Have you noticed that some people can make $200,000 a year and still be in trouble if they miss one paycheck?
I've been learning more about finances lately. Mostly I've been shocked by how much I didn't know. I don't think I'm alone in my ignorance, though, so I'm hoping to encourage all of you to educate yourselves about finances.
Sure, money isn't the most important thing. Maybe I sound like a "penny pincher" or "money grubber" to some just for showing an interest in managing money. However, there are some really important reasons to make sure your money and finances are taken care of.
- One of the top reasons for divorce is money trouble.
- Jobs aren't as secure nowadays as they used to be.
- It doesn't look like the government will have any money left by the time many of us retire, and if we're wise with our own money they shouldn't have to take care of us anyway.
- Being financially secure brings peace of mind.
- Taking control of your money keeps others from taking advantage of you.
- Do you really want your kids to take care of you financially in your old age? I don't.
- Bankruptcy is a terrible experience to go through (so I've heard).
There are plenty of other reasons to take control of your finances, but those are what I came up with at the moment.
It's amazing the only education I had about money growing up was a book in elementary school telling me to put money in a savings account! If you read that book, guess what? It's a lot more complicated! Savings accounts don't make enough interest to keep up with inflation. So if you just stick all your money in a savings account, you're actually losing money! Crazy, but true!
Time to educate yourself! Read books, go to free seminars, talk with someone who knows what they're talking about (and who isn't just trying to sell you something).
Here are some books to try to get you started:
This book, "The Right Way to Hire Financial Help" by Charles A. Jaffe, was recommended to me by a Ph.D. in Family, Consumer, and Human Development at USU. I checked it out at my local library, but they also have it at the university library.
"The Total Money Makeover" by Dave Ramsey. Sounds like a marketing pitch, but the book is filled with sound advice. It's like how healthy eating and exercise are the way to get healthy, not the "miracle pill." This book is the diet and exercise guidebook. Available at the library, though you'll need to place a hold around here.
"America's Cheapest Family," by Steve and Annette Economides. Proof that it isn't the size of income you take home, but how you manage it. Found in a library near you! (Or at least the one near me.)
You can also go to the Financial Planning for Women website. There are links to all sorts of resources, and you don't have to be a woman to use it.
Life Insurance. Sounds like something out of "The Death of a Salesman." It's important though, here's why:
Let's try a scenario. The husband is to be the breadwinner, the wife's plan is to raise the kids and run the house. You end up with a mortgage of $100,000 and three kids, the youngest being 5 years old.
You or your spouse dies.
The remaining partner will probably want to be able to stay with the kids. They'll need comfort because they lost a parent. The remaining parent will want time to grieve and will probably want to make sure their bond with their children remains strong.
No life insurance: Someone has to work to pay the bills. That $100,000 mortgage has to be paid! Staying with your kids may not be an option, even though it's probably the best thing for everyone.
Life insurance: Your life insurance money comes. You planned for enough to pay off your debts and to pay for living expenses until your kids are out of the house. You get to raise your kids and don't have all the financial worries you would have otherwise.
Sure, it could be a waste of money if you don't die, but you can get good policies for far far less than you shell out for car insurance each month, and you may never get in a car accident either.
Here are some links to information about life insurance, all are from the Dave Ramsey website and basically explain why term life insurance is the way to go.
It's amazing the only education I had about money growing up was a book in elementary school telling me to put money in a savings account! If you read that book, guess what? It's a lot more complicated! Savings accounts don't make enough interest to keep up with inflation. So if you just stick all your money in a savings account, you're actually losing money! Crazy, but true!
Time to educate yourself! Read books, go to free seminars, talk with someone who knows what they're talking about (and who isn't just trying to sell you something).
Here are some books to try to get you started:
This book, "The Right Way to Hire Financial Help" by Charles A. Jaffe, was recommended to me by a Ph.D. in Family, Consumer, and Human Development at USU. I checked it out at my local library, but they also have it at the university library.
"The Total Money Makeover" by Dave Ramsey. Sounds like a marketing pitch, but the book is filled with sound advice. It's like how healthy eating and exercise are the way to get healthy, not the "miracle pill." This book is the diet and exercise guidebook. Available at the library, though you'll need to place a hold around here.
"America's Cheapest Family," by Steve and Annette Economides. Proof that it isn't the size of income you take home, but how you manage it. Found in a library near you! (Or at least the one near me.)You can also go to the Financial Planning for Women website. There are links to all sorts of resources, and you don't have to be a woman to use it.
Life Insurance. Sounds like something out of "The Death of a Salesman." It's important though, here's why:
Let's try a scenario. The husband is to be the breadwinner, the wife's plan is to raise the kids and run the house. You end up with a mortgage of $100,000 and three kids, the youngest being 5 years old.
You or your spouse dies.
The remaining partner will probably want to be able to stay with the kids. They'll need comfort because they lost a parent. The remaining parent will want time to grieve and will probably want to make sure their bond with their children remains strong.
No life insurance: Someone has to work to pay the bills. That $100,000 mortgage has to be paid! Staying with your kids may not be an option, even though it's probably the best thing for everyone.
Life insurance: Your life insurance money comes. You planned for enough to pay off your debts and to pay for living expenses until your kids are out of the house. You get to raise your kids and don't have all the financial worries you would have otherwise.
Sure, it could be a waste of money if you don't die, but you can get good policies for far far less than you shell out for car insurance each month, and you may never get in a car accident either.
Here are some links to information about life insurance, all are from the Dave Ramsey website and basically explain why term life insurance is the way to go.
Term vs. Whole Life Insurance
Cash Value Insurance
Whatever you do, educate yourself about finances. Be wary of people with alternative motives. Get advice from trustworthy experts. Make your life easier and more peaceful. Please. I want you all to be happy and successful!
