary with a friend, you might say, “I need some space, so I’m going to take a break from our friendship for a while.”
2) Be Kind and Compassionate
It’s also important to be kind and compassionate when setting boundaries. This means being understanding and empathizing with the other person’s feelings.
For example, if you’re setting a boundary with a family member, you might say, “I know you’re upset, but I need to do what’s best for me.”
3) Hold The Line
Once you’ve set a boundary, it’s important to hold the line. This means being consistent in your request and not backing down.
For example, if you’ve set a boundary with a coworker, you might say something like, “I’ve told you before that I don’t want to talk about personal things at work. Please respect my boundary.”
4) Leave The Environment
Sometimes, the best way to set a boundary is to leave the environment. This means removing yourself from the situation entirely.
For example, if you’re setting a boundary with an abusive partner, you might say, “I’m leaving, and I’m not coming back until you get help for your anger issues.”
What if Someone Doesn’t Respect Your Boundaries?
If someone does not respect your boundaries, it’s important to take action. This might mean ending the relationship entirely or setting an even stronger boundary.
For example, if you’ve told a friend that you need some space and they continue to contact you, you might say something like, “I’ve told you that I need some space.
If you can’t respect my request, I will have to end our friendship.”
Conclusion
Setting boundaries is an important part of living a happy and healthy life.
If you are in a situation where you need to set new boundaries, remember to be clear and direct, kind and compassionate, and consistent in your request.
And if someone doesn’t respect your boundaries, don’t be afraid to take action. If you do, you’ll be one step closer to living the life you want and deserve.
It’s not what you know, it’s what you do with what you know that counts. This is one of the many valuable lessons from Rich Dad Poor Dad, a book by Robert Kiyosaki.
The book helped change my family’s life and taught us how to find success in life.
In this blog post, I’m excited to share 9 of the most important lessons from the book.
If you apply these lessons to your own life, you will see a dramatic improvement in your finances and overall happiness!
This post may contain affiliate links; please see our disclaimer for details.
Book Summary, Rich Dad Poor Dad – Robert Kiyosaki
Rich Dad Poor Dad is a book about two fathers, one rich and one poor.
The author, Robert Kiyosaki, was raised by his poor father and his rich friend’s father.
Through these two men, he learned the difference between having money and being wealthy.
He also learned that it is not what you know, but what you do with what you know that counts.
The book is full of valuable lessons, but here are 9 of the most important ones:
Lesson #1 – The rich do not work for money
The poor and middle-class work for money. They trade their time for money.
The rich, on the other hand, work to learn how to make money work for them. They don’t exchange their time for money; they invest their time.
The rich know that it’s not about how much money you make, but about how much money you keep.
The middle class is focused on their salary or hourly wage, while the rich focus on creating systems that generate cash flow.
Lesson #2 – The rich are not afraid of failure
Rich people view failure as a learning opportunity. The poor and middle-class see failure as an endpoint, something to be avoided at all costs.
The rich know that failing is part of the journey to success.
They view each failed attempt as a step closer to their ultimate goal.
Lesson #3 – The rich think differently about money
The poor and middle class see money as something to be spent, while the rich see it as something to be invested in.
The rich know that they can use the money to make more money. They understand the power of compound interest and leverage.
The rich also know that they cannot save their way to riches. Savings are important but only a small part of the equation.
The real key to wealth is generating income through investments.
A great way to start investing in real estate without a lot of money is with Fundrise, a crowdsourcing real estate investing platform.
With investment minimums of ONLY $10, you can start making PASSIVE INCOME with your real estate investment portfolio!
Lesson #4 – The rich have multiple streams of income
The poor and middle class typically have one source of income: their job.
The rich have multiple income sources, giving them more security and options. This can be anything from investments to rental properties to businesses.
The rich know they need to diversify their income sources to protect themselves from financial risk.
For example, if your only income source was from a job, what would happen if you were laid off?
Having multiple income streams gives you a safety net to fall back on.
Diversifying your income streams is a key part of financial security. It’s important to have multiple sources of income so that you are not reliant on any one source.
It can also help with creating a surplus of money that can be used for reinvestments.
Lesson #5 – The More You Learn, The More You Earn
The rich know that they need to continuously learn and grow. They understand that the world is constantly changing and that they need to change with it.
The poor and middle-class tend to stay stuck in their ways, refusing to adapt to new information or technologies.
The rich also know that they cannot do everything on their own. They surround themselves with experts who can help them achieve their goals. They are not afraid to ask for help or pay for advice.
Lesson #6 – Savers Are Losers
This was probably the most controversial lesson in the book, and it goes against pretty much everything we’ve been taught our whole lives.
The message is that if you want to get ahead financially, you need to invest your money rather than save it.
The reasoning behind this is that savings accounts earn very little interest, so your money isn’t really growing.
On the other hand, if you invest in something like stocks or real estate, your money has the potential to grow much more quickly.
Of course, there is risk involved with investing, but that’s why Kiyosaki recommends starting small and learning as you go.
He also stresses the importance of diversifying your investments so that you’re not putting all your eggs in one basket.
Inflation is also something to consider when it comes to saving vs. investing.
If you have your money in a savings account, the rate of inflation will eat away at your purchasing power over time.
On the other hand, if you’re investing in assets like stocks or real estate, your investment will likely go up in value as inflation goes up.
Lesson #7 – Your House Is Not An Asset
Another interesting lesson goes against everything we’ve been taught our whole lives. We’re told our house is our biggest asset, but Kiyosaki says that’s not true.
Instead, he classifies your house as a liability. That’s because you have to pay for upkeep, property taxes, insurance, and other expenses.
And unless you’re renting out part of your house, you’re not generating any income from it.
On the other hand, an asset generates income for you. For example, a rental property or a business.
So while your house may be worth a lot of money on paper, it’s not doing anything for you financially.
Learning how the same item, property or otherwise, can be viewed as an asset or a liability was huge for me.
It completely changed how I looked at my house and other possessions.
The rich know that they need to take risks if they want to achieve financial success.
They are not afraid of failure and understand that setbacks are part of the journey.
The poor and middle class tend to play it safe, which often keeps them from achieving their full potential.
The rich also know that not all risks are created equal. They carefully calculate the risks they take and only put their money in ventures that potentially give them a high return.
They are patient and disciplined when it comes to taking risks.
Lesson #9 – Bad Debt vs. Good Debt
The rich know the difference between good debt and bad debt.
Good debt will increase in value over time or generate income for you.
An example of good debt would be a rental property or a business loan. Bad debt is something that doesn’t offer any financial benefits.
An example of bad debt is a credit card balance that doesn’t get paid off on time.
These are just a few lessons I’ve learned from Rich Dad Poor Dad.
The book has completely changed how I think about money, and it’s helped me take control of my financial future for myself and my family.
If you want to improve your financial situation, I highly recommend reading it.
I’m so grateful that I came across this book, and I’m excited to see where my new financial knowledge takes me.
The book’s final lesson is that he explains the importance of continually improving your IQ.
By reading other articles on this website, you can improve your financial intelligence.
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
When you’re a new parent, money is the last thing you want to worry about. The question of how you save cash on baby items has probably crossed your mind.
But the fact is, babies can be expensive! According to the survey from lendeu, on average, the cost of raising a baby in the first year is $13,186!
Although many of those costs come from the hospital, there are so many things you need to buy before your little one arrives – and it’s easy to go overboard and spend a fortune.
But don’t worry – we’re here to help. This blog post will give you ten tips for saving serious cash on baby items.
This post may contain affiliate links; please see our disclaimer for details.
1) Buy Secondhand
One of the best ways to save cash on baby items is to buy second-hand.
You can find great deals on gently used baby clothes, furniture, toys, and more.
Just be sure to check for any damage or wear and tear before you buy.
You can visit flea markets, garage sales, or even online secondhand stores like ThredUP.
FB Marketplace, Etsy, and Kijiji are great places to look for second-hand baby items.
2) Join a Baby Equipment Rental Service
You can always rent baby gear if you’re not comfortable buying secondhand.
Plenty of companies offer baby equipment rental services, which can be a great way to get everything you need without spending a lot of money.
This is a great short-term solution if you do not plan on having more children.
You can also avoid the hassle of selling everything once your child outgrows it.
3) Use Coupons and Discount Codes
Whenever you’re shopping for baby items, be sure to look for coupons and discount codes.
You can often find great deals on baby gear by using these codes. So be sure to do your research before you buy anything!
There is no shame in using coupons. If it positions yourself and your family to be in a better financial outcome, it is actually quite a responsible thing to do.
4) Buy in Bulk
If you have the space, buying baby items in bulk can be helpful.
This way, you’ll always have a supply of diapers, wipes, and other essentials, and you’ll save money by buying in bulk.
You can buy these items in bulk in Costco, Sam’s Club, and Amazon. Just be sure to compare prices before you buy anything!
By buying in bulk, you are also saving time. The frequent trips to the store can be time-consuming, and the cost of gas to get there can really add up.
When buying in bulk it is important to know how long it will take you to go through the items so that they do not expire before you have a chance to use them.
For example, if the bulk package of baby food expires in six months and you only have one child eating baby food, it will take you six months to go through the package.
If you wait too long, you will have wasted money on food that has gone bad.
Calculating the usage with the expiry date is important to get the most out of your bulk purchases.
5) Shop at Discount Stores
Discount stores like Target and Walmart often have great deals on baby gear. So if you’re looking to save money, check out these stores first.
These discount stores are usually available in most cities and towns.
Discount stores also carry many generic brands, saving you even more money.
They have some cute items that don’t cost an arm and a leg. Remember that your baby will grow fast, whether you like the thought of it or not.
You shouldn’t spend too much on clothes your baby will only wear for a few months.
6) Join a Baby Registry
Another great way to save money on baby items is to join a baby registry. This way, friends and family can purchase items for you at a discount.
Plus, many registry programs offer freebies and other perks for parents-to-be.
A baby registry works by creating a list of items you need, and then people can purchase these items for you.
The great thing about this is that you can add items from any store – not just the one where the registry is located.
7) Wait for Sales
If you can be patient, it’s always best to wait for sales before buying baby gear to help you save cash on baby items.
You can often find great deals on everything from strollers to car seats if you’re willing to wait for a sale.
This can be unrealistic for items such as diapers, baby food, and formula, but for big-ticket items, it’s worth the wait!
8) Negotiate Effectively
Don’t be afraid to negotiate when you’re buying baby items. Try asking for a discount if you see something that’s a little out of your price range.
Many stores are willing to negotiate, and you may be able to get the item for less than you originally thought.
One way to negotiate effectively when buying baby items is to offer to pay in cash. This way, the store doesn’t have to pay any credit card fees and may be willing to give you a lower price.
You can also try negotiating for a bundle deal.
For example, if you’re buying a stroller, see if the store will throw in a free car seat or diaper bag. This is often a great way to get more bang for your buck!
9) Ask Friends & Family for Help
If you’re struggling to afford everything your baby needs, don’t hesitate to ask for help.
Friends and family members often pitch in and purchase items for you.
So if you’re feeling overwhelmed, reach out and ask for help!
Even if they can not afford to lend or give cash to you, they might have some baby items that are no longer in use.
Items such as a baby crib, clothes, or stroller can be reused. If you are uncomfortable asking for money, this is a great way to get what you need without spending anything.
You can take it a step further by promising you will attempt to sell it and give the profit back to them when you no longer need the item.
This is a great way to get what you need without spending any money upfront and save cash on baby items.
Cash Saving Strategy #10 – Join a Rewards Program
Many stores offer rewards programs that can save you money on baby gear.
For example, Target’s REDcard program offers a five percent discount on all purchases.
So if you’re a frequent shopper, it’s worth signing up for one of these programs!
Conclusion
By following these tips, you can save serious cash on baby items. So don’t be afraid to shop around and look for deals – your wallet will thank you in the end!
Whether from family, friends, a rewards program, or even a garage sale, getting what you need for your baby doesn’t have to be expensive.
Having a baby can be stressful, so make sure to bookmark this page to ensure you are financially prepared when your little one arrives.
If you are already caring for a baby, you can begin saving money immediately by following these strategies.
For more tips on saving money, check out other articles on this website!
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
The book Compound Effect by Darren Hardy is one of the most influential books I have ever read.
It has completely changed how I think about life and, more importantly, how I take action.
In this blog post, we will discuss five of the most important lessons from the book that significantly impacted my life.
This post may contain affiliate links; please see our disclaimer for details.
Book Summary (Compound Effect – Daren Hardy)
Compound Effect is a book about how small, consistent actions lead to big results.
The author, Darren Hardy, is a successful entrepreneur and business coach, and he uses his experience to show readers how they can achieve their goals using the same principles.
The book is divided into three sections:
The first section covers the basics of the compound effect and how it works. Hardy explains that our lives are the sum of our decisions, and even small decisions can have a big impact over time. He also talks about the importance of setting goals and taking action toward those goals.
The second section provides specific strategies for putting the compound effect into action. Hardy covers time management, decision-making, goal-setting, and more. He also includes case studies of people who have used the compound effect to achieve success.
The third section is about taking action and staying committed to your goals. Hardy talks about the importance of accountability, perseverance, and focus. He also encourages further learning to continue growing and achieving success. One way to do this is to keep reading more articles on this website. We consistently publish insightful articles to help our readers compound their way to success.
The book ends with a call to action, urging readers to take small steps today to achieve their goals.
The first lesson is to understand the concept of compounding.
Hardy discusses how compound interest works and how it can be used to achieve success.
He provides specific strategies for putting the compound effect into action. This includes setting goals, taking action towards those goals, and staying focused and committed.
Compound interest works by reinvesting the interest earned on an investment. In this scenario, the investment is in yourself.
This reinvestment earns additional interest, which is then added to the original investment. Over time, this can lead to a significant amount of growth.
Compounding works for personal development because it is a never-ending cycle.
The more you learn, the more you can grow. As you grow, you have the opportunity and capacity to learn even more. This creates a virtuous cycle that can lead to exponential growth.
This lesson was eye-opening because it showed me that my life is in my hands. I am in control of my destiny and can achieve anything I set my mind. I’m willing to put in the work.
Lesson #2 – Make Productive Decisions Daily
The second important lesson I learned from the book is that our lives are the sum of our decisions.
Hardy explains that we can decide what actions can be taken each morning to move us closer to our goals.
He provides strategies for making effective decisions daily, such as setting goals and taking action toward those goals.
By making a to-do list and being aware of my actions throughout the day, I can ensure that I am always moving closer to my goals.
You are already making the right decision by reading articles on this website rather than doing something unproductive. It’s important to continue making effective decisions, such as educating yourself, mastering your skills, or improving your performance.
This important lesson showed me that our decisions determine our lives. If we make poor decisions, we will end up badly.
However, we can achieve anything we want if we make good decisions.
Lesson #3 – Exchanging Habits / Creating Produce Ones
The third lesson is the importance of exchanging habits. Hardy discusses how our habits determine our success or failure. He provides specific strategies for creating productive habits and breaking unproductive ones.
Some tips for creating productive habits include setting goals, taking action towards those goals, staying focused and committed, and being accountable.
You can also break unproductive habits by doing the opposite of what you would normally do.
For example, if you have a habit of watching TV instead of working on your goals, you can break that habit by working on your goals first and then watching TV.
By exchanging bad habits and filling the time with good ones, you can avoid the void of emptiness that often causes people to give up on their goals.
I found this lesson incredibly valuable because it showed me that our habits determine success or failure. We can achieve anything we desire if we develop good habits and stick to them.
Lesson #4 – Maintain Momentum
Momentum is “the strength or force that keeps something moving.” The fourth lesson from Hardy is the importance of maintaining momentum.
He discusses how our lives are determined by our ability to maintain momentum. He provides specific strategies for maintaining momentum, such as setting goals and taking action toward those goals.
Maintaining momentum is important because it keeps us moving forward in life. Without it, we would be stuck in the same place forever. This lesson showed me that we must keep pushing ourselves to achieve our goals.
Sometimes we will be doing well but then slow down and give up. By maintaining momentum, we can keep ourselves on track and moving forward.
At first, it isn’t easy to create momentum. It’s like when you are pushing a heavy object on wheels.
However, once the initial force is applied and the object starts moving, it becomes easier to keep it moving.
The same is true for our lives. It’s hard to start, but once we do, it becomes easier to maintain momentum.
The key is to take action and keep taking action. Momentum will not happen if we sit around waiting for it. We need to be proactive and make it happen.
The best way to do this is to set goals and take action toward those goals. The monument will gradually build by taking small steps, and we will achieve our goals.
Lesson #5 – The Formula For Success
Wouldn’t it be helpful to have a clear, concise formula for success?
Hardy provides a simple formula for success in the fifth lesson. The formula is: (Intrinsic Motivation + Action) x Momentum = Success.
Let’s break it down.
Start with motivation, and understand why you are doing something. Then add disciplined and productive action. Momentum acts as the multiplier that supports the compounding effect.
This formula is simple, but it’s also powerful!
It showed me that success is not a mystery. We can follow a clear and concise formula to achieve success.
All we need to do is take action and maintain momentum.
Lessons From Compound Effect, Conclusion
I’m grateful for these lessons because they have changed my life. I used to be a person who was always starting things but never finishing them.
I would get motivated but then quickly lose interest and give up.
However, by understanding the importance of habits, momentum, and taking action, I have been able to stick to my goals and achieve success in my life.
I would highly recommend this book to anyone looking to make positive changes. The lessons taught in this book are simple but powerful, and they have helped me reach my goals.
Remember that the key takeaway is to start taking action today, no matter how small. Every step you take gets you closer to your goal; eventually, those steps will compound into something big!
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
I never imagined that a book could have such a profound impact on our lives. After reading Total Money Makeover by Dave Ramsey, I realized that I had been living beyond my means and was in debt up to my eyeballs.
The book taught me five important lessons that changed my thoughts about money.
In this article, we will discuss those five lessons in detail.
If you are struggling with your finances, then know these lessons could change your life too!
This post may contain affiliate links; please see our disclaimer for details.
Book Summary (Total Money Make Over – Dave Ramsey)
Ramsey’s book is based on the idea that ‘we must live like no one else now so that later we can live like no one else.’
In other words, we need to make sacrifices now to enjoy a comfortable retirement later.
The book covers various topics, such as how to get out of debt, save for emergencies and retirement, and invest wisely.
Ramsey also stresses the importance of giving back to charity.
What resonated with me were the five key lessons that he discusses in detail:
The first step to getting your finances in order is to create a budget. This may seem like a no-brainer, but you’d be surprised how few people do this.
A budget forces you to be mindful of your spending and helps you make better financial decisions.
Once the written budget is created, you can better understand where your money is going each month.
You may be surprised that you are spending more than you realized on unnecessary items.
Creating a budget is the first step to taking control of your finances.
It may not be the most exciting task, but it is necessary if you want to achieve financial success. He recommends including insurance for the following items in your written budget:
Auto and homeowner insurance
Life insurance
Long-term disability
Health insurance (If your nation/state does not provide this)
Long-term care insurance
Although adding insurance bills to your budget is never fun, they can save you a lot of money in the long run.
Items that can be removed from your budget are:
Cable TV
New cars
Eating out
Clothes shopping
Gym memberships
Latte factors (small, daily expenses that can add up)
These are just a few examples, but the point is that you need to be mindful of your spending.
Once you have a handle on your spending, you can start to make changes that will help you save money.
Lesson #2 – Create a Debt Snowball
I created a Debt Snowball by listing all my debts, regardless of interest rate, from smallest to largest.
Next, I made the minimum payments on all my debts except the one with the smallest balance. I paid as much as I could afford each month on that debt.
I was motivated to stay out of debt because I saw my balances going down each month.
This system also allowed me to pay off my debt faster because I put more money into the smaller debts first.
If you’re struggling with debt, I encourage you to try the Debt Snowball method. It works!
Starting with the highest interest rate could save more money in the long run, but psychologically, this method was the best for me, and we had low-interest rates.
3) Save for Retirement Now
Delayed gratification and thinking long-term are two important aspects of personal finance. Dave Ramsey famously said –
“Adults devise a plan and follow it, children do what feels good“.
Dave Ramsey
It’s never too early to start saving for retirement, and the sooner you start, the more time your money has to grow.
Ramsey suggests investing 15% of your household income into tax-advantaged accounts.
I knew retirement was in the cards but I realized I could start preparing better and preparing NOW.
We are maxing out our Roth IRA contributions each year, and I am on track to retire much sooner than I ever thought possible.
4) Pay Cash for Everything: Cash IS King
Spending with credit cards reduces the brain’s ability to feel pain.
When we make a purchase using cash, it feels much different than when we use a credit card. That’s because we physically see the money leaving our hands.
But when we use a credit card, it doesn’t feel like we’re spending real money. This can lead to overspending and accumulating debt.
It’s important to be mindful of your spending and only charge what you can afford to pay off each month.
You can earn slightly more money from credit card cash back, but it’s important to consider psychological factors. Credit card companies are very good at getting us to spend more money than we have.
It’s important to be aware of this and only use the credit card as a tool to build credit, not for shopping sprees.
Although the lessons taught in this book about credit cards are valuable, we’ve found that using a credit card wisely has many benefits.
Just be aware, do not overspend, and pay down credit cards on time – just our thoughts on this topic.
For most people, the mortgage is the biggest expense.
The author advocates for paying off your mortgage as quickly as possible so you can be debt-free and have more financial freedom.
There’s a saying that the grass feels different in your yard once you’ve paid off your mortgage because you fully own that land.
We, the Biesinger’s, personally feel investing at a young age is important, and real estate is generally increasing in value over the years. For these reasons, we have not started paying off our mortgage early yet, but it could be an option in the future.
Dave Ramsey’s lesson here is to take a zero-risk approach, but we want to have a small amount of risk to see more significant returns.
The choice is ultimately yours; paying off the mortgage provides peace of mind, but mathematically speaking, investing that money in the S&P 500 has more significant rewards.
You won’t be able to turn your financial life around overnight.
It took me years of bad spending habits to get into the mess I was in; my Wife and Dave Ramsey were able to help me correct those bad habits.
I could make significant changes in my financial life by taking small steps.
I started by reading this book and then implementing the lessons I learned.
Over time the steps brought me to accomplish my financial goals, even though they were small.
Try these baby steps from Dave Ramsey if you are struggling with finances. Like us, you can emphasize specific steps, such as getting out of debt but also focus on investing.
In Summary
This book is a great place to start if you want to pay off your debt or improve your financial situation.
It gave me a great personal finance perspective, and I’m sure it can do the same for you.
I recommend this book to anyone who wants to get their finances in order.
It’s an easy read and packed with valuable information to help you make better financial decisions.
If you’re looking for a personal finance book that will change your life, look no further than Total Money Make Over.
If finances overwhelm you, don’t worry because many people like me were in your shoes before reading this book.
The lessons I learned from Total Money MakeOver has helped me get my finances in order.
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
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