Appreciating Assets

Assets that have the potential to increase in value and/or produce income. Depreciating Assets, assets that lose their value over time.

1.        Liquid assets. Cash, checking, saving, money-market accounts, certificates of deposit.

2.        Investment assets. Stocks, bonds, mutual fund.

3.        Real property. House, garage.

The key to cutting your spending

1.        Remove yourself from temptation.  If you feel you want to do something or have something, even though you know you really should avoid it, you can refer to this feeling as temptation.  You can also refer to the thing you want to do or have as a temptation.

2.        Keep a spending journal.  Write down what’s motivating you to spend the money.

3.        Tape your latest credit card statements to the inside of your journal.

4.        Ask why before you buy.

5.        Give yourself a time-out. Make it a habit to wait at least 24 hours before making a purchase, no matter how small.

6.        Remember that when you use your credit card you are getting a loan.

7.        For two months at a time try to avoid using credit.

8.        Find yourself a saving sponsor. The person’s main job is to talk you out of buying stuff.

9.        Step away from the spendthrift.

10.   Clean your house. Take an inventory.

11.   Implement the two-year throw-away rule. Something you haven’t used it or worn it in two years.

12.   Learn to say no to your kids, relatives, spouse, sales clerks, and marketers.

13.   Separate your needs from your wants.

A Treasure is something you value most, something on which you place the greatest importance, something you hoard, and something you will try to get whatever the cost. Priorities lead to prosperity. If something is a priority, it is the most important thing you have to do or deal with, or must be done or dealt with before everything else you have to do.