MaXIMIze - Finances Begin at Home

Financial focus - money is a tool, not a true goal. It is an inanimate object that has no value except that which man has given it. Therefore money in and of itself is neither good nor evil - it simply is.

Bless those who have wealth rather than cursing them; for in cursing those who are blessed, you curse yourself. ~ Financial Karma

You know the saying, "Charity begins at home"? Well, finances begin at home too.

What do we need - truly need - money for?

A roof over our heads
Food in our bellies
Clothes on our backs

These are the basic needs we have to cover on a day-to-day basis. Linked to those needs may be transportation costs such as public transit fees, gas, car insurance, parking fees, etc., in order to get to and from our jobs. Also, items to keep ourselves, our clothes, and our homes clean and presentable. Perhaps a phone for others to keep in touch with us for work and other urgent issues. Those are the true needs, even in today's society.

Some may say connecting to the Internet is a need - I counter that with where can one connect for no and/or low cost - the library, a job resource center, etc.

Some may say TV is a need. I say it is not - it is a want and a distracting one at that. If you want entertainment, go outside and enjoy the outdoors. If weather doesn't permit outdoor activity, read a book, play a board or card game, engage in meaningful conversation, journal, plan for the future, and/or let go of the past.

The first thing we need to do financially is ensure our true needs are taken care of - keeping a roof over our heads, food in our bellies, and clothes on our backs. And, we need to do these things within the confines of our current financial means - without the use of credit, plastic or otherwise. In fact, if you are a person who abuses credit by using it to cover basic day-to-day expenses, you need to find a financial counselor NOW!

Remember the challenge last week of tracking your expenses? Well, this week I give you another challenge. After putting aside money to cover transportation to employment expenses, pay your living - roof over your head - expenses first. These include rent/mortgage, energy (gas/electricity), water, utilities (sewer/trash) and home owner's or renter's insurance. After that, do you have enough to cover groceries and sundries (cleaning supplies and other non food items - pet food, etc.)? If not, where do you need to pare back and perhaps downsize energy consumption or living space costs?

Note I did NOT include cable, dish, satellite, Internet, or phone in those living expenses.

Remember, roof over your head, food in your belly and clothes on your back. And, want versus need. Once we can get back to truly covering our basic needs and have funds available to put aside for a rainy day, then we can think about saving for those wants in life - a home of our own, the ability to travel, the ability to send our children to college without student loans, or whatever else we desire to have in our lives.

Bottom line, cover the basics first and remember, want versus need.

We will talk more on the topic of personal finances next week.

Until then, namaste!