The Rs Have It
There are three simple truths that, when practiced consistently, will make your life much simpler. The first “R” is reality. Reality is the ability to see the truth for what it is. As applied to your finances it refers to knowing how much money you have, how much money you owe, and how much money you need to meet your current needs and obligations. Sounds simple enough, right? Well there are plenty of adults out there who choose to put their heads in the sand each month when their account statement arrives. They don’t want to know if their account is overdrawn or if they’ve bounced checks. They don’t want to see the fees they may have incurred during the course of the month. But you and I know that whether or not you open the envelope the conditions are still present. Problems don’t require our attention in order to exist. In the Independent Advantage program you’ll learn how to use the tools available to you in order to plant yourself firmly in reality.
Responsibility is the second “R.” When you take ownership of your personal financial situation, you are practicing responsibility. If you know how much you have in your account, don’t spend more than that dollar amount. If you don’t know how much you have…….find out. Ill-informed spending is irresponsible and costly. Most places will charge you a minimum of $25 for all returned checks. Your financial institution will charge you additional fees for “bouncing” a check (writing a check that your funds won’t cover). People who spend money they don’t have can look forward to spending upwards of $45 per item presented for payment. How about those people who borrow money, decide that it’s too hard to pay back then walk away from the debt by declaring bankruptcy. Do any of these things sound like actions taken by people who “own” their financial situation? Nope.
This last “R” is the kicker. It doesn’t only apply to your spending, but to your whole life. When you can put this rule into action in your own life, you can say to yourself “I am no longer a child.” Restraint is the ability to say “No” when all you want to do is say “Yes.” Making the right decision and sticking with it, no matter how much you’d like to indulge yourself. Don’t buy items on your credit card without a plan for paying it back. Don’t go on a shopping spree simply because you have a credit card in your pocket. Don’t spend your money, or credit, on things you “want” before providing for the things you “need.”
Confused? If you don’t know how or where to start implementing a plan to manage your finances, we can help. Independent Advantage will provide you with solid instruction on how to put a personal financial plan into practice! Sign up now, you’ll be happy you did.
© 2010 Burbank City Federal Credit Union.
Member's accounts are insured by the National Credit Union Administration (NCUA) at least $250,000.
