No pictures....

I had some awesome pictures to share with you of the wonderful frost this morning.  I will share that some day in the future.  For some reason today the upload photo option is not working.  So instead, I am going to share a bit about planning a financial future.

Priorities.... financial success is a lot about where you put your priorities.

You make a limited income you can increase it by taking on additional jobs but overall your income is what you bring home and that it the ceiling.  Your expenses can not exceed the income. 

Make sure that your expenses fit into that income:
Fixed needed expenses are:
Housing
Insurances

Variable needed expenses are:
Food
Clothing (only enough to not be naked)
Savings
Transportation expense

Optional are:
Phone
Television
Eating out
Other entertainment
Pretty well everything else.

Priority... Roof over your head, clothing on your back and food.  We generally go overboard at every level.  Your housing payment should not be more than 25% of your monthly income.  Food and clothing needs to be controlled.  American's toss out 25% of the food that they buy.  Buying what you are going to need for a day or two can save you money in the long run.  Don't stock up on food that expires.  Fashion is nice.  But balance fashion with affordable. 

Savings is NEEDED!  You should have 3 months income (minimum) in an easy access savings account for emergencies.  And Transportation is needed at a basic level.  You can't earn money if you can't get to and from work. 

I am sure that what I listed as optional are fighing words for some people.  But too often we put optional items as high priority nescessities.  There is an unbelievable amount of low cost entertainment available.  The public library is a wonderful resource.  They have become more that just a place to borrow a book.  My downfall is eating out. 

This is a challenge to me!  I need to get my priorities in order and make sure that I don't sneak those costs up so that I start living outside my means.  I currently have one months expenses in the savings so I have a good start.