Financial Fitness

As any of you who have been reading my posts know, I am at a crossroads and am trying to figure some things out.  I have been reading some awesome books and will begin another today!  I have a friend to whom I suggested a book I read several years ago and she has been sharing tidbits of wisdom from her readings, which has helped me for different reasons than it is helping her.  It's sort of our own virtual book club/support group!

 

In my effort to help my friend, I stumbled upon some notes in an old journal that I made after watching a July 11, 2001 episode of Oprah!!  The theme was finances.  While Chris and I are pretty damn good about frugality and saving (which afforded us the chance to come to Colorado before obtaining jobs!), it was good for me to review.

 

The first helpful hint list:

 

Saving - To Be a Millionaire

~Take lunch to work (don't eat out!)

~Eat dinners at home (don't eat out!)

~Make a budget

~Assess needs and wants

~Make one monthly trip to the ATM

~Buy generic

~No cable TV

~Nickel & dime yourself out of debt

~Pay yourself first each month

 

Now, remember, this was advice from 2001 and while most of it is timeless, I know there are a couple that might not be applicable in 2013. 

 

We considered no cable/satellite upon moving to Colorado and getting a Netflix and/or HuluPlus account.  However, I want to see local news programming, especially in the mornings for Chris's commute.  We went with the most basic bundle of internet and satellite, but if there is a way to have local TV programming without a digital provider, let me know!  (Chris says we can just get a digital antenna that plugs into our flat screen...anyone????)

 

Also, most of us probably don't use the ATM since we can get cash in other ways.  Just use your common sense here and get your monthly allotment of spending money only once and use it wisely!

 

The second helpful hint list:

 

8 Secrets to Become Wealthy

"Ordinary People/Extraordinary Wealth"

~Carry a mortgage on your home

~Don't diversify in your 401K (also maximize your contribution)

~Wealth came from investments of $1000 or less

~Rarely move from one investment to another

~Don't measure success against the DOW or S&P500

~Devote less than 3 hours per month on personal finances

~Money management is a family affair

~Don't pay attention to the media (they are present-oriented, rather than future)

 

So, I am guilty of moving investments!  At one time, we started a mutual fund account and later added individual IRAs with a family member.  That person failed to regularly check in with us to let us know how he thought our investments were faring and if we should take more or less risk.  He then left the business altogether without bothering to inform us!!!  We stopped our monthly electronic funds transfer for those investments about a month before our move.  I doubt we will resume contributions, but I hope to find a way to get these accounts moved elsewhere with little, if any, loss.  We also both have investments through former employers.  I don't have any financial acumen (tho I wish I did b/c I do have a head for numbers & the like), but I have tried to direct our monies the best I can, which hasn't always resulted in profits.  Not that anyone can predict the market, I know, but I suspect if we had a financial manager that person might keep a closer eye on what our funds are doing.  I must admit I am grossly behind in checking the quarterly statements for any of our investments!!

 

One of the best pieces of advice I ever received was from my grandpa:  He told me that anytime an employer offers to match my investment amount I MUST take advantage of it b/c it's free money!!!  I did this when I was employed at Walmart in the early-mid '90s, as they did a matching on stock purchases.  We did this with Valparaiso University, Chris's last employer, as they did a percentage matching, too.  Chris's current employer requires a 4% contribution and I know they have some type of matching, but I am not too versed on it...yet!

 

I also found another note scribbled sideways in this same journal:

Age 20-60, save $3/day.  You will have $1 million.

Now, I did the math of 365 days times 40 years (14,600 days) which I then multiplied by $3 to get $43,800.  I suspect that the daily investment needs to be placed in an interest bearing account of some sort in order to reach that one million mark!!!  However, I didn't care to write that down, I guess!!! 

 

When Chris & I were both working back in Indiana, we were super savers!!!  I look forward to working again in order to get back to the "business of saving"!  I guarantee that once you start to see your account grow, you will be far more excited about that than any needless item from a store.

 

I simply adore the wisdom of both Suze Orman and Jean Chatsky.  These ladies are smart and know how to share financial advice in a way that us ordinary people can understand, appreciate and put into practice!

 

If you have any tips you are willing to share, please comment.  I welcome all the help I can get in this realm of the adult world!

 

Wishing you Buon Fortuna in 2014!!