ric , use these resources to improve your investing...

Hi ric ,

In the last lesson you learned how there are ONLY two valid
approaches to growing wealth through paper asset investing, and
you discovered the conditions that determine which approach you
should use...

(1) If you have a full career ahead with decades remaining in the
workforce then the slow, steady approach can work by applying
traditional contribution rates to savings. This is the traditional
retirement planning model.

(2) If you have less time remaining but can find happiness living
on a fraction of your income then the extreme frugality approach
can work. The problem is few people fit this profile.

For all the rest, you can still use paper assets in your wealth
plan, but they can't be your only asset class. You must include real
estate and/or business ownership to achieve you financial goals.

Shocking but true...

Most of my coaching clients combine two or all three asset classes
(business ownership, real estate, paper assets) into a single plan.
Paper assets are nearly always included as one of those asset
classes. Almost everybody uses them at some point.

For that reason, I would like to introduce you to some essential
educational resources (free) on my site that can help you avoid
many common and expensive pitfalls associated with paper asset
investing...

How To Find Financial Advice You Can Trust: Learn 12 essential
questions that can separate good financial advice from bad.
http://clicks.aweber.com/y/ct/?l=NNrzc&m=1onYq76r2yc.MS&b=UVHVDtraPlXAPblArpDSDA

How To Get The Right Financial Advice For The Right Price: 5 rules
for avoiding adviser compensation conflicts of interest.
http://clicks.aweber.com/y/ct/?l=NNrzc&m=1onYq76r2yc.MS&b=Bp_SkS1d.VqHmFb11Lu4Fw

Are You Gambling Or Investing: Learn how to invest with the "house
advantage".
http://clicks.aweber.com/y/ct/?l=NNrzc&m=1onYq76r2yc.MS&b=4oV5mzL7eKErwdIQlBx5_g

Buy And Hold Myth: Discover the problems your financial adviser
won't tell you.
http://clicks.aweber.com/y/ct/?l=NNrzc&m=1onYq76r2yc.MS&b=IN1pnOjS7kywkzGAHDoHvA

Five Hot Stocks That Will Double This Year... And Other Useless
Financial Advice: Learn how most financial advice is useless market
forecasting.
http://clicks.aweber.com/y/ct/?l=NNrzc&m=1onYq76r2yc.MS&b=jlB65zMJOrst5sLj72xgxw

Yep, these are all free resources and they will help you avoid some
seriously expensive mistakes in paper asset investing. All you have
to do is read them (which is your homework for this lesson).

By the time you finish with these articles you will know far more
about paper asset investing than most investors.

That's it for today. If you like these resources please make
sure to share them with your friends through the various social
media outlets. I appreciate your support by spreading the word about
about all the great stuff you are learning in this free,
52 week course on essential wealth building principles.

When you want to say "thank you" spreading the word is the best way
to do it.

See you in a few days with your next lesson...

Todd R. Tresidder - Founder
FinancialMentor.com
CreateCorp Business Solutions, Inc.
DBA FinancialMentor.Com
14085 Raider Run Road
Reno, NV 89511, USA

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[Financial Mentor] FM 021: Money and Relationships with Farnoosh Torabi

Financial Mentor
FM 021: Money and Relationships with Farnoosh Torabi
Your spouse can make or break you financially. That's no surprise, given how money is one of the leading causes of divorce. But there is much more to the relationship and money question than just divorce or marital bliss. In this episode of the Financial Mentor podcast Farnoosh Torabi and I take taboo subjects and gender biases head-on so you can avoid the landmines hiding under the financial side of your relationship...   Read more about this article here: - Todd R. Tresidder If problems with the link above check: http://www.financialmentor.com/

 

CreateCorp Business Solutions, Inc.
DBA FinancialMentor.Com
14085 Raider Run Road
Reno, NV 89511, USA

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ric , how you can retire in 10 years (or less)

Hi ric ,

Traditional financial planning is so simple it can be summarized in
one sentence...

Make more than you spend and invest the difference wisely.

Even the "invest wisely" portion is simple because academic
researchers have fully documented how to properly construct a
passive, indexed portfolio.

There is no "mystery" or "secret". No experts, formal education, or
specialized training required. Anyone can do it. Just open a
brokerage account, save, and invest. You don't even need a broker -
you can do it on your own.

The problem is almost nobody does it.

Why?

When you're 20 years old you can't be bothered with something like
retirement saving because is so far off in the future it appears
irrelevant.

When you're 30 the focus is on buying a home and/or starting a
family so every penny is needed.

When you're 40 the kids need braces, eat like horses, and their
college funds need maximum contributions.

When you are 50 it is too late. Too much time has elapsed to allow
compounding to magically convert small investments over long
periods of time into large sums of wealth. The easy door to passive
wealth accumulation is closed.

That is why I teach the active approach to wealth in conjunction
with the traditional passive approach. They are equally valid...
but only in specific circumstances. You must use the right strategy
for your individual circumstances.

The problem with passive investing in paper assets is the return on
investment for a properly diversified portfolio is governed by
strict mathematical limitations.

For example, Ed Easterling accurately points out in "Unexpected
Returns" how the often quoted average annual return for the Dow
Jones Industrial Average from 1900-2003 may be 7.4 percent but the
compound return (the only return you can actually spend) is a mere
5%. This 2.4% difference may not sound like much but compounds to a
greater than 90% reduction in spendable dollars in your account.

This is an amazingly huge deal. The lesson learned is small
differences in compound return result in huge differences in
nominal account value over time. Don't overlook these facts! They
cannot be overstated.

You must understand that a properly diversified, paper asset
portfolio is not a fast ticket to sudden wealth. A late bloomer who
doesn't begin serious asset accumulation until his 50s or 60s will
need something more.

In one of my most popular blog posts ever I explained how anyone can
retire in 10 years (or less) using paper assets and passive
investing. The link is here...

http://clicks.aweber.com/y/ct/?l=NNrzc&m=1pYQ2Q.bXyc.MS&b=Tk3TN8vVw5p.I.wLyLaTiw

In a nutshell, the answer is frugality - extreme frugality. It is
not everyone's cup-of-tea but for the right person it is a
perfectly viable answer. I give it to you here so that you have
another tool in your toolbox for designing your wealth plan. Use it
if appropriate or discard it if unnecessary.

In other words, if you have 30 years or more then you can take the
slow, passive path using paper assets with traditional allocations
and contribution rates by compounding your way over time. This
strategy works, but only when you give it sufficient time.

If you are in a rush and still want to follow the paper asset path
then frugality can shorten your journey as explained in the post
linked above.

In summary, there are two valid paths to paper asset wealth
accumulation - slow and fast - and each requires you to pay a
different price. One takes time: the other frugality. Both require
discipline.

The only other alternative is to apply real estate and business
ownership as active alternatives to achieve wealth in a reasonable
period of time.

So now you have all the choices. I've discussed all three paths to
wealth, various permutations on those paths, expected timelines,
and a few essential principles so far in this "52 Weeks..." series.

Your learning is far from over, but you have enough information to
take your first crack at designing your wealth plan so that it
makes best use of your unique skills, abilities, and resources by
picking and choosing from these various strategies.

Don't worry about perfecting it. Just do your best with what you
know now and we will continue to improve on it throughout these
lessons.

We have many more principles to apply in future lessons. As I said,
this course is serious education for people serious about achieving
wealth in this lifetime.

Your next lesson will arrive in 5 days. We will continue the paper
asset investing discussion by introducing some important resources.

See you then...

Todd R. Tresidder - Founder
FinancialMentor.com
CreateCorp Business Solutions, Inc.
DBA FinancialMentor.Com
14085 Raider Run Road
Reno, NV 89511, USA

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Day 9 - Financial Success is Knocking. Will You Answer?

Having trouble viewing this email? Click here     Today I'm just going to share with you a bit of motivation that comes right from my own life. I want to illustrate with the best example I have (our own) how absolutely powerful a budget can be in your life. It is the foundation of all other aspects of personal finance. It's the tree. The good stuff is the fruit. It's the sweet grandma with the gooey cookies. It just wants an hour or two of your time each month. It was November of 2002 and I was newly engaged. People say when you're newly married that you live on love. But could love purchase my (overpriced) textbooks for the coming semester? Would love put food on the table? No.   Our Story   So there I was, sitting in front of a computer in the library of the university. My fiancée was just across the hall working for $8 an hour. I would be leaving for my job in a few hours to make a bunch more--$10 an hour. I just sat there wondering exactly how we were going to manage. We were both full-time students, working part-time jobs. In our best combined month we would maybe make $1,200. Looming in front of us was the purchase of a car (neither of us had one), and three more years of school for me. I thought we needed a budget, so I made one. We were married the following February. Everything was absolutely great. I was definitely excited to be starting a new chapter in our lives. I mentioned in Day Eight how Rule Four came about. I basically just thought it would be easier to budget if we lived on last month's income (and oh, how it is). Some wedding money tided us through a month, where we didn't touch those paychecks. We were now living on last month's income. I'll admit--we had it easy. Rule One seemed pretty obvious. Every dollar should be accounted for. It just didn't seem right to only care what SOME money was doing. The budget meeting was what surprised me. I thought it'd be more of a negotiating thing where she's guessing what I'm going to say, I'm guessing what she's going to say, and neither of us wants to say a specific number lest we leave some money on the table. It wasn't really anything like that. Not at all. We just sat down together and looked at our money situation. It was a pretty healthy relationship exercise. It helped us face reality and decide where we needed to focus. It motivated me to squeeze in a few extra hours of work whenever possible. It motivated Julie to try and land a good job once she graduated. It really brought us together as a newly-married couple. There weren't any fights. There weren't any hurt feelings. It was just two people trying to figure things out--compromising, and learning what the other thought about money. It's been an extremely positive aspect of our marriage for the past ten years. I don't see that changing any time soon. Rule Two, I hate to say, also seemed pretty obvious. We had big one-time expenses that would definitely need to be paid. But we knew we'd be sunk if we pretended like we would have all that money in one single month. I remember the first time we were really nailed was with our license and registration tax that we needed to pay each May. We had been married over a year when we discovered that we owed the State $150 just so we could re-register our vehicle. I won't go into the aspects of this particular highway robbery, but we were caught by surprise. A hundred and fifty bucks was (and still is) a lot to us. We learned and adjusted. (How did we adjust? $12.50 goes into "License and Taxes" each month. We don't even feel it now). Rule Three seemed important. Be FLEXIBLE. If we couldn't juggle money around for that month, I liked the idea of having next month's budget absorb the overspending. We paid ourselves back for mistakes, and the budget never let us get too out of hand. To be honest, I really didn't know what we had. I thought it was just a somewhat clever (and obvious) way of budgeting. We budgeted like this for a couple of years without giving it much thought. Since we were still in college, it was pretty easy for us to talk about our finances with friends. When everyone is broke, money isn't a sensitive issue. I would actually show them our budget. Our friends would ask me for a copy. I don't think one of them actually used it though. It was too tailored to our specific situation. (And getting one month's expenses to follow Rule Four is no picnic either). With our first child on the way in June of 2004, I got to thinking. We had always wanted Julie to be a full-time mom. She was really looking forward to it. I had gotten a part-time "internship" at a company near the university. We figured if I worked 30 hours per week straight through school, we'd get by without taking on any debt. I didn't think 30 hours per week would be too easy if I wanted my grades to remain respectable. So I presented Julie with the idea of selling our budgeting system online. She didn't think it would fly, which I still remind her about to this day. As I prepared to market my idea, I began to appreciate what we had: a budgeting system that didn't take a lot of time, that worked. It had worked for us, which meant it would work for just about anyone. So here we are today. What was a "hobby" site is now a full-time endeavor with a team of 18 spread across the globe. I became a CPA and then immediately let it lapse to work on YNAB. (I did obtain my Masters of Accountancy, if you were at all wondering). Our little boy is now nine years old, with a little brother (7), little sister (5), another little brother (3) and another little sister (1).   Life With a Budget is Good   Life is good. It isn't luxurious. The car with the broken door handle on the passenger side WAS my car and that WAS my grandpa that broke it (Day Eight). But we have something that so many don't. We have A PLAN. It may seem like I'm attributing too much to the budget, but I don't think so. We have never fought about money. We've never gone into debt (except for our home, which is thankfully now paid for). We own our used cars outright. At the end of a Master's degree, where most people are at their poorest, we were at our richest! (Rich is very relative here, but you get my point). I look around me and see people living above their means, with nicer cars, TVs, toys, homes, etc., and I can't help but feel sorry for them. True happiness does not revolve around the material things you have. True happiness comes from PEACE. And PEACE comes from living within your means. If you want to live within your means, these past days have shown you how. The Rules are there for you to implement. I'd be out and out lying if I didn't tell you that I'm hoping you'll try my software. It's evolved into a pretty nice product, if I may say so myself. We provide live classes, fantastic support, and have tried to make it as easy to implement into your life as possible. Give it a 34-day free trial :) Also, remember that the Rules can be used independent of any software. You could make your own system that does the same thing (don't underestimate the time involved though!). Implement the Rules if you do anything. They are powerful! They will help you! Honestly, the Rules seemed to fall into my lap. Looking back now on that day in November, when I was feeling pretty stressed about money, I don't know, maybe I can chalk it up to inspiration. But at that moment I just thought to myself, "I think we need a budget." We did. And so do you.   Warm Regards,   - Jesse Mecham     P.S. If you've enjoyed this nine-day course, you're going to LOVE our free, live, online class. It's called "Getting Started," and it's a fun, engaging presentation where the entire method is explained and implemented in about a half hour. It's not sales-y. It's not pushy. It's just a super-qualified YNAB Teacher showing you how the Method can change your life. We teach these live classes almost daily. You can register for the next one here. (Oh, and we give away a copy of the YNAB software at every class. If you aren't a lucky person, you can always just purchase YNAB here.     follow on Twitter | friend on Facebook If you no longer wish to receive our emails, click the link below:  Unsubscribe YouNeedABudget.com 770 E Main St. #236 Lehi, Utah 84043 United States

[Financial Mentor] FM 020: How to Get Rich Slowly with J.D. Roth

Financial Mentor
FM 020: How to Get Rich Slowly with J.D. Roth
The difference between debt and wealth is large in life, but small in terms of the life habits required to actually make the difference. J.D. Roth, founder of Get Rich Slowly, shares how he transformed his financial situation from debt to wealth in just a few short years by simply changing his life habits. These are principles everyone can implement to build a rock-solid financial foundation that will help you achieve your financial goals...   Read more about this article here: - Todd R. Tresidder If problems with the link above check: http://www.financialmentor.com/

 

CreateCorp Business Solutions, Inc.
DBA FinancialMentor.Com
14085 Raider Run Road
Reno, NV 89511, USA

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Day 8 - Oh the Insanity! The Rule to Change Your Life

Having trouble viewing this email? Click here     Today we discuss the final Rule of Cash Flow. Rule Four. When my wife and I first married, we worked part-time at the university where we attended school. Part-time work on a university campus equals, well, not a lot. I wasn't TOO worried about things, but the fact that our finances would be tight did inspire me to implement the Four Rules. Everything seemed fine, but our variable income was causing problems. Our hours worked could change based on many external factors. How do you budget when you don't know what you're going to make? While a lot of financial gurus will suggest that you forecast, then prioritize your expenses and always pay the top ones first, there is a better (initially harder, more fulfilling, and eventually easier) way.   You Live on Last Month's Income   Now I'm going to spend the rest of the time trying to convince you that it IS a good idea. I know you're likely not there yet. This Rule is something you work toward. It's a goal. How did we, two struggling college students do it? I'll admit, we had it kind of easy. Our wedding had just happened a few months before, we had wedding money sitting in our savings account. I withdrew enough to get us through March without touching March's paychecks. That's exactly what I'm going to ask you to do. You need to make it through one month without using that month's paycheck(s). Some intensity may be required. If you want to stop living paycheck to paycheck, and enjoy the benefits of MUCH more flexibility in your finances, if you want to be able to budget easily and accurately, you'll want to do this. The trick is to make it an entire month without touching your paychecks.   How is that Possible?!   How do you manage to get by for a month without touching that month's paychecks? Well, that's pretty much entirely up to you. I'll give you a few ideas to get you started. The key is INTENSITY. For the short-term, virtually ANYTHING is possible. Remember that! This is a sprint, not a marathon! -Work overtime if your job allows it. Put in as many hours as you possibly can. -Get a part-time job. You can make a thousand bucks a month working 80 hours in a month at a part-time job. Think pizza delivery, UPS, painting, lawn care, house cleaning, etc. -Have a garage sale. That's right - get rid of the junk you don't need. Sell everything you forgot you had. People sometimes make enough from their garage sale to skip that month's paychecks entirely. Typically you make between $500 and $800. -Negotiate your credit card rates down. Threaten to switch to other card providers. This can lower your minimum payment, substantially freeing up the extra right now for your buffer fund. -Ask for a raise. Have you been an awesome employee? Do you truly deserve a raise? Then you should ask for one. -Cut out your entertainment (keep thinking short-term here). -eBay & Craigslist. Like a garage sale, but with a wider audience. -Car pool. Sure it might be a bit inconvenient, but imagine if you could cut your gas bill in half!? -Brown bag it. Don't eat out at all. Remember, a short-term solution for long-lasting rewards. Sacrifice! (You'll probably trim down a bit too - I know I tend to trim UP if I eat out a lot). You may need to brown bag your dinner as well if you're working overtime! -Cash in vacation. Sacrifice a few vacation days for your peace of mind. Many employers will allow you to cash in your vacation. -Is your tax refund on its way? -Save all windfalls. You do get windfalls. They happen. Stash 'em. -Cut your phone bill. Do you have a cellphone where you could get out of the contract inexpensively? Remember, it's a short-term solution for long-lasting peace. -Sell your car. Perhaps, you have a car that is way too expensive considering your current income. Sell it! Even if you owe more money on the car than it's worth, you can refinance the difference (provided your credit is decent), which frees up some extra dollars. Remember, once your budgeting foundation is built, that debt will be destroyed. -Don't go to the mall. Seriously. -Cancel cable, satellite, etc. Seriously.   Based on my surveys, it takes an average of four months to get one month ahead. Think of that, what you earn in February, you use in March. Remember, you can still follow the Three Other Rules, I just expect you to be working toward Rule Four. Pronto. The advantages to living on last month's income are much further reaching than just eliminating the variable income problem of budgeting. When you are not living on the edge you are less stressed, healthier, sleep better, make wiser financial decisions, and enjoy a better relationship with your spouse. Life is BETTER. You no longer have to time your bills with your paychecks, saving you hours of time each month! Keep those benefits in mind as you're scrimping by without cable, eating brown bag lunches, and throwing everything extra toward Rule Four! Take a moment to write down what you will do beginning NOW to get out of the paycheck to paycheck rut to be able to live on last month's income. Get crazy if you need to. Rule Four is an important point, and absolutely vital if you want to have an easy, intuitive, cash flow system.   Action Steps:   Write down three things you can do in the next 24 hours to build a cash reserve that will get you through a very lean month. Write down two more things you can do within the next 30 days to significantly build that reserve.   Warm Regards,   - Jesse Mecham     P.S. I hope you're enjoying this 9-day course! If you'd like to purchase YNAB, you can do so through this link.     follow on Twitter | friend on Facebook If you no longer wish to receive our emails, click the link below:  Unsubscribe YouNeedABudget.com 770 E Main St. #236 Lehi, Utah 84043 United States

Day 7 - Staying on Track No Matter What

Having trouble viewing this email? Click here   Roll With the Punches   Rule Three is, by far, the most elusive of the Four Rules of Cash Flow, but it's my favorite. You've probably heard the saying, "Just roll with the punches." It means you're adaptable. The origin of the saying comes from the sport of boxing: "Said of a boxer: to move the body away from and in the same direction as an opponent's punches to reduce their impact." If you ever watch boxing in slow motion you'll see the fighters doing this all the time. It truly does lessen the impact, and keeps them on their feet so they can continue the fight. In budgeting, the same advice holds. We haven't talked much about how people tend to get pretty depressed and down on themselves when their budget "doesn't work." They usually throw in the towel. Okay. I'll get off the boxing thing...maybe. What happens when you go over budget? Well, nothing. You just roll with the punches. You adjust your budget to cover the overspending, and go cuddle up with a book. If you can't cover the overspending by pulling money from another job, then you pull it from next month's money (with my software, that's done for you automatically). That's the gist of the rule: when overspending happens, you address it. No guilt, just new information and a reassessment of priorities. I'll spill my guts here. My wife and I have been married almost ten years, and we have operated using the YNAB Rules of Cash Flow the entire time. We have never, ever stayed within budget for every spending category. The key is that we still just roll with the punches. What we overspend in one month, we pay back the next. Every category is zeroed that is overspent, and every category that has a surplus carries that surplus forward (Rule Two). It's masterfully simple. You don't really even feel what the budget is doing. It just takes you by the hand, makes a few corrections, and leads you gently down a more prudent path. Alright, that's it for Rule Three, and Day Seven. Tomorrow we'll hit the final rule, then I'll share with you some closing thoughts, and my own story from rags to...nicer rags.   Action Steps:   Take a break. There aren't any action steps for Day Seven.   Warm Regards,   - Jesse Mecham     P.S. I hope you're enjoying this 9-day course! If you'd like to purchase YNAB, you can do so through this link.     follow on Twitter | friend on Facebook If you no longer wish to receive our emails, click the link below:  Unsubscribe YouNeedABudget.com 770 E Main St. #236 Lehi, Utah 84043 United States

Day 6 - It's slightly cloudy with a chance of rain...

Having trouble viewing this email? Click here     We've covered a lot. I hope you're beginning to feel the power of the budget. Maybe you're even developing some respect for that six-letter word. You've also realized there is no truth to the lies surrounding budgeting. You've recognized that your life, as you know it, will improve immensely when you implement these principles. We've gone through the ins and outs of inflows and outflows. We talked about assigning every dollar a job. And just yesterday we stressed the importance of the Budget Meeting in your marriage. Did you talk with your spouse about it?   Save for a Rainy Day   Today we hit the Second Rule of Cash Flow: Save for a Rainy Day. Rule Two can only happen when Rule One is happening. Remember how you're assigning your dollars to different jobs? Well, let's say your $360 car insurance premium is due every six months. That works out to be $60 a month, right? I know, the complexity is going to blow you away, but you'll want to budget $60 into your car insurance category each month. When the sixth month rolls around, guess what your balance will be? $360. You'll cut the check and pay the bill. YOU DON'T FEEL THE BIG BILL. I'll bet you can remember a few months ago when something big WAS due--maybe your property taxes, HOA dues, or...Christmas. How was it handled? I can't speak for everyone, but based on what I've experienced, if you don't plan for those high points with the bills, you'll be leveled. You were likely barely making it month to month and then a $360 big-kahuna-type bill came down the pipeline. Perhaps you "had to" charge it. The cycle of being "surprised" by bigger bills, and charging them bit by bit...pretty soon you have $12,000 of credit card debt and no apparent way out. There is a way out. Acknowledge the fact that some of your money should just sit there until the big bill comes due. This principle, obvious as it may seem, truly works. It forces you to acknowledge in the "good" months (where nothing big is due) that you inevitably have a rainy day ahead. Instead of having eight good months, and four bad, you're going to have twelve normal months. Trust me. It's much easier to handle twelve normal months.   What About "Surprises?"   This all appears quite easy when $360 is a fixed payment. But what about something like car repairs? When's the transmission going to fail? When will the air conditioner stop working? When will your grandpa accidentally break the door handle off of your car while trying to get out, which causes you to have to roll down the window and reach for the outside handle whenever you want to get out of the passenger side? I've digressed. You're not a statistical outlier. You'll have home, car, and teeth repair surprises. These surprises are NOT emergencies. You KNOW they're going to happen, just not WHEN. So you guess. It's as easy as that. You don't have the fixed amount, but having something set aside is better than nothing. Your guesses will improve over time. Think about some rainy days in your life. I've talked about car insurance, Christmas, HOA dues, and property taxes. You may also have club membership dues, self-employment taxes (done quarterly), health insurance premiums, birthdays, anniversaries, relocation, etc. It's basically anything big that is happening that you can estimate and plan for. I use my software that tracks these balance accumulations for us--but that is not necessary. You could just as easily use real envelopes, or write it on a piece of paper on your fridge. You must track it, or it won't work. Planning for these big expenses gives you back your sanity and financial peace of mind. I promise you from my own experience that giving every dollar a job (Rule One) will help your money go further, and you'll find you have enough to save while the sun shines, for those rainy days ahead. Tomorrow we're going to focus on the sport of boxing. Well, sort of.   Action Steps:   List all of your larger, non-monthly expenses (life insurance premiums, property taxes, Christmas, vacations, etc.) Divide the totals of those expenses by twelve to get your monthly funding requirement.   Warm Regards,   - Jesse Mecham   P.S. I invite you to take a chance on us, and purchase an activation key for YNAB. :) You won't regret it!   follow on Twitter | friend on Facebook If you no longer wish to receive our emails, click the link below:  Unsubscribe YouNeedABudget.com 770 E Main St. #236 Lehi, Utah 84043 United States

Day 5 - Money, Marriage & Hot Chocolate

Having trouble viewing this email? Click here   (This day's topic is focused on finances shared between two people. If you're single, feel free to take a day off, or maybe follow along for future reference! Your call :) Yesterday we addressed a ton of issues regarding Rule One: Giving Every Dollar a Job. I purposely left one HUGE issue completely out; it deserves a day of its own. When I was in graduate school I attended a Business Law course. One day in class, I realized that the budgeting that happens between spouses is much like the consensus ad idem (meeting of the minds) we were discussing that very night. From Wikipedia: "...a term in contract law used to describe the intentions of the parties forming the contract...where there is a common understanding in the formation of the contract...The reasoning is that a party should not be held to a contract that they were not even aware existed." For a valid, enforceable contract to exist between two parties there needs to be this "meeting of the minds." This must happen during your monthly Budget Meeting!   The Budget Meeting   The budgeting meeting is a contract between two parties: You and your spouse. As with any contract, there is negotiation before agreement. A healthy negotiation involves honesty, compromise, and respect. Honesty in negotiation means that if you agree to a spending amount, then intend to fulfill your side of the bargain. Guys: if you agree to spend $50 on tools for February, then you aren't allowed to spend any more than $50 unless you can renegotiate the contract with your spouse (which means taking the money from some other place in the budget). Honesty also means you're up front with your spouse about concerns. If you're suffocating under the budget, voice that concern! When your spouse voices those concerns you need the "friendly" side of negotiation. Are you compromising when appropriate? Are you respecting your spouse's needs and wants? The Budget Meeting should not be 30 minutes of dread (you don't really need more than 30-40 minutes for a month. As you improve, you'll knock it out in ten minutes). The more you budget, the quicker you'll recognize what's required. Each spouse will have more realistic expectations, and be compromising and respectful of the other's. What if your spouse just isn't the "financial type"? There are a few (million) of those. Some are in denial. Some are really busy. Some are unbelievable earners and don't want to be bothered. Most are just petrified when you say the word "budget." The word 'budget' tends to conjure fears in spouses. It has a pretty negative connotation attached to it. You say: "Honey, I'd like to set up a budget with you." They hear: "Honey, I'd like to control you when it comes to money." You say: "Honey, we should probably budget for big expenses." They hear: "You're spending too much money (but I'm not)." You say: "Honey, let's try and keep to our budget this month." They hear: "Honey, why don't you try and keep to my budget this month?" That's just the way it goes. If you're having trouble convincing your significant other of the importance of a budget...keep trying! Spell it out in clear and friendly terms. A budget is a set of common goals for the two of you to work toward. Remember: "a party should not be held to a contract that they were not even aware existed." If you aren't sitting down with your spouse and agreeing together on how much and where to spend, you can't really hold them to that "contract." If your spouse refuses to sit down with you and manage the money for 30 minutes each month (you even agree to handle entering all of the transactions!), you have a deeper marriage issue than just budgeting. If you've told them it would mean the world to you if they would participate--they'd have to be a backward person to refuse. Tell them I said so!   Hot Chocolate = Success   A successful Budget Meeting should take place whenever new money comes in. Remember, keep it short. Make it fun. Have hot chocolate during the meeting. Go to a movie afterwards (budgeted, of course). Attach something positive to it. Just do it! When you are successfully budgeting ("success" in budgeting does not mean you never overspend) with your spouse each month, you will notice some very positive changes in your money and your relationship. Your finances will improve. Within your relationship you'll feel more teamwork, respect, and camaraderie. Your communication skills will skyrocket. The Budget Meeting is the most powerful tool in solving money problems in a marriage, or improving the money situation in your marriage. Have your spouse read this day's material. Talk it over with them. Spread the love! Tomorrow we're going to get into Purchasing Power, and the Second Rule of Cash Flow.   Action Steps:   Hold a budget meeting with your spouse. Talk about long- and short-term goals. If necessary, hold hands during the process.   Warm Regards,   - Jesse Mecham   P.S. If you've cleared this with your spouse, go ahead and purchase an activation key for YNAB!   follow on Twitter | friend on Facebook If you no longer wish to receive our emails, click the link below:  Unsubscribe YouNeedABudget.com 770 E Main St. #236 Lehi, Utah 84043 United States

ric , let's formulate your wealth plan now...

Hi ric ,

You face two fundamental choices when designing your wealth plan...

You can choose the slow, passive path to wealth advocated by
traditional financial planning using paper assets. This typically
requires an entire career of savings and discipline to see
reasonable results.

Or you can accept the risk and challenges required to achieve
financial independence in 10-15 years by applying some of the
active wealth building principles I taught you for real estate
and business ownership in the last few emails.

Please note... these two paths are not mutually exclusive. Many of
my coaching clients choose to pursue aggressive wealth plans while
building a traditional paper asset portfolio in the background at
the same time.

The two strategies (active and passive) can work hand-in-hand
(and often do).

You are limited only by your creativity, commitment, and
determination.

In the last few emails I taught you 5 essential wealth building
principles - leverage, tax advantages, the difference between a
wealth plan vs. an investment plan, the requirement of positive cash
flow, and the critical importance of integrating your values,
skills, and resources into your plan.

These principles are designed to help you realistically achieve the
goal in 10-15 years. Some will do it faster and others won't do it
at all. The seldom spoken truth is how wealth is really just a
matter of personal choice and prioritization - habits.

Sure, we all want the goal faster. Everyone wants it done
yesterday, but there is a price to pay. You only have so many hours
and resources to dedicate to the wealth building process. Your
family requires attention, meals must be prepared, and you have to
enjoy your life in the meantime.

In short, there is more to life than money so design you wealth
plan aggressively but realistically - remain balanced. Happiness is
the real goal. Money is just a lubricant in the process.

You wealth plan must fit your personal situation or it won't work
because this is a marathon - not a sprint. It is a process you will
live with for years so it has to fit your life.

You want to get the job done, but you don't want it to run your
life.

Your homework is to start dotting the "i"s and crossing the "t"s on
your wealth plan. You must emerge from this stage of the course
with a working document that focuses your daily actions so that you
actually produce the result in this lifetime (because very few
people will).

In the next email we will further explore the traditional financial
planning path to wealth - parking your earned income in paper
assets - so you can decide what role that will play in your plan.

We've largely ignored this traditional, slow, passive approach to
wealth (until now) because it is heavily promoted by the financial
planning industry making it better understood than the active
alternatives we've been discussing that planners can't sell you.

However, there are a few important twists and turns to passive
wealth accumulation worth noting that aren't commonly taught. We
will cover those in the next email.

See you in a few days...

Todd R. Tresidder - Founder
FinancialMentor.com
CreateCorp Business Solutions, Inc.
DBA FinancialMentor.Com
14085 Raider Run Road
Reno, NV 89511, USA

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