FOR YOUR FAMILY
A 5 Step Cash-Based Method for Shaping Your Family’s Finances
WHAT YOU CAN TAKE AWAY 7
UNDERSTANDING INCOME AND SAVINGS 9
INCOME AND SAVINGS: WALKTHROUGH 10
CATEGORIZING EXPENSES 15
CATEGORIZING EXPENSES: WALKTHROUGH 16
DETERMINING A CUSHION 22
DETERMINING A CUSHION: WALKTHROUGH 22
CALCULATING SPENDING CASH 26
SPENDING CASH: WALKTHROUGH 28
THE KIDS 32
THE KIDS: WALKTHROUGH 33
ABOUT THE AUTHOR: Christopher Charles is the author of the Molding Money series on personal finance. He offers a unique perspective on personal finance in an easy-to-follow manner that serves as a practical guide for those that are serious about improving their financial situation.
For Your Family
A 5 Step Cash-Based Method for Shaping Your Family’s Finances
©2015 ImperoCo LLC
All rights reserved. Except for the use in any review, the reproduction or utilization of this work in whole or in part in any form by any electronic, mechanical or other means is forbidden without the express permission of the author.
This is a work of fiction. All names, characters, and settings are fictitious. Any resemblance to actual events, names, locales, organizations, or persons living or dead, is entirely coincidental.
Dedicated to those who have the resolve and creativity to look at personal finance from a different perspective so that they can make the changes necessary to improve their lives.
Your needs and wants probably exceed your income. That’s the situation the majority of people find themselves in. Those of us in modern western society are among the most prosperous in the history of the world, though we are still led to believe that we don’t have enough.
You work hard for your family, and yet, you cannot shake a nagging feeling of shortcoming.
These Molding Money books are the first step to getting control of your financial situation. Rather than concede that you’ll never “have enough money,” you’ve decided to face reality and address things head-on.
This workbook will serve as a companion to the full-length Molding Money book. It will be more focused and guide you, personally, through the cash-based system step by step.
You are encouraged to follow along and use the accompanying spreadsheet or PDF to input your own information. The spreadsheet is set up with the formulas already entered so that calculations are automatic. If you aren’t comfortable with the spreadsheet or don’t feel you have the hardware or software needed to use it effectively, then the PDF can be printed out and your information can be hand written. Links to the spreadsheet and PDF are in the RESOURCES section of this workbook.
There are five primary parts to this book. Each covers a general step in the system. They are:
Understanding Income and Savings
Determining a Cushion
Calculating Spending Cash
The principles of each step will be explained briefly at the start of every chapter. After that, you will be walked through the details of the step so that you can follow along on either the accompanying spreadsheet or PDF.
After reading, following along, and completing the steps for yourself, you will have a clear picture of your own finances.
You will know exactly how much of your income you’re saving. You will have a clear understanding of your expenses. You will know how much of a cushion you need and how much cash you can take out every week. Finally, you will know how much cash to give your kids (if you have any) and what expenses they will be responsible for.
Above all, you will have a feeling of contentment knowing that you have taken management of something that has been a thorn in your side for so long. You will gain a sense of control over something that perplexes the majority of the population. You will also achieve a feeling of wellbeing and optimism knowing that as every month passes you will have a more solid financial foundation than you’ve ever had before.
In order to get to this place of contentment, it is important to point out something that will be repeated frequently throughout both the full-length book and this workbook:
Take small steps and only do that which you are comfortable with.
The Molding Money system is a framework; it is a method designed to shed light on the reality of your financial situation and to provide controls that will prevent you from ignoring that reality. It is not one-size-fits-all and it is not tailored to your unique financial situation.
Drastic changes make people uncomfortable and they create a yearning to “go back to the way things were.” It’s better to take consistent small steps in the right direction. Continuous improvement – that’s what we’re after.
Let’s get started.
[+ The spreadsheet can be accessed here.+]
[+ The PDF can be accessed here.+]
The first step in getting control of your finances is dealing with income. Specifically, with what you take home.
Depending on what type of deductions you have taken out of your paycheck you may be able to adjust your take-home pay, but for the most part it is what it is. You surely wish it was more, but a huge part of this system is addressing reality; and the reality is – this is what you have to spend every month. No more, (and fortunately) no less.
This is also the ideal time to address savings. Chances are, you’re familiar with the phrase “pay yourself first.” While possibly overused, it is true. Better to address the subject of savings now, when you’re dealing with income, than when you’re looking at what’s left after all of your expenses are paid.
Savings frustrates most people because it represents delayed gratification. Much like getting into shape physically, getting into shape financially requires patience and a commitment to developing improved habits. Positive change will not be seen immediately. However, month after month, year after year, these new habits will pay off.
You might already be saving some money through an employer sponsored retirement account such as a 401(k) or a pension. These types of accounts have their benefits, but you’re going to want to save above and beyond this. It is important that you have liquid* savings too. Retirement funds typically cannot be accessed until you are 59½ years old.
* “Liquid” is a financial term that refers to how easily something can be converted into cash-in-hand. A savings account at your bank is very liquid. Your home and retirement accounts are not.
Seeing your money grow in a retirement account is fine, but this system is about getting control of your finances in the short-term. Watching your liquid savings grow over the coming months and years and knowing that you have access to that money will contribute to your sense of wellbeing.
Visit: http://www.smashwords.com/books/view/577019 to purchase this book to continue reading. Show the author you appreciate their work!
What you've tried so far hasn't worked. You need a different perspective. Molding Money is quick and easy system for understanding and taking control of your family's finances. By following along, sticking with the system, and using the FREE accompanying spreadsheets and PDFs you’ll have less conflict with family members, more savings, less waste, a better sense of security, and children that develop a healthy perception of money. Or...you can go back to doing things they way you always have. Let's get started!