| 99 Personal Money Management Lessons to Live By |
| 1 | Why Didn't They Teach Me This in School 99 Personal Money Management Principles to Live By Cary Siegel A Gift to My Children Sam, Sabrina, Julia, Jack, and Luke: I hope the wisdom you gain from this book will allow you to avoid the financial pitfalls of my generation. Caveat to All Understand this is one man's perspective that he is giving to his children. It worked for me in my early years and works for me now as I am firmly entrenched in middle age. |
| 2 | Hopefully, it will help others think about their own personal money management. As young adults mature, so should their money management skills. Principle 1 MARRY THE "FINANCIALLY RIGHT" PERSON When I say this, I don't mean marry a financial genius or someone who is wealthy. Marry someone who has good financial habits. This personal quality is often ignored during the "courting" process. In fact, you are usually trying to impress the opposite sex with expensive dinners, extravagant dates, and impressive presents. |
| 3 | If you can't afford something when you're dating, you most likely won't be able to afford it when you're married. Show your partner who you really are financially, and make sure he or she shows you who he or she is before marriage. Don't surprise your partner by changing your financial habits when you're married (and ask the same of your spouse). At that point, it will cause significant issues. Money is one of the biggest things couples fight about. |
| 4 | Talk about your "money philosophy." Are you a saver? Is she a spender? Do you believe in debt? Do you want to own a home? What are your assets? What is her salary? Does she owe money? What are the credit histories and credit scores for both of you? Does she have a budget and adhere to it? These are easy questions to answer but not so easy to ask. They are so important, though. You need to have full disclosure of your past, present, and future financial lives. |
| 5 | You will learn not only a lot about your potential future spouse but quite a bit about yourself. Principle 2 STAY MARRIED TO THE "FINANCIALLY RIGHT" PERSON The quickest way to a financial downfall is divorce. Think about it: Besides the emotional turmoil, at best you split your money in half. At worst, you lose almost all of it through legal fees, administrative costs, excess living costs, alimony, and child support. |
| 6 | I always tell my wife that staying married to her is the main reason I was able to retire at age forty-five. Sure, I did well in business and followed my principles of money management. However, thousands of executives who made more money than I still have to work to support their third or fourth family. Be happy with what you have. The grass is rarely greener on the other side. Do your homework with principle 1. |
| 7 | Make sure your spouse is frugal, shares the same "money philosophy" as you, and understands that marriage is forever. Have honest discussions about your financial life throughout your marriage. By this, I mean write down and talk about your monthly budget, net worth, financial problems, opportunities, and future financial goals. These need to be ongoing discussions not once a year, but monthly or more often. |
| 8 | This thought process will extend to other aspects of your marriage. If you do this, you'll be setting yourself up not only for financial success but also for an open, honest marriage. Principle 3 HAVING AND RAISING CHILDREN COSTS LOTS OF MONEY First, let me say that I love children. Given that I have five of them, it should be obvious. However, I also have to say that the cost of raising them continues to surprise me. |
| 9 | It's very difficult to say no to your children. You want them to be happy, and happiness usually means that they get "stuff." When you add up the cost of raising kids, the obvious expenditures come to mind: education, childcare, healthcare, food, and clothing. However, don't forget to include things like a larger house, larger car, higher utility bills, entertainment, sports, and other activities they will participate in during their childhood. |
| 10 | The cost of having and raising a child is anywhere between $200,000 and $250,000 (before college expenses), depending on your income level and spending habits. That's a huge expenditure for anyone! Ultimately, you will spend more money on them than on yourself. You can't be selfish (monetarily or otherwise) if you are going to have children. More importantly, you need to fully understand the long-term financial (and lifestyle) tradeoffs of your decision. |
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