Category: Budgeting

Is Spock or Homer Simpson in Charge of Your Financial Plan?

We are what we repeatedly do.  Excellence, then, is not an act, but a habit. – Aristotle, ancient Greek Philosopher – If we consistently make good choices it will lead to good habits.  I recently read two books that examine some of the factors that influence our choices and behaviors.  An understanding of these factors…

Cash is an Incredibly Compelling Scoreboard

Another simple way to budget is the cash/envelope method.  If you examine your spending habits you will likely find that much of your spending is fixed.  You can’t do a lot immediately about your mortgage or rent, car payment, or basic utilities.  To quickly gain control of your budget your discretionary spending is usually the…

If You’re Not Keeping Score, It’s Just Practice

I love basketball, and when I was younger played frequently.  Sometimes in a pick-up game we would be playing hard, but no one was keeping score.  After a while someone would say, “First team to 20 wins.”  The intensity would immediately pick up, especially on the defensive end, and suddenly everyone became more focused. Other…

The Micawber Principle: Living the Fundamental Law of Personal Finance

Who Was Micawber and What is His Principle? In the book David Copperfield, written in 1850 by Charles Dickens, the orphaned title character is sent to work in a factory in another town.  Arrangements are made for young David to rent a room in the home of Wilkins Micawber.  Mr. Micawber is fond of offering…