DBS Method

Finance Pop Quiz

1. Smart or Stupid? Buying a home with a $2,000 monthly payment when you only make $2,500 per month.

2. Smart or Stupid? Living paycheck to paycheck.

3. Smart or Stupid? Getting your nails or hair done and then buying groceries with food stamps.

4. Smart or Stupid? Having loans on more vehicles than there are drivers in your home.

5. Smart or Stupid? Buying a 7 bedroom home for your family of 3.

Hopefully your answer was “stupid” for each of these questions. If not, it’s probably time to implement the DBS Method Personal Finance Program in your life. It’s quite simple really, just don’t be stupid.

Let’s face it. Spending more money than you have is stupid. You should never have to limit your necessities because you had to make your boat payment. Here’s the most simple way that it can be put. If you are unable to provide for your family, GET RID OF ALL THE CRAP THAT YOU DON’T NEED! This includes: Massive lifted trucks with expensive rims and tires, cell phones (that’s right, you CAN live without it), Boats, High Speed Internet, Satellite TV, expensive hair and nail appointments, fast food, cigarettes (you may feel that you need them, but that’s just the nicotine talking), etc. etc. etc.

Moving on. The most important part of any personal finance program is saving. Saving even just a little bit every month, is the least stupid decision you can make. But you can’t save unless there is extra money, so you have to live within your means. The easiest way to do this is to create and follow a monthly budget. If you are unsure how to do this there are plenty of resources online or in your community that will help you get on track.

The bottom line of our personal finance program is, if you can’t afford it, don’t buy it. If you don’t know whether you can afford it or not, don’t buy it.