finance

QuoteInspector.com / FLICKR.COM https://tinyurl.com/ybdfzjb4

“I’m insurance poor!”

Whenever someone raises the twin topics of insurance and affordability, a little red flag goes up in my little brain.

In 99% of the cases I see, the problem is not affordability, but effectiveness. Will the coverage you have actually DO what you want it to DO when the car wrecks, or the house burns? The question you should be asking is, “What coverage can our family afford NOT to have?”

Kim Davies / FLICKR.COM https://tinyurl.com/ya6ztgaa

Question: When we were growing up my father constantly reminded us to be responsible with money. But I always got the feeling with him it was about much more than being responsible. He seemed to get a lot of validation out of how much money we had, which I think went too far. As a result, I find myself shy about teaching my own kids financial responsibility for fear they’ll get the same message from me. Suggestions?

 

Most of the time we communicate our messages very clearly, despite what we say.

No where is that more true than in the home.

Philip Brewer / Flickr.com https://tinyurl.com/jge6bxd

The late Stephen Covey famously wrote, it’s always best to begin with the end in mind.

Suppose you are experiencing financial success…you are growing your wealth. Fine. But why? What is your purpose for building up wealth?

Sometimes when I ask people this question they look at me as if I’d just ask them why they are taking the time to breathe. “That’s just what we humans do!” they would seem to be thinking.

But I want you to think about something…

Jeff Turner / Flickr.com http://tinyurl.com/jjxhg88

Thinking about buying a bigger house?

Well, you never just buy a bigger house.

You also buy a bigger light bill, heating bill, water bill, insurance bill, decorating bill, remodeling bill, lawn care bill. And if you happen to move into that nice upscale neighborhood, you might also tack on to all the rest a larger set of expenses for a more upscale lifestyle (food, travel, entertainment).

None of this is necessarily good or bad. It’s just reality.