My wife and I have three wonderful kids. The reason we believe they are so great is not just because they do well in school or excel at their sport of choice, but because they are becoming (fingers crossed) valuable members of society. But as some of you may agree, our work as parents is unending if our goal is to prepare the next generation for a fruitful life. So, this summer my wife and I have decided that there are changes coming to the Vega household! After all, there is always room for improvement. Our kids will need to comb through their belongings in order to identify what they need and what is just excess. The excess will be either donated or discarded if it is no longer useful, and they must rethink how they store and use their stuff. I don’t know if we are crazy or just lying to ourselves, ask me in a couple months. We are doing this because organization brings peace and harmony. It helps make life more fun. It allows for spontaneity to occur if you want it and makes space in your calendar (and in your mind) to enrich your life.
Why do I bring this up in an article about finance? What does this have to do with money? Simple – being organized with your finances is as liberating as being organized with your household. If you are thinking that you don’t have enough money to be organized with it, that’s not true. Being prepared and having a plan is important regardless of how many zeroes make up your bank account balances. Cash flow projections, compartmentalization of accounts, and real-life forecasting of your goals are three ways you can get organized.
Want to live more care-free? Organize your finances. Want to have the flexibility to splurge on occasion and not feel regret? Organize your finances. Want to put yourself in a position to work because you want to and not because you need to? Go ahead, you can say it, you know the answer.
Teaching your kids about money will be one of the best lessons you could ever pass on as well. Once again, the amount of money in question is not important. How big of an inheritance you leave behind may only result in a proportional amount of heartache for those that need to decide how to manage it. There are plenty of examples of squandered wealth by athletes, people who win the lottery, and even family dynasties. As you may have read recently, Gloria Vanderbilt passed away on June 17th. She was the great, great granddaughter of Cornelius Vanderbilt, the shipping and railroad magnate who amassed one of the largest fortunes in U.S. and perhaps human history! When Gloria’s father, Reginald, passed away he had reportedly squandered most of the family’s wealth. Perhaps that is why Warren Buffett, Bill Gates and other billionaires have opted to leave much of their wealth to charity?
Well, I am running out of space, so it is time to “hit send”. I hope you have fun this summer, and I also hope I have persuaded you to consider organizing your finances AND teaching your kids good financial habits!
