Sometimes I need a financial guru to speak to me on a sixth-grade level. I am not particularly fond of numbers to begin with, but when it comes to our finances, it gets even foggier in my brain.
Truth be told, I could often use a basic, kindergarten description of how to spend and save money. Save words like "assets" and "dividends" for other people - I want simple language that will click in my mind and motivate me to treat our money wisely.
So if you're like me, these basic truths may be simple enough for you, too.
1. Don't spend money you don't have. This is where debt rears its ugly head and sticks to you like Velcro for years. If you don't have the money on hand, don't try to spend it.
2. Don't spend it all in one place. When you do have funds in your account, it's easy to rush out and spend it. It's like Christmas morning, only you're doing the shopping. Don't rush to the grocery store and stock up on everything in sight, as this will just deplete that money more quickly.
3. A penny saved is a penny earned. You worked hard for that money, and chances are you'll need it down the road. Whether it's a savings account, a coin jar in the closet or a long-term CD, setting aside a little bit for a rainy day is always smart.
4. Never pay retail price for anything. Groceries, electronics and pet supplies all go on sale on a schedule. Add in coupons and online savings and there is absolutely no reason to pay full price. If you want it, wait until it's more reasonable and rake in the savings.
5. Once it's gone, it's gone. The interest rate on nothing is still nothing. Looking into your purse repeatedly will not help you find what isn't there. You'd better love what you bought and plan to keep it forever because the money you spent on it is now tied up in it.
6. Be satisfied with what you already have. The easiest way to save money? Save it. Don't spend it. Enjoy the television you have with the family you love instead of splurging on the television that would cover your entire wall. Contentment with the stuff you already have will always save you money.