Archives For Money

By Eric on April 15, 2014 +

Proverbs 22:6 says…

“Train up a child in the way he should go; even when he is old he will not depart from it.”

What a fitting verse to summarize the premise of Dave Ramsey and (his daughter) Rachel Cruze’s book that’s coming out on April 22, 2014. The official title is “Smart Money Smart Kids: Raising the Next Generation to Win with Money,” but Proverbs 22:6 does a pretty good job, too.

I’ve been looking forward to this book coming out after hearing the buzz about it, but I’m even more excited that we are able to be apart of the official launch team for Smart Money Smart Kids. Not only did we get a sneak peak at the book, but we’re able to share it with y’all as well (I imagine that’s how they would say it in Nashville).

As I started diving into the book, I was immediately hooked by a story of a woman who approached Dave after a talk he gave early on in his personal finance career; she said,

“Dave, that was great information. Why don’t parents teach their children about money? Why don’t we teach basic money skills like this in schools? Our kids need to know this information.”

Continue Reading…

By Eric on April 11, 2014 2

A train can only be moving either forward or backward. It can’t be doing both at the same time. And if a train is your journey to financial freedom, then your spending/saving is the direction it’s moving. (I thought a train analogy would be fun…here we go!)

Four years ago, we were pulling the brakes on our train. Trying to slow it down. We didn’t know any better before that, but as we were rolling down the tracks we figured out that while we were going fast, we were going in the wrong direction. We had been educated on a better way to take care of our finances (through Financial Peace University), and we knew we had to change directions.

Train Tracks

Knowing is one thing, but how in the world do you slow down a locomotive, bring it to a stop and get it to reverse directions?

Trains can’t stop quickly or swerve. The average freight train is about 1 to 1¼ miles in length (90 to 120 rail cars). When it’s moving at 55 miles an hour, it can take a mile or more to stop after the locomotive engineer fully applies the emergency brake. (from here)

How to get the train to reverse directions

Trains and money can do lots of things. They are tools that serve great purposes. But as the engineer, it’s our job to make the tools work to help us accomplish our goals. A freight train is useless and can cause great trouble if it ends up at the wrong destination.

Continue Reading…

By Eric on April 9, 2014 2

Do you want to know the absolute best budgeting tool in the whole wide universe? The one that will keep you on track financially, and help you reach your goals quicker than any other? It’s the budgeting tool that you will actually use. Which is why I was excited to give Savvy Spreadsheets a test drive. To be able to share another affordable tool with you that might help you keep track of your finances.

Enter the Super Deluxe Budget by Savvy Spreadsheets

 

Savvy Spreadsheets Review

 

Let me preface this review with a few thoughts. Of course, you can get a free budget spreadsheet when you sign up for our email newsletter. But, it also follows the universal truth “you get what you pay for.” While that spreadsheet is super simple and functional, my Microsoft excel skills are fairly limited.

When I first opened up the Super Deluxe Budget, I felt like I was in a whole new world of Excel (in a good way). It’s so well thought out, and developed, that it’s pretty much a fully functioning desktop application inside of Excel. (Amazing!)

And I’m not so much a “read the directions” guy, but more of a “let’s dive in and see how this thing works” guy. And as I started creating a budget within the spreadsheet I was pleasantly surprised with the helpful tutorial style reminders and messages I received.

Continue Reading…

By Eric on April 4, 2014 3

Let’s talk high stakes today. I just finished watching ESPN’s 30 for 30 “Broke.” If you’ve ever dreamed of being a professional athlete and thought about how awesome it would be to be paid even just one of their paychecks, it’s totally worth a watch.

I remember calculating once that Alex Rodriguez makes $19,270.83 per hour. (Um… What?!) oh, yeah… I googled it. This site is dedicated to showing you how quickly he makes money by showing how much he’s made since you’ve been on the site!

The documentary paints the true reality of professional athletes and puts the “Mo” in “Mo money, mo problems.” We see the big numbers and the big contracts, but don’t typically see the big problems and the big responsibilities that come with the numbers.

I think if I had to sum it up in one word it would be “sad.” And not just sad for the athletes who are left with nothing after being in the spotlight for a handful of years. But, sad that our society is the way it is, and puts young adults into situations where they are set up to fail.

Here’s a few staggering statistics to chew on. And I encourage you to give it a watch. It’s available on Netflix.

By the time they have been retired for two years, 78 percent of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.

Within five years of retirement, an estimated 60 percent of former NBA players are broke.

Continue Reading…

By Eric on March 20, 2014 2

When we decided to give YNAB a try back in May 2013, we went with the bare bones. Previously we’d been using a spreadsheet to keep track of our budget, and although it had worked great for a few years, it didn’t seem as sophisticated, and there was still a large manual element to the whole process on a monthly basis.

Enter YNAB on its white horse to the rescue. I instantly fell in love with the automation of it. As we set up our first month’s budget in YNAB, we started applying Rule Four and also set up a dozen or so scheduled transactions to handle our fixed monthly bills. Then, we spent the first month just making sure that everything was set up and functioning properly.

A few months later, things were working smoothly and I became a bigger and bigger fan of YNAB. But as it drew close to the end of the year, I wanted to do a financial review of all of our accounts – to take our temperature and see how we were doing in terms of net worth.

Previously I’ve use Mint.com for something like this because you can log in to all of your accounts and it pulls all of your assets together minus your liabilities and spits out a net worth. The problem is, every time I log into Mint, there are sync errors with half of my accounts and I have to reconnect them, and even after all of that hassle, it still hasn’t synced properly for months. That’s when I decided to scan the YNAB Forum for some help.

Continue Reading…