8 Things to not Getting an ‘F’ in Personal Finance 101

Source:http://lenpenzo.com/blog/id1142-8-big-reasons-why-youre-getting-an-f-in-personal-finance-101.html

The First Commandment: 'spend less than you earn'

1. Have emergency fund to avoid unnecessary debt.

2. Always know your bank account balance.

3. Understand the difference between a want and a need.

4. Track spending to know how much money you spend.

5. Tastes must not exceed spending capability.

Understand that this is not a problem, so much as an excuse. When your expensive tastes starts impacting your ability to save, you're in for trouble.

Extra Credit: If your tastes exceed your budget, ratchet them down a notch or three – and stop making lame excuses.

6. Say no.

Many people do understand the difference between a want and a need, but they have trouble saying no anyway. Being able to say no is a crucial skill in the world of personal finance. Those that can't will always have the most trouble keeping their personal finances on an even keel.

Extra Credit: Master the art of saying no.

7. Stop 'impulse buying'.

Impulse buying is a nasty habit that can best be cured by careful planning.

8. You worry about what others think about you.

People that worry about what others think of them suffer from a predilection to conspicuous consumption, otherwise known as the desire to keep up with the Joneses. There are many reasons why people do this: the urge to advertise their success in life (be it real or imagined), the desire to have what others have, and instant gratification, just to name a few. Unfortunately, people with a poor grip on their personal finances fail to understand this little piece of reality: the Joneses are broke.