| Life is all about balance and making hard choices, and | | | | slippery credit slope. |
| there are often no harder choices to be made than | | | | It's important to separate necessary from |
| those involving our finances. While it can become | | | | unnecessary expenses. We live in a true golden age |
| tempting to live above our means in the hopes that | | | | of luxuries, and this is great and all, but too often |
| our financial situation will one day improve to the | | | | these things come to be viewed as necessities when |
| point where we can make up the debt we've | | | | they are anything but. Thing about how people lived |
| incurred over the past years, this is neither an | | | | as little as 50 years ago and reevaluate what's really |
| intelligent nor moral way to live. | | | | a necessity and what isn't. |
| Likewise though, cutting back too much in an | | | | As much as you may not like, cell phones, T.V |
| attempt to save away for something such as our | | | | service, internet, video games, none of these things |
| child's education or our retirement fund may make it | | | | are necessities. Your cell phone and internet may be |
| difficult to stay motivated. We all to help our children | | | | relevant to your work, making them more necessary, |
| get ahead, and feel secure in our future retirement, | | | | but for most these are nothing but luxuries that are |
| but is it worth sacrificing the present for and making | | | | anything but necessary. But if you'd rather eat less or |
| life more difficult now, for a future that is uncertain | | | | rack up debt so you can send superfluous text |
| at any rate? These are the difficult choices that must | | | | messages or watch videos on YouTube, you might |
| be considered when planning out your finances | | | | need to re-examine what's important in your life and |
| current and future. | | | | where your life is headed. |
| One of the common problems with purchases or | | | | These are questions you need to answer for |
| expenses is that their future costs aren't taken into | | | | yourself. Remember that options always exist, |
| consideration. You may budget for the price of a | | | | though they may not be ideal. While you may be |
| new car, but are you also budgeting for the | | | | used to high-speed DSL or cable internet, you could |
| increased insurance prices that will come with it, the | | | | save as much as $100 a month by switching to a |
| other little upgrades that you may want to have | | | | simple dial-up plan. Especially for people who rarely |
| done to it, the increased fuel cost that may be | | | | use the internet this make a lot of sense as |
| associated with the car, etc.? These scenarios are | | | | inconvenient as it may be. Think about the |
| where people often get blindsided with costs they | | | | inconvenience of bankruptcy and then re-evaluate |
| weren't expecting and get in over their head. Many | | | | how inconvenient dial-up internet service is. |
| purchases are not just simple one-off payments or | | | | You have two choices when facing a tight budget, |
| monthly charges, many will require additional | | | | balancing debt and life, either cut back on your |
| expenses or payments you need to take into | | | | expenses or increase your revenue. Are those little |
| consideration. | | | | luxuries worth having to get a second job and out in |
| Another risk you run by having your income | | | | an extra 20 hours of work a week for, time that will |
| constantly tapped to the limit is that when an | | | | effectively take you away from those luxuries |
| emergency comes up you're often forced to turn to | | | | anyways? There are many decisions to be |
| the credit cards or some other line of credit to get | | | | considered, and only you have the answers to those |
| through it, and from then on run the risk of that | | | | questions. |