Successful money management starts with planning for expenses. There are multiple areas of expenses that are necessary to consider. Planned expenses and unplanned expenses. The great thing is that you can plan for unplanned expenses.
On a monthly basis, you should start by mapping out your planned expenses.  This includes fixed expenses like rent and utilities and also “lifestyle” expenses such as food, entertainment, etc.  Add up these numbers and call it P.
Next, determine a budget for unexpected expenses.  These are expenses like home maintenance, auto maintenance, medical …

I have a personality and a mind that enjoys challenging the mainstream, status quo. If you read my blog, you know I offer opinions on things such as diversification, retirement, income and even home ownership that is not the mainstream views on these subjects. Part of this natural thought process is genetic for me, and I think part of it is that I have read with an objective mind many compelling arguments for such challenging views. The traditional savings and retirement equation needs to be challenged I …

Cash flow is the ultimate goal whether you’re an individual or a business.  Cash flow is what is left over from your revenue or income after all expenses are paid for.  There are decisions on how to allocate the cash flow such as investing, saving, etc. but it’s meaningless unless you actually are accumulating cash flow.
Let’s look at various ways to cash flow from two perspectives: a business and an individual.
Cutting Costs – You Only Can Do So Much
If you have paid attention to the earnings reports over the previous …

I have a close friend that recently just quit his job and is starting a company.  He’s in his mid-twenties, and sure the economy sucks, but neither is stopping him from going for it.  Very cool.  What I’ve really taken away from his journey is the way that a person who is launching a start-up manages his or her life and finances.  Then, it struck me as odd that we don’t manage our lives this way more often, even if we’re not starting a new company.
Unexpected Expenses
A few days after …

Who wants to play Monopoly? This question is usually followed by a chorus of moans and groans. After all, who really wants to commit the next four hours of their life to something that seems to inevitably end in a brawl? I happen to love Monopoly, but finding players to participate in this historical game always proves to be a difficult task. But if you look past all the ordeals such as fighting over the rules, trash talking amongst family, or that friend that suspiciously must …

Getting married is one of the things that many people experience for the first time during their 20s (I’m still a newly wed).  Financial issues are some of the most common issues that people have to work out when you get married.  Merging finances, salaries, spending habits, saving habits and everything else can easily cause tension.  There is a way to methodically get through this transition and be able to focus on your relationship rather than your finances.
Tip #1: Understand Each Other’s Spending Habits
I personally think this is the toughest …

Two things I talk about frequently on this blog are the extreme importance of controlling spending as well as the new age of frugality that I believe has begun over the last year or so.  This unique, historic recession has finally put an end to the insane consumption of the general public.  The savings rate is starting to rise again (which is a good thing) despite the government’s attempts to get you to part with your cash on everything from cars to houses to appliances.
One major cause of the rise …

Credit card debt is a scary thing especially for those individuals who have significant amounts of it.  Anything over $10 grand is pretty significant for average working individuals.  Most people who end up with significant credit card debt have a tough time paying it off and it can take years to do it.  Some people, it seems, carry the significant debt indefinitely .  Why is paying off credit card debt so difficult?
The Interest Payments
If you have significant credit card debt in the range of $10,000-$20,000, you’re interest payments can easily …