Assess the Problem:  First, you have to figure out if your excessive buying is weighing on your life, and to what extent.  Until you realize you’re spending $150 a month on birthday gifts for the parties your children attend, it’s tough to alter that behavior.  A personal cash-flow statement should do the trick.  How much do you have coming in every month?  How much is going out, and where is it going?  Are the minimum payments on your credit cards keeping you from saving?  A good rule of thumb is that you should save 10 percent (including what you put into retirement accounts) of what you earn.  Start with 3% to 5% and work your way up.

— Jean Chatzky, “Stay Away from the Mall,” Money magazine, May 2006

This entry was posted on Friday, May 19th, 2006 at 12:02 am.
It is filed under Debt, Saving, Jean Chatzky, Spending.
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