Budgeting "Apples to Apples"

It's very difficult to keep a budget in your head when you are busy with your job, and your spouse is working, and you have kids doing things throughout the weeks and months. I used to think I could keep it straight in my head. But what I've found is that while you can save a bit of money by paying things as they come up, it ends up costing in terms of "stress" and unexpected hits on your bank account.

Recently, I've decided to move everything I can to monthly, and if possible, automatic payments. Where that's not possible, I try to put money into a separate account, automatically on a monthly basis to cover things like taxes and major expenses I know I'm going to have.

The link above has a table to work out monthly expenses. I find it is better for me to take the hit on interest and smooth out my cashflow.

- Scott

Mind Over Money... Which is Worth More?

I believe it doesn't matter how much money you have. How happy you are has more to do with you mindset regarding money than how much money you actually have at any given time.

As the gurus often remember, I think it was Henry Ford who, when someone asked him what he would do if he lost all his money, said something like, "I'd make it all back in 5 years."

However, I think there is a difference between having a healthy attitude toward creating wealth and believing you have a bottomless pit of money to throw around on "Doodads", as Kiyosaki calls them.

In fact, it seems to me that when it comes to money, the less you can live on, the happier you'd be, no matter what the circumstances.

(Note: I drafted this post a few weeks ago, before the post about Feast or Famine. Even though I'm now technically in the Famine phase, I feel like it's an opportunity to take actions that will benefit me both in making money and in saving money through good times and bad. )


... Scott

The Rat Race - we learn it at a young age

I talk a lot about Robert Kiyosaki and his books. That's because he's been one of the biggest influences on me. If it wasn't for the book "Rich Dad Poor Dad". I would probably still be working in a permanent full-time position, barely getting by, and getting deeper in debt (bad debt, that is).

One of Robert Kiyosaki's biggest initiatives has been educating not only adults, but kids, about the subject of money. I think this is extremely important, and something that has been lacking in most school programs.

Kiyosaki has developed a number of games that aim to teach while entertaining. We purchased the "Cashflow for Kids" game a couple of years ago, and our kids actually enjoy playing it. I think it has started getting them to think of where money comes from and where it goes.

If we can start to break the cycle of "keeping up with the joneses" (what he calls the Rat Race), by teaching our kids about it, then maybe they have a chance of retiring earlier than we do.

Just a note about the links that I put in this Blog. When you see the ads in the Google box at the top, they are chosen and placed by Google. When I place text links on my site, it may be informational, or it may also be an affiliate link, which is another part of my recent education about making money. I will write about affiliate programs as a source of income in future posts. I have started to join some programs, but I only plan to link to affiliate programs of merchants that I believe have good quality and value.

Here is the link to the Cashflow for Kids game...





... Scott