Laura McDonald and Susan Misner, authors of "10 Ways to Stay Broke...Forever" (John Wiley & Sons)
Remember, psychologists tell us the state of 'being' is so much more satisfying than the state of 'having'.
—Laura McDonald & Susan Misner, authors
Do you keep your money in your pocket or in the bank?
Laura McDonald and Susan Misner, founders of Golden Girl Finance in Winnipeg make it their mission to help you with your money dilemmas. They've written a new book with a title that suggests a bit of reverse psychology. It's called 10 Ways to Stay Broke...Forever: Why Be Rich When You Can Have This Much Fun?
SCENE asked the Golden Gals for some top tips we should all heed in order to stay afloat:
You should be able to pay the car off over three years or you can't afford the car (too many people opt for low monthly payments stretched out over five plus years and get in a negative equity position).
Wait to buy a home you can truly afford
This means 20% down payment, with your housing costs being max 32 per cent of your gross income.
Use these the proper way - as an interest-free loan, provided you pay off the balance every month - on time! If you are only paying the minimum, they should have a warning on them that reads to use them responsibly because your purchase could, in fact, cost you double (with all the interest)!
Monthly payment trap
You are trapped into only making your debt payments and never having anything left over to really pay down the principal (or save!). Makes you more and more reliant on debt and digging an even bigger debt hole. Get out of it by reducing your expenses and having income left over to pay down debt.
Beware of affluenza
That feeling of unease and thinking we would be so much happier and more successful if we only had more stuff. Remember, psychologists tell us the state of 'being' is so much more satisfying than the state of 'having'. Also, the economic theory of marginal utility reminds us that we get less satisfaction out of each purchase, so you can enjoy less consumption more deeply.
Launch of 10 Ways to Stay Broke...Forever: Why Be Rich When You Can Have This Much Fun? is Monday April 22 at 7 p.m., McNally Robinson Books.
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