I read one of his posts called wealth advice that should be obvious. The whole post talks about how to not be dumb with your money. Being able to realize all of the things you waste money on. For instance if you get a big raise or bonus at work. Don't go out to a nice restaurant and spend it that night, put it in your highest interest debt or some sort of other venture or debt that needs paid off. Any break that you get in the course of your life should go towards buying your freedom from work. And never ever gamble for wealth, it doesn't work.
He talks about living within your means. Don't buy things that you can't afford, and don't pay $100 a month for storage for 10 years. It all adds up. When you go to the store if something is on sale find out how long it will last for, and stock up on as much as you can. He also encourages to automate anything that you can. Why would you risk late payments on bills when you can have them automated and you could really focus on the important task of getting rich.
Overall I really enjoyed this article. I think that it had a lot of truth in it, and it described how a lot of Americans spend their money. I think that MMM teaches us a lot on just basic money management. And I really hope that I'll be able to resist the temptations that the large companies try giving to us in their marketing campaigns. Hopefully I'll be able to manage my money in the same way that MMM does.
He has a good point about what to do with a bonus at work. If that happened to me, I wouldn't think of using it to pay off my debt because I would be too excited in the heat of the moment. I'd be all like, "Woohoo! Let's hit the club!" But that's just me.
ReplyDeleteI totally agree. MMM takes money management and approaches it at a different angle. it is all perception and you need live within your means just as you said. I think another thing that he likes to key on is disciple. this applies with the work bonus example. you need to be able to see long term as apposed to short term goals. yes it would be a break from a reality to splurge but paying that bill would benefit you more.
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