Your Money_ The Missing Manual Part 22

- Exploration. People in semi-retirement give themselves permission to explore new interests by doing things like going back to school or taking a part-time job in a completely new field.

- Purpose. Most importantly, semi-retirees can pursue projects and pa.s.sions that align with their core values. Instead of slogging away selling pharmaceuticals, for example, you may finally have time to volunteer at the local health clinic.

If you're interested in semi-retirement, Clyatt's Work Less, Live More Work Less, Live More is an excellent place to start. It's full of brilliant advice and practical examples. is an excellent place to start. It's full of brilliant advice and practical examples.

The Final Frontier Ultimately, deciding when and how to leave the workforce isn't about some number in a retirement account. Think about your goals and what makes you happy. It may be that you're satisfied with your current job and you hope to keep at it for years to come. Do what's right for you.

And remember: A happy retirement is about more than money. Intangibles like health, hobbies, and habits will help you fend off boredom and increase your overall satisfaction after you leave the workforce. More than anything, close ties with friends and family will ensure your long-term happiness. So as you build financial wealth for retirement, build social wealth as well. The next chapter has tips for doing exactly that.

Chapter14.Friends and Family.

"When you get to my age, you'll measure success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life."-Warren Buffett This book has given you the knowledge and tools you need to build a better financial future. Using what you've learned, you can boost your cash flow to pay off debts from the past, provide for the needs of today, and fund your dreams for the future. If you put in the work and do the right things, you can get rich-slowly.

But to what end? Money is valuable because it can help you meet your goals. The point of building wealth isn't the Stuff you buy or the money itself-these things are secondary. What matters is that money can give you freedom: freedom from worry, freedom to pursue your goals, and freedom to spend time with the people you love.

Living a rich life isn't about making money; it's about your relationships with other people. Because friends and family play a vital role in your happiness, this chapter explores some ways to balance love and money.

Financial Blueprints In Secrets of the Millionaire Mind Secrets of the Millionaire Mind, T. Harv Eker writes that each of us has a "money blueprint," a built-in set of att.i.tudes and beliefs that affect how we deal with money. This blueprint is created by exposure to messages about money from friends, current events, TV and movies, and especially family. Unfortunately, most of our financial blueprints have flaws that prevent us from having healthy relationships with the stuff.

For example, when I was a kid, my family was poor. Dad sometimes had trouble putting food on the table, yet he always found ways to spend on expensive toys-sailboats, stereos, and so on. From his example, I learned to put wants before needs, and so ended up deep in debt as a young man. It took years to change this part of my money blueprint.

Our financial blueprints don't just shape how we interact with money; they also define how we relate to other people when money is involved. Do you lend money to friends? Do you give to charity? How much do you tip in restaurants? How do you feel if your spouse is a spendthrift?

When your money blueprint comes into contact with folks who have different money blueprints, you might have conflicts. The following sections explore ways to handle common situations where your financial values (especially the new ones you have after reading this book) are different from those of the people around you.

Friends with Money

As adults, most of our friendships tend to be with folks in financial situations similar to our own. The people we work and play with come from similar groups, and generally have similar incomes. Still, you probably have a few friends who are in different financial circ.u.mstances: Some seem to be loaded, while others struggle to get by.

These differences in income can lead to awkward moments. You need to go clothes shopping this weekend, say, but your best friend wants to hit the mall instead of browsing thrift stores. Or maybe your coworkers want to celebrate every birthday by going out for drinks, but the cost is killing you. Even minor differences in income (and in financial blueprints) can lead to misunderstandings and hurt feelings.

Though most financial interactions with friends are minor, there are two topics that deserve special attention: peer pressure and borrowing (or lending) money.

Handling Peer Pressure Peer pressure is a real and powerful force: If your friends value fashionable clothes, you may start to value fashionable clothes; if your friends like expensive wine, you'll likely become fond of expensive wine, too. It can be tough to make smart financial choices when everyone around you is spending-you feel pressured to spend too in order to belong.

But it is possible to spend time with friends without going broke. The key is to recognize that peer pressure is mostly internal; it comes from a desire to fit in. When you realize that you don't have to spend to impress your friends, most of the pressure goes away. Here are some ways to cope with social spending situations: - Explain your goals. Let your family and friends know you're trying to get out of debt or saving to buy your first house. Be straightforward about past regrets and future plans, and ask them to help you make smart financial decisions. Once they understand your goals, they'll likely be supportive.NoteA lot of people think that talking about money is taboo. But it's something we all deal with, so why not give and get help from the people around you? You shouldn't pressure your friends to talk about their finances if it makes them uncomfortable, but there's no shame in sharing your situation with others. Who knows? Your friends might have some great advice!

- Suggest low- or no-cost alternatives. Bike or run together. Go hiking. Kick a soccer ball around. Organize a picnic or a mother-daughter tea party. A one-time investment in a board game or a deck of cards is a great, cheap source of entertainment. If your friends want to go to a movie, suggest a matinee. If they want to dine out, pick a restaurant you know you can afford (or better yet, suggest a potluck).

- Budget for social spending. If your circle of friends makes a habit of a specific activity, build it into your budget so it doesn't catch you by surprise. If your coworkers go out for happy hour on the first Thursday of every month, for example, set aside $20 to join them.

- Leave your money at home. If you're worried that you'll cave to peer pressure, create a self-imposed limit. Take $5 or $10 or $20 with you, but leave the plastic behind. If you don't have the money with you, you can't spend it.

- Limit yourself. Do things with friends, just spend less. Join your friends for happy hour, for example, but munch on the free food and buy just one drink. If your friends want to buy more, let them-but you don't have to.

- Opt out. If your friends regularly do expensive things, politely bow out from time to time. By playing poker only once a month instead of once a week, for example, you reduce your costs by 75%. If your friends like to go shopping, join them for the companionship, but make it clear that you're there for the company, not the buying. (If the temptation to spend will be too great, don't go at all.) - Don't keep score. Don't obsess about what others do or don't have-focus on the relationships, not the Stuff. This can be tough, but it doesn't do any good to ask yourself why you don't live in a fancy 4,000-square-foot house on five acres. Remember: Life isn't a compet.i.tion. Your goal isn't to keep up with the Joneses, it's to do what's best for you.

The most important thing is to be honest-with your friends and with yourself. Don't cave to peer pressure just to impress people. This can be tough if you're a people-pleaser, but it's vital to your long-term happiness.

And remember that peer pressure works both ways: Your friends influence you-and you influence them. So try to be aware of ways that your actions subtly affect those around you. Don't put people in situations where they're forced to compare themselves to you. Respect your friends when they say "no," and don't try to push them to do things they're not comfortable with. Don't suggest expensive activities to friends who have other financial priorities, and don't brag about money or flaunt it.

Each of us comes from different circ.u.mstances. Don't judge other people (or yourself) based on what they do and don't buy. Make smart financial choices for yourself and gently encourage your friends to do the same.

Lending and Borrowing "Neither a borrower nor a lender be," Shakespeare wrote in Hamlet, "For oft loan loses both itself and friend." When a friend or family member asks to borrow money, your first inclination is probably to help out. But many people have learned the hard way that friendship and finances don't always mix. You can save yourself a lot of grief by knowing in advance how you'll handle these situations.

Some people decide that they'll never make personal loans: They know that if they're asked, they'll simply say, "Sorry, but it's my policy never to lend money to people I know." If you think this is harsh, you can follow it with something like, "But I'd be happy to help in some other way, if I can. What do you need?"

NoteThink very carefully before co-signing on a loan. As a co-signer, you're legally obligated for the debt, so if something goes wrong, you'll be stuck with the payments, a black mark on your credit report, and a broken friendship. If you want to help, it's usually better to lend money than to co-sign.

Not all loans between family and friends end in disaster. In fact, although there aren't any stats on the subject, it's likely that most loans go smoothly. But the potential for trouble is so great that you should think twice before lending (or borrowing) money. Ask yourself what would happen if the borrower never repaid the loan. How would it affect your finances-and your friendship?

You're likely better off saying "no" rather than putting yourself in a position where you have to hound a friend for money. Which would make you feel worse: the momentary pain of telling a friend "no," or the ongoing anguish of having the loan destroy the friendship?

Despite these warnings, there will undoubtedly be times you're tempted to lend money. When you do, be smart about it: - Discuss other options. Is there any other way you could help your friend? Sometimes people think money is the only way to deal with problems when there are actually other solutions.

- Only lend money you can afford to lose. You may never see the money again, so don't put your own financial well-being on the line just because you feel sorry for your cousin Joe. Make sure you're taken care of before you lend money.

- Be clear about your expectations. Draw up a payment schedule and discuss what happens if something goes wrong.TipUse this loan calculator at Bankrate to create a payment schedule: http://tinyurl.com/BR-loancalc.

- Get it in writing. Don't just hand over the money without some sort of record. At LawDepot.com, you can fill out a web form, and for 12 bucks you get a completed promissory note: http://tinyurl.com/LD-pnote. There's also a free sample template at Expert Law: http://tinyurl.com/EL-pnote.

- Deal with problems right away. You may feel like a nice guy by not reminding the borrower that they're 30 days past due, but you're just setting yourself up for trouble. Keep the lines of communication open.

If you can afford it (and it doesn't seem weird), consider giving the money instead. That way there's no ickiness on either side. If your friend pays you back, great; if not, you can feel good about helping her out. And remember: It's always okay to politely refuse.

At some point, you may be the one borrowing money from a friend or family member. (You should do this only if you can't boost your income or tap an emergency fund.) When you borrow, explain exactly why you need the money, put the deal in writing, and then stick to your word.

Keeping your word is the most important part. That means repaying the loan as promised-or sooner, if possible. Take this as seriously as you would any other financial obligation; in fact, take it more seriously. If you don't pay the bank back, you'll damage your credit score. But if you don't pay back a friend, you'll damage that friendship and your reputation.

Don't make promises you can't keep: If you say you're going to pay back an extra $200 when you get your Christmas bonus, do it. And use the borrowed money for the stated purpose. If you need cash to buy a car because yours was just totaled, then buy a car; don't go out and use the money to buy a new plasma TV. If your friend comes over and sees you have a new car and a new TV but you haven't been making your payments, it's going to make his blood boil.

Love and Money

Money management can be difficult even when you're on your own. But throw a life partner into the mix and things get much more complicated. Financial conflicts can cause major problems in relationships-including divorce.

Your Money And Your Life: Spreading the WordMaking positive changes to your financial life gives you an awesome sense of power and control. Like any new believer, you want to share what you've learned. That's a good thing-but you need to be careful.If you try to share your newfound wisdom with others, you may find they're not as excited as you thought they'd be; in fact, some will be insulted. Though you may have friends and family who could profit from what you've learned, if they're not ready to listen, you risk doing more harm than good by offering advice. (Parents, especially, aren't always thrilled about being corrected by their own children.)Fortunately, there are some subtle ways you can help those who are struggling: - Lead by example. Suggest cutting back on family gift exchanges this year. When you go out to dinner, lobby for cheaper alternatives. Start walking to the grocery store instead of driving. Bring home books, CDs, and DVDs from the library. Don't make a big deal out of these things-just do them. Rather than goading your friends and family into saving, simply be an example of what can happen through smart choices.

- Be willing to answer questions. When your friends who struggle with money see that you've got things under control, they're going to have questions. They'll want to know how you paid off your debts, how you got started investing, and why you bought a used car. Be available as a resource to those who want help.

- Use the soft sell. When your friends complain about money, don't make a big deal out of it. Share your story, and mention the tools that helped you turn things around (like this book!). Don't lecture them, and don't try to convert anyone. Just spend a few minutes explaining how you solved your problems, and then let it go.

It is is possible to encourage your family and friends to make smart choices without making them defensive or angry. But be careful about offering your opinion unless someone asks for it. When you see somebody is ready to make a change, be there to help. possible to encourage your family and friends to make smart choices without making them defensive or angry. But be careful about offering your opinion unless someone asks for it. When you see somebody is ready to make a change, be there to help.

The best way to balance love and money is to communicate-a lot. Writing in the New York Times New York Times ( (http://tinyurl.com/NYT-moneytalks), Ron Lieber listed four financial issues that couples should discuss before marriage (if you're already married, they're still well worth exploring with your partner): - Ancestry. What's your money blueprint (Financial Blueprints) like? What did your parents teach you about money? How your family modeled money plays a huge role in your own relationship with the stuff. If your att.i.tude toward money is different from your partner's, it can cause friction.

- Credit. Although it's not romantic, partners in a committed relationship ought to pull their credit reports and credit scores together and discuss the results (Chapter8 tells you how). Don't think of this as a compet.i.tion to see who has the better score; instead, consider it a way to be completely honest with each other so you feel like you're on the same team. tells you how). Don't think of this as a compet.i.tion to see who has the better score; instead, consider it a way to be completely honest with each other so you feel like you're on the same team.

- Control. Before you get married, decide on the family financial structure and who's responsible for which household accounts. (In many families, one person plays the role of CFO.) Know what your budget will be like and how much each partner may spend freely without asking permission.

- Affluence. Finally, discuss your goals. How wealthy do you, as a couple, want to be? What are you willing to sacrifice to get there? (See the box on Tools and Resources to Help You Achieve Your Goals Tools and Resources to Help You Achieve Your Goals for an example of a couple that worked hard toward a shared financial goal.) for an example of a couple that worked hard toward a shared financial goal.) As you consider these factors, strive for trust, honesty, and open communication. Without them, it's difficult to work together toward common goals. And that's really what success in a long-term relationship is all about: Working as a team.

NoteIf you're not married but want help working out your finances with your partner, pick up a copy of the truly excellent book Money Without Matrimony Money Without Matrimony (Dearborn, 2005) by Sheryl Garrett and Debra Neiman. (Dearborn, 2005) by Sheryl Garrett and Debra Neiman.

The Importance of Teamwork You'll always have some personal goals that don't align with those of your partner. (My wife rolls her eyes at my comic book collection, for example.) That's fine, but put shared goals first. No matter whether your finances are joint or separate (see Joint or Separate Finances? Joint or Separate Finances?), make sure your common objectives are met before pursuing personal pa.s.sions.

Here are some ways to ensure that both partners are on the same page and that n.o.body feels singled out as the bad guy: - Regularly review accounts. Schedule regular times to go over the household finances. Some couples do this weekly, others once or twice a month. At each session, look at upcoming income and expenses, and deal with any unexpected budget items. These reviews let you make course corrections.

- Don't be controlling. Take "you" and "I" out of your budget conversations and replace them with "we" and "us." Each partner needs to feel like they're involved in the household finances. If you unilaterally tell your husband he can't spend money on his motorcycle hobby, for example, he's just going to be resentful. So work together to find common ground.

- Be supportive. Find ways to encourage each other toward your shared and separate goals. If your wife asks you to call her out on bad behavior, do it. If she wants advice, give it. Don't lecture and don't act superior; help each other improve.

- Play to your strengths. Some people hate looking at the big picture: They don't care about retirement savings, interest rates, or the Dow Jones Industrial Average. Others don't like nitty-gritty stuff such as clipping coupons and looking for sales. Let each partner be in charge of the stuff they're good at. (I'm not very good at grocery shopping, for example; that's my wife's bailiwick. But I love being in charge of refinancing the mortgage and choosing mutual funds.) It's rare that partners agree completely on how to handle their money. The key is to find as much common ground as possible, and then compromise on the rest.

Joint or Separate Finances?

Perhaps the biggest question facing married couples is whether to merge their money or keep it separate. Most people getting married for the first time merge their finances; many folks entering their second marriage keep things separate.

Really, though, the degree of merging is up to you. Some couples have only a single joint account where they put all their money. Others keep a seldom-used joint account for certain needs but otherwise maintain complete financial autonomy. Most couples fall somewhere in between. Don't let anyone tell you that there's only one right way to merge finances. Each relationship is different, so the correct choice is the one that works best for you and your partner.

Many couples find that the ideal solution is some sort of blended system; they share a joint account for household finances, but each partner has a personal account to do with as they please. When you take this hybrid approach, the real decision is about how to divide the household income: - If you and your partner make roughly the same amount, you could contribute equally to the joint account, and then keep what's left over in your personal accounts.

- If one partner makes significantly more than the other, she could fund the joint account entirely on her own and keep the remainder in her personal account. Her husband could simply keep his own income in his personal account to do with as he wishes.

- Some couples use a proportional system: If one partner earns two-thirds of the household income, say, he contributes two-thirds of the joint account. After funding the joint account, the partners can do whatever they want with the leftovers.

- A final option is to use the "adult allowance" system. In this case, both spouses put their entire paycheck into the joint account, and then withdraw a fixed amount into their personal accounts every month.

If you use a hybrid system, it's absolutely vital to let each person use the money in their personal accounts however they want. (And it's also good to have rules about what expenses are paid from the joint account.) Kids and Money According to the U.S. Department of Agriculture's Expenditures on Children by Families Expenditures on Children by Families http://tinyurl.com/USDA-kids), the typical middle-income family will spend about $11,610 per year to raise a child born in 2008. (For low-income families, the average will be $8,500 per year, and for high-income families, $19,250 per year.) These costs only increase as the kid gets older. The typical middle-cla.s.s household will spend over $200,000 to raise a child from birth to age 18. That's nearly $300,000 when adjusted for inflation, and these figures don't even include college!

TipHow much will it cost to raise your kids? The USDA has a handy cost-of-raising-a-child calculator that gives you a rough estimate of expected annual expenses based on where you live, your income, and your kid's age: http://tinyurl.com/USDA-kidcalc.

These numbers aren't meant to scare you out of having kids, just to give you some idea of the costs involved. There are ways to reduce expenses (cloth diapers, hand-me-down clothes, and so on), but there's no getting around the fact that raising kids requires a serious commitment of emotion, time, and money.

When a new baby arrives, if both parents work, couples face a big decision: Should one parent stay home with the child? (If so, which one: The mother? The parent with the smallest salary?) Or should both parents stay on the job? This decision is often about more than money-personal values may determine the best course of action-but sometimes both parents continue to work because they believe they need the income.

In her book Miserly Moms Miserly Moms (Bethany House, 2001), Jonni McCoy notes that because childcare is so expensive, there's frequently no financial advantage for both parents to continue working. Between the cost of childcare and the cost of working (food, transportation, clothing, and so on), the second salary may be effectively negated. But how can you know if you're one of those couples that can afford for one parent to stay home? (Bethany House, 2001), Jonni McCoy notes that because childcare is so expensive, there's frequently no financial advantage for both parents to continue working. Between the cost of childcare and the cost of working (food, transportation, clothing, and so on), the second salary may be effectively negated. But how can you know if you're one of those couples that can afford for one parent to stay home?

The Parents.com stay-at-home calculator (http://tinyurl.com/SaH-calc) may help. Enter your income, expenses, and what you spend for childcare and work, and the calculator estimates whether living on one income is feasible.

If it's a priority for one parent to stay home with the children, how can you make that happen? It's important to discuss these questions early: Will you need to make cutbacks? How big will your emergency fund need to be before one partner leaves the workplace? Will you have enough insurance? You may need to scale back your lifestyle so one parent can stay home with the kids; many folks are willing to make these sacrifices because they feel that being a parent is the most rewarding career they could ever have.

Raising money-smart kids Teaching your children about money is one of the best things you can do to ensure their success. Financially aware kids become financially aware adults.

In order to raise money-smart kids, you need to be open about your family's financial situation. Some parents try to shield their kids from the family finances, but this does more harm than good. Teach children about money from a young age by letting them see how and why you make various financial decisions. If they see the challenges you face, they can prepare for them in their own lives. Here are some other tips: - Set an example. Model the behavior you want your kids to learn: If you want them to save, save. If you don't want them to become compulsive shoppers, try to curb your own impulse spending.

- Be prepared. Have answers before you need them. Know how you're going to handle specific situations like allowances or begging for candy in the grocery store. (I know one couple who turns their kids down by simply saying, "Sorry, but that's not in the budget.") - Be consistent. Kids do best with clear, consistent expectations, so think carefully about your family's money rules before setting them. Don't be so rigid that there's no wiggle room-be willing to mold your system to fit your needs-but once you've set a policy, apply it consistently and fairly.

- Be honest. Share your successes and failures. Tell your kids what you did right and what you wish you'd done differently. Explain your thought process each step of the way.

Most of all, make this learning process interactive. Involve your kids in frugal activities that teach them self-sufficiency, like gardening, baking, home repair, and so on. Teach them to comparison shop by having them help at the grocery store. As they get older, make them financial apprentices: Show them how to pay bills, check a credit score, and buy a car. Teach them that managing a household is a team effort.

Allowances A regular allowance teaches children how to handle money. When kids have their own money to manage, they're better able to learn the value of saving and the difference between wants and needs.

You can dole out allowances in a zillion different ways. How much do you pay? What age do you start? Do you stop once your child is old enough to work after school? How often do you pay? Some parents pay big allowances and expect their kids to buy their own clothes. Others pay small allowances but pay for their children's clothes and school activities.

Most of these decisions are beyond the scope of this book, but there are two topics that deserve special attention. The first is whether to base allowances on behavior. There are two schools of thought: - Tie the money to grades, ch.o.r.es, and behavior. This gives kids an incentive to do the right thing, but critics argue that tying an allowance to these actions sends the wrong message. Kids should strive for good grades regardless of what (or whether) they're paid for doing so, they argue, and doing ch.o.r.es is simply part of being a family member.

- Give the allowance without expecting anything in return. Using this method, kids learn about money even if they don't make good grades or do their ch.o.r.es. But critics worry that it creates an "ent.i.tlement mentality," meaning the kids expect something for nothing.

Most families are probably best off with some sort of hybrid approach: Provide a minimal base allowance that's paid without expecting anything in return, and then add "commissions" for certain ch.o.r.es and behaviors.

TipInstead of paying for good grades, consider giving something else your child values: a later curfew, a trip to a pro sporting event, golf lessons, more time with friends. This encourages the behavior you want without tying it to money.

However you distribute it, use the allowance as a chance to teach kids the value of money. Instead of just letting them spend it on whatever they want, consider a system that divides the money for specific goals. You might, for example, use three jars (or envelopes) labeled like this: - Save (30%). The cash in this jar is for long-term goals, like buying a bike or baseball mitt. Let the child decide on the goal-with your help.

- Share (10%). This money is for giving to someone else. Your kid can decide where it goes-whether it's a charity or just somebody else in need (even a sibling!)-but the point is to share it with others.

- Spend (60%). There are no restrictions on this money. Your child can spend it on books or bubblegum-whatever strikes her fancy.

For example, if you pay your kids a weekly allowance equal to 50 cents per year of age, you might have your 6-year-old (who gets $3.00 per week) put 90 cents into Save, 30 cents into Share, and $1.80 into Spend. As long as your kids follow the rules for each jar, let them make their own choices and mistakes. It's better for them to learn a lesson now with $10 than later with $10,000.

NoteYou can read more about segmenting allowances at Get Rich Slowly: http://tinyurl.com/GRS-allowance. A company called Money Savvy Generation makes a special piggy bank (http://tinyurl.com/money-pig) that has slots for Save, Donate, and Spend, and even one for Invest.Your Money And Your Life: Making the Most of a WindfallOnce in a while, you get lucky: You win the Super Bowl betting pool, get a bonus at work, or unexpectedly inherit a fortune from a long-lost aunt. It can be tempting to spend these windfalls on fun stuff-it's "extra" money, after all-but doing so can be a huge mistake. If you receive a windfall of a few thousand dollars or less, follow these guidelines: - Let yourself spend 5% of it on fun. Treat yourself to a fancy dinner maybe, or buy that collector's-edition DVD set you've been wanting.

- Use the rest to pursue your financial goals. If you're working on a debt s...o...b..ll (see Getting a Free Credit Report Getting a Free Credit Report), use the windfall to knock off another big chunk. If you've set up a targeted savings account (Targeted Savings Accounts) for a down payment, put it there. If you have a Roth IRA (Learning to Love Roth IRAs), put it there.

The important thing with small windfalls like these is not to fritter them away. It's easy to spend them on things that don't matter in the long run. So give yourself a small treat and then be smart with the rest.With a big windfall, such as an inheritance, first set aside enough to cover any taxes that haven't been withheld. (You'll be able to afford a tax professional to calculate this for you-it's worth hiring someone to do this.) Then, let yourself spend up to 5% on fun. If you have debt, use the windfall to pay it off; as unglamorous as it sounds, it's the best course of action. This will free up your cash flow so you'll essentially enjoy a prolonged, time-release windfall.Next, put the rest of the money into an account where it can earn interest while you decide what to do (a 3- or 6-month CD is a good choice-see Money market accounts Money market accounts). Then, do nothing: Don't touch the money. Take time to let your emotions pa.s.s so you can get over the initial urge to spend it all on a big house or a fancy car. Live your life just as you did before.Meanwhile, get professional help. Don't seek advice from anyone who might profit from your money, like a commissioned broker. Instead, find a good CPA or fee-only financial planner (How to open a Roth IRA account) who doesn't sell investment products.Ultimately, you'll want to use the money to pursue your goals. Everything you've dreamed about doing will now be within reach, so take the time to make a plan and then follow through.

Church, Charity, and Community.

Just as children should allocate their money for spending, saving, and sharing (Allowances), so should adults. You've learned a lot about smart spending and saving; let's finish the book with a brief look at sharing.