I was doing some research on life changing financial advice and stumbled across Joshua Becker’s YouTube video titled, 7 Pieces of Financial Advice That Changed My Life Forever. Joshua Becker is an American author, writer, and philanthropist who has a love for minimalism and intentional living. He said that this financial advice “changed my life forever.” That’s a pretty bold statement to make. So I watched the video and completely agree with what he was sharing. I figured I would share the advice with you all hoping it could change your life forever too!!!
Here are the seven pieces of financial advice for your consideration:
1. Live within your income
A financial advisor told Joshua that most people who struggle to live within their income overspend in at least one of three areas:
1. too much house;
2. too much car;
3. too much entertainment.
I saw this all the time where I use to live. People would have the best cars ever, but their house was severely lacking. I’ve also seen people buy big houses but then have cheap lawn furniture inside for tables and chairs. The advice here is to live within your means and be modest in your spending in these three areas.
2. When you first get married, live on just one income
It’s natural to want to spend what you can afford when combining incomes with a spouse. The thought is that with the combined income, you can afford a nice house, a nicer car, and do more things. Does this sound like those three categories of overspending we mentioned above? Sure does!!!
Joshua was told by one of his bosses to save all of the income from the one spouse and live off of just one income. This will allow you to save money that can be used for down payments on a new house, or buying a new car. And if you lose one salary, you can still afford to live.
3. Always buy your cars with cash
The advice here is simple. Before you buy a car, have all the money saved to buy that car. This way you’re not making monthly payments, with interest, to a bank. Instead, after you buy your car with cash, make monthly payments to yourself, saving the money in a separate account. When the old car is done, take the saved money along with money from selling the old car and buy another car. With this approach, the quality of your car will improve with every car purchase.
4. Set a Spending Plan
Joshua says this is NOT the same as a budget. He suggests you list your fixed cost and your monthly income, comparing the two. If your fixed costs are higher than your income, then you have some work to do to cut them down. If you are at a surplus, then you’ve identified money you can safely spend.
5. Make at least one extra house payment each year
Simply by making one extra house payment a year, you can knock up to 4-5 years off your mortgage. If you make more than one extra payment a year, you can knock it out even faster. Personally, I pay my mortgage bi-weekly so I make two extra payments each year. You may not be able to do this, but do your best to make at least one extra payment every year. Even if you have to use bonus money, Christmas money, or found money…MAKE THIS HAPPEN!!!
6. Never take a job just for the money
Money is always a consideration when getting a job. Think about it, before most people even look to get an interview, they inquire as to what the salary is like. This is good to do, but it can’t be your only motivation for your job. If it is, you won’t be satisfied. You won’t be happy. You may think that making more money alone will be enough to make you happy, but it won’t. Seek a job where you can feel fulfilled in what you’re doing.
7. You’re never too poor to give
“It’s better to give than to receive.” I bet you’ve heard that a few times. But it really is true. With this advice, Joshua is saying you can always give something, even if it’s the smallest amount. There is always someone worse off than you that could use the help. Give to a worthy cause, your church, or a family in need. Personally, I automate donations to my church so that I don’t have to remember to help someone out. I automated it!!!
This is some great advice from Joshua and I can see how this advice could change anyone’s life. I recommend you consider this list if you want to live a financially secure life. It’s never too late to start. Use this advice to put a financial plan together and then get to work.
***As I have mentioned many times…I am NOT a financial advisor. The information here is provided for some general financial education and for entertainment purposes. Follow up with a certified financial advisor to learn more and receive financial guidance.
Here’s Joshua’s video that inspired this post: