Wealthbuilder's Personal Finance Blog

Ever since summer began this year, my daughter consistently asked her mom if she could have a lemonade sale. As June and July quickly passed us by, time was running out. School begins in a few weeks, so time was of the essence. So, my daughter and wife made the necessary preparations and picked a date and a location. After a quick trip to the store to buy the necessary ingredients, not to mention a stop by Sonic as only Sonic ice would do, they were ready for the sale. My daughter also suggested that they bake cookies and give a cookie away with each sale. Now she had the perfect product for a hot summer day. They set up at the corner of a 4-way stop right next to our community pool. Location, location, location. I left work early because I was not going to miss this. As I approached the 4-way stop I could see this vibrant personality proudly displaying her lemonade sign and yelling "Lemonade for sale with Sonic ice and a free cookie". There it was. The great entrepreneurial spirit in action! Full of optimism that the sale would be a success and working hard to ensure that it was. $41 in gross sales and 100% profit margin. A simple product priced right, great marketing and hard work = success and the wonderful feeling of accomplishment! Only in America.

If you recently landed your first real job, congratulations. If you are still looking, hang in there. This economy will improve and before you know it you will be gainfully employed. I was fortunate to receive some advice when I got my first job 16 years ago. I was told to set aside 10-15% of my income and direct it to my employer's 401k plan. I'm glad I took that advice and now I'm passing it on. Time is on your side, so don't waste this powerful opportunity to begin creating wealth. Plus, you won't miss that money once you establish this disciplined routine. I can't tell you how many of my peers are just now getting serious about saving. Sure, they can probably make it work, but they have to work twice as hard to catch up with me. So, don't waste another day, start saving now. If you can do more than your 401k, then open a taxable investment account and direct more funds there. Every time you get a raise, bump up your savings percentage. You won't regret it and you will be well on your way to building a secure future for yourself. Good luck and welcome to the workforce.

If you are like me, you struggle with the personal budget. Sure, I have several years of data stored in Quicken and can run any number of reports about how and where our family spends money, but that's where the power of Quicken ends in my household. Every month I make the same observation - spent too much on eating out and clothes. What do I do about it? Absolutely nothing! Now, I know that's not very responsible; however, in my case, these small indulgences are not the real financial killers. It's the big ticket items that have the most punch. Such items include the mortgage, car payment, and any other big ticket purchase that you really really want. Fortunately, we got those items right. First, we live in a modest house in a great neighborhood. Second, we drive our cars for 9 to 10 years. Finally, we've resisted splurging on luxury items like boats, vacation homes, etc. We live below our means and that is the real reason we are not budget constrained. Buying the biggest houses, driving new cars every few years and filling our homes with toys will consume the majority of our take-home pay and that's the real financial budget killer. So, make wise decisions in these areas and you can continue to enjoy that $3 latte.