Some of the things in this book I’ve already heard before and I won’t be repeating them as they are included in most every personal finance book you can find. Some of these notes are even things I’ve heard before, but may have forgotten and so will be including them here.
When saving up for 6 month buffer don’t forget to include things like car insurance, home maintenance, appliance replacements, vacationsx, camp for kids, estimated quarterly income taxes, gifts and holiday spending, and medical and dental bills.
When creating a budget ask yourself:
Do we have enough income to cover the payments if we take on more debt? Do we have enough money available to cover quarterly tax payments? Have we put aside enough to cover the holiday presents we want to give? Will our savings (rental properties, businesses, and dividend yielding investments) produce enough income to live on and maintain our current lifestyle so we can retire when we want to? What size mortgage payments can we afford?
Work out a budget together. Do a budget in pencil as it isn’t ever permanent due to changing circumstances and realizations. Use round numbers in your budget. It isn’t necessary to know everything to the exact penny. I’m a perfectionist and so I’m definitely going to have to work on this one since I actually like to see everything exactly as it is.
What is most frustrating to people about managing their money is the chaos feeling. Once that is under control then you can start to focus on savings and investing.
Most people can’t imagine a large monthly savings amount to fund their retirement, but people are fine with paying a large mortgage and a large car payment for years and decades.
Its possible the kids will want something as an inheritance when I die. Maybe look into an insurance policy that pays out to them once I die. I could be the insured and they the beneficiary and I could send them money to pay the premium. This way they get a little something when I die and then my wife could spend whatever money is left to her in the form on savings and monthly cash flow. After that she could plan or we could plan how the remainder could be divvied up when she passes.
Look at a revocable living trust and combining it with a second trust to avoid tax issues. Would it be smart to use the irrevocable trust in doing so?
Could we deduct from our taxes yard improvements?
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