https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Fri, 22 May 2026 08:36:40 +0000 https://boards.hellobee.com/topic/dont-create-a-budget#post-1831107 Fri, 22 Aug 2014 12:14:49 +0000 sunny 1831107@https://boards.hellobee.com/ <p>@.twist.: I edited it to be more clear! You aren't seeing things ;-) </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1831098 Fri, 22 Aug 2014 12:10:20 +0000 .twist. 1831098@https://boards.hellobee.com/ <p>@sunny: haha OH. Ok. Yes, I see you wrote compare and my mind just jumped over that word! My bad! haha Sorry if I confused anyone further! </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1831092 Fri, 22 Aug 2014 12:08:09 +0000 sunny 1831092@https://boards.hellobee.com/ <p>@.twist.: Oh I meant, when you are shopping around for policies, make sure you compare a $500 deductible vs. a higher one. I don't think you can hold 2 policies on the same car? </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1831088 Fri, 22 Aug 2014 12:07:32 +0000 sunny 1831088@https://boards.hellobee.com/ <p>@.twist.: Unfortunately Canada's mutual funds have some really high loads and from what I recall, they were really complicated too with front end/back end, etc. I also don't know if you can buy without an advisor the way we can in the US. It has been awhile since I've had to deal with this though, so I'm not up to date on the current info. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1831083 Fri, 22 Aug 2014 12:06:23 +0000 LaughLines 1831083@https://boards.hellobee.com/ <p>@sunny: Vanguard is amazing! I love their ETFs!! I put the amount that is matched by my company in our 401(k) because they have some high fees (but never want to miss out on matching!!!) and then put the rest in vanguard. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1831068 Fri, 22 Aug 2014 12:00:46 +0000 .twist. 1831068@https://boards.hellobee.com/ <p>@sunny: Thanks for weighing in on the insurance point. I've never heard of anyone having two car insurance policies before? So, with that I would definitely agree with you. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1831050 Fri, 22 Aug 2014 11:55:00 +0000 sunny 1831050@https://boards.hellobee.com/ <p>I think he makes some good points. I think he was abrasive on purpose, because that is his style. </p> <p>Yes I absolutely agree with @LaughLines: that fees are SO SO SO IMPORTANT TO UNDERSTAND! Here's a website to help you do it if you aren't great at reading the information yourself: <a href="http://www.personalcapital.com" rel="nofollow">http://www.personalcapital.com</a>. You input all of your financial accounts (yes, scary but its basically like Mint) and they will tell you how you're doing on fees. </p> <p>I absolutely recommend Vanguard as a low-fee option. To put into perspective: actively managed funds have an expense ratio of around 1.00% (many are in the 1.5-2% range), Vanguard's ETFs typically have an expense ratio of 0.05%. That is 20x higher for the actively managed fund!</p> <p>I think his point about insurance could be better understood as: don't overinsure yourself. For instance, let's say you are comparing 2 car insurance policies with everything being equal except the deductible. One has a deductible of $500 the other has a deductible of $1000. If you can afford to pay the deductible of $1000 in the event of an accident/claim, perhaps you should consider taking the the cheaper premium and higher deductible, particularly if the premium difference is significant. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1831022 Fri, 22 Aug 2014 11:45:16 +0000 jedeve 1831022@https://boards.hellobee.com/ <p>@Mae: agree. Income correlates with stress and health and all sorts of other things. Yes I was happy volunteering in a volunteer corps, but I would not be happy raising a family on those wages b </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830994 Fri, 22 Aug 2014 11:37:38 +0000 RsMom 1830994@https://boards.hellobee.com/ <p>I think there are some good points in the article but some that are a little off.<br /> I don't necessarily think that saving 10% of your yearly earnings over 30 years will give you enough for retirement. But I'm hoping I have many years after retirement, so perhaps I'm overestimating. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830990 Fri, 22 Aug 2014 11:35:49 +0000 Espion 1830990@https://boards.hellobee.com/ <p>@LaughLines: Good to know. We'll definitely ask! </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830968 Fri, 22 Aug 2014 11:27:01 +0000 LaughLines 1830968@https://boards.hellobee.com/ <p>@Espion: You still pay fees for every fund, even non-actively managed ones. And the fees vary company to company and fund to fund. So while the funds you have may have less fees than an active fund, they still could be higher fees than OTHER non-active ones. It's such a confusing/hidden process. Might be worth asking your adviser about next time you meet with him/her. Have them explain their structure of how they charge and even show you some of your history and how much went to fees (ie, in all of 2013, how much did i earn and how much went to fees?) </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830954 Fri, 22 Aug 2014 11:20:15 +0000 LaughLines 1830954@https://boards.hellobee.com/ <p>@looch: I think this is it. I haven't read it myself, but listened to a half hour long interview with the author on NPR, sounded really cool!! </p> <p><a href="http://www.amazon.com/Confessions-Sociopath-Spent-Hiding-Plain/dp/0307956644" rel="nofollow">http://www.amazon.com/Confessions-Sociopath-Spent-Hiding-Plain/dp/0307956644</a> </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830936 Fri, 22 Aug 2014 11:14:09 +0000 looch 1830936@https://boards.hellobee.com/ <p>@LaughLines: If you ever come across the title of the book, please let us know, sounds fascinating. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830932 Fri, 22 Aug 2014 11:12:20 +0000 Espion 1830932@https://boards.hellobee.com/ <p>@LaughLines: Ahhhh, okay. Mine is not actively managed through USAA. We're pretty diversified between DH and I. </p> <p>@.twist.: I think we're lucky (?) in that our MFs are not managed, but still through a great company. So we aren't paying extra fees, although we could choose to do so if we wanted to convert to a actively managed portfolio. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830891 Fri, 22 Aug 2014 10:56:41 +0000 .twist. 1830891@https://boards.hellobee.com/ <p>@Espion: I am seriously no expert. People who know more about investing have suggested, FOR ME, not to invest in mutual funds because of rarely getting back your principal, or you ONLY get back your principal. Something about, Mutual funds start with small fees that look minimal but over time grow for the other parties and not for you. So you end up losing in the end rather than gaining. There are other, smarter, ways to invest your money. </p> <p>Like I said, though, investing is so new to me and I'm still learning all the terms and stuff. I may be misunderstand parts of what has been told to me, so take my investing comments with a grain of salt. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830882 Fri, 22 Aug 2014 10:53:49 +0000 LaughLines 1830882@https://boards.hellobee.com/ <p>@Espion: I think the key in the original posts mention of mutal funds is "actively managed". Actively managed mutual funds are more expensive (higher fees because there are teams of people keeping eyes on that fund and making trades (no trades are free) and changing asset allocations constantly multiple times every day. So, those funds flat out cost more. BUT, his point is that they do not necessarily out perform "benchmark" funds. So, an S&amp;P 500 index fund that is NOT actively managed may do just as well (or better) than the active fund and cost way less. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830867 Fri, 22 Aug 2014 10:49:10 +0000 Espion 1830867@https://boards.hellobee.com/ <p>@.twist.: Why are mutual funds a bad idea? Bonds are safer, but you really don't get much of a return on bonds over the long run. (My only "investment" is my IRA, and I'm pretty clueless about the stock market.) </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830791 Fri, 22 Aug 2014 10:33:34 +0000 LaughLines 1830791@https://boards.hellobee.com/ <p>I think number 1 is something that most people don't fully understand and it's a much bigger impact than they realize. Some articles I've read say fees are the number one indicator of your actual returns over time when you compare funds over the same time period. Also, the lack of transparency in fees is shameful - I bet 90% of people have no idea what they actually pay when they put money in their 401(k) or any personal funds, and it's much much more than you'd think. This is not because investors are dumb, it's because funds intentionally make fee structures confusing and unclear so that people can't easily compare one fund/one investment firm to another. Even if you're given the % fee, it is calculated so many different ways (% of growth, % of total assets, % of return after taxes, on and on) This is something i've spent a ton of time looking into (I'm a finance and economics person) and wish it were more clear to the general public. Though, if you care and you want my two cents, based on the thorough research I've done on fee structures - Vanguard is far and away the lowest fees (sometimes by a factor of 10). So, if this is something that you're interested in, check out vanguard. </p> <p>As for budgeting, that is a behavorial thing and completely personal depending on your behaviors. If you're someone who wants to save more but it's something you need to actively manage, then a budget is the way to do it. If you're someone who saves money anyway without looking at certain categories, etc, than you don't need a budget. </p> <p>Money is very weird in that it can be so emotional, and it's hard to take the emotions out of things. Some would say it's an emotional "win" to pay off your mortgage and be "debt free" but it may not be the best financial decision if you could be making more money elsewhere rather than putting it into your mortgage. There are some studies out there that say that a statistically significant number of high level executives/CEOs are sociopaths because they can make strictly logical decisions without emotions playing any roll. If we all had a little more sociopath in us we wouldn't let emotions get in the way of our financials, but it's probably good we dont!! Also, on the topic of sociopaths and insurance, there's a book out there written by a female CEO self-proclaimed diagnosed sociopath and she is incredibly rich but lives in a shady apartment in a bad part of town because she says she already has health insurance so why would she pay a "safety premium" to live in more expensive safe parts of town. </p> <p>Okay, i've rambled enough. I love the topic of finances and emotions and trying to handle them efficiently. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830782 Fri, 22 Aug 2014 10:28:07 +0000 looch 1830782@https://boards.hellobee.com/ <p>I think a lot of his "attitude" is just his writing style. I also think a lot of time people use the word budget but they don't do an actual versus plan approach. If you're just going to do the plan, and don't compare it against your actual, then yeah, doing a budget is a waste of time.</p> <p>Another thing, when you make more money, you spend more money. Very few households earning more than $300k are spending like they earned $30,000. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830755 Fri, 22 Aug 2014 10:13:38 +0000 .twist. 1830755@https://boards.hellobee.com/ <p>@Circusbee: I think people misunderstand what a budget is. I think you do budget! I think people who are involved in their finances and make it work comfortably and are aware of where their money is going (not living pay cheque to pay cheque and stressing all the time), are indeed budgeting. I don't think it always means a spreadsheet and crunching numbers and keeping receipts. :) </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830743 Fri, 22 Aug 2014 10:08:36 +0000 Circusbee 1830743@https://boards.hellobee.com/ <p>I think I understand and kind of live by what he means about not making a budget. For me, a detailed budget is way too hard... our needs change constantly and it is tedious to constantly be looking at the budget and shifting money all the time. Instead, what's been working for us is a kind of half-budget or general budget. We budget only in these categories: giving, savings, fixed expenses &amp; utilites (mortgage, all utilities and insurance payments, and everything else. Basically whatever is left after we save, give, and pay bills is what we have to use for everything else. It works for us because we can always look at our checking account and know we have exactly that much available until the next paycheck. And we usually use less because we get uncomfortable once the balance gets under a certain amount. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830727 Fri, 22 Aug 2014 10:03:29 +0000 .twist. 1830727@https://boards.hellobee.com/ <p>@bluestriped bee: I felt like he was trying to be inflammatory but failed. Sadly. haha. I think he was trying to write a piece about how grumpy he was about hating budgets and then went on to give some good tips that are PART of good budgeting habits. So... I feel like if he thinks he ISN'T budgeting, someone should tell him that... he kinda is. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830720 Fri, 22 Aug 2014 10:01:35 +0000 BSB 1830720@https://boards.hellobee.com/ <p>I don't really like the tone of the blog post (so it was hard to get past #10) but the good thing is, at least, he admits that he is 'deliberately inflammatory'. :/ </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830716 Fri, 22 Aug 2014 10:01:02 +0000 yoursilverlining 1830716@https://boards.hellobee.com/ <p>We actually don’t really budget, and I do agree with his reasoning, though I’m not sure it’s a better/best way to do things, or the right way. We pay savings (retirement, general savings, investments, LO 529, etc.) first, and then have whatever is left for the month. Whatever isn’t spent goes additionally into savings. We know what our set monthly expenses are, so it’s not too difficult to have a good feel for how much we have to spend on everything else. </p> <p>I totally disagree with #4, insurance. What does he mean by “if you could have afforded to pay the loss out” – unless you’re uber-wealthy, 99% of people don’t have $100k+ just sitting around that isn’t earmarked for retirement or something else if your house burns to the ground. And home owners insurance is more useful than just if your home is completely demolished. We pay $900/year for homeowners insurance, which is $27k over a 30 year loan period. That doesn’t seem like that much to pay in when you look at how expensive any sort of major home repair is. </p> <p>#7 - YES. We use CC for everything but *only* because we pay it off each month. It's such a trap for so many people. </p> <p>I also disagree to a point with #13. More money and flexibility in your budget eases stress (unless you just spend more!). Personally, a less stressed me is a happier me. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830713 Fri, 22 Aug 2014 10:00:11 +0000 Adira 1830713@https://boards.hellobee.com/ <p>@Mae: Yeah, I just skipped over all the investing/financial advisor stuff! Ain't got no money for that, yo!</p> <p>I definitely agree with 6 and 7. And I think 8 is probably only wise if you're already making enough money! I think some people NEED to budget to make sure they ARE saving the 10% or whatever! Also, is that 10% in a 401k/IRA/retirement account or in addition/replacement to that? We're not really saving ANY additional money, but we do have our 401ks. That's good enough, right?? </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830705 Fri, 22 Aug 2014 09:57:28 +0000 .twist. 1830705@https://boards.hellobee.com/ <p>Thanks for posting the article! It was an interesting read. :D </p> <p>I'm honestly a little confused by his article, because a lot of it doesn't actually have to do with "budgeting", necessarily... So, I broke it down! I hope this isn't too long, and this isn't a criticism on you personally OP, it's a response to him based on my own budgeting experience. :) </p> <p>1. Don't invest because you don't know where stocks are. I don't! I leave the stocks to other people who have time to make them a hobby. I have minimal stocks through my employer and I kinda let them do their own thing. They've made me money so far so I feel like that's a win! </p> <p>2. Mutual Funds are not smart (basically). Well, I'd agree! They also don't really have anything to do with budgeting. Kind of like point #1. Most budgeting advice I have read actually tries to discourage any involvement in MF's. </p> <p>3. Don't hire a financial advisor. I agree! I do all my own finances with very little involvement from outside sources. Again, not sure what this has to do with a "budget". </p> <p>4. Insurance, in my honest opinion, is never a waste of money. Some insurance is better than others. However, people who don't get insurance often find themselves in sticky situations down the line where they wish they had just gotten the damn insurance. I'm not totally well informed on insurance and how it works, so I am no expert, but I am covered through my work and through my mortgage. It's not just for death or house fires, but for so many other things as well. I'd rather, also, not leave my mortgage debt to my family in case I die! </p> <p>5. I'm not going to deal with 5 because I just don't think I understand it well enough to answer. I'm new to these things. </p> <p>6. Mortgages are great. Yes! They are! Any budget expert I know will always advise that mortgage debt is good debt to have! Not sure what his point is. ETA: Paying it down fast is still, also, very smart. Just because it's good debt, doesn't mean you want to keep it around forever.</p> <p>7. Credit card debt is bad. Yes! It is! Any budget expert I know will always advise never to use a credit card unless you plan to use it like a debit card. Again, not sure his point? This is not news in the budgeting world and I'm not sure how this plays into NOT having a budget? Honestly, having a budget helps me SEE that I have enough money to buy things on my credit card. :) </p> <p>8. Don't budget, just make sure you have enough money for the month. Well, by budgeting I can see that I have enough money for the month. I can also see that I have enough to put into savings, to donate, to buy new tires for my car AND pay my mortgage &amp; bills without going into the negative. Honestly, this was the stupidest point he made. It's nerdy? Well, I like being nerdy. </p> <p>9. SAVE! Yes? Again, we agree? How is saving NOT part of budgeting? As mentioned above, I know through my budgeting how much I can put away into savings AND still pay all my bills AND get those new tires I need. Saving is a part of budgeting. Uh oh! </p> <p>10. Not saving 10%, don't buy cool stuff! Yea... again, we agree. But, knowing how much I'm saving is also, again, a part of budgeting. Not only do budget experts say that you should save each month, but they also suggest not buying a new car, new home or childrens college educations unless you can pay for them outright. Again, to do this, budgeting is NECESSARY. </p> <p>11. Employer Pension match, do it! Yes! We agree. .... Not sure how this is "not budgeting"? What does matching your pension with your employer have to do with budgeting? It's part of smart personal finances, but, daily budgeting? Not so much.</p> <p>12. Breadwinner? work longer. That's fine. Doable. But you know what? If I budget properly and save accordingly and get all my ducks in a row BEFORE I retire? I can retire well before 66/70 and still have myself a nice cushion till I die. </p> <p>13. Happiness? what? I don't even know what this point has to do with budgeting at ALL. </p> <p>All in all, I think his article was poorly written and he needs an education in what a "budget" is. OR, he needs to change the title of his article to something more appropriate like "Smart Personal Finance Tips", or something. </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830695 Fri, 22 Aug 2014 09:51:48 +0000 PurplePumps 1830695@https://boards.hellobee.com/ <p>@MUI831: Interesting read! DH and I focus a lot on finances and retirement so I love to see what advice is out there.</p> <p>1. I agree with this and believe that some investors must be doing this. But I don't think it should be a primary effort.</p> <p>2. 5 years is still a blip in the investment world and not a fair judgement of growth for retirement. To look at it from 2008-2013 is also not accurate since in 2009, it crashed in a way that is not typical.</p> <p>3. I agree. My portfolio pays a % fee to my adviser.</p> <p>4. True, especially since we got screwed by the increase of the policy cost after a claim. However, home insurance is not optional.</p> <p>5. I'm not sure about this one. I don't think it's true, but have never really run the numbers for it. I think it's irrelevant anyways. I bought a house to live in, not as an investment.</p> <p>6. I completely disagree. We were trying to pay down our mortgage as fast as possible, but did some reading and calculations and put a stop to that. We invest the extra money we were putting toward the mortgage. My husband manages that portfolio and has a strategy now that averages 7-8% yearly gains the last few years, which with a mortgage rate of 3.25% is much better return that paying the mortgage to save on interest, which is also tax deductible. </p> <p>7. Agree 100%, we use the CC for points and cash back and pay it off.</p> <p>8. This is what we do.</p> <p>9. I agree to an extent. Yes, you need to save to get "rich" but you can't get rich on just saving and sticking it in a savings account at 1%. It needs to be invested.</p> <p>10. Agreed.</p> <p>11. Absolutely.</p> <p>12. I have no idea about this, we are not counting on SS for retirement.</p> <p>13. When people say 'money can't buy happiness' I always like to say, I know money can't buy happiness, but lack of money can certainly cause UNhappiness! </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830670 Fri, 22 Aug 2014 09:37:51 +0000 Mae 1830670@https://boards.hellobee.com/ <p>I think this is geared towards people who have more money than I do. I don't really have any opinion on a lot of investing stuff because I don't have enough money to invest much lol. </p> <p>I do think paying down your mortgage is a good investment. I do think that carrying a credit card balance is a bad idea. </p> <p>I think the concept of not needing to budget if you're saving enough is fine-- but I think the reason people often need to budget is because they're having trouble making ends meet and/or they're not saving enough. Making sure you're saving x amount/month IS budgeting-- just not super specifically. (budget would be x in savings, x amount in discretionary spending). </p> <p>Also the whole "more money won't make you happier" thing annoys me. There are studies that pop up in articles on Facebook or cnn or wherever all the time stating that statistic that beyond $75,000 money won't make you happier. I think that is crap. I think the single-minded pursuit of money won't make you happier. I think maybe at SOME point there are diminishing returns on more money. But money/debt is a huge stressor, both personally and for relationships-- and not having that stressor would definitely increase my happiness. If we made more we could pay off our student loans more aggressively and put more in savings, which would make me feel more secure. Also it would give me the option of staying home for longer rather than trying to find a job right now, and that would definitely make me happier! </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830669 Fri, 22 Aug 2014 09:37:09 +0000 Mrs. Pickle 1830669@https://boards.hellobee.com/ <p>I personally thing budgeting is the best way to ensure you are saving money. I guess I'm a nerd! I love my excel spreadsheet. :p</p> <p>I agree with points 9-11. We try to save 20% towards retirement annually.</p> <p>I don't know much about the stock market and we don't have a financial advisor. We look to my MIL on investing advice because she loves researching stocks and has an advisor. She also retired early so I think she's a good person to model ourselves after.</p> <p>As far as #4. I'd be a big ball of stress if we didn't have insurance! </p> https://boards.hellobee.com/topic/dont-create-a-budget#post-1830654 Fri, 22 Aug 2014 09:25:09 +0000 Mommy Finger 1830654@https://boards.hellobee.com/ <p>My dad sent me and my brothers an email today with what he thoughts are good financial tips. Since I know there has been a lot of talk about creating budgets and other financial strategies, I was curious to know what people thought about this. Sorry it's so long!!!</p> <p>Don’t create a budget — and 12 other financial tips to live by<br /> Published: Aug 22, 2014 7:31 a.m. ET</p> <p>By<br /> JONATHANCLEMENTS</p> <p>I’m in a crabby mood. Why not spread the joy around? Welcome to today’s deliberately inflammatory column. Here are 13 of my firmly held financial beliefs:</p> <p>1. You have no clue where stocks and interest rates are headed—and neither does anybody else. Instead of forecasting returns, investors should devote their efforts to cutting investment costs, trimming taxes and managing their portfolio’s risk level.</p> <p>2. Buying actively managed mutual funds is an act of faith in the face of daunting odds. S&amp;P Dow Jones Indices, part of McGraw Hill Financial, analyzed the performance of U.S. stock funds in 13 categories. Depending on the category, just 14% to 39% of funds managed to beat their benchmark index over the five years through year-end 2013.</p> <p>3. It’s a huge mistake to compensate a financial adviser through commissions. Yes, it can be cheaper than paying a percentage of assets. But paying commissions means the adviser’s recommendations will always be suspect, because he or she has an incentive to get you to trade more and buy higher-commission products.</p> <p>That brings me to a pet peeve: Advisers wouldn’t be nearly so enthusiastic about variable annuities, equity-indexed annuities and cash-value life insurance if the commissions weren’t so high.</p> <p>4. Insurance is a waste of money—if you’re lucky. After all, if you collect on a policy, it means somebody has died, the house has burned down or some other disaster has struck. What if you collect on a policy and yet you could have afforded to pay the loss out of pocket? That’s a sign you’re over-insured—and you should probably scale back some of your policies and perhaps drop them entirely.</p> <p>5. You are highly unlikely to make money from your home’s price appreciation once you figure in inflation, homeowners insurance, maintenance and property taxes. What if you have a mortgage? The loan may leverage any home-price gains—but the interest costs will likely offset the benefits.</p> <p>6. Paying down a mortgage is a great low-risk investment. It may not give you the highest possible return. But the interest saved is probably greater than the yield you could earn by buying bonds—and the result can be substantial financial freedom. Everybody should strive to be mortgage-free by retirement.</p> <p>7. Carrying a credit-card balance is an act of financial foolishness. Except in a dire emergency, you should never put a purchase on a credit card unless you’re confident you can pay off the balance in full.</p> <p>8. Don’t budget. It’s a tedious exercise favored by nerdy individuals. Instead, make sure you save enough every month. Do that, and there is no need to budget.</p> <p>9. Saving diligently is the way everyday Americans get rich. Don’t have a traditional employer pension plan? To retire in moderate comfort, you will likely need to save at least 10% of your income every year for at least 30 years.</p> <p>10. Not saving that 10%? You probably shouldn’t be buying new cars, purchasing a second home or paying for your children’s college education.</p> <p>11. You should put at least enough in your employer’s retirement plan to earn the full matching contribution—even if there is a risk you’ll cash out the account.</p> <p>Consider an extreme example: Let’s say you’re in the 25% tax bracket and your employer matches your contributions at 50 cents on the dollar. If you put $1,000 in the plan, your $1,000 would become $1,500, thanks to the match—but your paycheck would shrink by just $750, thanks to the initial tax savings. If you then lost your job, cashed out the $1,500, paid 25% in taxes and 10% in tax penalties, you would still be left with $975, or $225 more than your $750 cost.</p> <p>12. If you’re the family’s main breadwinner, you should probably delay claiming Social Security until age 66 and perhaps age 70, so you get a larger monthly check. For retirees, the big financial risk isn’t dying early in retirement, with scant dollars collected from Social Security. Rather, the big financial risk is living longer than you planned for—and a larger Social Security check helps protect against that risk.</p> <p>13. Think more money will make you happier? Consider this: Most folks grow wealthier over time, which means today you’re likely richer than you’ve ever been. But you can probably think back to a time when you were at least as happy as you are today—and maybe happier.</p> <p>Bring it on. You can reach me here: <a href="mailto:SundayJournal@aol.com">SundayJournal@aol.com</a> </p>