Personal Finances – A New View

a new personal finance perspectiveI often get frustrated when I see the advice that people get when it comes to personal finances. This is especially true when the people are spending more than they are earning. They are almost always told that they must reduce their expenses and while this is true, there seems to be only one method that is advised. You must cut out things to reduce your spending.

This has become so entrenched that most people probably don’t see anything wrong with the above sentence. If someone is spending too much money then obviously they have to cut out things so that they can get their finances to the point where they are not spending more than they are making. While this may be the case in extrem


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8 Responses to Personal Finances – A New View

  1. Mike says:

    That is funny (and sad) how the students think of Americans with guns and murders. I guess that if they watch any news or MTV videos, they’d definitely get that idea.

    One suggestion, regarding this article in particular, would be to provide a couple of example of what you mean. Finding ways to reduce spending without cancelling services/etc. sounds counter-logical.

  2. Retireyoung says:

    I don’t know how many times I have the “cafe late” example. “If you just stopped buying lates at Starbucks you could save a million dollars”. I can imaging people who stop going to starbucks for a while, but how many actually put that money aside.

  3. Alberen says:

    Here is what I say- people say they just can’t pay their bills. They are stretched thin… they can’t save.

    What they really mean is that they can’t pay their debt payments. If people didn’t have credit card payments they could INCREASE their current lifestyle, AND save 15% of their income.

    The thing is that they cash flowed the future right into the past.

  4. “The thing is that they cash flowed the future right into the past.”
    very interesting quote!

    I like the idea that you can spend smarter, without losing the ‘fun stuff’ but I do think at some point the fun has got to take a back seat to the bills.

  5. miclason says:

    It’s like I told Alejandra this morning, when she told me she sometimes likes expensive things: the trick is to find what you want at a lower price…

  6. Pingback: » Scorchio, Food and Saving

  7. Pingback: MMAD Thoughts » Blog Archive » Debts Are Not Bills

  8. BigBuddha says:

    This is an excellent post, I have only just found this site and it really strikes to the core of my thoughts on money management, CASHFLOW is king.

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