Page 57 - Joshua's Journal

will be used to fund the family’s first real vacation to home) may be helpful in establishing a more disci- Disney next summer. A 2011 University of California plined spending plan and avoiding unnecessary debt, study found that individuals with a specific plan for but beware of late, cancellation or restocking fees. their savings amassed between 28% and 85% more than those without a formal plan. If you are using cash, be sure to ask the merchant for a discount. In 2010 Visa and Mastercard made changes to merchant rules that allow discounts for Trim the Fat from your Budget cash purchases. Be aware that credit cards may offer Several studies have shown that it normally takes some important buyer protections unavailable with between 21 and 66 days for repeated behaviors to cash purchases. become habits. So you might make an agreement with yourself to make some small change in your Learn to Value “Frugality” spending and savings patterns for at least 2-3 months, but allow yourself the mental freedom to change your Approximately 72% of those with a net worth mind or reevaluate after the 2-3 months are over. You between $5 million and $25 million indicated might try making coffee at home, taking your lunch that frugality was one of the top 5 reasons for their to work, or cooking at home more often, with the wealth accumulation, according to Thomas Stanley, savings automatically re-directed to your emergency co-author of “The Millionaire Next Door”. Frugality or savings account or towards debt reduction. practices for your family might take many forms, in- cluding buying in bulk, eating out less often, shopping Establishing some type of tracking and accountability clearance sales, using loyalty rewards and discounts, process is important. You might use technology to and planning purchases for optimum discounts (like help you stay on track, such as monthly emails or text linen sales in January). messages from your bank. Participating in some type of “savings agreement” such as the “American Saves” Avoid “Mindless Money Pursuits” Initiative (www.AmericaSaves.org), may also help you stay on target to reach your savings goals. Building “Don’t wear yourself out trying to get rich. Be wise in small rewards along the way may help you stay enough to know when to quit”. Proverbs 23:4 (NLT) motivated. In today’s society, most of us need money or financial resources to function, but we should not allow money Refinance your Home or Car to control us in an incessant pursuit of it at any cost, including immoral or dishonest behavior. Those who You may be aware that you could potentially save thousands of dollars refinancing your mortgage, attempt to define their status or security by money, but you may be unaware that you might be able to may find it virtually impossible to find security in refinance your car loan as well. However, beware of their Creator. If your desires are always pegged to prepayment penalties or negative equity (you owe what others have or think, your thirst for “more” more than the car’s value). Refinancing with a longer may become unquenchable. Instead, hold fast to repayment schedule could negatively impact any your uncompromising values, keeping your financial interest rate savings you might otherwise obtain, but resources in the proper perspective. Good stewardship a higher credit score may garner lower interest rates. practices should be cultivated regularly. A local bank or credit union may offer better rates Lanta Evans-Motte is an independent financial advisor on car loans. affiliated with Raymond James Financial Services, Inc., Member FINRA/SIPC located at 4061 Powder Mill Rd., Beware of Purchasing with Credit Cards, Suite 705, Beltsville, MD 20705. Ms. Evans-Motte can Debit Cards, and Mobile Phones be contacted at 301-459-2484 or lanta.evans@raymond- james.com. The information has been obtained from Several studies have found that most buyers spend sources considered to be reliable, but we do not guarantee less money on purchases when they pay with cash. that the forgoing material is accurate or complete. This Avoid buying items that you cannot afford, because article does not constitute financial, tax or legal advice. eventually the bill will come due and will need to Consult your advisors before making financial or invest- be paid. Lay-a-way programs (where you make in- ment decisions. The opinions in this article are those stallment payments over time before taking an item of Lanta Evans-Motte and not Raymond James. www.reidtemple.org • 55