Good evening my Millionaire Buddy I need to apologize for not being able to post a blog last night and I hope you can forget me for not blogging but my family took another financial hit but we are handling but last night I was sent to the local hospital due to another health issue. But you guy are the reason that I am fighting along with my wonderful family. Also, my wonderful follower checks out all my ebook at http://www.payhip.com/treasuredinkblots.
Are you a strong family in establishing a frugal front
In tonight blog
Getting along with your spouse to set up financial Goals
Teaching children the financial responsibilities
The hardest part of this journey is finding common ground can be a very difficult task when one spouse who is considered irresponsible and the other is strongly willed at saving the last penny.
Living frugally is a choice that can be the easiest choice to live with if both of you are on the same page with financial goals, even if your money style is a bit different. So you both need to come to agreement if you want to save money, get out of debt, and be able to live within your means, and be able to maintain short-term and be able to attain your long-term goals, it’s very important to discuss your thought and different approaches to money management and work at finding common ground. The very thought about your frugal efforts may go down the drain if your partner has poor spending habits.
Children will sometimes be a little harder to win over to frugal living unless you decide to live that way before they’re born. So if you take a minute to stop and listen carefully, you might still be able to hear the echoes coming from the latest whining fit ” But mom, why can’t I just have it now !”
This chapter is designed to help you work on money management differences and will also help with a few ideas for instilling healthy money habits in your children.
Work together to reach your financial goals
In a perfect world, it would be nice if were exactly the same? Well, I am kinda glad that we don’t live in a perfect world with everyone look like, think like. So by having a variety is truly the spice of life and that even goes with the relationship, an area of your finances.
Think about it this way it like the ingredients in your favorite meal, yes that right amount of spice can make the mix of flavors perfect, but add a little too much spice is almost unbearable. You don’t need to do away with every difference; you just need to blend the flavors together.
Being able to resolve or at least being able to talk openly about any financial problem between you and partner is very important if frugal living is a goal for both of you. In order to be able to fully adopt many of the frugal practices in this book. So everyone involved needs to understand the benefits of this lifestyle and just how important it is to control any impulse spending habits.
Being able to see your financial strengths and knowing your weaknesses
So are currently involved with someone and it is started to become more serious, or have you never talk about spending habits with him or her. So please take some time to talk about financial mindset. Being able to identify your differences and spend some time planning how you are going to handle them in your relationship. By dealing with your financial differences, you will enjoy the fact you have fewer arguments later life and you guys will love the idea of building a strong frugal front.
Sit down together and yes I said together and talk about the details your personal spending habits and be honest with each other because it going to show up in the budget.
If you have already married use this chance to check in with your current habits by asking yourselves, individually the following question and then compare answer :
Do I carry any credit cards? If so how many? What kind; gas cards, store related credit cards, general credit cards? Do I pay the cards of time in full each month or do you still pay the minimum payments?
Do I carry cash with me? How much? What do I use it for? How do you keep a record of cash spent?
What does your credit card history look like? Any debt problems, Do you have overdue bills, repossessions, bankruptcy filing,or late payments.
What type of insurance do you have for health coverage and another emergency?
What is your system for paying the bills? What is it?
How do you keep track of the receipts and any tax-related paperwork?
Am I buying lunch at work every day or are bring it from home?
Is shopping your favorite past time? What is the limit, if any, did you set for shopping trips?
How do you decide to major purchase such a new truck or new furniture, or a home?
How much of the household income do you save each month, and what is the system you use for saving the money.
What are your goals about financially elderly, or a disabled or cash strapped- relatives?
What is your plan for when you and your spouse decide to have children who are going to stay home or are they both going to stay home?
Are you attending church and if so is tithing important to you.
How far in debt are you willing to go before you are comfortable.
Just remember that you will see if you or your spouse has a spending habit or if your penny pincher and vice versa. Also it important to remember that the opposite also tends to attract to each other. Its thoughts about why opposites attract are that on some unconscious level people are aware of their weaknesses and their shortcoming and most people know what they need in there partner to complete themselves.
If you have some trouble keeping a budget you might choose a partner that has a strong skill for keeping a budget or an eye for detail for the little things and if you think about it will balance each other out in the process.
Honesty having few differences is healthy, but then I also know from experience that these same difference can and will test your limits of relationship and reason.
So are you a shop-a-holic in the relationship and your convinced that your need for a financial change in your life, the road head is much easier.
I know what you are thinking reforming a love one from their spending ways can be very difficult and require much tact. Do not allow your self to become a drill sergeant toward your partner but instead be reasonable and your partner how adopting a more frugal lifestyle can reduce outstanding consumer debt, free up, one for some fun activities such as vacation. and help to finance your dream life.
What are your long-term goals
I pretty sure that heard the saying “If you have no idea where you’re going, then how are you going to know when you get there. Well, it true about the area of life about finances. So by setting up some long-term goals for yourself and your family help to keep you on your current financial picture.
Here is a example of a goal as a couple is to have a full-time parent at home when you have a baby on the way and how are you going to start cutting back on spending now in order to get out debt and how build a saving account before the birthday of the little man or princess arrive. So by keeping the long-term goals in mind will help keep you on the right track whenever you tempt to overspend on the must-have extra.
Here a very important step in moving forward together is as a financial team is starting to get establish your life goals and review them with your spouse. Ask your self following questions to help you determine your long-term financial goals :
What are some hobbies would I like to pursue to add to our recreation and fun to my life?
Is there a place in your future for education in your future what the children edcature?
Is owning a home that important to you?
What are your or spouse career goals? Do they include further training, if so
how are you going to reach these goals?
How much time, money, and effort do I want to give in the future to charity or church-related activities?
What are some character traits do you value most and want to develop in your own life and the life of your children? Think about what your financial goals and decision make sure your financial goals and decision are in line with those character traits?
Do you have a retirement goal?
What you plan to take care of future healthcare concern?
How long will I take me to pay off my debt?
At the very end of my life will regret all my choice of what I have spent my money on or will I be feeling ok with all my choice?
So by writing out your goals and what you value are the most important too you and your family will go a long way toward being able to keep track of your life goals and the finances.
But what happens if you do not write down your goals, just remember to think about your priorities and always keeping them in your mind as of make decisions (financial and otherwise) is the best habit you will develop.
Setting up saving goals
Now that you have to manage to discusses what your financial desires and goals are for life, now it time to set some saving goals. Are you and spouse accustomed to working together toward a major financial change or are you like the millions of other people in the world where you can not seem to work together on anything? So try thing idea start with something small like saving for a new cell phone or saving for a mini vacation just for the two of you.
The best part about setting small goals is they usually can be reached within the first six months of setting the goals to a year and another part to setting small goals is too see how quick the return is on your saving investment and an opportunity to help reinforce the value of working together toward a small gaols you both agree on . Now that the two of you have managed to work together on small goals, now it time to start working toward a long-term goal like setting up a retirement account and your children college fund.
It a good idea to start getting into the habit of setting aside some money from each time you get paid until you reach your short-term goal. Or you do what I do I keep a big jar on the dresser in my bedroom that way I can empty my pockets and my purse of any loose money.
This summer I paid for my entire family to go to the ocean for the day using my change jar.
Seeing the successful example of how easy it can be to reach a savings goal can be just being dedicated to saving and reaching for goals will help will impulse spending habits.
Peacefull solution to a financial differences.
Remember the most important part of this process is to discover the art of sensitive when identifying financial differences between your and your spouse.
Did you know that there a lot of people have said they got a divorce because of money related problems here are some facts?
21% cited money as the cause of their divorce.
Among 25-44-year-olds: 24% cited money as the cause of their divorce
Among 45-64-year-olds: 20% cited money as the cause of their divorce
Among those 65 and over: 18% cited money as the cause of their divorce.
37% said their spouse lied to them about money
8% said they lied to their spouse about money
10% reported that they both lied to each other.
So remember when you and your spouse are in the middle of disagreement about your financial and saving goals that your relationship does not need to end in a broken relationship or result in a divorce court if you only remember to treat each other with respect and kindness. Think about it for a minute you have never been able to convince anyone to change their mind by yelling at them right or calling them names, or manipulating their emotions, or even giving them the silent treatment.
A good idea to have a three checking account system.
There is a way for parents who each have their own income to deal with differing of money habits is to open a three checking accounts: One of the accounts is a joint account for the household, then you both have your own account. (Note that you need to make sure to have a establish a workable budget before trying the three account system so that each of you knows how much to put into the back each pay period to cover the household ). When it payday you will make a deposit to the bank of whatever you guys agree to put into the adjoint account.
The joint account is then used to paying the household bills and for short -term saving for future expenses.
Your personal account is for you to spend where you see fit so if your spouse like to blow their money on impulse spending it is their choice and the other person can save for there dream vacations.
What if you are beyond the talking stage and its result in yelling, crying and people storming out the house then maybe its time to talk to a trained financial counselor with a local debt- counseling agency. You may contact the national foundation for credit counseling at 1-800-388-CCCS. The NFCC will help you get in touch with a financial counselor. Also here is the website http://www.nfcc.org or just in too your local church they may offer a free class or look in your community to see if the local adult ed offers a program.
A frugal child or frugal teenager
Children and money are have been easy parted, at least that what going on in my house. I am very sure that you can say the same thing but the good news is that all children and teens can be taught to understand the value of money, budgeting and a frugal live style with a little faith and prayer.
This section is going to discuss how to explain and set up the children to frugal living and have success throughout their childhood and beyond.
But mom money does grow on tree
By teaching your children at a very early age that having a good spending habit is a good idea. TALKING to your children about how many hours you work in order to buy the new Xbox or PlayStation they want.
If your child is old enough to work a part-time job just do a friendly reminder to them about how many hours they work slaving away over the hot grill flipping burger or pouring the coffee just to pay for that new high price cell phone.
It also a great idea to include your children in the family talk about finances, that way everyone has an active role in setting the goals and watching what everyone spend.Just be careful on the detail that way the children do not need to worry. When working with the children they need to feel like they trust you and that you are in control of the problems and that they are going to be taken care of.
But never be, to be honest with the children and tell them you are unable to afford something they are asking for because it not add into the budget. ” I’m sorry little man we are not able to afford the new video game this month, but we’re sit down and think of ways of coming up with money. And besides, we going to have a lot of fun. “
Good spending habits in your children
So we as parents need to teach our children the way of the world in a lot of areas from bathing to cooking to doing laundry and that includes financial. So how do we start the process : How about talking to them about decision- making and shopping skills on a regular bases about the decision-making process you use when making purchases on everything from grocery shopping trip which is an easy way of introducing them to the comparative shopping, how to use coupons, watching for sales, learning to read labels and learning how to do math .
So by taking the children with you when going garage sale or lawn saying and let them see first hand how far their money goes for second-hand cl; clothing , toys and sporting goods.
A casual discussion around the supper table or when driving them to there friends house about the pros and cons of the new television you are thinking about buying can go a long way to help your children see what involved in making well-informed spending decisions.
Always try to make sure that you make a good example of being frugal. Ask this question? Do you use shopping and spending as a personal reward for yourself? Are you shopping when you are bored? Do you shop when you depressed? Are you carrying high credit card debt? Just like another area of life our children are watching and following our example on how to handle the financial and material goods.
Here a little prayer that has helped me make it throughout a tough time with our family.
We praise you for your love and faithfulness. We thank you for your protection and care over our families. Thank you that you give us the power to love well; the wisdom to lead and teach our children. We know you’re for us; that you fight for our families today. You are Redeemer, Restorer, and Friend, we believe you have good in the store. We confess, some days, parenting is tough. Many days we can feel anxious or overwhelmed. We ask that you would make us more like you, more aware of your constant Presence in our lives. Help us to release our children to You, so that You are free to fully accomplish all that You desire, in them, through them. Please fill our families with your truth and cover us with your favor.
Lord, we pray for these blessings over our children, today, and every day
Budget 101 for preschool to college
So teaching kids that there money coming into their lives is not just for them to spend it all is going to be a challenge for any parent. This section is full of different idea to help tots and teens learn to manage money.
The systems of setting up four banks
I have a dear friend that discovered this technique that has work incredibly well in our her family and she has suggested whoever is interested in trying it. Its design to help kids understand that not all their money that work hard for or receive through gifts or allowances can go immediately into there pockets to spends. The children will learn in a short amount of time that only a portion of the money is there to play with and that the rest goes to help others, and save for future expenses, and used to help them reach for long-term life goals. I wish my parent had taught me all this when I was young then maybe I would not make the choice I have made.
Here is a way that Sarah help your children manage their money in a very simple, but yet meaningful, way.Sarah has her children divide up any money they receive from allowances, gifts, babysitting, or other jobs into four bank banks. Sarah says the banks can be a cheap store-bought piggybank from the local dollar store, or just something as simple as cleaning milk cartoon with a handwritten labeled as follows:
Giving (10 percent ). This amount goes to church, a needy family or a favorite charity.
Spending (30 percent). This is optional, spend-it-where they want, money.
Think about it from the children point view they want to stock up on the newest video games or the latest toys so be it. They will at some point they will learn that spending at there money away on the small items, they will not have any money available for bigger, more pricer items.
Short-term saving (30 percent) Saving is for something very highly pricey and very special, perhaps a new bike or the new pair of headphones.
Long-term saving (30 percent) This is designed for a later thing in life like their first car which is a good learning experience. It also designs too if your child likes to travel with their youth group or travel after high school.
Just remember that the long-term and short-term saving goals should be always be approved by you, but always allow the children to have total say over their spending money.I know it going to be hard to watch them make mistakes and trust me they’re going to make them but keep in mind that they’ll learn the important firsthand lessons through the process of dealing with direct consequences of overspending or depending on the less important stuff.
Have some fun with the family budget with younger kids
So do you have young children (12 and under ), role-playing about the family budget it designed help them grasp the family money management value how to important it is to cover the basic of life and still have money left over to save for the future and use for the fun stuff in life? Do not think about having long- term plans with children younger than 12 but starting off slowy is an awesome way of teaching then about the household money management over a very short period of time about one or two months time.
To get the role-playing started to give each of the children a set amount of play money from any one of the board games, and then say “Then tell them this month you have to pay your own way “. And here’s your cash from your monthly paycheck, and now its time to pay your share of the bills, rent, utility, food, costs, and gas and the basic and fun stuff.
Have the children write out their budget with you so you can make sure they allowed enough money in each money so they can make sure they cover the bills plus saving and fun stuff.
Then have the children pay their bills with play money to you.And if they plan on spending their real money on anything during the month have them take it out on there play money that way they can see how spending money on their toys they believe they need it will show them how an ability to pay their bills, like rent and food, down the road.
Sit down with them once a week, review their budget, and help them determine how much money they have left if any left.By doing this once a week help keep things current and fresh in their minds, so the lessons can be learned sooner and in a very meaningful way.
Or if you like to use a blank checkbook register and some “checks” use this time to teach them how to write a check and to balance their checkbook and help to plan their expenses . Give them fake “bills” throughout the month for their share of the bills.
Also, do the above step to show them how to keep track of there debit/credit account in the same fashion.
Runaway you’re about to ask your teen to handle real money
At this point, you may be spending a certain amount off of your hard earned money on your teens each month for things like personal items, makeup, etc and more on the there clothes or game system and school-related events you get the point. One really awesome way to install good money management skills is to average how much you are spending each month on these items and turn over that amount to your teens and allow them to budget for these items.
Make sure you remind them this not really an allowance. It is real money you are spending anyway, but now you as there parent are handling the job of budgeting over to the teens to handle.
Sit down and talk to your teen about what you expect him or her to pay out of this money. You want them to understand that if they do not budget the money right because if they spend too much on the cell phone because they went over the amount allowed to text. It is them that going to need to live with the consequences of overspending. This is going to be hard for you because you should not bail them out or you will defeat the purpose of the teaching.
So by helping them set up a budget to help them keep track of there budget from spending to expenses, and teaching them to write out there spending.Sure they have a math class in school but learning to budget first hand with their own money is going to sink in a lot more then them pretending to budget for a made-up family in some textbook.
Another hard thing that you as the parent is going do is have your teen manage money is to also require them to pay for all their own entertainment expenses with money they’ve earned through odd jobs, babysitting, or the part-time employment.
I mean you pay for the household bills and your teen pays for the extras. That way, not only do they have some control over their finances, but they will also see that their money goes only so far and then it will all go. It going to be a lot easier to do it this way than having your son or daughter come to you with a hand out asking every other day asking for money to go to the mall with their friends or a couple dollars to go to the movies with their friends.
Here another milestone that a lot of parents give a try is if your son or daughter wants to go the school trip or a trip with there friends have them pay for half and you pay for half or the entire fee themselves. This way if they pay for it themselves they will appreciate the trip more and maybe decide that it might be something they do not really want that badly. Think about it for a minute if you are paying for everything all the time then it easy for the kids to say mom I want to go to the trip and it not going to mean as much to them.
There are some families that do not believe in giving there children allowances are just free money that’s not tied directly to work or believing in the fact of paying your children just to be alive and breathing. But do not get me wrong their children are always asking them for $10 for this and $5 for this. I think this not only teaches children to whine, but it cost the parents more in the long run.
Just as parent doesn’t have an unlimited supply of money you can not run to your boss and say hey I need extra $100 in my check next week so you can go on vacation now can you , kids need to learn that their parents can’t bail them out every time they overspend on their budget to buy those clothes or the latest cell phone .
So how can you help your children deal with peer pressure
So unless you believe that your children live in a tree house that you have designed to make sure the outside world has no access to them then peer pressure is going to affect them to some degree or another. Here my favorite “But, Mom, everyone’s getting the new Xbox one x. I need one too! ” Saying no to the Xbox one x is fairly easy for most parents but saying no to the latest clothing line might be a little harder if you are the mother of a teenager. We as a parent never want our children to not fit in or to be laughed at by their peers, but then again we do not want to end up broke and file a new claim for bankruptcy after paying for too many school clothes or the newest video game system on your credit card.
Here are few ways to help with peer pressure is have your children either donate some of there money to children fund or to a program like World Vision (WWW.wvi.org) or compassion international (www.compassion.com) or any program that they are passionate about. You might be a little surprised at the fact your materialistic teen has a brand new outlook on life.