Managing Your Money is Easier Said Than Done
March 19, 2008
Have you ever given anyone advice, then looked back later and seen that advice from a whole different point of view? Maybe it was good, maybe it was bad, or maybe it was part right and part wrong.
While writing about money every day I make lots of suggestions and judgments about a wide variety of personal finance issues and they all come from a distinct perspective. A married thirty some year old male in a certain tax bracket, job industry, and zip code. As some of those things about my identity change with time, I look back on older articles and see them in a different light.
Over the last two years my family has added another member and gone down to one income. Prior to that, we had enough money to invest 30% or more of our income, pay our bills, and still have a disposable income.
With higher expenses and lower income, we have to make choices that we didn’t have to worry about before. We have to balance quality time spent with our son against income and contribution levels to our retirement accounts.
Money Decisions & Actions
We still have the same habits and lives but less money coming in and more going out so tough decisions are necessary. I’m learning its one thing to say, “Invest 25% of your income” and another thing entirely to do it. Life happens and you find there are more important things than money.
Not that we don’t follow the same basic spending and investing principles as we did before, it’s just now we have less of a margin to work with and sometimes building net worth, a retirement egg, or other financial goals have are a lower priority.
Your perspective on money will likely change based on the amount that you have. I think the key to success is sticking with the basic financial principles and to also remember everyone around you is in a unique financial situation and faced with very personal financial decisions.
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