Does she have a smartphone? I have really grown to like mint.com. It records all expenses by syncing your bank account info (but no modifications can be made through the app), and divides them into categories, and shows how your budget is faring. I have never been particularly good at budgeting; mint makes it a heckuva lot easier.
mtn wrote:alfadriver wrote: this may sound odd. But depending on how much you want to really invest your time into knowing what to invest in, you may consider getting a financial analyst. My wife and I got one before we got married- which really helped, since we knew our spending habits and our retirement goals way before it became an issue. While I have friends who love doing their own work, and resarching their own stuff, that's just not interesting to me- I'd rather spend the time doing something else. So, for this case, that outside guideline will tell you both, face to face, some of the same stuff. And help make adjustments- like the example of multiple debts- you can consolodate all of that into one, with probable better rates, AND a better credit score since you are working the debts well. Cost can be an issue, but that is why you interview many of them before deciding. You can get an idea their core recommendations, if they are trying just to sell one thing, or if they really are going to look out for you. If you are ok with doing all of that leg work- that's cool. But if not, your own analyst will really help.Already in consideration. But whether we do or don't, we both need to at least understand it independently of what some adviser is telling us.
One note,
Most of the good financial analysts/planners will not work with you personally unless you have like $500K+ portfolios. Most of the financial analysts/planner who are under that level are getting kickbacks from the funds and annuities to get people to sign up. You can do better on your own.
http://bestmoneyinfo.com/ - This is the website from The Money Show that ran on a local talk station until the station switched formats. The co-host of the show is one of the highest rated Certified Financial Planners in Boston. They always had good information about what funds to buy and what investments to avoid. And they said you would do better just taking the list of funds they recommended and managing your portfolio yourself if you were under the $500K level. I listened to them for probably 8+ years. Very good info.
Dave's plan works! While many can argue the points as a justification to not doing the plan...it does work!
But it can be a long haul to the destination and all the points cannot be justified on a spreadsheet.
Paying off the smallest credit card first is important to get that win under your belt.
Credit cards handled properly CAN be an asset, but without a budget and savings they often get used as the emergency fund and the temptation to overspend is very real. If you don't think it happens, why are Americans running about 862 BILLION dollars of credit card debt?
It is a process, not something that can cure all ills in a month. Set a goal (step 1) and make it a priority to get there. Achieving the goal is a tremendous motivation to continue. It causes you to examine your spending and doesn't hurt as much as you think.
Nothing will show them that it works better than being a good example!
I think I have said this before here. Credit neither good or bad. It is powerful financial tool. Like the power tools I own, used with care, skill and safeguards, it will enable me to accomplish things faster than with just your own effort. Used carelessly/recklessly/ignorantly it can and will hurt you.
I am not removing the drill, circular saw, angle grinder or credit from my tool box. I am using each carefully and building skill with each over time.
Wxdude10 wrote: One note, Most of the good financial analysts/planners will not work with you personally unless you have like $500K+ portfolios. Most of the financial analysts/planner who are under that level are getting kickbacks from the funds and annuities to get people to sign up. You can do better on your own.
I disagree. Just because they offer comission sales does not make them bad. Especially when most of the management is about your 401k, in which they garner no money. Again, it's important to interview and find one- the ones who are just trying to sell comission funds are very obvious. A GOOD one will see the potential of two incomes, and understand that $500k is not very far off.
On top of that, while it's true one CAN do better, that does not mean you will do better. If one has zero interest in researching funds, it may be far better payout to pay someone to get you the best funds for your situation. I'm very positive that I'm paying less than the more being earned vs. me.
Seriously Vanguard for investments even when you break the 500-750K market it's still better then paying someone to poke a few buttons. Money begets more money just remember that.
The long long term goal is to get to the point where the investments generate enough each year that you no longer need to feed them aggressively if at all. The earlier that you start and the more aggressive you are with feeding the accounts the faster you will be able to get them setup and just rocking and rolling on their own.
In reply to alfadriver:
Oh, I completely agree. If you don't want to put in the time to figure it out, you should find someone to help. The problem is, like you said, finding a good planner. And if you don't know what you are doing, it makes it easier for the planners who just want to sell you something. Plus, there are a lot more of the commissioned planners in the marketplace for the small portfolio investor. Caveat emptor...
DILYSI Dave wrote: Really, the only "good" debt in my view is debt that is incurred in captial acquisition that will enable enhanced revenues. If the debt isn't making you money, it's bad debt.
Robert Kiyosaki "An asset is something that puts money IN your pocket!"
I agree with DILYSI Dave.
HiTempguy wrote:Giant Purple Snorklewacker wrote: The problem I see here is with that whole Step 7... mine reads like "Squander it all on racing and baller travel, die broke, berkeley the kids - let them get their own stash by following steps 1-6"You do know that the way the rich stay rich is by passing down their money... right? I hope this post was in jest. Wealth building is critical to the eventual goal of creating a sustained lineage of a well off bloodline. My parents are the first in the respective families to have done so for my sister and I (in the form of our inheritance's once they pass), of course, once they pass away it will be a formality as I will be fairly well off by that point through my own means, but by then my own (eventual) children, my children's children, etc etc will basically be provided for into perpetuity unless they cock it up somehow :p
What if you dont have kids and dont plan on having any? Is baller travel back on the table?
Wealth building is critical to the eventual goal of creating a sustained lineage of a well off bloodline.
In my experience, this is how you build lazy berkeleys who feel guilty about how much free money they have at their disposal, and therefore vote for people who want to take my hard-earned money away and give it to "underprivileged" lazy berkeleys. Trust fund babies = the decline of western civilization, IMO. YMMV.
poopshovel wrote:Wealth building is critical to the eventual goal of creating a sustained lineage of a well off bloodline.In my experience, this is how you build lazy berkeleys who feel guilty about how much free money they have at their disposal, and therefore vote for people who want to take my hard-earned money away and give it to "underprivileged" lazy berkeleys. Trust fund babies = the decline of western civilization, IMO. YMMV.
Dunno what to tell you? I've met many people like this who go on to do well in life, are great people, and fairly generous in their philanthropy. Once you have money, it's pretty easy to acquire more. While the life lessons might be valuable, as my parents always told us, "we didn't raise you to be happy, we raised you to take care of yourselves". I'd do the same for my kids. There is nothing honorable of slaving away as a serf to corporatism or government whim, or somehow being dirt poor and busting your ass forever to finally get ahead somehow produces better people. I've met pieces of crap from both walks of life. 
poopshovel wrote:Wealth building is critical to the eventual goal of creating a sustained lineage of a well off bloodline.In my experience, this is how you build lazy berkeleys who feel guilty about how much free money they have at their disposal, and therefore vote for people who want to take my hard-earned money away and give it to "underprivileged" lazy berkeleys. Trust fund babies = the decline of western civilization, IMO. YMMV.
I've seen this go about 4 ways--1, exactly what you described. 2, lazy berkeleys who want to protect their money, so they vote for people who won't take it. 3, those who divide it up among their family and favorite charities, so that each kid will be able to live a nice life supplemented by the inheritance, but not off the inheritance. And 4, those that just don't give a berkeley and do whatever the hell they want, thinking only of where their next party is gonna be.
My wife's grandmother did it "right" IMO. Sold off or gave away damn near everything in her last couple of years, passed away in a nursing home, left $1000 each to each of the great-grandkids, $10,000 each to each of the grandkids, and the remainder divided evenly among her kids (which was somewhere in the low 6 figures each IIRC). It was a nice "spreading the wealth" that was roughly equally valuable to each generations current lot in life, and it minimized drama within the family.
My grandad (the only grand parent that left the world with money) did it "wrong". A poorly planned estate, multiple conflicting wills, and a wife with dementia whose kids got along very poorly with his own kids. Tens of thousands of dollars in attorney fees later, his wife is a ward of the state to keep her kids from taking advantage of her, his kids are left with a house that is more of a PITA than an asset, and his nestegg is slowly being dwindled away by a combination of dementia care, lawyer fees, and estate maintenance.
DILYSI Dave wrote: My wife's grandmother did it "right" IMO. Sold off or gave away damn near everything in her last couple of years, passed away in a nursing home, left $1000 each to each of the great-grandkids, $10,000 each to each of the grandkids, and the remainder divided evenly among her kids (which was somewhere in the low 6 figures each IIRC). It was a nice "spreading the wealth" that was roughly equally valuable to each generations current lot in life, and it minimized drama within the family.
My grandpa/grandparents are along these lines. Grandma passed away in June, leaving 89 year old Grandpa by himself. Over the past 5-8 years, they have sold their vacation home, sold their rental property, Grandpa is giving away shoes (Allen Edmonds, Alden, NICE stuff), golf clubs, various nick-nacks, and now is talking about moving to an independent living facility. I doubt there is anything that anyone will fight over. Even Grandma's IPad was offered to everybody twice before my aunt told my dad to just keep it, since nobody was claiming it.
I honestly don't know how much his estate is, but I do know that he and grandma both are/were on Medicare, both had Blue Cross, and with Social Security were gathering an income on top of their personal retirement savings. So with 3 houses in there, it will probably be a pretty sizeable chunk to each--5 kids, 12 grandkids, and 1 Great-Grandson--but not enough to "ruin" anyone. I expect the Great-Grandson will be left out though, just to simplify stuff.
poopshovel wrote:Wealth building is critical to the eventual goal of creating a sustained lineage of a well off bloodline.In my experience, this is how you build lazy berkeleys who feel guilty about how much free money they have at their disposal, and therefore vote for people who want to take my hard-earned money away and give it to "underprivileged" lazy berkeleys. Trust fund babies = the decline of western civilization, IMO. YMMV.
Someone piss on your Wheaties? I know, have known several families and seen it go all ways. I know one family who was left over $5mil plus at least 3 houses in very very nice places in the early 90's, by 5 years ago they were broke, but they are the exception. I know several other very wealthy families that range from absolute libertarian to very left leaning Democrats. All of them live well below their means and have trusts set up for future generations. Some drive 5 year old hand me down cars, some buy a single new car every year. None of them take wild vacations or squander money. So in my experience I've seen exactly one family that money has ruined, the rest are looking out for the long term.
Adrian_Thompson wrote:poopshovel wrote:Someone piss on your Wheaties? I know, have known several families and seen it go all ways. I know one family who was left over $5mil plus at least 3 houses in very very nice places in the early 90's, by 5 years ago they were broke, but they are the exception. I know several other very wealthy families that range from absolute libertarian to very left leaning Democrats. All of them live well below their means and have trusts set up for future generations. Some drive 5 year old hand me down cars, some buy a single new car every year. None of them take wild vacations or squander money. So in my experience I've seen exactly one family that money has ruined, the rest are looking out for the long term.Wealth building is critical to the eventual goal of creating a sustained lineage of a well off bloodline.In my experience, this is how you build lazy berkeleys who feel guilty about how much free money they have at their disposal, and therefore vote for people who want to take my hard-earned money away and give it to "underprivileged" lazy berkeleys. Trust fund babies = the decline of western civilization, IMO. YMMV.
I went to high school with some very old-money people, and for the most part, the richer they were, the more regular-folks they were. It's the first- and second-generation rich people you have to watch out for. They're the shiny happy people with something to prove.
Johnboyjjb wrote: http://www.daveramsey.com/new/baby-steps/ Baby Step 1 $1,000 to start an Emergency Fund An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car transmission, and the list goes on and on. It’s not a matter of if these events will happen; it’s simply a matter of when they will happen. Learn more Baby Step 2 Pay off all debt using the Debt Snowball List your debts, excluding the house, in order. The smallest balance generally should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first. Learn more Baby Step 3 3 to 6 months of expenses in savings Once you complete the first two baby steps, you will have built serious momentum. But don’t start throwing all your “extra” money into investments quite yet. It’s time to build your full emergency fund. Learn more Baby Step 4 Invest 15% of household income into Roth IRAs and pre-tax retirement When you reach this step, you’ll have no payments—except the house—and a fully funded emergency fund. Now it’s time to get serious about building wealth. Learn more Baby Step 5 College funding for children By this point, you should have already started Baby Step 4—investing 15% of your income—before saving for college. Whether you are saving for you or your child to go to college, you need to start now. Learn more Baby Step 6 Pay off home early Now it’s time to begin chunking all of your extra money toward the mortgage. You are getting closer to realizing the dream of a life with no house payments. Learn more Baby Step 7 Build wealth and give! It’s time to build wealth and give like never before. Leave an inheritance for future generations, and bless others now with your excess. It's really the only way to live! Learn more
now no one needs to buy his books..
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