Tuesday, October 14, 2008

MONEY//: [spending | debt | income]

i was watching tv (as usual) and i came across a commercial for one of the many day time talk shows. it was a lady yelling at people telling them that they're living way beyond what they can afford. it got me thinking about how the hubby and i spend our money and if we're in fact "living within our means". it's a hard thing to swallow but i think its so important to check and evaluate your finical situation... especially now that our economy is going down the Sh*tter. 

So i decided to search the web and see what it means to "live within your means".  i came across an article online from cnnmoney.com where the article starts off by asking you the reader, what's your definition of "living within your means"?

a) Not spending more than you earn (as in, you make $100 and can spend up to $100 but not more)?

b) Not spending more than you earn and having no debt (other than "good" debt like a mortgage or student loan)?

c) Spending less than you earn, saving the rest and having no debt (other than "good" debt)?

like most people out there the hubby and i have (at one point) spent more than our "means"... when times were rough that is. BUT based off this article, surprisingly we are (living within our means). personally i define "living in your means as the letter C (above). We spend less than we make, we pay off all our bills, pay our credit cards in full, the only debt we have are daren's school loan, and my car loan and we put money away each month, even though i wish we would put more in but we like living comfortable at the same time and even though we seem to be living within what we bring home i still want to evaluate and edit what we spend. 


last month again i was watching TV and this episode came on and so of course i watched it. it truly baffles me how some people are so irresponsible that they'd rather go shop for clothes then pay their electric bills, rented furniture bills, and/or cell phone bills. my god people!

my parents aren't the best at how they save or spend their money. but when my brother and i were younger they did open up a checking account for us to save our money in. i honestly don't know how it got instilled in me, but ever since i got my first credit card i HAD to pay my balance off in full. no one was making me, but maybe the "chinese" (don't worry i'm chinese and not racist) in me didn't want to pay for the interest you'd have to pay if you didn't pay off your balance. haha it's funny but true and it's still very much true to this day. 

also if you start to let your debt grow just a little... it's way too easier for it to keep going. that another reason why i don't like to leave a balance.

but with all that said.. i need to go shopping. muwahaha jk... kinda! =p

money is always a sticky conversation for most, but ask yourself... 


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