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I receive Mary Hunt's Everyday Cheapskate newsletter. Today's issue was:
Six Habits of Financially Responsible People
Habit 1: Financially responsible people regularly balance their checkbooks. They calculate a current balance after every transaction and always know the exact state of their money.
Habit 2: Financially responsible people think first and spend later. Thinking means weighing needs and acknowledging wants. It means exercising discipline and delaying gratification—saving the money first and then buying the item.
Habit 3: Financially responsible people save money consistently. They never spend all they have because they are habitual savers. They see saving as a long-term process and make the sacrifices necessary to reach their goals. They are patient, steady, consistent and find saving money to be a necessity.
Habit 4: Financially responsible people fund their own emergencies. They don't buy into the notion that the purpose of credit cards is to pay for unexpected emergencies. Financially responsible people realize that life happens, and so they maintain significant emergency funds. Just in case.
Habit 5: Financially responsible people know their financial condition precisely. These folks usually know within a few bucks the current balance on their mortgage or other secured loans. They regularly update their net worth, which is the difference between the value of their assets and their liabilities. They make each financial move in light of the effect it will have on their net worth.
Habit 6: Financially responsible people refuse to live under the fantasy of entitlement. While others feel entitled to run up huge credit-card debt simply because they have an approved limit and uncontrollable desires, financially responsible people don't approach life with this feeling of entitlement. They are not driven to keep up with their neighbors at any cost. They are content to live within the limitations of their income.
It's stuff we've all seen before, but nice to see it all together in simple terms from someone who's "been there and done that."
Answer:
Great post.
I'm pretty financially healthy except for the check book balance one. I've never done that. But I do check the online checking account ever week to see that everything has gone through ok. Makes me think of a spin off.
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I'm good with #1 and #6....#'s 2,3,4,5 I am working on. #2 is almost mastered, 4 & 5 working on slow but steady.... #3 can't seem to master at all!
It's really nice to see all of this in one place. Makes it easier to understand and apply to your life.
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This a great post. I do 1 & 2 already. Working on 3, 4 & 5 and have learned my lesson with #6 b/c I am paying down a high CC debt.
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Great list. I especially like that last one. I know too many people who spend money they don't have because they feel they "deserve" to have certain things!