Remember the old saying Grandma told us as children? It applies to many things in our lives. Taking care of our health by eating well and exercising as children and as young adults can prevent health problems as we age, and improve our quality of life.
In the same way, learning to plan and budget money as children and as young adults can prevent financial problems, offer financial freedom and improve the quality of our life as we grow older.
Understanding wants and needs is one of the keys to building long term wealth. That wealth offers freedom from credit card debt and worrying about living paycheck to paycheck.
Just as exercise and eating healthy can be hard work, sticking to a budget, living below your means and saving money consistently are daily choices that are considered by many to be hard work.
Is that hard work worth it? We all need to answer that for ourselves.
But having the ability to purchase that 1st home because the down payment has been saved and your credit scores are in good standing is truly rewarding. It feels great to own your first home! When you reach that goal, all the hard work and discipline is paying you a huge dividend.
If you had not learned how to manage and save, or had abused credit in the past by making poor choices along the way, that dream of a 1st home may be a very long way off. The pound of cure........ is going to be much more work. Repairing your credit, paying off debts and saving money may take many more years before you are back on track.
Check out these links for budgeting and financial education: http://www.sec.gov/investor/2011investortips.pdf
Iris Runck, Loan Service Representative