Improving Your Finances Through Fiscal Discipline

Ex NBA players Kenny Anderson and Derrick Coleman have been in the news lately. Despite each of them earning over $60 million during the course of their careers, they both ended up declaring bankruptcy.

Ironically, they forgot the basketball axiom that, while scoring is important, defense wins championships. The same lessons apply to personal finance.

No matter how much you earn, what really counts is how you spend your money,and how much you save. It all comes down to fiscal discipline.

You may want to create a budget worksheet. You can use it, along with budgeting software to track your finances and expenses.

Before you buy something, think carefully if the price is worth it. Is this an item or service that can really add to your enjoyment or quality of life? Will it serve as an investment and provide a passive income?

If the thing that you want to spend money on will only bring short term pleasure, then you may want to skip it.

A caution is in order. You shouldn't completely cut out pleasurable activities. Having fun is important. You don't want to deprive yourself and become a miser. That will reinforce a sense of poverty or lack.