Money Maven: The best financial advice

By Sheryl Rowling

SAN DIEGO–Once when I was speaking to a group, I was asked the following question:  If you could give only one piece of financial planning advice, what would it be?  After decades of practice and education, having authored articles and a book on wealth management, how could I put every aspect of comprehensive financial guidance into one sentence? I thought for a while, then realized that there was an answer!  The advice:

“Live beneath your means.”

Of course, we all know that we shouldn’t spend more than we can afford. Our parents and grandparents always discouraged us from borrowing, insisting that we not run balances on credit cards. Beside the high, nondeductible interest charges, spending tomorrow’s money means you will always be paying for yesterday.  In other words, living beyond your means will ensure that you never reach your long term goals.

Living within your means allows you to pay for your current lifestyle without going into debt. This is obviously a much better choice than overspending. However, if you don’t save, how will you:

  • Accumulate funds for a down payment on a home?
  • Handle unexpected expenses or emergencies?
  • Pay for your children’s college educations?
  • Provide for your retirement?

Thus, to ensure that you can accomplish your long term goals, it is necessary to live beneath your means.  By spending less than you make, you will be able to save for your future needs and dreams. After all, it’s only one simple rule!

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Rowling is a certified public accountant, personal finance specialist, and principal of Rowling & Associates. She may be contacted at sheryl.rowling@sdjewishworld.com