Money as a Brick and not as a Shovel...
Behaviorally, we had to discipline ourselves to our reality: income level and wealth. Psychologically, we needed to stop indulging our every last "want." Spiritually, we needed to value things that have no price-tag.
Disclaimer: I am not a licensed financial advisor. I hold no degrees in finance or economics. My husband is completing his masters degree in Business Management with a concentration in Economics. He has a bachelors degree in Finance. I am speaking from what worked for us. We started with a small inheritance and used it to pay off our cars and credit cards. We are committed to staving off remission of bad money habits.
Aside from those core things, I...
1. Make 2 payments for credit card bills.We are more likely to use our money responsibly when we have the most of it in time and place: payday. I started treating all credit cards like American Express cards.
2. Hide money on myself.We have 529s and two other bank accounts where we have money stashed away. They hold enough to buffer those "unforeseen catastrophes." We do not use those accounts except for big ticket bills, and sometimes we don't even use them for the big ticket bills.
3. Learn skills that save money.My husband took auto mechanics in high school and enjoys fixing cars (and electronics). When we do send the cars (payed off) to the mechanic, the bill is lower and we use that "hidden" money we don't miss. It became a pain-free bill from planning ahead.
4. Learn new ways of cooking, ethnically.My husband and I developed the ability to cook copycat to the restaurants. When we eat at a restaurant, it is because our bank account allows for it. Otherwise, we eat just as well at home. Access my recipe posts here.
5. Reduce alcohol spending and consumption.This one I have a hard time getting my husband to agree on. Intoxication makes it hard to make sound decisions and it can be expensive. I was married to an alcoholic. Although we made enough money jointly, we were always broke from feeding that unhealthy addiction. Vow not to financially feed your addictions. Just don't: the opposite of Nike's slogan. =)
Good luck! Steward your income, wealth and skills well!
Live Rich with the Priceless.
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