Making SMART money choices sometimes isn’t the easiest thing to do. Here are some simple questions that will help you make better financial decisions and transform your finances!

Looking to Buy Something?

Spending less is more important than earning more when it comes to financial independence. Why? Because you may not be able to directly control your salary and income, you can control how much you spend. And spending less than you make is the key. If you are thinking about making a purchase ask yourself these two questions:

  • Are you trying to talk yourself out of the purchase or are you trying to talk yourself into the purchase?
  • If someone was holding the product in one hand and the cash it would take to buy it in the other hand, which one would you choose?

If you are trying to talk yourself into buying something as opposed to talking yourself out of it means you really don’t need it. You may be looking for an excuse to buy it. You will generally love the product the most at the store (they know how to market and place the products!) and so if you aren’t sure if you want it then, good chance you don’t need it. For the second question, if you pick the cash, you might as well keep the money and not buy it. Many times SMART saving and spending is based on being disciplined and sticking to our goals.

Making a Financial Decision?

Where you are today is because of the decisions you made in the past, and where you will be tomorrow is based on the decisions you make today. Pretend you are in a car and headed to your destination. Your destination is a financial goal you set and where you are now is your current financial status. Making financial decisions is like either moving forward, not moving at all, or moving in reverse and off course in your car. Ask yourself these question before making a decision:

  • If I make this decision, will I be moving forward and accelerating towards my destination?
  • If I make this decision, will I be in park and not moving towards my destination?
  • If I make this decision, will I be going in reverse and off course?

Every financial decision can accelerate your savings and investment, accelerate your spending and debt, and vice versa. It can also take you off course which can make getting back on track much more difficult. Sometimes people think staying in one spot is ok. Unfortunately if you are not moving forward, you are actually moving backwards. If you are not growing, you are contracting. You want to work towards taking the roads and accelerating (not braking!) towards your final destination.