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Money and Finances, advise and lessons from an ex-gambler and suicide survivor
Music: “Just A Blip” by Andy G. Cohen
From the Free Music Archive Released under a Creative Commons Attribution International License"Do not save what is left after spending, but spend what is left after saving." - Warren
Buffett- Be positive about money; money should be your friend rather than your foe. So, don't write
it off as something you'll never be able to do. - Talk about how there are only 2 ways to increase the amount of money available; either increase your income/income sources, or reduce your outflows. It's not rocket science. Amount of money available = Incomes - outflows - Trim your outflows by reviewing them comprehensively. 15-dollar coffee, reduce if you can't eliminate. 15-dollar lunch, try to trim it to 10 first. Be realistic about what you're doing; remember, they need to be do-able and you need to understand/believe in why you're doing all of this. - The best way to plan your outflows is by setting a budget. If you're not a person comfortable with strict and rigid planning, consider dealing ONLY in cash. In fact, until you get your finances in a comfortable state, make it your ONLY option. Keep your cards at home and only set yourself a fixed amount of cash each week to use. From this amount of money; set aside 2 "Expenses"; one for fixed savings, and one for some kind of charity/donation. - If your finances are in a rough state, start setting specific financial plans to get out of it. Set aside a % of your income to settle your debts or consider structuring your debts into fixed-term repayments or installments to reduce interests. If re-structuring is not possible, be creative; but DON'T get into MORE trouble. - Keep your financial plans/goals as realistic as possible. You need to be honest with yourself on this. - Automate your major expenses (rent/mortgage, fixed expenses, savings, investment fund) so that these are the 1st items that get paid to reflect the actual amount you have left as balance each month. - Depending on where you are financially, set a reasonable amount of % for spending on yourself; on meals, a good time. But be disciplined with the amount, and keep it as low as possible while not compromising your own happiness, because working and/or earning money without spending it is not happiness. So splurge, but only once in a blue moon. Talk about my parents and money. - Talk about planning, again; fail to plan is planning to fail. Put savings into a separate fund you don't have direct control over. You need a min. of 3-6 months' worth of salary as emergency funds. Keep your savings funds as far away from your regular funds as possible. Increase your savings when you get raises. - Always have backup plans and backup funding sources. Build those; they don't come to you without work; or tell me where I can get some as well! Talk about my planning for kid's education in the future and how they've been placed in long-term investment/insurance funds. - NEVER co-sign or be a guarantor for someone else's loans. It doesn't matter WHO; family, fried, etc. It WILL destroy your relationship. If you're ever going to loan money to close persons; consider it a donation in order not to take it personally and to ruin the relationship. - DON'T RUSH into purchases, if something seems too good to be true; it probably is. So take your time to do research, honest evaluation and a calm mind to review, review and review. - "We buy things we don't need with money we don't have to impress people we don't like." - Dave Ramsey. While some jobs/fields may require some spending in order to fit in/socialize, that doesn't mean you HAVE to get the most expensive options. Be creative in how you source it as well. - For money and finance matters, the buck stops with you. So, listen; evaluate, but do your own research and ultimately only let yourself decide and make the decisions. You will have to pay for it in any case. - If you're going to invest, only invest amounts you CAN afford to lose. Again, you need to be honest with this as greediness will only lead to failure.