Enjoy Retirement, but Don’t Spend My Inheritance

EDIT: Due to brain damage, I forget to mention the winner of the personal finance book is Sandy K. Sandy I will put the book in the mail today, thanks for entering!

“Inheritance is the practice of passing on property, titles, debts, and obligations upon the death of an individual. It has long played an extremely important role in human societies.” Wikipedia

Several times while listening to a personal finance radio show I’ve heard callers call in about their inheritance from parents who are not even dead yet. It amazes me how some people feel a sense of entitlement just because they breath air, like they did something truly remarkable to deserve their inheritance.

I thought an inheritance was a gift and not a right.

This just got me thinking, how do you feel about what your parents have accumulated, if anything? Would it be ‘okay’ if they left you with nothing or would you feel like you’ve been jipped.

Do you ever wonder if your parents are spending your inheritance?

How to Get Out and Stay Out of Debt Book Giveaway

I have a few financial books that I will be giving away on any given Monday for FREE! All you have to do is send me an email at vdm17 [at] yahoo dot com with the words, Get Out of Debt in the subject line.

One email will be chosen at random and the winner will be announced the following Monday. (I will accept email entries up until June 1st at 11:59 pm). This giveaway is not limited to the USA, I’ll be happy to ship overseas because you guys have money over there too. The book I’m giving away is How to Get Out of Debt, Stay Out of Debt and Live Prosperously. You can read some reviews about this book on Amazon here.

An excerpt from the back of the book says you’ll learn:

• How to recognize the warning signs of serious debt
• How to negotiate with angry creditors, collection agencies, and the IRS
• How to design a realistic and painless pay-back schedule
• How to identify your spending blind spots
• How to cope with the anxiety and daily pressures of owing money
• Plus the three cardinal rules for staying out of debt forever, and much more!

I know not everyone has debt, but if you’re interested in reading this book or know of someone who would benefit from it, then send me an email. I’m closing the comments for the book giveaways since the entry is via email.

But I Can’t Feel Anything - Does Using Plastic Desensitize the Act of Spending Money

Last week I asked my mother to pick up some items from the grocery story for me because it would give me more time to have lunch with her instead of running errands. When I got to her house I realized I didn’t have any cash and said I would pay her later. She said, “That’s okay, I used my debit card, I didn’t feel anything.” Now knowing my mother, I easily translated this to: I went to the store in the ‘hood and paying more didn’t bother me because I used my debit card.

I was surprised she realized how easy it is to emotionally detach from how much we’re actually spending when we use a debit/credit card.

This is true of me as well. Very rarely do I use cash in my day to day purchases, sometimes it doesn’t register that I’ve just spent X amount of money when I’ve used my debit card. I can make purchases without ever having to physically touch money. I have my paycheck direct-deposited, I use my debit card for most purchases, I pay my bills on-line, I transfer money between accounts and even to other people. Spending money doesn’t seem real anymore. I just bought a new computer, if I had to put that same amount of money down on the counter to buy it, it probably would “sting” a little more. I ordered it online and all I had to do is key in a few numbers and wait.

A few times I went into the grocery store with just cash and I found myself thinking if I really needed an item or was there a cheaper alternative. When I use my debit card, shopping is almost an emotionless activity, I do buy a lot more stuff when I use plastic.

A few weeks ago I had $10 cash and I thought I was rich and wanted to get my car washed inside and out. However when I got to the car wash, I was presented with a few choices. I could spend $1.99 (I know, cheap car wash) for a car wash and an additional $1.00 if I vacuumed the inside myself or I could spend $8.00 for full service and have them clean the inside. When it came time to pay the man, with cash in my hand, I just couldn’t get the $8.00 wash, I chickened out and paid him $2.00 and cleaned the inside for $1.00 myself.

I know it’s not a lot of money for a car wash, but when I use cash my purchases are a little more selective and suddenly I don’t need stuff. Do you think using plastic encourages increased spending? Sure, we can only spend what cash we have, but it kind of makes you wonder just why life takes Visa.

4 Ways to Avoid Arguments About Money

Whether you are married or single with significant other, discussions about money are bound to come up. Often times, these discussions turn into arguments, sometimes fights and even possibly divorce. Some couples avoid the money topic completely to maintain peace within the relationship, but that won’t work forever. So just how do you avoid arguments about money?

Communicate. If you want to avoid arguing about money, then you can’t be afraid to talk about it. Don’t wait until you are months into a relationship to at least start talking about some aspect of money. Some married couples have found it helpful to have frequent discussions about the family finances. If you are dating and marriage is imminent, don’t wait until you say “I do” to find out if you’re on the same page financially. If you’re single and dating, don’t wait until the check is on the table to decide who’s going to pick up the tab. Try to establish as much as you can before you’re faced with the situation.

Avoid Blame. Replace you with I. I’m no counselor of any kind, but I find this works with most arguments. Instead of pointing the finger at the other person saying: YOU spend too much, or YOU don’t know how to manage money try talking about your feelings. I feel scared about our financial future or I feel that we can do better with our finances. You can relax a person’s defenses by not starting a conversation with their faults. Avoid placing blame, nobody likes to be accused, even if they are in the wrong.

Be Satisfied. Be content with what you have instead of spending money on things you don’t need. Before you buy, ask yourself some questions: Is it really necessary to upgrade to the latest model? Do we really need a 52″ HD TV? Learning to be satisfied will help you live within your financial means without the added stress and money fights. Sometimes good enough really is just that, good enough.

Set Goals. Money is like time, if you don’t have a plan for it, eventually it will be gone. Setting financial goals as a couple or as a single person leaves less room for haphazardly spending money on stuff. Set specific goals, i.e. we would like to save $10,000 in 5 months or I would like to save $15,000 in 6 months. Keeping your goals in mind will help stave off frivolous spending.

These are just my top four ways, how do you and yours keep from having arguments about money? Do you mingle the money together or do you believe in yours, mine and ours?

Photo of couple by: Rojo.com
Photo in poll by DatingDames.com

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What’s In Your Wallet?

According to this article posted on MSN Money’s website, it’s quite possible that your wallet may reveal more about your financial situation than you think. They broke it down into these five categories:

It’s in There - You have money, but you don’t know how much you have in your wallet. Mainsha Thakor, co-author of On My Own Two Feet, describes the Ostrich as “People who are afraid to see the reality of their financial situation.” You have your head in the sand about your finances.

Running on Empty - No matter how many times you go to the ATM, you can’t seem to keep money in your wallet and you don’t know where you spent it. This person “likely wants to know where the money is going and may be frustrated by an inability to stop spending.”

Chaotic Cash - Your money is “crumpled up and in no particular order”. You have a cavalier idea toward money and you don’t respect it. I always said money was a woman, if you don’t treat her right and show her respect her, she’ll be gone.

Unruly Receipts - If you keep receipts in your wallet, it shows that you are trying to get a handle on your money, but you don’t know how to get started.

File Folder Funds - If all your bills are turned the same way, you have great financial habits. You know how much money is in your wallet, when your bills are due and how much money is in your accounts.

Right now, my wallet is a mess. I have loose change and bills in my purse (normally I don’t carry cash, but I have a few one dollar bills, I’m rich, lol). I can’t stand a messy wallet or purse, but it does kind of mimic my personal life right now. When I have money all my bills face the same direction, change in its place.

Which one of the above matches your wallet? Do you think it’s a reflection of your finances or it’s just a wallet, it has nothing to do with your financial situation or behavior.