Carnival of Financial Simplicity – The Journey

Posted by Kim Luu in Opinions | 5 comments

 

We’re honored to host this week’s Carnival of Financial Simplicity which was started by Nick @ Step Away from the Mall.

Achieving financial security is a journey that takes a lifetime.  There is no one right course to take.  The destination for you is not the same as that for someone else.

The most important thing is to take that first step and then to keep walking.

To ease the stress of the journey, we present the best of this week’s submission:

Editor’s Choice:

This post just stood out for me.

• The Cult of Money – The Best Time To Plant a Tree – Karl used a Chinese proverb to remind us that the past cannot be changed.  It has already happened.  The most important thing to improve your situation is to focus on the present and what you can do.  Take action and success will happen.

I would add that it’s also important to look back at the past and learn from our mistakes as well.

Making money

• Marie from Family Money Values brought up an important topic for families in “Should You Share Your Financial Situation With Your Children?“   She discussed how talking with children about money helps them to deal with the family’s financial situation.

Besides helping to preserve a family’s asset, being open about finances protects both the parents and children’s financial future.  Some make the assumption that their parents are actually wealthier than the reality.  People are living much longer and the parents’ assets usually end up being less than expected.  Many professionals in their 50s don’t feel the need to save because they’re expecting an inheritance that may never come.

Spending and budgeting

Cash flow is one of the most critical concepts that people need to understand in order to save money.

• Free Money Finance brought “The Two Ways to Track Financial Success.“  Net worth and cash flow.

• Boomer @ Boomer and Echo also discussed this important topic in “How to Manage Your Cash Flow.“

• Jeremy at Modest Money helps move cash flow along with some tips on “Establishing Spending Priorities.“

Juggling finances with competing priorities can be difficult.   Add in a spouse or partner and things can go downhill in a hurry.

• Emily and Kyle from Evolving Personal Finance started a nice chain of discussion about his/hers and ours in “The Slippery Slope of Separate Money.“   I recommend reading through the comments to get all the different viewpoints.

• Thad from Thad Thoughts shared a memory of how he learned to save money starting at 7 years old with the help of his sister in “Learning to Save.”  It’s a great example of how a small step done consistently can achieve big amounts.

• Cil at Millionaire Nurse shares her goals and steps to changing her financial habits in “Changing Habits Successfully.”

 

Investing

 

Insurance gets a bad rap in the world of personal finance blogs because most people don’t understand how to use it.  Their main experience is with a pushy salesperson who usually recommends the wrong insurance.   Insurance is actually a powerful investment vehicle that is frequently used by the wealthy.

• SB from One Cent at a Time gave us some “Basics of Why We Need Insurance.”

• Some parents get so invested in their children that they literally spend everything on the children without a thought for the future.  Roger from The Amateur Financier explores whether you should invest your savings for your retirement or set aside some for your child’s college education.

 

Debt Reduction

• Edward Antrobus shares the issue of taking automatic payments off a bank account when paying your debts.   It took me two years to get rid of the auto payment for my gym membership and I only succeeded by closing the account.

 

Carnival Submissions

If you have a good recent post that you want included in a future edition of the Financial Simplicity Carnival, please submit your post here.

 

photo credit: By hundrednorth