RULE # 1: Don’t spend money you don’t have

I thought I would start off with the most basic, yet one of the most fundamental principles: don’t spend money you don’t have. This advice was given to me when I was young and has served me well throughout the years. Even though this principle is so basic, not everyone abides by it.

If you don’t have cash for something- don’t buy it. It’s that simple.  In other words, even though you have a $500; $1,000; $4,000 or $10,000 dollar limit on your credit card, this does not mean that you actually have that money.

Abandon the mentality that leads you astray; the one where you convince yourself that you will pay yourself back later – this is not a good way to get yourself ahead. If you’re burning to have that new item, whether it is the latest technology, or the newest accessory - then you better start saving.

This rule is not intended to deprive you of your goodies; it is meant to empower your pocketbook! Skip the interest payments and pay cash; your purchase will be more affordable in the long run. Recite this to yourself 10 times: I will not spend money I don't have.

Why this blog?

In the weeks to come, I will be posting 10 “rules” on how to be more financially responsible. My blog is intended to help us become smarter about how we spend our money.

I didn’t come up with all of this advice by myself, but I have listened to some wise people – namely, my father, Stephen Pope, who is a certified stock broker and successful entrepreneur, and Dave Chilton, author of The Wealthy Barber and The Wealthy Barber Returns. I have used these strategies myself, and to my surprise – they actually work.

 You never know when you’ll encounter a rainy day, so it is best to start saving and plan to succeed financially no matter what curve balls life throws at you. Knowing you have some cash will definitely reduce stress and give you some incentive to save for things that really matter to you.

This discussion is informative, and may not be appropriate for all situations. If you have different advice that has worked for you, please share. Remember, the goal here is to equip ourselves with the knowledge  we need to be in control of our own hard-earned money!