Joan and Robin were sisters and had comparable lifestyles. When their parents died, they each inherited $200,000. Ten years later Joan was asking Robin for financial help. What happened?
As soon as they received the money Joan had given $50,000 to her children to pay off their college loans, bought a new car for $30,000, put down $75,000 on a condo as a vacation home (leaving her with another mortgage, upkeep expenses and home owners association fees.) The other $45,000 just disappeared over the years on travel, shopping, house maintenance, etc.
Robin had also used her inheritance to purchase a second house for retirement and vacations. Most of the time it was rented and that money paid the mortgage and all expenses so, ten years later, she owned it free and clear and was making money on the rentals. She had allocated $10,000 of the inheritance to splurge and gifted $10,000 to each of her children. The rest was saved or invested.
Joan thought Robin was lucky and believed that things never worked out for her. She totally ignored the fact that they both had made choices that led to their financial outcomes. You can control your financial destiny by taking responsibility for your choices—make them work for you in the long run!
Money Saving Tips
Get your food shopping down to once a week or less. Quick trips to the grocery store usually mean buying 54% more than was planned according to a study published by the Marketing Science Institute. That means if you spend an extra $10 each time but only shop four times a month ($40) instead of stopping at the store 3 times a week ($120) you’ll save $80 a month or $960 in a year!
What made you smile today?
What made you proud of your money choices today?