2012…Year of the Family Commitment
What more can you ask for then making a few commitments to yourself and your family for the next 12 months? What can be more important than that? Why should we do this because it’s so boring??? The latest stats, which I get hit with monthly, indicates to me since 1990 that household debts has gone in one direction – from 50% to 150% in 20+ years. What did we learn in mathematics about trends? Let’s get a grip before we end up like many of those other countries around us …yes, it’s the random effect that we cannot control so let’s control what we can – ourselves!
The gimmick is…none existent! Commit yourself to a few sure fire rules for next year and the world can and will be your oyster.
Rule 1: create the most basic and accurate family budget. Put in for the extras – b’day parties, social events etc. that is key to commit too. Tear into it what you know you can cut out from the expenses and finalize the budget.
Rule 2; Identify at least 2, better if it’s 3 but not critical, debts you should be focusing on. This one is easy – the highest interest rate ones. This should be rule 1 but most people know the difficulty with rule 1 so let’s leave it there. Ensure these debts are at the top of your budget list and do not let them be compromised.
Rule 3. Pay yourself. The experts have varying degrees on how much of your income that should be assigned to the ‘pay yourself’ saving debt rule. Pick a number, hopefully between 3-6%. This must also be a top priority debt. I know, the experts pick a higher percentage but they all make 6 figures and are part of the 1%…you need to start somewhere that has a chance of success so you can be a 1%er too!
Do you need more than 3 rules to succeed? Absolutely not. Except in the fine print below it should say read these 3 rules monthly. Commitment to the family monetary controls and the kids university`s will be your oyster…or a new cottage or some other asset that you can both enjoy and afford…which will hopefully bring you further rewards thereafter.
Good luck, good health and Happy New Year to all my valued readers.