Systematic is the way to go

People are always talking about their finances and money. There are hundreds and thousands of websites out there to talk about money and finances. The biggest problem that I always end up hearing about is somebody not really knowing where to go or start. Most people have a basic understanding of, “I make money and pay bills, then spend the rest on fun.” This mentality along with the invention and heavy advertising of credit have encouraged people to spend more than they make.

Let’s take a systematic approach to figuring out how to survive and then how to thrive with our finances.

This simple principle of NOT spending more than you make is the one and only principle needed to keep you out of debt. This is enough to keep you out of debt, but is a short term paycheck to paycheck mentality. This will keep you afloat in the water of live, but it sure won’t help you swim.

Saving for things to come. This principle is a heavily stressed idea only. Most people only have a basic understanding of putting money away for future use. Many companies have a 401k or other plan. Most of the time, this is only enough to survive during retirement, not thrive. In order to thrive at retirement age, you need to begin an educational assault on learning about retirement as early as possible. Learning about where your money is a few years before retirement is pointless, if you haven’t been taking care of it since day one.

Planning for the unexpected. We know life throws surprises at us. So don’t go bury your head in the sand and expect everything to be okay. This is a different amount per person, but everyone does need to have some money set aside for emergencies and such.

So the general way of the finance warrior is this:

Spend less than you earn.

Save and educate yourself for retirement

Plan for unexpected expenses.

These are the basics that will systematically help you control your financial life. By adhering to these basic principles, one can get a grip on their life and money. This is the way to survive. You must first learn to survive before you learn to thrive. Once you have learned self control, you will be able to thrive on what you have and open up the endless possibilities that will show themselves once you begin to thrive.