Many of you will be shocked, maybe even disgusted to learn that I am extremely fond of MONEY. Cash in my wallet, pennies on the ground, loose change in the sofa, a growing savings account, IRA, 401K, CDs, APR, checking accounts, mutual funds... If it has to do with possessing money, I want to know more. Once ashamed of my drive to have more money, I decided to research my motives. I absorbed any advice on growing money so I can live a "good" life. This means I have to understand my values and goals. Living a good life and the Freedom to spend money on my priorities keeps me going. By prioritizing, I am able to save money on items like coffee and cigarettes, and focus on having better home-cooked meals and vacations.
I take most free financial planning opportunities offered by Fidelity, American Express etc. Last year my company brought in a Financial Planner and I made an appointment to see if I could learn anything new. The lady asked me what my retirement goal was. I said, “I don’t know. It depends on how many years I spend out of the work force in the next 30 years and if something unexpected happens.” I didn’t really know what was realistic. Could I retire at 62, what about earlier? I casually mentioned that my husband was 8 years older than me and she suggested that maybe I wanted to retire at the same time as my husband.
Eerrrrttt. Back up. Maybe? My face went white, my eyes blank as I pictured giving Sean a kiss as he stayed in bed, while I went to work. Images of Sean watching Oprah and The Simpons all day flashed in my head while I was trying to explain the benefits of segmentation to new clients. The wind was sucked out of me.
Umm, “Yeah of course I plan to retire when my husband does.” Younger or not, I’m not going to work 8 years longer than my dear husband. “So yes,” I said, “mark me down for retiring at 54!” Although I did agree to work one extra year because I entered the “real world” one year later. I started kindergarten at 4, graduated high school at 17, finished college at 21 and had my first job lined up before college graduation. Thank goodness for that late birthday to get the ball rolling early!
About five years ago I picked up a great practical book called "Smart Women Finish Rich." It reinforced many of the principles I already believed in. I'm also interested in traveling, driving a car, living under a sturdy shelter, sharing my home with pets (next year I may even track what food, litter and vet bills cost for two hairy felines with attitude), and buying things I want. I also enjoy giving gifts that I know my friends and family will like (i.e. not re-gift, return, or send straight to Goodwill.)
This book talks about paying yourself first and increasing your net worth so that you achieve your financial goals. This book is written especially for women because too many times women do not play an active role in the household finances and then are left in a terrible scary situation when they find themselves alone. Every person (man or woman) should take charge of their financial future. I recommend this book for my gal pals and for the guys. The author, David Bach, believes everyone has a few extra bucks to put away for their future based on what he calls the Latte Factor. If just the $5 a day spent on a Latte and a muffin were saved, the time value of that money would be astonishing. Check out www.finishrich.com for more information.
I’m now reading Smart Women Finish Rich again to re-motivate myself to make smart financial choices. This is especially important now that the “I” I often refer to is now a “We” and “Us.” We are going to complete the worksheets together, taking a hard look at our reserves and our current expenses.
Money, unfortunately, is pretty important. I wish I had more for all of us. But since the money tree is yet to grow in my yard (I assure you I have looked!), we have to be a little smarter on how we prepare for our future. I am driven to make money. I do not go to work each day because I enjoy talking on the phone. (Yes, I know there are people out there who LOVE their job, I just cannot find anyone who will pay me a lot for lying in a hammock and drinking iced tea.) I understand the earlier I start saving, the better off I’ll be. I accept that I am middle class, and always will be, and that driving a Buick (with transmission and radiator problems) is OK. I do not deprive myself of the things I want, but I do try to make good purchasing decisions. I also do make several charitable donations each year for my top causes.
Kristin’s Tips:
-Avoid Starbucks.
-Pack a lunch 3-4 days a week.
-Use coupons at the grocery store and for car maintenance.
-Only shop catalogues when the shipping and handling is free. Only purchase from stores that allow you to make returns at their local stores.
-Don’t put food on a credit card if you can’t pay the bill off. I find that food doesn’t taste very good when you are still paying for it months after you ate the meal.
-Avoid credit card debt or at least avoiding using too many cards.
-Know your credit card interest rate. Consider consolidation.
-Save all of your charity receipts for tax purposes.
-Collect loose change and deposit into a savings account occasionally.
-Once you put money in a savings account, leave it there.
-Never make impulse purchases with high-priced items. Wait a week or two, but not too long to miss the sale!
-Open your Val-Pak once in a while.
-Cable, Satellite, Internet service, and Phone features, are not always ‘must-haves.’
-Be sure to at least contribute enough to your 401K plan to get the full company match if available.
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