Building Reserves
During the current financial mess and really thereafter, you should build your reserves. The problem with the banks and with many people is that they don’t have enough reserves. As you can see, that doesn’t work very well.
Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
This above all: to thine own self be true,
And it must follow, as the night the day,
Thou canst not then be false to any man. (Shakespeare)
This is good advice. One way to be true to yourself is to operate within your means otherwise you become bankrupt. This does not apply only to money. It is a good strategy for you to pay off all consumer debt and stay out of debt. You can become your own banker and operate the old fashion way by saving for the things that you want. This is better than lay-away, you can actually earn interest on your savings, not much, but some.
You don’t even have to earn more, although it’s not a bad idea, to build reserves, but you do need to keep more of what you earn. The obvious way to do that is to spend less, but there are other ways. Many people have the maximum taxes taken out of their earnings banking on the refund. You could, instead forgo the refund and bring the money home and bank it. The IRS does not pay interest, a bank or credit union (A great option if you cannot get a bank account.) will. Another way to keep the money that your have is to start a home-based business, there are some real tax advantages available. Let me warn you that you must keep good records and actually be trying to earn money. This could be your “Plan B.” Of course this requires discipline, but the whole idea is to build reserves. Discipline is a tremendous reserve builder. Just like with exercise, when you build reserves, you last longer. This is a marathon, not a sprint. Building reserves needs to be a lifestyle.
Expanding your knowledge is another way to build reserves, it makes you more valuable. There really is a reason why college grads and people with experience make more money; they have more to offer. This is not the time to do as little as possible; it is time to get involved. Give of yourself, you never know how it may benefit you, but it will benefit you. Your ability to learn and grow is one of the greatest assets you have, stop wasting it with trivia. These are challenging times and you have to have the chops to get through them. This changing world requires new solutions and if you can provide some solutions you will be compensated.
I mention exercise earlier and I don’t have to go into the benefits of exercise, everybody knows it gives you more stamina. But, I also want to mention your health in general. Now is the time to be diligent about getting healthy and maintaining good health. You need a mind and body that can stand up to the rigors of the upcoming challenges. Improved health also saves money. Just staying out of fast-food restaurants can improve your health and bottom-line no pun intended). Pack your lunches and cook your own food, if puts you in control. Most people can benefit from less salt, lower fat, and reduced sugar. Your health is your greatest asset; one’s behavior often makes it a liability. I believe also, that building your reserves will lower your blood pressure. There are a lot of things you won’t have to worry about if you have reserves. Car breaks down, no problem. Time for the kid to go to college, no problem. Being downsized, no big deal. Having reserves gives you options and options relieve pressure.
You can do more than just, make it through, these seemingly rough financial times, you can grow and prosper. It is up to you how you want to play this; Victor or Victim. You make the choice. Put first things first, the party is over, for now. Yes, you can party again later, but do it on your own dime.
Posted By: Barbara Dixon
Monday, October 13th 2008 at 10:00AM
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