On occasion I second guess purchases with a question attached to the indecision. The question is does this expense provide value to my life? If no then for the most part I don’t spend the dollars. Many people will read this and think why is Rich Uncle EL so strict with his income? Well I will answer it for you today and it is really simple. My personality is and will always be a forward looking type of person. I look to maximize anything that will benefit my family’s future, even if it means the present is lived a bit more modestly.
Break Down Expenses by Hours Worked
This is a fun financial management exercise I thought of it the other day in the good ol 9-5 job. What if everything you bought, saved, or spent was tracked by you and broken down by the hours you worked.
The exercise is done to show you how to gauge if what your spending is worth it on a per hour per paycheck basis. Every financial payment should be calculated by dividing the monthly sum by 160 hours because most employees are paid biweekly, and expenses are paid monthly.
Obviously doing it this way will yield you the results on how each expense or savings transaction ends up divided by the 160 hours. If you make 50 per hour net and your total expenses add up to 40 per hour, then you have effectively learned how to maintain a surplus of 10 dollars. See below for the example of sometimes spendthrift and sometimes frugal Joe Blow who has debt and makes about 55K per year.
All the things I’ve owned for 10 years
Making a list like this is not easy as we live in a consumer driven society. Which means that most people are constantly upgrading things before it’s even necessary? Can you remember all the things you’ve owned for 10 years? This my very own experiment to really test how long things can last and instead of just throwing things out because a shiny new product is glimmering from the retail store display. All the things I’ve owned for 10 years is a real feat, because I’m breaking records and have no desire to make any replacements unless its necessary.
Stuffitis is a real disease going around since before the 1970s, no really I was not even born yet, but I read history books. Garages all over America have been filled with all the extra stuffities, including 2 retro refrigerators because folks buy new ones instead of replacing a little motor.
What is Wealth
This post will be a short one as I am swamped with work and in addition have crazy demands on the family front. It will be about the best topic in the personal finance world to discuss, and it is called what is wealth.
Wealth has been defined by Investopedia as: A measure of the value of all of the assets of worth owned by a person, community, company or country. Wealth is found by taking the total market value of all the physical and intangible assets of the entity and then subtracting all debts.
If you do this money management exercise it will reveal a positive number and you might be ecstatic. On the flip side for some, it will reveal a negative number, and a feeling to turn things around to eventually bring things on the positive side of money.
Now I leave you with what is wealth to me and hopefully you can relate to how I described wealth below in Acrostic writing style.
Does Money Trump Looks
I’ve seen thousands of examples of money being placed above looks in this society. Which leads me to wonder does money trump looks when seeking a mate? This is a financial blog, so I will give my two cents when it comes to this subject and the pessimist in me has me thinking that money has a greater weighting than looks now a days.
But what is a person to do if they want to date consistently, and they have no money and are lacking in the attractiveness department? I don’t have the answer, but I can help you fix one of the two problems, if you consistently read this blog. Having money will help you land more dates because money can make you look sexier for some strange reason. (Mind you I don’t know if the people money attracts is actually good for you in the end)
How about personality traits? Do you prefer that above looks or above money? I think personality plays a part in the discussion but it happens after people get over the first impressions of looks and after the financial issues as well. Because personality has more weighting for long term relationship success. But let’s focus on the money or attractiveness character traits for the purpose of this blog post.
When speaking to some folks about this topic, most agree that first there has to be at a minimum some attraction, and then money is an overwhelming deciding factor if a second or third date will take place. Then many factors including money life, values, personality, etc. must be aligned if they will eventually get into the longer term relationship status.
Random feedback by Interviewees on Does Money Trump Looks:
I think it’s because women have gotten burned by men with looks before and money is a big reason for a lot of arguments so now when looking they ask about the job or financial status first.
Women choose or look for financial security and if the other person has some attractive features it will lead to more dates.
Men choose looks first, and then decide later if they will pursue relationship, and financial status of mate is a factor in that decision making process.
People for the most part want free things, and are willing to give up on the attractiveness in order to have a lifestyle that comes with free things and experiences.
Saver or Spender
Like it or not we are either born as savers or spenders. It is just a part of our DNA, and it can dramatically affect our lives when it comes to dealing with finances. The way to hack your inner self is to realize which one you are, and learn how to change the code within your DNA.
No we are not literally changing our DNAs, but we can use financially intricate systems to help us become something we are not and transform our behaviors. The best secret to impart change is to decipher the errors, take notes, begin to implement, and make the positive changes consistent. The definition of consistent means sticking to things for the long haul aka years and decades.
Making the Best of Finances
Is your day filled with greatness, mediocrity, or below average actions? I feel we all need to take advantage of all of life’s opportunities including making the best of finances. People might be questioning this, and ask how am I winning with finances? Some might be killing it saving over 50K in income annually, while others might be embarrassed to say they don’t save 1 dollar per year. How can you be content with your financial picture today, and still have the ability to save some dollars away for tomorrow?
Reasons you need an Emergency Fund
I released a gem of a post a few months back and it was all based on the good old emergency fund topic we all love. Now I will impart unto you a second rendition of the reasons you need an emergency fund.
This is a great topic that everyone can relate too, and I created with a semi-comedic twist to make all of you crack up literally while reading. Talking about money can be funny if you just try a different approach.
I wonder if everyone had an Emergency fund how much easier and simpler life can be. One of the basic foundations of money management is having a savings fund. If this is too hard for you, and you are employed in today’s world then something is seriously wrong. Now let’s get back to having a blast with this topic as I would like to keep things light.