Tuesday, December 04, 2007

Are you sloppy and getting away with it?

I was listening to Dave Ramsey's radio show the other day and he said I a statement that was made my ears perk up a bit:

Are you sloppy and getting away with it?

I think a lot of people are sloppy with their finances. I know I can get sloppy from time to time and then I need to tighten up the belt so I am no longer sloppy.

You might be sloppy if:

1) You are carrying a credit card balance
2) You have car loans outstanding that are more than 1/2 of your annual take home pay.
3) Your mortgage or rent is more than than 30% of your income.
4) You are not budgeting
5) You don't have an adequate emergency fund
6) You are not saving for retirement
7) You need to take that fancy vacation each year
8) You have a lot of toys but they are not paid in full

Are you getting away with it? You may be getting away for it for a few years or you maybe headed down a slippery slop.

If you or your spouse lost your job, would you be able to survive financially? Will you be eating steak or Alpo when you retire? Are you eating ramen noodles while driving a brand new car? Did you do an adjustable mortgage because the 30 year fixed rate was too expensive for your monthly income.

How about this-starting paying off those credit cards aggressive, driving your cars for 10 years, saving for an emergency and retirement it can be done. It takes a little effort, planning and the ability to say NO.


Frugal Duchess said...

This is an excellent list of a financial daze:

I would add restaurant meals on credit.

Credit card calls.

Best Wishes,

Stephanie @ ATime4Everything.com said...

The housing thing...what about when you live in a area of high housing/low income. As much as I would love to keep our housing to 30%, there is no way in the area we live!

Mrs. Mordecai said...

I love your title, but when I read it, I wasn't thinking about money. I was thinking about life in general. All my life, I've done the minimum amount of work I could to get an "A" without going the extra mile. That is going to change!

Frugal Work at home mom said...

As long as otherwise you are leaving within or below your means and you are not going crazy on car payments etc. You may be fine.

The 30% of your income is really a guide of where people should be.

Julie Bagamary said...

Great post - I help facilitate FPU in my church.

Admin said...

Thanks Julie! Kudos to you for hosting an FPU