When To Use Good Financial Decisions

"Every day that you eat." ~ my answer

A good financial decision should be a habit that is used every day.  To me, if it is a good financial decision, I shouldn't make an exception and not use it.  Here are some of the financial practices that I try to follow every day.

Live below our means.   While working we lived at least 20% below what we were earning, and saved the difference.  Even in retirement, we continue to try to live below our means.  We don't want lifestyle inflation to end our early retirement.

Pay ourselves first.  When we were working, we always made sure there was some amount to put into our savings account.  The most important payment each month was to ourselves.

Avoid debt.  We try to save and pay for everything with cash.  Everything includes furniture, vacations and cars. 

For us, the above list has been a set of good financial decisions.  Using these every day has been a good approach for us and helped us avoid falling into less optimal financial habits.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial advice. Please consult a professional advisor.

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