Pura's Blog

We are all suffering from the economic downturn. The fact that the daily cost of living is increasing and the paycheck is shrinking is a reality, but the only way to combat the high costs is to rethink how you live.

Is a daily stop at Starbucks part of your workweek routine? $3.99 x 5 = $1,037.74 per year

Do you plan your errands or do you run errands impulsively? Filling my gas tank this morning, the reality of $4.15/per gallon really hit home.

When looking at trimming cost – think or rethink: are you an impulsive shopper? Do you use coupons for purchases, groceries, car repairs? Have you mailed in store rebates – if applicable? Do you price shop? Are you paying for a gym membership, but don’t use your membership?

Most households can trim and/or save thousands of dollars per year just by rethinking daily expenditures, comparative shopping and/or running errands systematically.

Have you heard the quote, “A penny saved is a penny earned.” Benjamin Franklin understood the concept of watching your pennies in order to build wealth. You might be wondering how these ideas translate into home ownership. Well, savings is paramount. Lenders are no longer extending credit/loans to those who are not creditworthy. Moreover and most importantly, learning to save creates the habitual practice of cutting costs. As a homeowner or potential homeowner, you must be diligent in maintaining a budget. Turning off lights when you leave a room, insulating your home, energy efficient appliances, etc., are all ways to reducing home costs. However, reducing costs does not mean you use those funds for discretionary spending. You need to ‘pay’ your savings account before spending those savings frivolously. Instant gratification is exactly that - instant. As soon as you purchase an item, it is no longer ‘new’; it is technologically outdated, and it loses its shine. Savings is real. It has a long term affect and is much more rewarding, especially when a life crisis occurs. Remember: You need to run your finances; not your finances running you.