Dollars and Sense!

I have to be honest with you, I feel we can resolve a huge problem in society by ourselves, especially if we are parents. So many times I meet people who have just self destructed financially, and it's such a simple cure. A financial education needs to be instilled in every child from day one and if it were, we'd never have the likes of Nancy Pelosi irresponsibly spending 35k a quarter on bottled water and flowers, paid for by we, the taxpayers.

Financial wisdom ideally starts at a young age, but can be learned by people young and old. It's difficult as we live in an immediate gratification world.You can have everything with no money down and easy payments. The trick is self denial and financial disipline. Every purchase must be defined as a want, or a need. Here's the simple formula.

When income enters your life, step one is to take 10% and give back. If your a person of faith, give it to your church, if not, a charity of your choice will do. Here's the key to success, put away at least another 10% in your savings, more if your budget permits. Next we take the remainder and make a budget. Write down your financial responsibilities and dole out the respective amounts. Give yourself an allowance and write down what you purchase with it. EVERYTHING! You'll be amazed how quickly you run through it on just trivial stuff like, gum and coffee.

When you have a need or desire to purchase something, pay cash. Figure the total and raise the price of the purchase with a matching amount going into savings. This is the trick part. Learn to deny yourself until you've earned your purchase. It's the key to wealth and financial success.

Now we all want a better life for our children. Parents struggle to give their kids more than what they had. Herein lies the problem. So many times life fortunes are passed on without proper financial education, leading to short term glee and long term regret. Your not doing your children any service by blessing them with money they are not responsible with. Do them a favor and teach them financial responsibility from the get go. Financial windfalls are subject to the same rules,10% to charity, and the balance to savings, budget liabilities,and any want they have must be matched equally to your savings plan. Teach this formula and the world will enjoy a shortage of financial idiots. Sorry Washington!

Remember it's never too late to begin good habits. It's also never to late to teach good financial wisdom. Have that chat with your children today!

God Bless
Capt. Bill