Every year, in the middle of March, an old bloke stands on the steps of somewhere posh waving a knackered old red suitcase and we all try and make sense of what he’s talking about. Well, here it is in a nutshell: get more money in and stop letting so much money out!
I want you to channel your very best George Osborne and face up to the ‘suck it up’ school of economics. No one is ever going to be popular taking forthright financial decisions. If you are the chancellor of your family then you’ll need that red suitcase to defend yourself when you have to dish out some very difficult but necessary financial decisions of your own.
Each and every one of us has the personal obligation to ourselves and our families to provide for our own. As Europeans we seem to have an over inflated sense of entitlement that we work 37 hours and week and then go home and put our feet up. There is no law stopping you working harder, longer hours or having as many jobs as you like. Even at basic rate tax, you will still take home 75% of your earnings. It is always worth getting another job. I speak from experience, when I was paying back debt, I worked all week and then took in lodgers and cleaned caravans at the weekend.
Reduce public expenditure.
You’ve increased your GDP and now you need to keep hold of it. Your earnings need to be tightly kept hold of and you need to have your own ‘Treasury’. Each household needs to know exactly what goes in and make a point of letting as little out as possible. If you have to downsize, then move. If you have to cut transport costs then sell the car and get the bus. If you have to say no to social engagements then you have to say no. My experience? I sold the car, took the bus, gave up cinemas, theatre, restaurants and holidays.
No one likes the Chancellor! He sits in No. 11 but he holds the purse strings. You, like him are going to be the total controller of all financial matters and you need to make it your job to make sure that: you increase GDP, that you control and reduce spending and that you make shrewd medium and long term financial decisions to make life comfortable and secure for your family.
Face the Public
I’ve had my own ‘door step with the red suitcase’ chancellor of the exchequer moments. I’ve had to cancel holidays, cut up credit cards, turn down invitations and cancel any spending. I was in debt, sick of it and wanted a change. It was hard but it was worth it because we eradicated all of our debt eventually. Now? We’ve not borrowed ever again and our family has a bright financial future because we became the chancellor of our own exchequer.