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Posts Tagged ‘Personal responsibility’

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What a teen should do with their job earnings…

Friday, July 9th, 2010

Today’s article  is from CNNMoney.com, titled Teach you teen paycheck savvy, and gives good tips for ways to steer your teenager toward a financially sound future.  What tips does it offer?  Read on:

  • Taxes – Gross versus Net, FICA versus income taxes…it’s all confusing to a teenager.  Actually, it’s confusing to a lot of adults as well (unfortunately), so if you don’t understand the difference, look it up, then sit down with your child when they get their first check and explain the differences to them.  It’s important for them to know what they make versus what they bring home, and where what they’re not bringing home is going.
  • Bank accounts – Help your teen open up both a savings and a checking account.  It’s not only important for your teen to learn how to use a checking account, including balancing a checkbook (which you should teach them…again, learn how to if you don’t know, because you want your child to have a good financial start, don’t you??), but it’s also important for them to learn how to save money, like starting their own emergency fund, car fund or iPhone or iPad fund etc.  Delayed gratification is a very good lesson for a teen to learn, in a world of “My super sweet 16″ TV shows and teens who expect to be bought $200 blue jeans.
  • Micromanaging – The above stated, let them mess up with the first paycheck.  New fancy shoes or video games might be awesome to have right then and there, but when they have no more money because they blew it all, don’t give in and give them money from your own wallet.  Let them see what it’s like to be broke.  It needs to hurt a little. 

This is a great article, so check it out!  Don’t let the opportunity to impart good financial lessons to your teenager pass you by!!!

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Tips for executing a will…

Friday, June 11th, 2010

Today, I’m writing about and article I found after being inspired by an article on CNNMoney.com titled What an executor must know before a parent dies.  Basically, I found the article on CNN Money to be lacking, and so I did some digging around and found a more in depth and comprehensive checklist (obviously not meant to replace the advice of a lawyer or accountant, but helpful for the DIY-er) for an executor (trix) of a will.

I myself am currently named as an Executrix of an estate, although I hope not to have to be saddled with the job for many, many years, and, after I got to reading the little article on CNN Money, I began to wonder what the  basics of executing a will were, and whether or not I knew any of them.  I mean, I have no doubt that I can and will carry it out to the best of my ability, but I am no expert, and therefore, would like to have some tips on the process and legal issues that might arise.  The article I found surpassed my expectations.  From contacting the funeral home to contacting a lawyer (if necessary), this checklist has a little bit for everyone.  An important question raised is how to pay for the funeral if it has not been paid in advance.  Life insurance “isn’t paid in a week” as it says, and therefore the author recommends that the owner of the estate have money set aside for these expenses if they don’t pay for them ahead of time!  What a great suggestion!

This article not only has tips for the executor of the will, but also, at the bottom of the checklist it has some tips for the person with the estate.  This is fantastic, if you ask me, because more often than not, the issues that arise from a will (other than people being petty over material mementos) are because the deceased person doesn’t have their affairs “completely” in order.  For those of you with a will, I would double check this list to be sure you haven’t missed something.  The best tip (in my humble opinion) was to have a specific folder, binder etc. that is stored in a place that the executor and another family member know of that has ALL of your important information in it, from wills to passports to divorce decrees…and not copies either!  They need to be the originals!

I suggest to all of our readers to check out the article.  This just seems like information that could be useful for most of us in the future, especially if you follow our suggestions and get yourself our of debt and start building wealth.  You could have a “nice chunk of change” to leave to your family, and you don’t want them to get a headache from your gift!  Happy reading!

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Paying attention to your family…

Wednesday, June 9th, 2010

Yesterday, my beloved sent me an article about a family that is so attached to their “tech” (AKA their gadgets, like phones, MP3 players, laptops, video games etc.) that they spend time with each other without spending time with each other.  They have so many distractions that they can’t function as a normal family.  The 2nd grader has her own laptop!  It’s ridiculous! 

I have always been opposed to the excessive use of tech, especially when you are supposed to be focused on your family.  The fact is, there are times when it’s OK to tech binge, and there are times when it’s not.  Children should not have these tech things that can distract them from their family, and the parents shouldn’t set a bad example by using their gadgets all the time either.  There have been numerous studies that prove that multi-tasking is only possible for 3% of the population without the loss of quality.  With that fact in mind, what do you think happens to the quality of family time when each member of the family has a gadget in their hands and in their face?  Obviously, the quality goes down!

Am I saying that people shouldn’t ever use the tech they have?  No, of course not.  But when “family time” is really family time, it’s probably a good idea to put the tech away for the duration.  For example, when we go on vacation, we heavily limit our use of our tech.  We take our laptop with us to be able to stream music or play it from our music library while we are hanging out at the condo/hotel room.  We take our camera for pictures and the OCCASIONAL video (I’m not a big video fan since I sound every bit the hillbilly that I am :-D ).  We take the GPS to get us there safely, and our cell phones in case of emergency.  We DO NOT use the cell phones while on vacation, with the exception of the phone call made to family informing them of our safe arrival.  We limit the tech because while on vacation, there are PLENTY of other things to do and we should focus on each other, not the world around us.

Think about your household (or, like our example, your vacation).  Do you spend too much time in front of the computer?  Your gaming system?  Your smart phone?  Does your significant other have to ask you the same question 4 times before you hear them?  Have you been caught up in something on the Internet andnot heard your child call to you, or, like the article, have you forgot to pick your child up from school (etc.) because you were too engrossed in something online?  If you struggle to find the time for your family because of your gadgets, I would suggest limiting your time on them, and limiting how much your children see you on them.  If they see you do it, they will also do it, and teaching a child how to ignore their future family isn’t exactly a great life lesson.

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Birds of a feather save money together…

Wednesday, June 2nd, 2010

While checking out some websites the other day, I ran across a quote from a co-founder of WiseBread.com, another personal finance blog that has some good tips.  The quote says “Good money management is a lifestyle. If you surround yourself with people who share the same values, you’re more likely to stay on track”.  This is very similar to one of my favorite quotes, stating that “You are the average of the five people you spend the most time with”, by Jim Rohn. 

Obviously they both speak for themselves, but many times we either don’t think things through or apply them in our lives.  IF, for example, we are the average of the 5 people we surround ourselves with, and we surround ourselves with people who choose to be frugal and manage their money wisely, it stands to reason that we would find it easier to stick to our decisions as well.   

So, the question is, have you thought through the people you spend the most time with these days?  Are they the type of people you would want to be if you had to be someone else?  Would you let them step into your life and run your house and job/business in your stead, making all choices and decisions for you?  If you would not trust them to make the wise decisions you would make (or wiser even), then I say perhaps you need to reevaluate the friendship.  This doesn’t necessarily mean I want you to ditch all your friends that don’t “measure up”, but maybe you need to develop better relationships with friends who meet your new found requirements, or perhaps YOU need to be the role model for your friends, encouraging them in their endeavors.  Whichever of these choices you feel you were meant to do, implementing them isn’t difficult (just being aware of the choices in front of you with regard to your friends is a step in the right direction, but also, I find that deciding to be the type of friend you want to have makes a big difference as well, since so many people are NOT the type of friend they want to have), and the rewards can be plentiful, both in wealth and in personal fulfillment. 

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The power of your thoughts…

Wednesday, May 19th, 2010

I read a quote earlier this week, and it inspired me to write this post.   The CEO of Independent Means, Joline Godfrey, was quoted on CNNMoney.com as saying that we should “Raise our children to make a job, not just take a job. If they don’t know how to create a plan, they’ll always be beholden to someone else.”

I LOVE this statement.  It shows the power that your thoughts and your point of view can have on your life and your future.  You see, all too often we take the “glass is half empty” approach to life.  We are pessimistic, we expect the worst out of life and out of people we know and meet, and more often than not, we shouldn’t be doing that. 

I like to say that if you want a different outcome, you have to take a different path, and that you shouldn’t let life happen to you, you should happen to your life.  This way of thinking/doing things puts you in a better position to make positive and, on occasion, very lucrative/beneficial decisions for your future because you’re not just following the simple path or a previous path…you’re challenging yourself to be better.  This is the same idea behind Ms. Godfrey’s statement.  By telling people to raise their children to make a job and not just get a job that someone else is offering, she’s not just telling people to be entrepreneurs, she’s telling them to think for themselves, think of what they can make of themselves, and to learn how to plan for their future.  In my opinion, one key difference between the “haves” and the “have nots” of this great nation is that the “haves” have created and are on a plan.  They think positively and shape their point of view to the path that best benefits them.  It doesn’t ALWAYS matter what plan you’re on…more often than not, it just matters that you’re on a plan.

Just a little food for thought in the middle of your week.  Try a different approach.  Think positively.  Create a plan.  See how things turn out.

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House buying when you’re learning to be frugal.

Monday, April 26th, 2010

I always wonder why people buy the size/amount of house they don’t need.  They look for 5ooo square feet (minimum?), hardwood, chef’s kitchen, marble this and that with several acres (where you can find it) of land etc. house.  This is the silliest thing I’ve ever seen.  One of the things your favorite southern couple would like you to ponder is to buy the house you need, not the house you want!

If you’re in the market for a home (hopefully your other debt is paid off, like we suggest, and you have a down payment), then you should be aware of what your family truly needs.  If there are 3 of you (mom, dad and baby), then a 4 bedroom house IS overkill.  If no one in the house cooks (or likes to), then you don’t REALLY need the chef’s kitchen now, do you?  You should get just as much house as is required by your families needs, that way, you can save more for the future and have your “comfortable” home paid off sooner. 

Struggling with your current home’s mortgage payment?  Maybe it’s time you downsized!  Many people get into houses that they can’t really afford, and then think there isn’t anything they can do about it, but this isn’t true.  If you bought more house than you can afford, chances are, you’re struggling.  Now, many people like to blame the banks (and there are some at fault), but they are not the only place to lay blame.  It’s easy to find and attack a scapegoat, but in reality, many people who bought more home than they could afford should have known they couldn’t afford them.  I know that the interest only loans and the ARM’s made it difficult to understand the EXACT terms of the loan, but let’s be honest…if you were approved for a $200,000 home, and you make $20,000 a year, sirens should have been going off in your head.  You should have been confused as to why you could afford so much.  You should have paused during your jumps for joy…if you were jumping for joy, saying “WOW, look what I can afford”, that WAS the warning sign! 

So, now you have more home than you can afford.  Sounds like it’s time to downsize!  I know that it can be hard to sell a home in this market, but as long as you keep your price competitive, and keep the home looking great, then you’ve got a good chance.  And something else of note?  Even if you have to take on a small personal loan to get out of the house, you’re still better off.  For example:  Let’s say your house is worth $225,000, and you put it on the market for $230,000.  Someone offers you $215,000, and they pay closing costs.  Well, after looking (really looking) at your finances, you realize you can’t afford more than a $150,000 home.  It’s better to sell the house for the offered price, take on a $10,000 personal loan, and find a house for $140,000.  You’re going to be better off, even if you did have to “take a hit” on the other house, because you will actually be able to make your mortgage payment now!  Sometimes, you just have to look at the bigger picture!

Remember, sometimes saving money IS the obvious choice.  Don’t buy more than you should.  Sounds simple, so try and live by it!

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The single person’s struggle with bills and budgets…

Wednesday, April 14th, 2010

We talk a lot about couples on our website, but we aren’t oblivious to the fact that many of our readers are single, and that our single readers have different needs and questions than our other readers.  Our single readers have no one to be accountable to except themselves.  They have to do everything on their own.  That means they need a lot of information on how to plan for the future, and no one to help them acquire it.  What do they do when they want to make a budget, or start saving for retirement or pay off debt?  Well, these are the first 2 steps they should look at when they are ready to get on track. 

The first steps they should take toward getting their finances in order should be to find a person to whom they can be accountable.  This can be a parent, a best friend or even the pastor at their church.  It doesn’t matter who they choose, it merely has to be someone that they can trust with their private information that also has good financial sense (this doesn’t mean the person with the flashiest car or house, because those people are usually in debt themselves).  After finding someone to help keep them on “the straight and narrow path”, they need to sit down and write out their budget.  Don’t know where to begin?  Well, for now I’ll suggest this form to help you singles get started (be on the lookout for a better form from us in the future).  The important thing, no matter if you’re single or in a relationship, is that you’re on a plan and working toward a goal (hopefully to be debt free and saving for retirement). 

We always encourage our readers to leave comments with questions they might have and today is no exception.  Single or married, feel free to ask us what steps to follow up with, or any other questions you might have! 

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Digging ourselves out of the hole our parents dug for us.

Wednesday, April 7th, 2010

One of the hardest things a person can do is admit the faults of their loved ones.  We don’t want to say hurtful things about someone we care about, especially if we have to say it to their face, but sometimes, it is necessary to admit those faults.  Not with anger or mean spirit, but more with the intent of constructive criticism.  So, here we go with some constructive criticism and a little bit of generalizing.  

I want my readers to understand that I don’t say this lightly, but I feel that the Baby Boomer generation made choices that, while right for them at the time, have shaped the attitudes of us Gen Xers and Gen Yers to rebel against the way our parents taught us. 

What am I referring to?  What choices did they make?  Given the innovation of the times, and the changes in attitude toward working women, the Baby Boomers were able to send both parents to work, which resulted in a higher income, but took parents away from their children.  This meant that they weren’t there all the time to ensure their children were learning all the life lessons they should, and given that they had VCRs, game consoles and personal computers to contend with, this might not have been best for every family.

Instead of learning to eat healthy and get plenty of physical activity, some of us only learned what TV dinners were and were allowed to sit and play game consoles instead of physical games outdoors.  Instead of learning to save money and pay for what we wanted with cash, we watched as our parents (and other influential adults in our lives) charged what they wanted, to be paid for over time at a later date. 

Watching this happen, most of us started off as adults who charged everything and ate whatever we wanted without caring about exercise or health.  How did this affect us?  Did we sit back and let it happen to us, teaching the same to our children?  For many of us, we did not.  We decided to take better care of ourselves and our finances.  We decided that dinner should be made from  healthy ingredients, instead of being microwaved in a box.  We decided (or were forced to realize through too much debt) that financing everything we want isn’t a smart financial decision in the long run…that living paycheck to paycheck just to “have it all” right now isn’t really living.  We decided that family time IS more important than 70 hour work weeks just to make a few extra bucks. 

Does this make our parents terrible parents?  Of course not!  We are who we are because of them!  Different parenting styles make the world go round.  It just means that some of us have to dig ourselves out of a hole, be that weight gain/health issues or debt.  Either way, we’re teaching ourselves the lessons we missed, and now just have to remember that for our own children!

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Don’t forget to say please and thank you!

Wednesday, March 17th, 2010

One of the great ways to give your relationship and the emotional piggy bank (read more about this here) of your significant other a boost is to remember what you learned in elementary school.  For example, saying please and thank you.  It’s not much, but this little showing of respect and love is a huge boost to your emotional piggy bank that makes you feel better.  Why does it make you feel better?  Because it shows respect and appreciation.

Now, I am quite positive that most of us have heard people say that communication is the key to a good relationship.  Well, that statement is not only inaccurate, seeing as it has to be GOOD communication to be worthwhile, but it also leaves out a couple of other very important parts of a healthy relationship: Respect and appreciation.  Although we all know that respect and appreciation are important, we are all generally so self-centric that we only focus on when we aren’t receiving them.  And what I have to say to you is this: Why?  Why do you think that your partner should show you respect and appreciation if you aren’t showing them that same respect?  It isn’t a one way sort of thing!  It’s just like saying please and thank you!  You should WANT to show respect and appreciation to the person that you love, just as much as you want to receive it.  I don’t wake up in the morning wondering what ways my husband can show me his love, respect and appreciation!  I wake up wondering what ways I can show him my love respect and appreciation! 

Here’s the short and tall of it:  You can communicate until you’re blue in the face, but if that communication (or any other part of the relationship) doesn’t include respect and appreciation, then the relationship will suffer.  Not sure how to get started??  How about saying please and thank you?  How about asking your partner if you can do anything for them?  That way, their emotional piggy bank fills up and overflows, making it easier on them to reciprocate!

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DIY…We should get back to taking care of ourselves!

Monday, March 15th, 2010

These days we hire out all sorts of things that we used to do ourselves.  We pay people to mow our lawns and shovel our driveways.  We pay people to clean our houses and carpets and vehicles.  Why do we do this?  Are we lazy?  Too busy?  Do we have too much money?  No matter what the reasoning is, as individuals who need to save for our future (I don’t know anyone who doesn’t need to do that), we should be doing these things for ourselves as opposed to hiring them out! 

So you say you don’t know how to do certain things around the house?  Learn.  Lack of knowledge is no excuse for not doing something!  Check out the Diy Network for instructions on how to fix lots of common things around the house.  Every time you fix something yourself, you’re saving money for your future!   If you’re hiring out lawn mowing and driveway shoveling, stop.  Unless you are not physically capable, there is no reason you should be paying someone to do things around your house!  Besides, a little extra physical activity is good for us all!

Your favorite southern couple hates to hire out work.  We try to do as much as we can ourselves, and only hire out when absolutely necessary (having a broken tree removed from our yard, for example).  If we don’t know how to fix something, we research it.  We do understand that not everyone is “handy” around the house, however.  If you’re not handy, then befriend someone who is, and trade services.  Whatever your talent, exchange that for their help.  Maybe they fix your toilet and you help them (as a personal trainer, for example) teach them a basic fitness program in return. 

Whatever the circumstance, figure out a way to do things for yourself!  Not only will you save money, but you will become more self sufficient!

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