10 Commandments of Financial Happiness

Financial Independence/Retire Early -- Learn How!
Post Reply
wanderer
*** Veteran
Posts: 363
Joined: Tue Nov 26, 2002 9:33 am
Location: anytown, usa

10 Commandments of Financial Happiness

Post by wanderer »

Picture this. You have two American families.

The first earns less than $50,000 but is in control of the family money. These folks aren't anal with a capital A, but they've adopted at least four of the following six habits:


They balance their checkbook at least once a month.


They have some sort of filing system in place.


They pay their bills as they come in.


They don't spend more than they can afford on three or more things (though they may occasionally bust the budget on one or two).


They don't often buy things that they don't need.


They know where their money goes.

The second family earns at least 50 percent more -- upwards of $75,000 a year -- but its members don't feel they have as much control. They are not financial fiascoes across the board, but they have at least two of these six bad habits:


They don't balance their checkbooks every month.


Their finances are disorganized, so they have to scramble to find what they're looking for.


They pay all their bills once a month.


They spend more than they can afford on three or more items.


They often buy things they don't need.


They don't know where their money has gone.

Who's happier with their finances?

Neither one. Roughly six out of 10 families in both categories say they're financially happy.

My conclusion
Adopting good money-management habits is like earning another $25,000 a year. And that's it.

http://money.cnn.com/2003/09/29/pf/chat ... tm?cnn=yes
regards,

wanderer

The field has eyes / the wood has ears / I will see / be silent and hear
WiseNLucky
** Regular
Posts: 84
Joined: Tue Nov 26, 2002 3:59 am
Location: Florida

Post by WiseNLucky »

Your happiness doesn't hinge on how much you make. Your happiness hinges on how you handle it. Good luck!


I liked the conclusion.

The thought that keeping track of your money and following common rules of money management provides you the happiness of a 50% raise is remarkable.


As someone who is so close to zero debt that I can taste it, I disagree with her assertion that zero debt people are no happier than people who have a mortgage and car loans. Then, maybe I'm just wierd. I believe the contributors here are in a fiscal minority in today's world.
WiseNLucky

I just wish everyone could step back and get less car and less house then they want, and realize they don't NEED more. -- NeuroFool
User avatar
ElSupremo
Admin Board Member
Posts: 343
Joined: Thu Nov 21, 2002 12:53 pm
Location: Cincinnati, Ohio

Post by ElSupremo »

Greetings WiseNLucky :)
As someone who is so close to zero debt that I can taste it, I disagree with her assertion that zero debt people are no happier than people who have a mortgage and car loans. Then, maybe I'm just wierd.


I don't think your weird. If you are so am I. I've been debt free for decades and can say without reservation that I'm happier because of it. So there! :wink:
"The best things in life are FREE!"

www.nofeeboards.com
wanderer
*** Veteran
Posts: 363
Joined: Tue Nov 26, 2002 9:33 am
Location: anytown, usa

Post by wanderer »

lol. people rarely get in trouble for having 'too little' debt. I say that being a half a mill in the hole. :shock:
regards,

wanderer

The field has eyes / the wood has ears / I will see / be silent and hear
peteyperson
**** Heavy Hitter
Posts: 525
Joined: Tue Nov 26, 2002 6:46 am

Post by peteyperson »

As Dave Ramsey says, "If being normal means being broke all the time, I'd rather be weird!"

Petey
ElSupremo wrote: I don't think your weird. If you are so am I. I've been debt free for decades and can say without reservation that I'm happier because of it. So there! :wink:
peteyperson
**** Heavy Hitter
Posts: 525
Joined: Tue Nov 26, 2002 6:46 am

Post by peteyperson »

Were you just kidding?

Petey
wanderer wrote: lol. people rarely get in trouble for having 'too little' debt. I say that being a half a mill in the hole. :shock:
wanderer
*** Veteran
Posts: 363
Joined: Tue Nov 26, 2002 9:33 am
Location: anytown, usa

Post by wanderer »

no.
regards,

wanderer

The field has eyes / the wood has ears / I will see / be silent and hear
JWR1945
***** Legend
Posts: 1697
Joined: Tue Nov 26, 2002 3:59 am
Location: Crestview, Florida

Post by JWR1945 »

lol. people rarely get in trouble for having 'too little' debt. I say that being a half a mill in the hole.

If I am not mistaken (IINM), wanderer should have said having been instead of being.

Have fun.

John R.
User avatar
BenSolar
*** Veteran
Posts: 242
Joined: Mon Nov 25, 2002 5:46 am
Location: Western NC

Post by BenSolar »

JWR1945 wrote: If I am not mistaken (IINM), wanderer should have said having been instead of being.


Either that or he is using 'in the hole' for 'debt owed with out regard to offsetting assets' as opposed to 'net worth negative'
"Do not spoil what you have by desiring what you have not; remember that what you now have was once among the things only hoped for." - Epicurus
User avatar
ataloss
**** Heavy Hitter
Posts: 559
Joined: Mon Nov 25, 2002 3:00 am

Post by ataloss »

W has some big time leverage :wink:
Have fun.

Ataloss
wanderer
*** Veteran
Posts: 363
Joined: Tue Nov 26, 2002 9:33 am
Location: anytown, usa

Post by wanderer »

my god you guys require precision! :wink:

you're all correct: I meant, against the related value of the rentals/land (which exceed the amount of debt), we have about $500k of debt. W&L can confirm this trait (at least among non-dishonest accountants): we generally abjure 'netting'. :wink:

ataloss - leverage is relative. you should see our coverage ratios. :wink:
regards,

wanderer

The field has eyes / the wood has ears / I will see / be silent and hear
WiseNLucky
** Regular
Posts: 84
Joined: Tue Nov 26, 2002 3:59 am
Location: Florida

Post by WiseNLucky »

W has some big time leverage


$500K sounds like a lot, but 80% mortgages on only four $160K rental properties would do it. He might have even refinanced in the recent favorable mortgage climate and pulled out some of his equity at really low interest rates if he had a better place for the money.

One would have to see the asset side of his balance sheet to know whether $500K is "a lot" of debt for him. It might not even be big time leverage.

To me, $500K would be A LOT :)
WiseNLucky

I just wish everyone could step back and get less car and less house then they want, and realize they don't NEED more. -- NeuroFool
User avatar
ataloss
**** Heavy Hitter
Posts: 559
Joined: Mon Nov 25, 2002 3:00 am

Post by ataloss »

ataloss - leverage is relative. you should see our coverage ratios.


I meant prudently large :wink: and iirc less large since the increase in re prices
Have fun.

Ataloss
Post Reply