5 Ways to Take Back Your Finances

Lately I've been meeting women who have found themselves in precarious financial positions for surprising reasons. Does any of this sound familiar to you?

Liz just found out that her family is broke because of some bad investment decisions her husband has made. Rita recently got divorced and although the family was 'living the life' before the divorce, she received very little in child support and is living off savings. Or Lori, who just lost her husband - he managed all the family finances, and now she finds herself drowning in paperwork (and a little scared)!

It's bad enough when financial crisis happens, but when one partner is fully unaware - it's even worse. Many households divvy up family chores to make life easier on everyone. But, finances should always be a family event. Here are 5 things to do now to keep your family on track, and making better financial decisions!

5. Get your credit report

Not everyone realizes that your credit report is just that - yours and yours alone. There is no such thing as a joint credit report. You can get a copy of your report for free, from each of the three agencies, once per year through annualcreditreport.com. Check the report for anything that looks unfamiliar - these are red flags that something is going on with your credit without your knowledge.

4. Read your tax return

Sound difficult? It doesn't have to be. While understanding your whole tax return might seem a bit complex, start out by becoming familiar with some of the most important numbers to see if they pass the "reality test" with you. Check the Wages (line 7) and the Ordinary dividends (line 9), and Capital gains or (losses) (line 13) - do these pass the smell test? How have they changed over the years? If something seems odd, you have every right to follow-up on it.

3. Save now for your future

Sometimes the biggest loser in a financial crisis is your retirement! Avoid this by funding your IRA or retirement plan at work each year. Even if you do not work outside of the house, you can generally contribute to an IRA and you should be saving for your future. This money cannot be taken from you without your permission and is generally protected from creditors. The same is true for your college funding. Each year, contribute to your children's 529 plans. Once again, this money is rarely touched for creditors or a divorce settlement. Therefore it should be there when you need it most. (It also makes a great deduction on your taxes in many states.)

2. Become familiar with your investments

Review all of your current investments with your spouse. Realize, as you go through this step, that most families with average, or even above average assets, do not need to go far to find the right investments. For most of us, the basic bank accounts plus some mutual funds will meet our investment needs well into the future. For that matter, betting on a less-well-known fund company is generally a bit riskier than the tried and true big mutual fund companies. These companies are under much more scrutiny, and are much more transparent than the smaller companies - and they offer everything you need at a reasonable price. The lesson here is: if it seems too good to be true, it probably is. Don't go out on a limb unless you truly know how to evaluate an investment.

1. Sit down together and set goals

Honestly, how often do we do this? As husband and wife, probably with a few children, we fly through life and generally let it take us for a ride. We rarely sit back and think about where we see ourselves in five or ten years and direct our actions towards those goals.

The breadwinner in the family can sometimes feel an unnecessary pressure to over-provide for the family. This can cause him or her to take unnecessary risks with investments or overextend the family finances. Sitting down once a year to set the record straight on spending and saving expectations can put these fears to rest and reset priorities in a way that relieves the pressure.

Each of the steps listed above are ideas to get you and your spouse on the same page with investments. Making sure your money is working hard for you is central to helping your family meet your future goals - whether they're retiring early or buying a boat or starting a new business. When you plan your future as a family, you're sure to get there faster!

Self Discipline Is Not All You Need For Healthy Finances

Recently, someone told me "if I only had more discipline, I could get ahead financially". What struck me as odd was this person recently retired from the US Marine Corps. How much more discipline could this person possible have. Then it occurred to me that perhaps discipline was not the only thing we need for stronger healthier personal finances. Perhaps self discipline only contributes to a small percentage of our financial success. Here is what I found:

-- You need the RIGHT tools --

I love watching commercials on TV. Recently there was a commercial that portrayed a man who was showing off the handcrafted framing hammer his dad had given him as a gift. But would he use it to frame a house? Of course not! He help up the most powerful nail gun I had ever seen and proudly proclaimed this is what it truly takes to get the job done.

What tools will you use in your personal household management? Would you build a deck with a table knife and plastic screwdriver? Would you hammer a nail with a pipe wrench or the sole of your shoe? Will you spend your hard earned money without a plan or a purpose?

-- You need the RIGHT budget --

To begin with you need a good working monthly budget. Not just any budget. Most budgets never work or are very frustrating to use. If you use the wrong budget you might as well saw wood with a table knife. Boy, will your hand hurt after awhile.

I prefer to use a monthly cash spending plan called a "zero based budget". It is simple, easy to use and it works every time. It can be done on paper or inside of an MS-Excel spreadsheet. First, put your income (take home pay) at the top. Second, set a little aside for giving and saving for emergencies. Third, pay all your basic expenses such as housing, food, transportation and clothing. Last pay your credit card debt and miscellaneous expenses. Spend **every** dollar. Your income minus your expenses MUST equal zero or you have to go back a reallocate somewhere. Do one cash spending plan for every month. Every month is different so don't try to make that ghastly unrealistic magic budget that you will never be able to make work.

-- You need the RIGHT cash management system --

Want to give yourself a 12-18% raise without increasing your current salary by one penny? Use cash! When you use actual cash (not your credit card, debit card or ATM card) you will spend 12-18% less and feel greater control of your finances and your life. You will not starve or do without. Though it may not hurt a few of us to go on a diet, you will not suffer any ill effects.
The cash envelope system has been around for decades. It was most commonly used in the 1930's and 1940's. For example, Joe and Suzy would sit down at their kitchen table the first of every month. They would take Joe's paycheck, cash it and distribute the money into several envelopes. They had one envelope for their rent or mortgage, one for gas and electric, one for vacation, one envelope for gas for their car, one for groceries, and one envelope for eating out, and so on. They spent only out these envelopes and if the envelope was empty they did without or transferred money from another envelope. This is by far the simplest and most effective budgeting system known today. A modified version of this system is now being taught by consumer financial education specialists and is used by families today.

-- You need the RIGHT mindset -

Personal values and principles play a large role in healthy personal finances. From our values and principle we derive our boundaries. Would you feed your children only candy and ice cream at all hours of the day or night as they demanded? Of course not.

Our local electronics store has to mop their floor every night. They have to mop the saliva and scuff marks from in front of the huge 47 inch plasma TVs. Customers come into the store, skid to a stop in front of the big televisions sets and salivate all over the floor. It happens all the time. Our inner child comes out to play when we least expect it.

So, why do we allow our inner child to tantrum every time we go to the local store, car dealership, gold pro shop, or restaurant? Ok, you may think I am hitting a little below the belt here and perhaps I am. But think about it. That grocery store kid that lives inside of us needs just as much love and care our external kids. We need to establish and hold ourselves true to the same healthy boundaries that we would impose on those around us.

Don't be confused. A boundary is not the same as self discipline. A boundary is simply a line that we will not cross and that we will respect. We establish boundaries all the time. Self discipline is the commitment to stay true to our boundaries, values and principles. Many have all the self discipline they will ever need. In fact, we have all the discipline there is in the world today. What many lack is the understanding of our boundaries.

Family Finances - A Role For Both Spouses

Dad mows the yard, cooks all the meals, and handles all repair jobs. Mom does all the grocery shopping, is in charge of taxiing the kids to their 'practice du jour', and takes care of the laundry.
Division of household duties such as these sounds all too common these days. In most cases, the handling of family finances falls to a particular spouse as well. However, when it comes to the family finances, it is imperative that both spouses play a role. If not, the result could be a devastating blow when a spouse is left to pick up the pieces.
The primary risk faced by a household which has one spouse managing the family financial affairs alone is that the other spouse is left completely in the dark. Being the financial decision maker in the family, if something were to happen to you would your spouse be able to step in and manage the family wealth? More times than not, the death of a spouse is the immediate situation people think of. But the same can be said about being a spouse of a soldier being sent half way around the world for the next year, or someone who is too ill to continue handling the family finances. Even if you expect your spouse will turn to a financial planner or advisor for help when you are not available, will your spouse even know where to look for such help much less what questions to ask?

Taking a proactive approach to bringing your spouse up to speed on your family's finances will pay huge dividends in case the time comes when you are not around to assist. Most financial advisors will agree that there are six questions your spouse needs to be able to answer regarding your family's financial picture.
1. Who Do I Need To Contact?
This first step is the most critical. Your spouse needs to have a well prepared list drawn up for him or her listing your important contacts. These include, but are not limited to, financial planners, accountants, attorneys, insurance agents, and bankers. Anybody who has a role, as slight as it may seem, in your family's finances needs to be on this list. For each person on the list you should include their names, company names, addresses, phone and fax numbers, and email addresses. A brief overview of what each one of these individuals has done for your family would be beneficial as well.
2. Where Is Everything Located?
Your next step is to outline what assets are held and where they are held. These assets include not only any personal investment accounts, but also company retirement accounts and insurance policies. Other documents of equal importance are your wills and ancillary documents, such as your Power of Attorney documents and Living Will. If you currently do not have these documents in place, it is critical you do so as soon as possible.
Organization is critical. A well-organized filing system will lighten the already mounting stress felt by your spouse or loved ones forced to pick up where you left off. Start by creating folders for each investment and bank account, estate planning documents, insurance polices, etc. and be cognizant in what information is contained in each. For example you will want to keep investment account statements and trade confirmations, but you can throw away annual reports, prospectuses, and marketing material. With insurance policies you will want to keep the policy statement that is currently in force, but you can throw away older policies that have lapsed.
Once this has been done, consider creating a master directory that lists all of your accounts and account numbers, names and numbers to the appropriate contact person, any website addresses and login/password information to gain access to your accounts. Store this information in an ultra-safe place such as a home safe, safe deposit box at your bank, or in a password-protected file on your computer (and make sure your spouse knows that password!).
3. How Are We Doing Financially?
Your spouse does not need to know about every trade you make and every stock you may own; however, you should sit down as a couple from time to time and review your current financial picture. How much do you have now and how much of that is liquid (how easily can it be converted to cash in an emergency) are just a few items to discuss. Are you on track to reach your shared goals? If not, what steps need to be taken now to get you pointed in the right direction?
Deciding how much to spend, save and invest each month is a basic discussion that every family needs to have, and both partners should be involved in those decisions. There is a saying: It is best to discuss your finances on the 1st than to argue about them on the 31st.
4. In What Order Should I Access Our Assets?
While some of your assets can be accessed at any time, drawing on other assets may result in unnecessary fees, penalties and taxes. Your spouse needs to know which accounts and assets to tap into first should the need arise. He or she will need to know which assets are more liquid and those that are not. The standard rule of thumb is you will want to have at least three to six months of living expenses in a highly-liquid account for emergencies. Ideally, this will be held in savings accounts, money market funds, or certificate of deposits (CDs). If you are retired and are dependant on your portfolios for living expenses, a good target to shoot for is two to three years of living expenses in highly liquid accounts.
5. Who Do I Turn To For Help?
You may be the go-it-alone type when it comes to your investments and family finances, but it may be unrealistic to expect your spouse to follow in your footsteps. It can't hurt to assume the possibility that your spouse will be in need of a financial planner or advisor. Start asking your friends and co-workers if they are working with an advisor or could refer you to someone.
As with most professions, numerous professional designations exist in the field of financial planning. The most widely recognized is the Certified Financial Planner (CFP®) designation. Financial professionals who carry the CFP® designation have been educated and tested in all areas of financial planning, including estate, insurance, and tax planning - not just investments. Additionally, they must maintain a required amount of continuing education each year and adhere to a very strict code of ethics. Other designations in the industry include the Chartered Financial Consultant (ChFC), Chartered Life Underwriter (CLU), Certified Personal Accountant (CPA), and the Personal Financial Consultant (PFC), and most of these designations carry education and continuing education requirements as well to maintain the credential.
In the end, however, you will want to find a financial professional who shares your philosophies on life and your finances, and has experience working with others who have needs similar to yours. Professional designations are important; finding someone you trust is critical.
6. Where Can I Learn More?
Even with a financial planner or advisor in the wings, it is important for your spouse to know where to turn to build a basic foundation of financial literacy. For a spouse that is not used to finances, more times than not any book on basic investment and financial topics won't fall into the 'I just couldn't put it down' category.....it won't be a fun read. Having a handful of commonsense investment and personal financial planning books will, however, provide a lot of useful information in an easy-to-digest format. A few examples are The Only Investment Guide You'll Ever Need by Andrew Tobias, and A Random Walk Down Wall Street by Burton G. Malkiel.
Another option to consider is taking a personal financial planning course at your local university or community college. Non-credential courses are very affordable and are offered at various times and days of the week to conform to your schedule. More importantly, it can provide enough information to make the transition from having never touched the checkbook to actually running the family finances much more seamless.
Nobody wants to think about life without their spouse. Not having your financial ducks in a row, along with a financially-educated spouse who will be able to pick up the baton and run, will only make the transition that much more difficult.....both emotionally and financially. Take the time to sit down together and start this indispensable process.

Article Source: http://EzineArticles.com/3538747

Family Budgeting - The 3 Key Secrets to Success

While there is some truth in the fact that it can prove to be a time consuming task that requires a little patience and diligence, it can result in many rewards. Here are just some of the basic secrets of success in creating your family budget.

Family Budgeting - Secret 1

The first secret of success when it comes to budgeting for the family, is to develop a goal (or more than one goal if you like!). Without a goal, or something to work towards, you will find that it is difficult to stay motivated enough to stick to your personal finance budget.

A goal that is appropriate to a family budget, may be something like, say, accumulating enough cash to pay off any outstanding debts; saving for a down payment on a home; buying a new family car even.

The choice is yours when it comes to setting goals, but it is a choice that must be made, to ensure success when it comes to disciplining yourself to a budget for your family.

Family Budgeting - Secret 2

The second secret to creating a successful family budget is making certain that you take the time to carefully outline all of your recurring expenses, as well as any other spending that you may take part in.

You will want to outline all of the money that goes out on a monthly basis, such as utility costs, mortgage and/or rent payments, and any type of insurance coverage that your family may have.

Once you have done this, it is important to take the time to create a detailed list of all the other spending that you engage in. This may include eating out, family entertainment, and various other expenses.

The whole idea is to get a glimpse of what you have coming in, and to ensure that what you have going out is relatively less.

Family Budgeting - Secret 3

The third way that you can create a successful family budget, is by ensuring that all of your previous debt is handled in an appropriate manner. If you are unable to completely cover the debt that you have, you should take the time to make certain that the budget that you create allots a certain amount towards those vital financial goals.

It really is not possible to step ahead until all of your previous steps have been covered. You should elect a certain percentage of your total income in order to do this. Once you have done this, you will find more and more funding becoming free for you to use towards your financial goals.

Once you have carefully outlined your goals, written down all of your spending and are committed to working off your past debts, you will find that creating a family budget that you can be successful at is not difficult at all!

It will take a little time, and quite a bit financial action and in the end, creating and delivering a successful family budget will be one of the most rewarding experiences that you can benefit from for many years to come!

Finances For Having a Baby

Summer brings more than just warm weather... it brings new life. More babies are born in July and August than in any other months of the year. Bringing a baby into the world can be one of the most fulfilling and exciting times for a family but, in the midst of the joy and excitement, don't forget about the financial responsibilities that go along with parenthood.

Here are some things new parents should do to ensure a sound financial future for themselves and their families.

1. Budget for your baby. Having a baby means a whole new financial plan has to be made. Hospital bills, taking leave from work, new furniture, and a bevy of baby necessities will soon put a big dent in your wallet. So, plan your spending accordingly. Will both parents work? Who will stay home? Will one income be enough? Ask yourself these questions and be sure of what your income will be.

2. Make a will. This allows you to designate not only how your possessions and finances are handled, but also who will be the guardian of your child in the event of your death. There are a number of online resources to help you with finances and planning, but it's best to consult with a lawyer.

3. Get life insurance. In the same vein as the will, you want to have something to leave your family if something should happen to you. You generally want to have enough to cover about 5 times your annual income. Depending on your job, you may also want to consider disability insurance.

4. Save for retirement before college. Some would think that the kid's college fund is more important. There are loans and scholarships to help with college tuition, but not for retirement. You can put your kid through college, but he or she may end up bearing the burden of your elder care because you'll be broke. You can still save for their college, but try to put 10% of your income towards retirement first and any extra money can go into the college fund. If necessary, you can withdraw money from a Roth IRA with no tax penalties if the money is used for college expenses.

Having a child will change your life. It will be a joy and, if not properly prepared, a financial burden. If your stork is on her way, now is the time to put a plan in place so that when your bundle of joy joins your family, you are financially prepared. A little planning for your family finances goes a long way.

5 Tips For Managing Your Family Finances Successfully

Day by day as inflation is increasing but real income decreases, it is important to make sure you have a plan to maximize your financial resources. With a plan like a family budget, this helps to ensure that every cent you earn is well spent.

When is the best time to do this? The answer is now. Now is the best time to start the process of looking over your family finances in terms of spending and savings. By taking time to access and setting up a budget can affect the way you use your income as well as helping you and your family to be on your way to economic stability.

In accessing your situation and planning a budget, there are many factors to be considered. Factors such as your source of income, lifestyle, spending habits, current jobs, cost of living, debts and loans. All these factors will determine your budget needs and how successful your budget will be.

Below are 5 tips and recommendation that will provide some details to you on how you can manage your family finances successfully. Hopefully with this you will look at budgeting differently and become more responsible in spending money.

1. Try your best to save as much as you can when you are doing your shopping. There are many ways to do this and one of them is to do comparison-shopping using the Internet before your usual shopping. You can also do that while you are shopping too. By practicing this as a habit, this will save you money in the long run.

2. Another tip is to purchase in bulk if possible. Then you can use coupons or wait for special sales or when the stores are offering discounts. Again you can do this online or make phone calls.

3. Do not gamble. This might seems obvious but it is a known fact that gambling is one main factor that causes financial ruins. Gambling not only waste your hard earned money but may even results in unpleasant legal action which eventually leads to bankruptcy over the long run.

4. Learn to differentiate what are your needs and wants. Always practice to limit your spending to things that you really need and not things considered as want. Studies had shown that luxuries are only second to gambling in terms of the money wasting capability.

However it does not mean that you cannot purchase things that you want. Just make sure that you had planned ahead for the said purchase and that the purchase does not over shoot your budget and laden you with debts.

5. Do not over spend. What this means is not to spend more than what you earned. Again this tip is very obvious but sometime we just do not heed what is obvious and logic. If you spend more than you earn, where will there be money left to save and invest? This is why making a budget is important.

With a budget, this will help you to consider the amount of the purchase and how it will impact your finances and life. Do take time to create your budget and as well to think before you buy and living within plus sticking to your budget will be easier.

Hopefully with the above 5 tips, you had found them useful so that you can successfully manage your family finances and be on your way to achieve your family financial goals.

Family & Marriage Finances 101 - The 14 Essentials Everyone Must Know

There are two words that are very closely synonymous with the two words 'family happiness' - those two words are 'family finances'! Notice I did not say 'family wealth' - happiness in a home, marriage, and family is most often directly correlated with the ability of the parents to properly manage (not necessarily accumulate) and budget their finances. It is unfortunately true that over 80% of all divorces result, in some way or another, because of finances. More tragic than the divorce is the fact that families are torn apart, children suffer, and society is feeling the negative ramifications of this all too common reality.

At the outset, it is absolutely important to note that the 14 essential principles described below are not designed to teach people how to accumulate wealth through the application of the principles described. The sole objective in revealing and explaining these principles if for one purpose - to help marriages and people everywhere experience the family happiness that results from the application of simple financial principles. Will applying these principles require effort and a change? Certainly! But does not everything good and worth while in life also require change and consistent effort?

Fortunately, with a little education, self-discipline, and effort, we truly can ensure that our 'family finances' result in 'family happiness.' May I suggest 14 ways on how to accomplish this:

1) Establish a budget and live within your means: First, do you even have a budget? If so, do you actually live by it? Do you actually record every expenditure, so that at the end of the month (when you sit down and go over finances ... right) you know where every penny has gone? At the end of the month as you look over the finances, did you purchase something you did not need? Stick to the budget and live within your means!

2) Never accumulate consumer debt: Do you know the difference between Good Debt vs. Consumer Debt? Good debt is when you have to borrow money for some type of an investment: a house, your education, or to start a business, etc. Consumer debt is simply purchasing anything on credit outside of these three areas. If you don't have the money to buy it - don't buy it!

3) Credit cards are NOT bad: Now, above on point 2 I mentioned to never purchase anything on credit you don't need or have money for. That does not mean you can't purchase your groceries or other expenditures on a credit card (in fact, I encourage you to do that). Using credit cards, properly, is essential to your financial success. What is the proper way to use a credit card? It is simple: never use more than 25% of the credit limit, make your payments on time, and pay off the entire balance at the end of the month.

4) Understand the importance of building and protecting your credit: In my opinion, protecting your credit is just as important as protecting your social security number. Your financial future and success hinges upon that report/score. Do you want lower rates, better jobs, larger loans, better pay, etc.? Than you better protect your credit. I tell people all the time that investing in Identity Theft Protection is just as important as any Life Insurance program in our day and age. Now, do you know how to build and improve you score/report? It really is simple: never use more than 25% of the credit limit, make your payments on time, and pay off the entire balance at the end of the month (sound familiar)!

5) 'Wealth' is not the accumulation of money, it is the proper management of it: Our culture and society certainly has a skewed perception of what true wealth is. If, for example, an individual makes 1 million dollars a year, we assume they are wealthy. Well, if that person spent 1.2 million dollars that same year, that certainly is not wealth is it? In fact, the promotions and pay raises we all seek in our jobs will do little if we increase our spending as our income increases. Robert Kiyosaki refers to this habit as the 'rat race.' We need to learn how to properly budget, manage, save, and invest our money - not just spend it. Thus, true 'Wealth' is getting out of this 'rat race,' it is financial independence, it is passive income, and it is time freedom. Learn now how to manage your money before it manages you! Both men and women would do well to change their perception from 'how much can my spouse make' to 'how well do they manage their finances.'

6) Self-Discipline and Self-Restraint are essential: Self-discipline in regards to money is far more important than any advanced course in accounting or financial management. Parents would do well to develop this ability, and they would be wise to teach this to their children. However, please don't mis-understand - 'self-discipline' does not translate into self-denial or impoverishment. There is nothing wrong with buying 'things' that are fun, entertaining, or that the kids would enjoy. Where the line must be drawn is in the questions 'can we afford this' or 'is this in our budget' or 'do we actually need this' etc. And, ironically, self-discipline in financial matters will translate into self-discipline in other areas and aspects of life.

7) Saving Saves: That's it - just save! Learn now to discipline yourselves and budget 10% of all earnings. Save for a rainy day, for retirement, for kid's college funds, vacations, investments, etc. Avoid consumer debt, prepare for disasters or unemployment, and save 10% of all earnings - ALWAYS!

8) The importance of Insurance: Do you have proper and adequate home insurance, life insurance, health insurance, and car insurance? If not, you are potentially setting yourself up for financial disaster. And, in our day and age, do you have Identity Theft Protection? This type of insurance is just as, if not more important.

9) Wants vs. Needs: Wise is the wife, husband, parent, or child who can discipline themselves financially. The ability to sacrifice, go without, save, be patient, and determine wants compared to needs is an absolutely necessary attribute to develop; ironically, this attribute is not only necessary for finance-related issues, but every aspect of our lives!

10) Money is NOT Evil: Unfortunately, the majority of people have engrained into their minds that money is evil. Money is NOT evil; it is the pride people develop from possessing and accumulating money that causes others to perceive money as being 'evil.' A wealthy person's snobbish attitude, condescending comments, assumed superiority, and arrogant actions are what is 'evil' - not the money! 'But the money created the pride,' some may wrongfully say; no, the choice to become prideful is what created the pride. Money is absolutely necessary for our daily survival; and if we choose, our excess money can also free up our time and create opportunities and resources that help and bless other people's lives. We need more people who choose to acquire wealth for charitable purposes, and less people who develop the strength to financially suffer because they ignorantly believe 'money is evil.'

11) Communication & Involvement is Essential: If you are married, are both of you involved in, informed about, and joint decision makers in the financial affairs of the family? If not, the very question should reveal the necessary changes needing to be made. Are children simply given money, or are they expected to work for and earn it? Grateful will be the child, and wise would be the parent for teaching their child this reality of life in the real world. And perhaps just as important, are children taught the very principles described in this article - saving, compound interest, credit, insurance, wants vs. needs, etc.? The fact that this article even needs to be written should suggest that our educational system fails to teach these important principles, which should suggest that if any parent is dependent upon others to teach their children these necessary financial principles - they will pay for it, literally!

12) Investing in Appreciating Assets, Not Depreciating Liabilities: How often are we personally guilty of ensuring that our car is loaded with the best features, our clothes are updated with the latest fashions, or our sheds and garages are filled with all the fun toys and tools? There is nothing necessarily wrong with having these (see point #13 below); however, how unfortunate it is when excess funds (or what's worse - funds/debt obtained from credit) goes to obtain more toys, cars, and clothes rather than assets that will appreciate over time. The key to financial independence is not obtained through pay-raises, promotions, 401(k)'s, or even the lottery - it is obtained by applying the principles discussed in this article, and more importantly, buying appreciating assets rather than depreciating liabilities.

13) Be balanced and enjoy life also: Sometimes I read articles of couples who save every penny (literally) so they can retire at age 40. Some are able to do this, and good for them. But, let's be realistic and also enjoy life as well. Perhaps it is setting aside a few hundred dollars a month, or just $20 - but take your wife on a date, treat your kids to pizza, go out to a movie, etc. Have fun and be balanced!

14) Give and you shall receive: Ironic that this is on the list - but it is not last suggesting it's least important. In fact, it should be number one on this list! Learn now the great truth that when you give, you will receive. The 'giving' will be different for everyone. For some, it may mean giving to a charity, giving to a neighbor, to a church, to a family member, etc. But, give with no expectation or thought of reward or return, and you will receive much more in return, somehow in someway, but it will happen!

In conclusion, never forget that this is not about saving, budgeting, or investing properly - this is about happiness in your marriage and family life. A great credit score, a large bank account, an excellent insurance policy, and even a healthy retirement account are comparatively insignificant compared to the marital and family happiness, which can be achieved by applying the principles above.