Peace, Not Possessions

This budget system works best when you are earmarking money today for items that you are paying for NEXT month; you want to be putting money away now (February) for what you have to pay out next month (March).

“But I’m so far behind, I’m late all the time and I’m always paying late fees. There’s no way I can pay when is due YESTERDAY let alone save for NEXT month!”

Here is where it gets brilliant. This is the BEST time of year to begin this program because you can USE YOUR TAX RETURN.

Follow the steps from last week, “Math is Hard,” using the money you got back from the US Treasury.

“But, I was going to get a new iPhone (or insert whatever you WANTED here) with my tax return…”

If you get on this plan and stick with it, you will have FREEDOM which is worth SO MUCH MORE than the cost of whatever you thought you HAD to have with your tax return. And, I promise, you will be able to get one eventually. You just got a new iPhone last year; it will last you a little while longer.

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Books Equal Bucks

In November PBS always hosts their Annual Reading Marathon . “Wow. That’s the second time this month that our financial blogger has gone off the rails regarding blog topics. What does reading have to do with finances?” My answer? Everything. Establishing good reading habits in children–reading 20 minutes a day–can literally change their financial future. Good readers do better in school. Good readers are more likely to graduate from high school. Good readers will probably make more money as adults. Reading changes EVERYTHING . That being said, books can be expensive, but they don’t have to be. Libraries are some of the best resources for book access–they play SUCH an important role in our community. You can also share/trade books with your neighbors, friends, and family members (just make sure you have a good system for tracking book ownership). Second-hand stores or garage sales are awesome places to s...

Bon Voyage

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The Marshmallow Experiment

In 1972, Stanford did a study about delayed gratification with children. It involved giant marshmallows and testing their patience. You can see a short YouTube video about the study here . Basically, the kids who could sit alone with a giant marshmallow without eating it for a certain length of time were rewarded with a second giant marshmallow. Fun, huh? Some kids could be patient and reap the rewards; some could not. I was a small child when the study was conducted, and I wonder which side I might have been on. I HAVE learned to be pretty patient as an adult. One of the areas in which I’ve seen improvement is in finances. I have become a good money manager–I could be paid once annually and budget so that I won’t run out before year’s end, including having enough money to pay my own quarterly taxes–self-employed people do that. Speaking of taxes, I try not to overpay so that I qualify for a “refund,” because the government does not practice The Marshmallow Experiment. Huh? ...

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