Being someone who likes to be frugal it can be uncomfortable to waste money. You want to streamline your budget and keep it lean and mean. The problem, though, is that if you do not live life and try to enjoy it then you will get bored with it awfully quickly. We all waste money at some level, and if watched is of no issue. How much money is it ok to waste each month? The answer to that question is relative to your specific situation and one that my wife and I found ourselves in a few months ago.
I remember the day like it was yesterday, I was looking at my four credit card statements and saw that I was just north of $20,000 in credit card debt. I asked myself, how did I get there? It did not help that I had just come back from the music store having purchased four or five CD’s that I had no business buying, yet I still did not see the issue. My problem was that I was using credit cards to fund a lifestyle that I wanted, and felt that I deserved but was doing it at the expense of my future. It would be one thing if the credit card debt was due to me losing a job or something like that, but sadly it was largely spent on junk that I did not need. One question kept running through my mind – was all that stuff worth the cost?
Home ownership for many is a vital part of achieving their part of the American Dream. I can understand as a home can feel like something you’ve worked hard for and will hopefully be a source of improving net worth as well as a place to build lifelong memories. With interest rates being at historic lows, this has allowed more families to possibly realize that dream and move into a house. It has also brought a steady rise in mortgage refinancing for those looking to make their mortgage payments go further. To be honest, it makes sense as refinancing your mortgage can potentially save you tens of thousands of dollars over the life of the mortgage.
The end of the year is approaching and with it an excellent time to analyze your financial house and see what changes you’d like to make for the upcoming year. For some this might mean examining their spending for ways to save money. With a few tips you can be on the road to saving money and improving your financial health.