The benefits of money happiness, why budgets don't work, turning kids into money-savvy adults and a plan for paying off debt.
The Heavy Purse — Money plays a huge role in our lives. What we do with it (save it, spend it) brings us joy and sorrow. Shannon brings more joy by helping us change our relationship with money. But before we can do that, we must adjust our attitudes and emotions about it.
In her experience, the main “money emotions” people embrace are “guilt and fear.” She addresses the two in the first benefit. In the second benefit she focuses on the “keeping up with the Joneses” dilemma. Howard Dvorkin, chairman of Debt.com, also writes about that in his book Power Up. Read the rest and start the process of adjusting your money relationship.
Making Money Make Sense — We usually discuss creating budgets or maintaining budgets, but the angle of why budgets don’t always work is also informative. Gail says “budgets are a great tool” only if you use them in the proper manner. She gathered the top five mistakes people make with budgets.
The first is “inaccurate income projections.” This means people actually don’t know how much money they make. That’s obviously a problem. The fourth is “cash.” People use it, but don’t track their spending. That’s another budget killer. See if you’re making any of these mistakes.
Frugal Rules — We always love blogs that help people earn extra money. John says you may not have all the skills needed for some of these jobs, but that’s okay: There are plenty of options. Believe in yourself and start making that extra cash.
A few really cool ideas include dog walking (I know someone who offers this service and makes extra money), selling produce (I did this as a kid), and tutoring. Maybe you’re excellent at math or speak another language, so take advantage of your skills.
Money Talks News — Now that summer is here and kids are off from school, why not continue their education — on finances. Kim wants your kids financially independent and comes up with six informative lessons that can help. My favorite is “Teach them the value of patience.”
Kids must understand that any financial endeavor takes time, whether it’s saving for retirement or investing. She uses the example of a young man saving two years to buy a dirt bike on his own. That lesson hit home, because I did the same thing when I was a kid.
Thousandaire — Kate’s right: It’s essential that you prepare a plan before you start paying off debt. Debt.com offers a step-by-step guide on getting out of debt. It’s also a useful tool. Kate offers five tips you can incorporate in your plan. I like the fourth one — “Redefine the process.”
It changes the way you perceive paying off debt. Think of the money going toward your debt as savings. If you save the “recommended 20 percent” each month and a portion of that goes toward debt, you’ve changed a negative (high debt) into a positive (lowering debt). Here’s six things not to do when paying off debt.