Are you spending money on things you REALLY want or substituting for unsatisfying cheaper alternatives?
We brainstormed Benefits of Budgeting: Teaches kids to use money wisely. Makes you available to serve. Enjoyment of saved for recreation. Sleep at night. etc.
Liquid savings should be for at least 3 months for household. Go to provident living calculator online to find out how long until you get 3 month reserve & pay off debt.
Budgeting is between spouses, AND children. Children need to learn to make sacrifices and be careful with money. Must pass on your knowledge for the next generation.
Make sure both spouses know how to do banking, bills, taxes investments, 401k etc. - do it together twice a year.
The 10 Principals from the book "For Love & Money":
1- Financial problems are usually behavioral problems.
2- If you continue doing what you've been doing, you'll get continue getting what you've gotten.
3- Nothing is worth sacrificing relationship for.
4- money spent on things you value usually leads to a feeling of satisfaction and accomplishment. Money spent on things you don't value usually leads to a feeling of frustration and futility.
5- We know the price of everything and the value of nothing.
6- You can never get enough of what you don't need, because what you don't need can never satisfy.
7- Financial freedom is often the result of a decrease in spending, not an increase in income.
8- nothing (no thing) is worth risking the relationship.
9- The best things in life are free.
10- The value of an individual should never be equated with net worth.
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