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By John Ingrisano
Smart money management is crucial… especially during these economically challenging times. It is important to monitor how you spend your money.
Take the following self-quiz, taken from The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. Then see how effectively you are managing your resources:
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Am I reluctant to sit down to pay bills? Worse, do I ever get behind on my bills? This is a telling sign of financial stress, and a clear indication that you may be living beyond your means.
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Do I ever borrow money to pay bills? Once again, this is a danger sign that you are living beyond your means…and on borrowed time.
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Do I use credit cards for routine purchases? This makes it too easy to overspend, especially on things you simply do not need. Best rule of thumb: If you can’t afford to pay cash, you can’t afford to buy it.
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Do I count on overtime or income from my and/or my spouse’s second job to make ends meet? The answer is not always more money, but managing what you have more effectively.
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Do I spend every cent I earn and save little or nothing on a regular basis? If you are living on the edge, it is only a matter of time before some big (or even small) emergency pushes you into a financial crisis. Set up an emergency fund. Spend the next year building it up to the equivalent of at least one month of income (three would be even better).
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Do I make unplanned withdrawals from my savings or checking account or go to the ATM whenever I need cash? If you pull out just $20 a week more than you’d planned, that’s more than $1,000 a year in unscheduled withdrawals. It adds up.
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Do I consistently come up short the day before payday or race to the bank to cover checks I wrote the day before? In addition to incurring overdraft fees, a few stumbles and your credit rating will begin to take a dive as well.
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Do I make purchases of $50 or more on impulse? A good rule of thumb: Learn to avoid all impulse buys. Give yourself 24 hours to mull it over. This avoids wasting money and suffering the guilt of buyers’ remorse.
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Do I fail to keep accurate financial records or to balance my checkbook? If you don’t know your financial condition, then it is most likely not all that good.
How you did: If you came up with no more than two check marks, you are doing a reasonably good job managing your money. If you have three or four, you are doing okay, but you could do a lot better. Five or six is a strong indication that you are skating on thin ice and heading into trouble. If you check more than six, you are in financial danger. Tear up your credit cards, stop adding debt, set up a budget, tighten your belt and change your spending habits immediately.
The good news: Whether you are an ace at managing your finances or a disaster in the making, you can improve your spending and money management habits. By doing so, you will get better and more value from the money you do spend, actually boosting your standard of living.
By John Ingrisano
[The following is an excerpt from The Back to Basics Book of Money! A Couple’s Guide to Financial Peace]
[Don't forget to look at the special offer below.]
I have always found money interesting and challenging. I have written about and taught money management skills for 30 years. Three major things I have learned about people and money during those three decades:
# 1: Most People Struggle with Money
First, many people struggle when it comes to using money as an effective tool to achieve their goals. (For that matter, many people have no goals. They just earn and spend in a relentless cycle.) This is mostly because they have not given much thought to money, except to spend it and then worry about it on a daily basis. In fact, to be painfully blunt, there are those among us who are flat-out ignorant when it comes to money.
I have met people over the years who see no connection between the income they earn and the lifestyle they live. That is not meant to be a blame or judgment statement, just a fact. They do not have a clue how to use money, manage money, do much more than work like dogs 40 or more hours a week to earn money, and then turn around and spend it like drunken sailors on shore leave. They earn it and spend it and borrow it. The bank and the credit card companies – everyone but themselves – are in control of their financial lives.
# 2: Money Problems Can Destroy Relationships
Second, while money cannot make people happy, the lack – or mismanagement – of money can make them miserable. Because of their financial situation, many couples find that their lives are out of balance, if not completely out of control, not just financially but in every respect. Keep in mind that there is a close correlation between money problems and domestic problems. Look at most divorces. When we get beyond “He’s a jerk” and “She’s impossible to please,” the real reason behind most divorces and marital problems is MONEY. Worry over money can eat away at couples in subtle ways, producing terrible stress that can tear families apart.
Financial problems are almost always part of the mix – in there somewhere — when it comes to divorce and marital discord. Studies differ as to whether money comes in first, second or third (competing with sex and how to rear children as the top argument topics), but it seems to be always present in some form. One study found that money was a source of tension between 84% of couples, with the number one cause of dissension being priorities about how to manage or allocate money. Another showed that 70% of couples have the “money talk” at least once a week (“Honey, we have to cut back somewhere.” “Okay, let’s go out for pizza and talk about it.”) and that 40% say they have lied about how much they spent on an item they recently purchased. One thing is certain: Money is the most common reason for arguments, what couples fight about the most, and the number one reason divorcing couples say is the cause.
On the other hand, money can be an amazing source of marital harmony and unity. When finances are in balance, when couples are in agreement and pulling together in unison, this common cause serves to strengthen the bonds of the relationship. At the very least, it provides a stable platform upon which to build harmony and settle other differences. Perhaps that’s because being financially in control and secure makes people happier and more confident. Take away ongoing money concerns and most folks would walk through their days with heads held higher. They’d sleep a lot better, too.
I’m not a psychologist, but I do know that when I’m not worried about money, I enjoy every other aspect of life more fully, and I’m much more pleasant to be around. I suspect you are the same. If you doubt it, ask yourself how worrying about paying an overdue bill, using a credit card when you know you are already having trouble making payments, or finding that you have a 31-day month but only a 28-day paycheck — how all these distract you and reduce your ability to enjoy your life.
In that same vein, did you ever notice that you often can spot people who have money in the bank? We sometimes see them as having arrogant attitudes, but the fact is that (for many, at least) they simply have a quiet calm about them. They seem more relaxed than those of us who are wondering about how to pay next month’s mortgage or pulling out the sofa cushions looking for change to pay the pizza delivery guy. Money makes a difference in our attitudes and our confidence. It is a powerful tool.
# 3: Financial Health & Stability Can Start TODAY!
Finally, I learned that no matter how bad a person’s financial situation may be, it is NEVER hopeless. It can be turned around and fixed. Depending on how deep the hole, it may take some time to crawl out of it, but every day can show some improvement in standard of living.
No, the cure is not always easy and can rarely be completed in a flash, but if you are determined to improve the quality of your life and your relationship, you can start today, and you will be amazed at the positive changes that will begin almost immediately to flow into your life. Most of all, every day that your finances can be improved by a fraction, an inch, and then a foot (or perhaps better stated as a penny, a nickel, and then a dime), brings you that much closer to financial security, strength and peace.
What is the alternative? Ignoring financial problems is like speeding a hundred miles an hour down a highway with a brick wall around a bend. You may not know which bend, but that wall is there, and the crash will be a messy one. Guaranteed. So, the time is now to slow it down, turn it around and head in the opposite direction.
That’s why I wrote this book andworkbook, to help men and women who may be struggling with money matters. Maybe it’s for you. Maybe it’s for your children. (I was amazed when the book first came out and the major buyers were parents of adult children, buying the books as anniversary, birthday and Christmas presents.) Either way, this book will provide a roadmap and the tools needed to do the job and help you turn around your financial condition and the overall quality of your life.
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Special offer, good through August 20th! Order the two-book set of The Back to Basics Book of Money directly from my office, and I will split the middle-man savings. The set retails for nearly $31, plus shipping. If you order directly from me, send a check for just $22.95 (a savings of more than 30% when you consider shipping). Checks only, please. Send payment to:
John Ingrisano, Director
Family Finance Conference Center
204 Lakeview Drive
Algoma, WI 54201
By John Ingrisano
The Bank of Luxemburg, having just about wrapped up major remodeling of its branch at 512 Second Street in Algoma, is having a Grand Re-Opening Celebration on Thursday, August 12. The renovations alone are worth dropping by for a look-see.
Additionally, the bank has graciously asked me to hold a book signing that day, between 11:00 AM and 2:00 PM, for my book and workbook set, “The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.”
There will be all kinds of other events and give-aways, too, so mark your calendar and plan to drop by the Bank of Luxemburg in Algoma on August 12th.
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By John Ingrisano
Your will dictates how your possessions will be distributed at your death. Within broad limitations, you can do pretty much what you want through your will.
If you don’t have a will, the laws of your state dictate how your assets end up being distributed. This often involves appointment of an administrator, possibly a lawyer who neither knows you nor has a personal interest in the outcome of your affairs. The administrator, who may receive an hourly fee or percentage of your estate, might then be required by law to sell or distribute your possessions to settle your affairs.
Even if you have a will, potential problems may exist. To be safe, make sure your will has been properly drafted by a lawyer and witnessed. None of the witnesses should be beneficiaries.
Other typical problems involving wills result from failure to regularly update them. As a result, an out-of-date will can be worse than no will at all. Typical problems of outdated wills include:
- A will that mentions children by name, but does not include children born since the will was drafted. These heirs could be unintentionally excluded from your estate.
- A will listing the name of an executor and/or beneficiary who is deceased. This can drastically slow the estate-settlement process.
- A will referring to specific property that has already been disposed of, or mentioning some property in particular, but not general assets. The result can be confusion - and possibly bad feelings - among your heirs.
Recommendation: For your family’s sake and your own peace of mind, talk to your attorney and draft or update your will as soon as possible.
Also, if at all possible, discuss your wishes with your heirs (provided they are old enough and mature enough). Make it a two-way dialogue. Find out what they want.
Finally, select your executor carefully. Select someone who has both the ability to and interest in taking on this responsibility.
These are tasks that may take a few days or a few months. However, they are worth addressing to assure that your estate is distributed as you wish and that the potential for family misunderstandings is reduced as much as possible.
Want to learn more about how to manage your money and your life? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
204 Lakeview Drive
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
By John Ingrisano
Pushing 59 years of age, I’m something of a techno-dino. Perhaps that’s why I’m so tickled to announce that (yes, with lots of techno help) The Back to Basics Book of Money! A Couple’s Guide to Financial Peace and the Book of Money Workbook are now available as downloads from www.amazon.com onto Kindle e-readers! The price for each is $9.99.
And, yes, both books – The Book of Money and the workbook — are still also available in paperback print editions.
Check them out. Buy a book. Keep an aging entrepreneur off the streets!
Seriously, thanks for your kind support and interest. — jri
By John Ingrisano
The single-word advice on bankruptcy is … DON’T! There may be times when declaring bankruptcy is a good decision. However, in the vast majority of circumstances, bankruptcy is a sign that people have been living way beyond their means, got caught, and have learned nothing. Just as bad, it’s not as easy as many people think. You don’t get to walk away with much, if anything of your current assets. Plus, this black mark stays on your credit report for the next seven to ten years. Try to borrow money with that on your record. If you manage to find a lender, the interest rate will be sky high.
Plus, even with bankruptcy, you cannot walk away from student loans, tax liens or back alimony.
There are two types of bankruptcy. Under Chapter 7, your debts are discharged completely and need not be repaid. However, some debts may not be included. Under Section 13, your debts are renegotiated. You may be able to eliminate some. However, you generally have three to five years to settle up on the remaining amount. In both cases, the courts determine how your debts are to be discharged. It is no a free-and-clear release from liability.
Here is the biggest reason you should not rush to declare bankruptcy: If you declare bankruptcy today and do not change your spending patterns, you will accomplish nothing in the long run. You will simply wipe out your credit worthiness and continue to damage your financial stability. Too often, people who spend money irresponsibly and then seek relief by declaring bankruptcy end up declaring it again seven years later. They go through life wasting money and never accumulating real wealth.
Filing bankruptcy is not always inappropriate. If you have a large amount of unsecured debt (such as credit card debt), with no hope of ever paying it all off, bankruptcy may be the answer. However, keep in mind that secured debt (debt connected to particular assets) may not be wiped out. You could either be required to continue paying this debt, or risk losing the assets themselves. Second, if you become unemployed or accumulate a large amount of medical bills that you will not be able to address, bankruptcy will give you a fresh start. In most situations, bankruptcy is truly a last resort.
Want to learn more about how to manage your money better? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
204 Lakeview Drive
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
By John Ingrisano
Tired of fighting about money? Well, you’re not alone. One 2007 poll found that 37% of couples fight more about money than they do about chores or sex (I think that number is waaaaaay too low!).
Another study found that money was a source of tension between 85% of couples (now that I can believe) and yet another found that 70% of couples have the “money talk” at least once a week (though I suspect, too often, they end up saying something like, “Okay, let’s go out for pizza and talk about it!”).
Fortunately, many couples are refusing to let money rule their lives and ruin their marriages.
Here are just some of the things they are learning … and some of the things I write about in my latest book, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace:
- Marriage is an economic relationship … a personal business partnership. You must actively manage your family’s financial affairs…not leave them to chance. Most of all, by “joining forces” in a cooperative partnership, you and your spouse can achieve common goals.
- Analyze and attempt to understand each other’s attitude toward money. Does one of you like to blow a windfall … the other sock it away? Does one of you feel comfortable with a full debt load … the other nervous about a $100 credit card charge? Exchange points of view. The better you understand each other’s thinking, the more effectively you can work together to build a financially solid relationship.
- Share money decisions and responsibilities. Studies have shown that couples are more likely to remain happy and together when they both take an active role in managing the family’s finances. This requires both of you to come to grips with the financial facts, which in turn leads to increased understanding and cooperation on money matters.
- Identify mutual goals … and then write them down. This imposes order on all other financial decisions and helps you map out a strategic game plan for achieving them. Where do you both want to be one year, two years, and ten years from now? In a nicer home? With children who are debt-free college grads? Retired in comfort at age 60? If you have trouble reaching agreement, look for compromises. Example: One likes to flash the cash … the other likes to stash it. Solution: Save and invest X dollars each month; then blow the rest … go out and have fun, and do it TOGETHER.
Want to learn more? Remember, money is a tool. When you work together, you can strengthen your financial security, and you can bring balance and stability into your relationship. It’s a win-win situation.
For more information, check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano,Director
Family Finances Conference Center
By John Ingrisano
Employees are seeing the handwriting on the wall: They’re not expecting year-end bonuses this year or big raises for 2010. Yes, many will be grateful just to keep their jobs; they may even accept do-or-die wage cuts (something once unheard of) without too much fuss.
Still, don’t expect them to be happy about it. Morale and productivity are likely to take a tumble. If this happens, no one wins, and those extreme steps you may be forced to keep your company afloat could come back to bite you in the butt.
That’s why a growing number of employers are helping their employees get through these challenging times. They’re turning to less expensive benefits and morale boosters, everything from half-day Fridays (alternating between with pay and without, so everybody shares the pain) to reducing the workweek to four days while keeping hours the same. Example: Employees can work four ten-hour days instead of five eight-hour days. This also can reduce some of your overhead costs such as utilities.
They are also helping them manage their money better.
One of the things I do at my mini-workshops is explain to attendees how easy it is to “leak” money from their financial buckets, and how they can fix the problem … immediately and painlessly. (For example, if a husband and wife can find a way to reduce their expenses by just $2 each every day, they will have plugged a $1,460 leak each year in their financial bucket!)
These are just some ways employers can help their employees better manage their money and, as a result, better cope with the financial pressures we are all enduring these days.
Need help helping your employees? Let me know. We can customize workshops for your company and create a win-win environment at your business. Contact me at john@b2bbookofmoney.com. There is no cost or obligation.
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