I am so excited! My wife asked me to write about money and family finances. I love my career because I get to expose financial myths and teach people the truth. I’m going to try to avoid the lingo of my industry and keep it real.
The most important thing about your money is this: you have to make it work for you.
If you don’t tell your money what to do it will tell YOU what to do. If you don’t know what your monthly expenses will be there will always be more month than money. If you don’t save money to buy a car, you will always get a loan and make payments. Did you want to do it that way? Not really, you just didn’t have any other choices. It is vital to take the time to outline your long range plans AND to figure out where your money needs to go at the beginning of each month. If you don’t do this consistently, you will be at the mercy of chance and your choices will forever be limited.
It really is amazing that most people do not know where their money goes each month. Its all important stuff whether its groceries, shoes for the baby or a quick stop for a latte. But it really adds up! Who would have thought that $600 could be spent on lattes in a year? No one knows unless they keep track. It is better to plan to spend money in advance than try to keep track after its spent. When it comes to long range planning for things like buying a car, kid’s college expenses or retirement most people take a shot in the dark. Have you ever heard the “experts” say that most people should plan to retire on about 80% of their current income? WHAT! You want me to live on less money when I actually have the time to do something with it! It just doesn’t make sense.
Why is it that financial failure is such an epidemic these days? So many people seem to be put together on the outside but are a financial wreck on the inside.
There are two factors that contribute to this problem; one is internal and the other is external. Most people never learned how money really works and how to make it work for them. Many families are not open about where the money goes and so how will the kids ever learn. This hole is often filled by external sources in the media or by books with the latest and greatest techniques. In fact, there are so many sources of information about money and personal finances how do you know who to trust and what is real, time tested and true?
If you want to save more money do you have to cut back on lattes?
Is it possible to live with a budget that actually works?
Will you ever reach some level of money so that you feel like you’ll be OK financially no matter what happens?
Over the next few weeks, I’ll explore some of these questions with you. I hope that it will have a positive impact on your relationship with your finances. My number one money goal for myself and everyone I work with is this: no matter what happens I want to be able to make decisions from a position of financial strength.
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This post was linked up to Women Living Well check them it HERE!
NEWS FLASH!!! Mike and Mae are NOW teaching personal finance at our new site called Spend Successfully! Click the link below to learn more!