I see people digging financial holes the best magicians could not escape.  I have dug a few myself!  Last week, I sold three poor performing Chicago rental properties.  I was relieved to escape that SELF INFLICTED hole! 

COMMOM FINANCIAL HOLES 

Seven (7) year car loans, where you trade the car in before paying off the debt and simply add the remaining debt to your next loan.

Falling for the commercials and trading in your perfectly good cell phone for a $1000+ iPhone. {Thank you I have owned Apple stock for over 20 years. While I appreciate your support – HELP YOURSELF!}

 Too many adults have zero emergency savings dollars! 

GOVERNMENT SHUTDOWN DEMONSTRATES WHY EMERGENCY SAVINGS IS NOT A WANT BUT AN ESSENTIAL NEED!

Graduating with tens of thousands in college loans with a “Unique Degree” that gets you a job delivering meals or driving for Lyft.

HOW COLLEGES FOOL YOU INTO OVERPAYING FOR UNDER PERFORMANCE

Buying (on credit) that 105-inch flat screen, state of the art television.  The bigger the better isn’t always so.

Applying for new credit cards because the ones you have are maxed out. 

FREEZE – HANDS UP AND DROP THAT CREDIT CARD!

Refusing to create and live on a budget

GROW YOUR WEALTH BY REDUCING SPEND ON: TRANSPORTATION, HOUSING & FOOD

Never setting up your 401K PLAN because……  EXCUSE, EXCUSE, EXCUSE, DUMB EXCUSE!

DO YOU WANT TO JOIN THE 401K PLAN MILLIONAIRE CLUB? {KINDA OF LIKE THE MILE HIGH CLUB – BUT A LOT LONGER LASTING!}

Eating out almost every meal, plus your daily dosage of Starbucks (Dang I should have invested in that company)

Bar tabs bigger than my monthly phone bill! REALLY!

Subscribing to multiple entertainment packages HULU, Netflix, Apple, Amazon. Disney, Comcast, etc.  {Have you heard of reading?}

GET OUT OF THE HOLE!

Early in my career I sometimes worked at construction sites. Routinely, I would see an employee digging a deep hole of several feet.  I would stop by and ask the employee to step out so we could talk.  I tried (not always successfully) to engage in conversation, not lecture.  We would discuss his job assignment, how much further he had to dig, etc.  I would ask questions:  What happens if the walls cave in while you are in the hole?  How long for someone to realize you are in trouble?  Can we save you in time?  Then work out the precautions we agreed needed to be in place.   #1- STOP DIGGING!    I needed him to shore up (using materials to keep the sides intact) and make sure he had a means (a ladder, etc.) to safely get in and out of the hole.

PLEASE STOP DIGGING!

FIRST STEP – STOP buying wants.  

Start contributing to your 401K TODAY!  Start with a small amount of your paycheck. When you get a raise, put another one percent or MORE (HINT) into your 401(k). I have never met a man or woman who regretted contributing too much to their 401K!

Set up an automatic savings account creating YOUR emergency fund. Target six months of living expenses.

If you cook at home 10% and order take out or go out 90%, you can do better! Cook at home more and you will save a YUGEEEEE amount of money and eat healthier. Take your leftovers to lunch the next day versus spending $10 on lunch.  

Cut your bar tab.  Booze at bars is ridiculously expensive!  Cook your meals at home, buy your wine to drink at home!  Then invite a sexy someone to eat with you. Impress them.  

Bring a grocery list to the store and never ever go to a grocery store while hungry. Stuff just falls in my cart and when the cashier says $127.90 I’m like HOW – TELL ME IT AIN’T SO!  

I’m not a coffee drinker, but is Starbucks coffee really worth six or more dollars EVERY SINGLE DAY?  My daughter asked for a Kuric Machine, for a gift.  Get one!  Makes great hot chocolate by the way.

Socializing is actually free! You do not have to meet up at a Bottom-Less Mimosa Brunch, for $49.95.  Meet for a walk around the city or a park.  Go to the beach or somewhere new and fun.

If you have an inexpensive gym membership or anything else you are NOT USING – CANCEL IT

CONCLUSION

There are numerous ways you can stop digging YOUR damn hole and climb out!

You just have to make the effort. I guarantee you will be much better off in the short and long term.

GO AHEAD – CLIMB OUT!

HOW TO TELL WITHOUT DOUBT THAT SPECIAL SPLURGE IS A-OK!

To Join Wealth Building Powers BLOG:

PLEASE SIGN UP TO FOLLOW THIS BLOG by providing your email in the subscribe box. 

To follow my daily posts on Instagram click: instagram.com/wealth_building_powers

Thank you to my followers and readers, for your likes and comments.  All comments, recommendations and feedback is welcomed and utilized to improve this blog.

ABOUT ME

I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger, with a NC State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.  

I left a corporate career because I had a desire for making a difference as a speaker and writer, to help others. I was blessed to be coached, and mentored by strong women and men in both my family and professional life.  It is my time to serve and give back.

DISCLAIMER

I started my first business at ~13 years of age (small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and happy to share my personal finance and investment lessons learned with you.

However, I am NOT a licensed financial advisor.  Please do not construe my suggestions on this blog, as recommendations for your personal situation.  For individual finance advice please seek your own licensed CPA or fiduciary financial advisors.