It's Not That Complicated

I just read another article about how Canadian household debt has hit a record high. Now, I am by no means a financial expert, but am in fairly good shape financially despite having four dependents and being a single income home. We don't have any credit card debt, school debt or weird payday loan type debt (those places give me the willies) and we are about six years away from paying off our mortgage. Financial success seems to be fairly straightforward to me, and includes very few rules to follow. Here are some of my idiot proof rules.

Rule #1 Don't buy crap.

Has that set in yet? Wait for it to sink in deep. Most things people buy other than food are just crap (with very few exceptions). You don't need a new flat screen, a cell phone, a newer car, a boat, a bigger house, or any other do-dad to be happy and fulfilled. We try to keep our needs and wants distinctive and in perspective.  It is probably sacrilegious to say in this day and age, but you really don't need a cell phone to survive. Trust me you wont die without an ipad, or  iphone.  Somehow, my family magically seems to survive with out these things quite happily. Yes we sometimes think about buying shiny new things that will momentarily bring us joy, but then we think about how much better being completely debt free will feel and walk on by the shiny new car.

Rule #2 Work Hard at Anything you Can - Then Live Within Your Means

 I didn't always have a job that paid well.  During my student days and early years of marriage I often worked double shifts between two jobs and did extra work at night cataloging information for random companies (the most mind-numbing thing on Earth to do for money). We learned to tailor our life in order to meet the salary we have, weather it's big or small.  Living frugally has now become a lifestyle and we never go without our needs being met and many of our wants too - albeit our wants are usually pretty simple.  Luckily I now have a job that does meet all of our needs and doesn't make me want to go crazy by doing hours and hours of night time cataloging.

Rule #3 Pay Off More Than you Need To Now

This just means pay more of your debt down, be it mortgage, school loans, plastic surgery, or whatever, than the minimum monthly requirement. Bank staffers usually discourage this because thats how they make their money,,or rather your money.

Rule #4 Give to God

If your not spiritual at all or maybe even if you are this rule will seem strange but I believe it helps us more than it is a sacrifice. We are amazingly blessed by God and I hope our small contributions will bless others in turn.

And thats it. That is my family's playbook on money. The first and fourth rules are the most important ones I think. Obviously these have not been invented by me. Lots of people, smarter and wiser than me write books about this sort of stuff and follow these rule better than us. But as my wife's Grandmother used to say, "what's true once can be said again and again."