Money decisions are overwhelming nowadays and the unpredictable economy does not help. Life seems to revolve around money and choices have to be made. Some choices are easy and others are hard. Either way, we need to learn to make smart wise choices with money.

Where do you start?

Live within your means. This concept seems hard but it is actually very simple. It does not help when our own government can not lead by example. So, start making a budget and see where your monthly expenses go. Use this to eliminate expenses that are not necessary. Your goal should not be keeping up with the Joneses but to someday be the Joneses. All you need is a piece of paper and a pen to get your budget started. Do not try to complicate it or over think basic paper and pen, that’s it. The culture of living within your means starts with you, and the sacrifices we make now, build the foundation of a greater future.

Stay away from credit.

No matter how many times you talk yourself into the advantages of getting credit or how great you are at managing credit, the math will not work in your favor. Trust me, the people who promote all the different ways of using credit have already done their math and the probabilities are always on their side. Try using cash at hand or spending what you have in your debit account. You will be wowed by how great this is. It the freedom of knowing that you are not making someone else rich or buying unnecessary things. This will be your hardest habit to break, but you start small just like someone trying to lose weight. Stay focused on what you budgeted for, close those credit accounts, and believe in the power of self-control.

Get rid of that debt.

Most of us fell and/or still falling into the trap of “old Sally Mae”, the credit card, worse the 401k loan, etc… Boy! oh boy! If you ever dream of being wealthy, the good old debt will be your linchpin. You can not build a solid house when the foundation keeps collapsing underneath. Debt is that collapsing foundation that will frustrate you. We try to ignore it but it never goes away, and guess what, the interest keeps growing. Tackle this beast called debt and see how much freedom and money is available for your toys and fun. The Everyday Millionaire has made the habit of staying away from debt and that is what we all strive for.

Save and Start Investing early.

Once you have established your budget, stopped using credit, and cleared all your debt, it’s time to save and invest that money. Saving is a way of keeping Murphy’s law away or in check. You need to save for future purchases, “Murphy”, fun and toys. This gives you a piece of mind and you don’t feel overwhelmed by whatever situation is thrown at you. At the same time invest wisely as early as you can. Investing in good mutual funds that perform better than the S&P 500 is usually a good start. Make sure they have a good long track record and that you understand where your investments are doing. You can not beat the math of compound interest when you start investing early.

These simple wise choices you can do with your money. This will put you in a great position in life and will make you an everyday millionaire. For those who want to learn more about making wise choices with their money, take time and read; The Total Money Makeover by Dave Ramsey. Like Dave says, “80% behavior and 20% head knowledge.”

It is your money, your choice! Are you ready to take charge and change your family tree and legacy?