Today I’m going to cover a fun topic – building on good money decisions! I’ll cover:
- What qualifies as a money decision.
- What the best money decision I’ve ever made is.
- How to build off good money decisions.
What qualifies as a good money decision?
To me, any financial decision that sets you on the path to financial success is a good money decision. These are some examples of good money decisions:
- Buying a house well below the amount of mortgage you’re approved for. With house prices these days, that’s easier said than done!
- Having a budget or a way to track your spending. Keeping on top of how much money you have going in and going out is always a good money decision.
- Taking on a side hustle or getting a raise at work.
- Sit down with your partner to discuss finances and ensure you’re on the same page regarding saving and spending.
- Learning how to separate your needs from your wants.
What’s the best money decision I’ve ever made?
I’d say that I think the best money decision I’ve ever made was paying off my house as quickly as possible. I bought a house with a reasonable down payment and a modest mortgage. My husband and I were both working and had no kids, so we could focus on paying down the mortgage as quickly as possible.
I choose bi-weekly payments and then make a lump sum extra payment yearly. This is an excellent option if you’ve the self-discipline to put aside extra cash and not spend it. If you don’t have the self-discipline to put aside cash, you may prefer to look into options like accelerated mortgage payments.
This is my best decision because it gives us so much financial freedom! When we had to deal with increased expenses and a decreased income, we weren’t strapped for cash because we no longer had to pay a mortgage.
How do I build on a good money decision?
As with bad money decisions, moving forward on a good money decision is very individualized. These are just a few examples:
- If you’ve paid off your house or car, resist the temptation to upgrade unless you need to.
- If you’ve put aside money to invest, be sure to do your research before buying any investment.
- If you’ve paid off debt, don’t run it up again!
Tell me about the best money decision you’ve ever made!
Let me know the best money decision you’ve ever made and how you accomplished it!
