Tuning in to my Inner Financial Guru

In 2008, before the recession graced the world with its presence, there was a bag I saw in the Louis Vuitton store. The price tag was around $1,200. I’m not a big fan of brands or following trends. I don’t like Luis Vuitton much and I feel a little weird about carrying or wearing stuff that has someone’s name emblazoned all over it. I also know I’m never going to spend $1,200 on a bag irrespective of whether I can afford it or not but I liked knowing that I could afford it. It was silly but that’s me. However, this recession has changed my life in so many ways, mostly for the better, albeit in a terrifying manner. Since November 2008, I’ve been laid off twice and can no longer afford that Louis Vuitton bag. I’m not a spendthrift, I hate shopping, I don’t buy something unless I need it and I resist impulse shopping. Somehow, I went from someone with a very healthy bank balance to trying to figure out how to make $250 last for 3 weeks. Nothing makes you conscious of money quite as fast as not being able to replenish the source.

Growing up I read books like Rich Dad, Poor Dad, The Richest Man in Babylon, Think & Grow Rich and a host of others in their ilk. I tried to imbibe a few of their concepts into the way I put money aside but my one failing all these years has been learning how to make my money work for me. Instead I let it sit in a bank account day after day, month after month, year after year. I never got involved in the nitty gritty of the financial world. Why? I’m a creative person, a visual person, words and images are what floats my boat; overly composite numbers and equations make my brain shut down. I learned in a very hard way that this is no excuse.

In 2010, I’m going to roll up my sleeves and get cracking. I’m going to learn how to turn $1 into $5 and $5 into $10. I'm going to learn how to make $1 last like it’s $5 and $5 like it’s $10. And the most important thing of all, I am going to cut debt out of my life completely over the next 3 years. I know this requires a lot of discipline but if there’s one thing about me, it’s when I’m determined to do something and I’ve made up my mind about it, nothing can stir me away from the path. I suppose another word for this could be stubborn. Hopefully, by the end of this year, I’ll be able to afford the Louis Vuitton bag again, even though I don’t actually want it.

Essential Reading for an Intending Guru:-

1. Automatic Millionaire by David Bach
2. Start Over, Finish Rich by David Bach
3. The Total Money Makeover by Dave Ramsey
   

I will be updating the list from time to time as I get more financially savvy.