Family First by Putting Your Money First

Wait wait, wait, let me explain.

I know, I know – I can hear everyone talking about how I am a horrible person by putting my money over my family.  But, that is not really what I am doing.

Think about it like this

It is like taking your kids to the pool.  They are thinking about how much fun they are going to have in the pool.  Playing games like Marco Polo and chase.  You are thinking……Please don’t die in the pool, as you watch intensely while your children play around without a care in the world.

I remember one of the first times I took my little girl to an amusement park and the ride was just swinging the most precious thing in the world in the air……. Oh, wait, that shit can break!

When I was a kid, I didn’t think about rides breaking.  Besides, if it did, I would just swing off of it and climb my way down the ride.  Because I am just that awesome.

That is what finances for me 

My wife and girls get to play along without a care in the world.  My children asking me for every toy they can consume, along with what feels like my wife asking me for whatever toy she wants.  (Let me pause, Ladies…..Now ladies…..My wife doesn’t have to ask me for anything and there are certain things she can get without talking to me, but there are things that she doesn’t want to spend her money on that she wants me to spend my money on to buy her because I love her.)

Whew……..Anyway, I have to totally look at my family and give them the Dad look and be like I am not buying you that. Your IPAD still works.  Yes, there is crack down the middle of the screen, but who told you to stand on your IPAD?  It’s an IPAD, not a Stepping stool.  Besides, I am not pulling money out of our pay cash account to pay to fix your IPAD when I told you many times not to take your IPAD to the bathroom, so you can inevitably drop it in the toilet.  (This has happened by the way.)

At any rate, I have to put the money first because I am the protector of the money.  And as the protector, I see all the other problems that are out there.  You know crazy things like getting laid off from work or somebody getting sick.  Maybe someone is going to need braces soon.

I am just trying to make sure that when my family needs something, we have the money to take care of things.

So, I have a little matrix I use to go through decision making anytime my family is trying to buy mostly big-ticket items.  Because, if you are using my cash management system, you are not sweating the small stuff.

1. Are we in debt?
   • If we are in debt….The answer is NO. Why are we talking about this?  Do we have the money in the bank to pay off the debt?  And, by the way, it doesn’t count that if we pay off the debt, we have to run the credit card back up to get through the rest of the month.  I see you, folks, out there.  No!
2. Can we comfortably afford this Item?
   • Is the money in the pay cash account?
   • Do we have enough emergency savings ($5,000)?
     1. If we have that money for a big ticket item….Sure baby let’s get it.
     2. If not, No!
   • Is this a need or a want?
     1. OK, not enough money in the emergency account
        • My kid needs a tutor. Fine!
        • My kid needs an IPAD because she cracked it using it as a step stool. NO

4. If Long Term Debt – Car loan, purchase a home, remodel a home, going back to school or going to school, furniture….etc. etc… etc….
   • Did we practice making the payment already first? If you want a $60,000 car, did you practice making the car payment for 6 months before purchasing the car?  Let me keep it 100% for you. If you have to practice buying a $60,000 car you shouldn’t be purchasing a $60,000 car because cars are worthless. However, at the very least you should put the $1,000/month to the side for 6 months as if you own the car and if you are able to maintain your emergency savings, put money in your investments the same, and maintain your lifestyle, go for it.
5. How does this purchase send ripples through my family?
   • Back to the car………For real. Do your kids need a 60K car?  And if you have kids, do you really want to spend the time yelling at them for spilling their juice box in the car, or whatever that shit is?  I would personally be able to have a car or a home that the family can afford and feel more comfortable in.  I am not saying let your children wreck you home to bits, but it is just a material thing.  Let your kids paint their room whatever color they want.  Who cares?  Really think about how this purchase sends ripples through the family.
6. What items does your family need?
   • Before making a bigger than expected purchase, try to think a little longer term. Think about who you are married to. Think about what your children are going to want, and then think about whether or not you are going to say no to those things and hold your ground. You may not be the Shero or Hero of the moment, but you can be that to them later.

The whole point is to try to keep your family balanced.

You need to make sure they don’t overextend themselves so that you are in the best possible position financially.  If your family is in the best possible position financially, then they are in the best possible position to achieve.  And that is what is important.

*Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.