Managing Cash Flow

Wow -- I am still amazed at how complex managing personal finances gets once you get married. It's like that corporate project that gets extra headcount to speed things up, but yet everything slows down because more communication, more interlock is needed.

When it was just me, I always had a running tally on the month's cash flow in my head. I knew if I was ahead or behind for the month and what was coming so managing cash flow was easy. If there was a big expense looming I would buckle down, delaying expenses in other areas to normalize the cash flow. Worked great.

Now things are not as flexible as they were. I just can't take the month's cash flow and allocate it to a large expense or investment if I wanted to. I have to anticipate expenses and keep a much higher buffer (how was I suppose to know we had to get a fancy new comforter for the bed this week? how was she suppose to know I had to take someone last minute from work out on the town?) - it was much simpler when it was a one-man team.

However, it's not a bad thing. Being married means there are more income streams and likely a larger pie to divide up during the month than before. It just requires a more conservative plan and regular communication to make it work.

My wife and I have realized this is where we need to focus for now when we discuss finances. Rather than talking about investments, life planning, retirement funding, reviewing the 100+ account balances we have, etc we need to focus on becoming a well oiled machine when it comes to managing our cash flow. It narrows the scope, makes this whole merging finances aspect seem so much less daunting at times, and lays the ground work for the rest of our financial merger.

I mentioned earlier that I needed to improve the financial reports that are used to help my wife and I communicate about our finances. I think I have a clearer understanding of what I need to focus on at least initally in reports we use. Cash flow is king.

Changing my Blog Focus… Giving vs Getting

I have been thinking about this for at least two weeks now and finally figured I’m going to jump on it.! All the blogs I’ve found on personal finance so far are all about getting, making and acquiring more money.

See the problem is I’m a twenty year old nearly $20 thousand dollars in debt. With my birthday on April 20. I’ll be turning 21. So my idea is to try and spread the word about my blog as huge as possible so that I may receive the guidance and support I need. This is definitelygoing to be a group effort and if you don’t believe I can get myself out of debt and then go on to build my networth to the point where I can actually give $1,000,000 million dollars away. I would like to say don’t bother posting, however I’ll actually encourage you to post you uplifting spirit. I’ll be able to use your comments and postings when I finally reach my goal before I turn 22.

Check-List Of Giving

1. Of course before I can start I’ve gotta pay off my chunk of society. This is going to go along with the new profession I’ve chosen to participate in. I’m going to work on being a Real Estate agent. (Once again being able to help people) Teach people how to get into a house without all the complicated trappings.
2. My parents house and/or complete debt package. Which who knows I think it could be around $300k that includes Best Finance personal and Business Loans For Bad Credit. Heck that would set me at nearly half way through my goal alone
3. Once thats complete I’m going to move onto my grandma’s house. Help he not only pay off her $30k remaining mortgage thats left, but also purchase her house from her and allow her to live there rent and mantanence free. Investing her equity in a dividend income trust allow her house to liturally pay for itself along with probably any bills she may have.
4. Next task on this list will be my brothers student loans…! Wow glad I didn’t go to K.U or another University!!! They are way WAY over priced. My bros got at least $70k probably $80 in evil Sally May student loans.

Like all the great seminar speakers and goal setting gurus say your suppose to write down your goals. Hopefully typing when you’re a major computer geek will work the same as writting. Since my fingers can dance along the keyboard as if I were speaking. Ok, so here they are my top 4 major definit goals that will be completed before April 19, 2008 11:59pm (1 minute before my 22nd birthday).