Tag Archives: spending

Spending Money On Kids

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Today my son asked if he could spend $2 to buy special armor for some free online tank game.

Since I knew it was a free game, I instantly shot down that idea, actually making him feel a little bad in the process.  While I didn’t mean to make him feel bad, sometime the way my mind works, when it get on a topic, it flushes out all the details in a combative manner.  Of course I wasn’t yelling, but I think there was anger in my voice because of the FREE game would cost my son or me money.  I was mad at the game creators not my son.

It’s kind of ironic really…  in 4 or 5 more years I’ll be buying him a car (used of course), but here and now, today… I’m complaining to him about spending two dollars.  Ten minutes later, I explained to him that since he has his own business submitting blogger articles to social engines that he could use the paypal account that we’ll setup for him to buy that two dollar free armor (yes I’m still a bit upset).  After all, I give him an allowance so that he learns to spend and save money in an intelligent way, and to date, he has done very well!

Rich Kid

If you’re a frequent reader, you know that I recently bought my son a laptop, so you might be thinking I’m over reacting…  But with the laptop, I knew he would use it for many things, so that seemed like a smart way to spend money, versus armor that if he got enough points by playing he could buy without spending real money (the money he would spend would give him points so he could buy the armor early).

Okay you’ve read my situation, now for a money tips with kids.  Much like adults, if the instant gratification factor is ignored, a kid (or person) will find that the item they wanted to spend money on will lessen with time.  So I’ll wait until next week, and then if he still says he wants to spend the two dollars I’ll let him.  But honestly, this will probably be the last I hear about the matter.

Time and desire are inversely related.  The more time runs, the less desirable an object becomes.

Cheers,

Mr

4 Common Styles of Lifestyle Spending: Always, Early, Later, Never

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There are 4 common styles of lifestyle spending: Always, Early, Later, Never

Always Spender:

This style of spending has no restrictions and massive debt is common to this particular lifestyle spending.  The spender may follow this path because they have a short lifespan, they believe an unseen hand will provide and take care of them. they are rich, they may be weak-minded or low self-esteem, and too many other reasons to list them all…

Unless you are rich, have a short lifespan, or extremely lucky, this lifestyle will have the spender paying later in their life by living in poverty.  Still, is this an incorrect lifestyle to live?  For most of us (including me) yes, but for other, it depends on their situation.

Early Spender:

This style of spending typically happens when you are also young and finally are cut loose from your parents.  Some kids go wild with their spending because they are their own boss, or because they weren’t properly educated in financial matters!  There are many great bloggers out there that come from this type of background (J.D. roth @ www.Getrichslowly.org, Jason @ www.Frugaldad.com and  Jeff @ www.deliverawaydebt.com).

Like the above bloggers, with some dedicated focus and determination, the Early spender can recover from this debt and still go on to acquire great wealth!

Later Spender:

This style of spending happens when the new spender achieves a certain level of financial security, and thus starts spending a bit more money than they did earlier.  It’s common for these spenders to be financial independent when they start to loosen the purse strings on their finances.  Of course, often times these spenders still continue to save more than they spend!  This groups should be able to leave behind an inheritance for their kids.

This is the style that I am pursuing, although I’m not really financial independent yet!  While I intend on spending more, I too, still plan to save more than I spend!  I just want to increase my spending a little more, but not too drastically!

Never Spender:

Another name for this style of spending is Miserly.  In my opinion, this group is the worst to be in!  This groups lives in a continual state of depravity.  They are constantly looking to save a buck at the expense of everything else!

Scrooge is a character in The Christmas Carol, but he epitomizes the miser fairly well.

Conclusion:

So in my opinion, I would not want to be a “Never” or an “Always” spender!  Both of these spender types have too much of  a negative end results.  Obviously, I’d rather be a “Later” spender than an “Always” spender!

There is another spending style that is not common and somewhat difficult to achieve, and that is the Balanced spender!   The typical balanced spender may have a budget to control their spending!  This may be the best of all of the spenders types because they accomplish their savings goals, while still spending money on fun stuff!

A great example of blogger that follow this path are Crystal @ BudgetingInTheFunStuff.com and J. Money @ BudgetsAreSexy.com!

-MR

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Defend Your Financial Fortress Against Spending Temptations!

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Financial Fortress

Your Financial Fortress

A prudent person  must always defend their financial fortress against the continuous onslaught of unnecessary spending temptations.After reading fellow blogger Roshawn’s post called Financial Backbone Round Up and Uncommon Money News, it made me realize that to achieve financial security/stability, not only are we bucking what the popular media and commercials trends state that we should be doing with our money, but we are in a continual fight with foolish financial temptations!

Our Weapons

The best tool that we have for defending our Financial Fortress is a trusty spreadsheet program and/or special financial planning software.  These tools enable us to created a budget which in turn, increases the likelihood that we keep our lifestyle spending in check!

The Enemy

Everywhere you turn, you are constantly being seized upon by financial spending temptations.  On the roads driving, ever now and then, you’ll see a Maserati and think to yourself “I want one”  or perhaps you’ll be on vacation driving along the coast and you’ll see a yacht or even a private island for sell and think, “I want one“.

The key to remember when you see such temptations is that even though we are constantly bombarded with many tempting and exciting offers, we must only purchase those things that are financially possible given our current financial plan.

Battle Plans

We should all strive to have a perfect financial balance by creating a budget for the entertainment and fun stuff in our financial plan.  That way, we have an absolute financial number that we can use to determine how much to spend on the wants in our lives in addition to the necessities!

What desired wants are constantly pounding against your financial fortress?

-MR

Reasons To Spend Money – I Don't Want A Coffin Full Of Dollars

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The Reasons to Spend Money are numerous, but one big reason is because when I die, I don’t want a coffin full of dollars! 

 

Now, I’m not saying to take a casual stroll to the bank and pull out all of your money, saying “Vegas, here I come“, either though!  Oh, by the way, the saying “What happens in Vegas, stays in Vegas” really means that the money you take and gamble with in Vegas, stays in Vegas 🙂

Without further ado…

The Reasons To Spend Money :

  1. To live a balanced life, effectively avoiding the dreaded “coffin full of dollars” that are now worth nothing to you!  Once you’re dead, that money is just pretty artwork on a piece of paper that you will never see or touch again.
  2. So you don’t miss out on life!  Saving money like a miser is actually very expensive with respect to time.  The time you waste hording and saving is precious time that could be spent in other ways, like with family and friends.
  3. To visit other places and cultures!  If I had the money, I’d try to take a few trips overseas just to experience the sights and different cultures over there.
  4. Spoiling your kids (a little).  Why not, if you have the money, $100 is like a fortune to a 7 year-old!!!  Don’t go overboard, but perhaps buy something nice for special occasions and holidays!
  5. On high personal value items.  High value items are things that you receive much joy or happiness through.  For example, you might value redline hot wheel cars that you had as a child.  Nostalgic memories have very high value, so why not buy that $50 to $100 dollar car off of eBay?  After all every time you look or touch it, it will remind you off a different time that is long gone except in your memories!
  6. Safety!  Use the money that you have squirreled away to move to a safer area for your kids to grow up in!  And you too for that matter!!!  Or perhaps a safer car to drive the kids around in.
  7. Special local experiences!  Go to an occasional professional football game, even if it is expensive!  Nothing is cooler than hanging with friends eating hotdogs and drinking expensive domestic beers while watching the game from the stands.  Go to the orchestra too!
  8. To treat your girlfriend or wife to a surprise romantic dinner!  I’ve only done this once, but it was great!

Well, this list isn’t complete, but it’s late!  If you have any suggestions, please do tell!

-MR