When I first got out of college and started earning “real money” I found that a good chunk of my paycheck was being used to service debt payments. The majority of my obligations were student loans but I also had a a car payment and some credit card debt. All of these payments left me with limited money to pursue the activities that I enjoyed or save for my future. To add insult to injury a lot of the “things” I had purchased with debt weren’t exactly making me happier. A few expensive car repairs and the stress involved with continually paying off debt made me realize that I had to change my ways. The first thing I did was build up an emergency fund of cash in a savings account. This prevented me from having to take on more debt when unexpected expenses found their way into my life. The next thing I had to do was find ways to save so I could put more money towards paying off my debt quicker. Here’s some of the methods that I employed.
Robert Kiyosaki’s book Rich Dad Poor Dad was one of the first personal finance books I ever read. Regardless of what you think of Kiyosaki the book does have several practical lessons on how to manage your financial life with the intention of building wealth. Let’s be clear, Kiyosaki is an entrepreneur, so some of his wealth building methods aren’t exactly appropriate for everyone. Methodologies aside my biggest take away was the lesson on how to think about the things we purchase as a means to build wealth.