Making money, Saving money & staying the course

Changing the way my kids think about money means I have to change as well. Making money and kids is not written [ my blog ] so I can convert my kids into "money hungry" little capitalist. I started this Blog in hopes of improving the life & future of my kids and sharing this trip with others. I am X yrs old [ meaning old ] and I want more for my kids - it's that simple.

But like any diet, exercise regime or training requirement you have to fight the urge to quit. The first thing you learn about changing anything about yourself is - that there are a million and one nay sayers telling you why you can't or that your wrong.

I mentioned my "Money and Kids" blog on one of these news websites I visit and all hell broke loose. I had total strangers telling me that I knew nothing about money, how it worked, that the rich are against the poor - that I will never get rich. Some one even called me "stupid and Blind", another criticized my grammar [ hey, I know my grammar ain't good - but I'm not in school or asking you to grade my writing skills].

Making Money means Minding your Business

In my last post I quoted Rich dad Poor Dad
"Minding your Business"
It's your life and no one [ not even the government ] is looking out for you when it comes to your money - except you. When you try to change for the better, every crack pot "Nay Sayers" will come out of hiding to knock you down.

Hey, I'm not blind about greedy CEO's, ignorant that the rules are stacked against me or that the government is corrupt. I just want to make a better life for my kids [ I just don't mean materially - but also have freedom to spend time with my kids ].

Goal to Teaching kids about money

One of my first goals in teaching my kids about money is to start them young. Get them thinking now, rather than later when their 20 yrs old and have more than $25,000 dollars of debt in credit cards and college loans [ like most young Americans today ].

If you've never read "The Millionaire Next Door" you should, it's a very good book.

I personally have experience talking with average people who were secretly millionaires, I just wish I had taken thier advice way back then.

When I was 19 years old I started working at Pfizer as a temp [ Pharmaceutical company ]. The first time I ran across a secret "millionaire" was at Pfizer on a packing line. I was a temp so they placed me wherever they needed bodies, so for several weeks I sat next to a cranky, grumpy old woman and placed little bottles of medicine into boxes - 12 to 16 hours a day 5 days a week. Ofcourse after several days she warmed up to me and gave me some tips on how to keep up with her and then one day she decided to share some financial wisdom with me - which I was not asking for.

She told me if I was hired fulltime I should join the company stock option program - that she's been working at the company for 27 years and has 1 year to retire and has $2 million to retire on, not counting her savings or social security.

[ I should have listened ]

I also found several other long time workers at Pfizer that when they cozied up to me said the same exact thing.... all of them were millionaires.....

[ I should have listened ]

Now while the stock today may not be worth much as back then, the simple lesson to understand:
" Start early, allow time to compound and multiply your investment "

So even if I teach my kids about money and all they learn is that one simple rule - at age 40 they could retire and be better off than I was when I was 40. Again, I'm not saying I want them to be greedy stinking rich, no morals kind of people, but I do want them to be smart, be better off than me. Yes, $2 million may no be worth much 20 years from now, but that would be $2 million more they have to work with than I do today...
think about that Nay Sayers....

Teach kids about money - Budget !

Making Money means Making a budget

I started with the idea - “Teach kids about money” in particular - my kids. I want them to have a different mindset about how to make money and how money works than what I grew up with. Making money is easy to those in the know - that’s why we the middle class and the poor blame the rich for our woes - because they know about making money and we don’t. I want to teach my kids about money because I want them to have more in life [ not just money and material things - but freedom ]. You know the freedom that comes from owning your own business or having money work for you instead of you going to work 60 hours or more a week.

I realized that thou I wanted to teach my kids the value of a dollar and that money doesn’t grow on trees they would have to work for it… [ Value of a Dollar ] I ran across a two fold problem. First: I work and for years I was financially “stupid” instead of wise. Second, you can’t fix a problem until you know what the problem is…. So in order to make money you need to know how to create a budget and stick to it.

Making money and a Budget


Anyone who has a check book knows about trying to make a dollar stretch - there is always too much month left and not enough cash. In order to teach my kids about money I need to fix some of my finances - I need to create a budget. Why?

[ The secret is:

“Mind your own Business.”

Financial struggle is often directly the result of people working all their life for someone else. Many people will have nothing at the end of their working days ]
Rich Dad, Poor Dad: by Robert T. Kiyosaki

A budget is like a map - it tells you where your going and how you are doing.. and like Robert said in the book, mind your own business! Creating a budget also [ my opinion ] helps you realize that your financial woes are your own Fault. You can blame it on the Rich, the government or your spouse - it’s of your own making. You put yourself in that financial mess and you keep yourself there .

Teaching kids about money [ my kids ] means I have to teach them about a budget. After all, for years I’ve worked and spent my money and gotten no where. A budget will show you where and how you spend your money - it will also help you save money. That is if you are serious about it.

So creating a Budget to make money I go?

All good financial books have a subject about saving and making a budget. Each book I’ve ever read says one thing - in order to save and budget, you have to accurately track your expenses. They all say take one entire month and track [ write down ] every expense you make. At the end of the month you sit down and categorize all the expenses and therefore you should be able to see where your money is going..

I have two problems with that.

One: My spouse is terrible at spending and couldn’t save a dime if life depended on it.

Two: I’m terrible at writing things down.

So I came up with a way to cheat but get same results. I simply paid everything with my ATM debit card. Every other day I sat at my computer and wrote down all the entries into my check registrar. It made it easy for me plus hey no records to lose.

Tip: Married / couples who share financial burden need to work together to make this work.

In my case my spouse is terrible at saving money so we came up with an arrangement both of us can live with. I would be in complete control of the finances and the paying of bills and my spouse would receive $75 to $100 every pay period to spend in any way so desired. There are no strings attached on how my spouse spends that money - except that once that money is gone - can’t come back for more…..

Tip: here’s a cheat for a single person - if you use your credit card or debit card to pay 95% of your expenses and purchases [ and don’t want to wait a month ] just use last month bank statement to see what and where you spend your money.

How a budget can help you make money

A budget can help you make money in two simple ways.

One: the obvious, you realize you need more money [ income]

Two: It reveals to you how you spend your money and forces you to realize you need to be responsible with your finances.

I’ve been married 17 years [ as of this post ] and my spouse always said “ Don’t worry, I get paid next week.” It’s been 17 years and we are no better of than we were when we started - scratch that - we’re worst! Two kids, mortgage, no savings or retirement fund and still living pay check to pay check…..

Quick look at my finances - income verses expenses.




I realized I can’t do this alone, this is going to take the work of the whole family. My decision to teach my kids about money means I have to start by improving my financial situation and while they will have to learn as they watch Mom and Dad fix their financial woes… their first lesson can be this:

“Life is full of choices. In order to reach your goal you have to make sacrifices.”

In creating my budget I am going to have to factor in how I’m going to pay my children - teaching them the value of a dollar means they have to earn money…. That money has to come from somewhere right…

Rich Dad Poor Dad

Making money is not Evil - teaching kids about money ?

Making money is not evil - but being a slave to money is evil..

I’m trying very hard to teach my kids about money - get them to see things a bit different. You know, get them ready for the real world when they have to make money in order to pay their own bills instead of the “Dad has money” mentality. Or the work, make money, spend it mentality many Americans live with. And one of the things I am trying out currently is - trying to teach my kids [ especially my eleven year old ] that one - money does not grow on trees and two - making money can be easy…. [ oxymoron - contradiction… No ]

I’ve been listening to my kids talk.. Even my five year old - they have the same mentality….

I need that new toy, gadget, or other nonsense. And they face two dilemmas:
1- the true value and understanding of assets [ things ] .
2- Dad will pay for it cause he works and has money [ understanding money] .

Now - making money is not easy, until you change the way you think about money, assets and value system. Yes I’ve been working on how to change the way I think as well - but I want to change the way my kids think about money because they can start early in life while I - I already wasted half of my life expectancy.
Cashflow Quadrant: Rich Dad Poor Dad. , by Robert T. Kiyosaki

Teaching my kids about money - Rule # 1

Well - sounds simple but not so :
RULE ONE
You must Know the difference between an assets and a liability, and buy assets.
Rule #1 is the only rule, the only rule you need ???
Again - sounds easy, but really isn't.
If you want to make money [ be Rich ] - and I’m not trying to focus on being rich just the knowledge of wealth building - this is all you need to know. It is Rule No. 1.

"The Rich acquire assets. The poor and middle class acquire liabilities, but think that they are assets."

Trying to teach kids about money and this rule 1 concept is harder than you think. But I gave it a whirl - and I’m still working on it. [ let you know when it sinks in ].

How I tried to explain this “Make Money thinking concept” Rule # 1 to my kids.

In Making money - “What is an Assets and what is a liability?”
Well - hell, how do you teach a kid the difference between an asset an a liability? I think I ate off more than I could chew here ... ???
Talk about the most important thing they believe they own - Home.....

It’s easier if you own your home [ which you don’t if you have a mortgage ] but if you rent, kids still believe they own the home.

Simple approach - is a home an asset or a liability... Kids and adults alike believe a home is an asset. My wife thought so too, until I explained it to her using the book and the example from Rich Dad Poor Dad. ( see image below )

Your home is not your biggest asset - it’s a liability to you and a asset to your Bank. Why? - simply put you derive no income [ make money ] from your home. And dispite the fact that it can grow in value - you spend more cash on your home than you ever will get out of it. So to you it’s a liability - to the bank it’s an asset. Why is it an asset to the bank? Because you pay them to live in it. They don’t have to fix it, paint it, pay utilities or live in it for that matter. But they get that check every month from you or they will take it from you !

So anything you buy that does not pay for itself or make you money [ today not twenty years from now ] is a liability. That ipod my daughter wants so bad that she is willing to do extra home duties for - liability. That bike, that movie, that book, everything my kids find oh so necessary to have - liability. What makes it worst is that they have no concept of money because I pay for it all.

Teach kids about money - the value of a dollar

Putting my kids to work!
That’s right my plan to teach my kids the value of a dollar is to put them to work… even the five year old.. [ let you know how that turns out ].

Dad is not a cash machine and they have to earn and make money like I do. They also have to track it - see where their spending it and figure out ways to make money. I know - a lot to ask of a kid. But hey, this is a life long process. Making money isn’t easy - but it isn’t that hard either. You just have to change the way you think. And teaching kids about money - well, that is a job in itself.

Get to work boy - you lazy bum... love you son....LOL

The reason I want them to make money, so they can feel the pain of losing money when they have to pay for those trivial things they think they need. It's not about not spending - but about building wealth building ideas so they can do more in life, with their lives than I did with mine.

Money and Kids - Ignorance & Stupidity is Evil!

Making money is not evil - Ignorance & Stupidity is Evil!

Making money is not evil - ignorance and stupidity is evil. In every economic
hard time people want to figure out ways to making money and more of it. The problem is that many of us are just plain stupid when it comes to making money and especially spending money. That's right - I said "Stupid".

" Why do some people work less, earn more, pay less in taxes, and feel more financially secure than others? It is simply a matter of knowing which quadrant to work from and when. It's time to get out of the rat race. "
Cashflow Quadrant: Rich Dad Poor Dad. , by Robert T. Kiyosaki

Why are we Stupid, because we are.
I thought I was ignorant when it came to making money, investing and business.
I just realized that I am just "Stupid". And I'm sure I am not alone [ not with
such a large poor and low income middle class we have in America ].

WE are stupid when it comes to making money

I was reading the book and it hit me like a ton of bricks - how stupid I've
been about making money and how I spend and manage my money. Like all
Americans who are tight on cash - I gripe, complain and blame the rich for my
woes. But the fact is - my troubles are of my own design, my own work. I have
put myself in this financial turmoil, not my wife, not my kids, not the
government, or the rich - just stupid old me.

As I read the book I can see how I've spent years doing myself financial harm
as I tried to satisfy a moment of gratification. In many cases - that one
moment of satisfaction cost me years of financial set back.

I've been teaching my kids about money.. so I've been looking at my life first and the mistakes I've made. I'm working on changing things - but my kids can't wait five or ten years while I straighten myself out. So I have to teach them about money today, while their still young and have time.

I look back at my life and realize that I've wasted my life - literally. I've worked 60 - 80 hour weeks at a job only to turn around and use that hard earned money on wasteful things.

Think about it:
* did I really need a motor Bike?
[ I ride once a month and paid over $10,00 dollars on that loan ]

* Did I really need to take that trip to NY when I first got married?
[ It cost me $700 dollars and I ended up paying an extra $500 dollars in credit
and overdraft fees - for a two day stay in NY]

Making money only to stupidly give it away

One of the realizations I've come to is that I've worked very hard at making money, but I've been foolishly - no stupidly giving that hard earn money away.

Think about what the book says - figuring out where you make your money so you can know where you stand. Well, like most Americans I work a job - so I am a “E” [ employee…] So before I get paid my uncle - uncle Sam takes his cut. Then every time I buy something I pay a tax. Some people pay on things they no longer own - like my brother in law… he is still paying for a car he no longer even owns. When it’s all said and done I am always paying out…

The only way to get ahead is to move from just being an employee to being a business owner. Yes I know - first thought was…
“What the hell kind of business can I start?
“Where can I get money to start a business?”
“I can’t afford to start a business?”

Then I saw a friend of mine open a lawn mowing business… something I thought of doing for years but always had an excuse why I couldn’t. And he did it with little or no money, with help from friends and one job at a time. After reading the book, I realized how stupid I’ve been. So scared to do something never realizing it was costing me more by doing nothing. Too scared to take a risk, and now I see twenty years later… the risk was in waiting till now to actually do something.

I use to do what most parents do - tell my child to study hard, get good grades so she could get a good job. But look what a job has done for me. Look what just having a job has done to the millions who lost their jobs in the real estate and bank crisis… Even when times were tough economically - I watched as many of my friends struggled to keep their business afloat. I had one friend who closed up shop - and that was because he simply gave up. The rest, they buckled down, cut cost, did more with their business and now that the economy is better - their doing better. Some even were able to expand. Me, sadly enough - I simply just still have a job.

I have to teach my kids to think different. Look for more than just getting a job - but rather creating something that will make them money. Call it a business, a system, what ever you want. Just be a business owner….don’t own a job, or worst - be a slave to a job.

Making Money is not evil - being poor is evil...

Making Money is not evil - being poor is evil...
It’s a quote from a book I just finish reading : Cashflow Quadrant: Rich Dad Poor Dad.
It’s an interesting read - I know I’ve read it twice and the reason why I bring up this topic “Making Money” is because of the economy. Really - I look at my kids and I wonder … have I wasted my life. Have I been so busy in the pursuit of my own happiness that I can’t offer more for my children because I thought wanting to make more money was “evil”… or maybe because I was scared or too lazy to try?

This kind of book - how to make money or the mentality behind it really makes you think.

Yes I know - I’m not trying to make it rich or even become rich over night. But I do have that urge to do more, make a little extra so my kids can have it easy. If anything - learn a couple of money managing or wealth building skills I could teach my kids so they don’t end up like dear old dad - a slave to a job - always wondering if this recession or hard time will destroy all my dreams [ if I have any ].

What parent doesn’t want the best for their kids and who doesn’t dream of “making money effortlessly” … I mean seriously! It’s not like it can’t be done - People today are making money sitting at home. You have people who make six figure incomes because they came up with some lame application for the iphone that millions just had to buy.

The other reason I bring up the “money and how to make it” plus the mentality behind how you think and spend your money - is because of my loving wife. We are on opposite sides of the spectrum when it comes to money. I am more of a saver thinking of tomorrow and she is more of a “lets have fun today before we die tomorrow” kind of person. Which really makes it difficult when it comes to money and our finances.

I’m trying to get my daughter to read - Rich Dad Poor Dad
, by Robert T. Kiyosaki…
Not because I want her to be money hungry but rather I want her to think differently when it comes to money. In today’s economic crisis - millions of people are learning that having a job is not having security. We are all learning that depending on the government truly is more riskier than playing the stock market.

Wanting Better for your Kids Financially

Really is it bad to want better for your kids, financially speaking? Or maybe just the chance to change the way your kids look and think about money and how it works. I went to the book store yesterday and saw hundreds of posters and stickers about “buy 2 get one free” deals. Everyone is hurting in this economy - but the wealthy or smart people weather it better because they have options and a deferent mind set - as where regular people like me are stuck making money [income] at a dead end job. If you love your job, career hey that’s great. But when the kids ask for toys, milk or an unexpected expense comes along that breaks your bank - you only have X amount of dollars to work with because your boss is not going to give you a raise.

I watch the gas pump like a hawk [ not that it does me any good ] and at my job [ where I make most of my money after taxes ] I see people purchase with the gas pump in mind. I mean that people will say things like - “I have to watch my pennies, gas is too high”. Why, because even with a job - we live on a fixed income and every time gas goes up, food prices go up - our dollar [ spending power ] drops.

No I don’t want my kids to be greedy make money at all cost kind of people. But I do want them to think different, see the world different. Have the insight to take educated risk and plan wisely for the future. Rather than be like dad and save , save , save and be no farther ahead than I was 20 years ago. Or worse - be like Mom and millions of other Americans who live for today and now 20 years later still can’t see that their no better off than they were before.

Growing old and finding out that making money was important

I watch my father in-law who only has a year to go before he retires at age 50. It’s great that he has a job that gives him that ability - but he wonders if he could afford to retire. He is concerned with the fact that the money he makes, the money he saved, … will it be enough for him to live a comfortable life? I listen to him and wonder - what will I be thinking, doing when it’s time for me to retire - will I be able to retire?

Do I want my kids to do the same or can I teach them to do things, think in ways that will better them in the long run. That when they reach age 40, or 50 they could retire with little worries and if they work, it’s because they want to - not because they need to make money in order to survive.

I'm not talking making them into millionairs - just better off than me.