You can read about the other chapters here.
Managing your time.
Managing your home and property.
Managing your menus and meals.
Managing relationships with family and friends.
I have found a wealth of information {pun intended} in this book and I do recommend it. {If your belong to my Mom's Group don't buy it because I plan on donating it to the library.}
On with finances..... The timing could not have been more perfect in my own life. My husband and I decided to try something new regarding our own finances, we had a budgeting session at our Mom's group that openend my eyes and gave us the tools to start to budget, Christmas is coming, and a good friend started a blog {which is fantastic} about her family's journey of getting out of debt.
I love how our speakers at our Mom's group related budgeting to dieting. You are going to have your good and bad days or months but the fact that your plugged into your finances is alot better than not caring where your money goes.
This chapter starts out just like that...we need to stay on top of our finances, shop smart, create budgets, and live by your family's priorities. As Kathy Peel states in her book "Difficult financial times can make you bitter or better". And I have been on both sides...the bitter and now I see the better.
I LOVE LOVE how the author states that money is not about the dollar amount but more in how you view money.
We have so many friends that live on credit and buy things they can't afford or go on trips they can't afford. The amount of large homes being built baffles a person's mind. I know I look towards my future and being able to give my kids tuition and pay for weddings etc. I also want my husband to be able to retire at a reasonable age and enjoy trips with him. You all hear about live in the now and what if we don't live that long but what if you do live that long?
After you have made the budget and you use it for a few months the next step is to figure out what to do with a surplus or deficit each month. If you need to cut expenses some suggestions are...
1. Break down large financial goals,example in book $2500/yr = $6.85/day...what can you do to save $6.85 a day?
2. Use one credit card and one points system.
3. Before purchase big ticket items figure out how long you have to work to pay it off.
4. Limit trips to the ATM.
5. Collect loose change and roll it.
6. Coupon clip.
7. Shop at stores and the end of a quarter...discounted items are usually avaible then.
8. Sign up for email notices of sales.
9. Start holiday shopping early, start a list, and decided on a spending limit.
Bartering is a great practice too that can save money. Exchange ideas with friends. You may be a great event planner and your friend is great at financial advice...trade secrets. Host a swap party with a theme. In fact I am heading to a Merge & Purge party tonight at my friend Melissa's house. Her theme tonight is women's clothing and accessories. Whatever we don't take will be donated to a charity. Great idea isn't it?
If you find you cannot cut expenses and you need to increase your income some ideas suggested in Kathy Peel's book are...
1. The stay at home parent goes to work outside the home. Check the math before you do this. Childcare and other costs might make a paycheque not worthy of doing this.
2. Work inside the home. {I know I could not do this because I do not have the focus or time management skills, but it works for many people.}
My favorite part of this whole chapter was money mangement for kids. Here are some suggestions to teach your children about how to handle or earn money.
1. Look for everyday opportunites to teach them about the value of money.
2. Do not do or buy anything regularly that they could do or buy for themselves.
3. Teach them they are not what they wear, drive or own.
4. Nuture contentment with what we have.
5. Explain the ATM is not just printing the money but where the money is actually coming out of.
6. Use money games such as monopoly.
7. Give teens an allowance so they can learn to budget.
And BEST of all, the author touched on Allowances. I have tried allowances with my kids and to be honest it never feels right. Maybe they are too young to get it, maybe it's because I go off track and forget. But here are some suggestions on allowances...
1. Start at age 6 or when they can count and understand money.
2. $0.50 or $1 for every year of age your child is.
3. Give a base allowance for sharing in household chores.
4. Encourage saving and charity donations.
5. Suspend allowance if duties are not fullfilled.
6. Pay for only completed jobs.
This was a great chapter to get you motivated in the right direction to manage your finances.
Next up....Managing Special Events.
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