Money or the lack thereof is one of the biggest frustrations in most people’s lives. Recent studies have shown that besides the frustration we bring upon ourselves using our own money management system, when it comes to relationships and shared moneys we have a tendency to share our money with our opposites.
I wish I had a magic idea that would clear up the money dilemma, but I do not. All I can suggest is each side of a money debate work towards moving more towards the center line for the sake of both parties. The spender needs to adjust to the idea, that having money in the checking account on payday is okay. It is even better if it is moved to savings, but that is another step. For the frugal one, spending a little more saving a little less will not generally lead to financial catastrophe.
What I can suggest and perhaps it is a new thought for you if you are struggling with your finances, whether your own money, or the family money pool, is to look at what can be done differently. Being willing to look at finances from a different perspective may provide that needed nudge to the center of the spending chart where you are living within your means, but still having fun with your life.
I focus on three different areas of my life that need to be taken care of financially. Finding a proper balance between these three areas does not mean that life suddenly is wonderful and there is money to throw around, but life is easier. Finding a proper balance means that life may not be a spending spree, not having to work forever is somewhere down the road.
First and foremost, I believe the most important financial focus is your retirement age. Determine while you are young at what age do you want to retire at. Be an optimist, but also take into consideration your schooling and your ability to generate money. If you have no education and few prospects, retiring at forty is probably not going to happen. If you have won a mega lottery, you can do whatever you wish within reason.
Secondly, you have to decide on your life style. Determine what type of lifestyle you can be happy with. Some people are happy with very little and some people want it all. All of us find ourselves somewhere in between. No one can have it all, and no one reading this is in much danger of finding themselves with nothing, and no possibility of improving.
Finally, but not least, a decision needs to be made on what you are willing to accept in the way of food and shelter. While most financial advice puts food and shelter as a higher priority, it does not need to be. When one is sleeping, there is little difference between a thousand dollar mattress, and a pile of blankets, as long as you sleep well it does not matter. The same goes for food. You may wish to eat steak and lobster three meals a week, but oatmeal and beans serve the body as well if not better than more expensive eating may.
The reason I choose retirement as the first option is not obvious if you are young and starting out on your life. If you are like most people starting out in life, you do not want to work, but you need to make a living until you can retire. The age you can retire at if you can afford to retire at all in many cases is determined by how you spend your lifetime earning between now and the day you set for retirement.
Having a nice place to live, flashy cars, and spending money on wants instead of needs is fun, it definitely effects your retirement age. If you choose to retire at fifty, and you have an average job, buying a flashy new car and making payments, does not build up the money you need to be able to experience life at fifty and retired. Walking, riding a bicycle, or taking a bus is more in line with making transportation as cheap as you can.
We should choose daily what we want for our life. We can live on the edge now, and risk everything for the moment, or choose to have less now to have more in the future. What is your retirement worth to you when you? What is your life style worth ? What is what you eat and where you live worth?
