Building Family Wealth: Money Is Not Enough

Money experts are everywhere! That’s a good thing. Many of us come from families where extra money is spent on needs that cannot be set aside. At the end of the week (or end of the paycheck), sometimes, there is only enough money for carfare and gas to last until the next paycheck.

Your situation—or where you live—might make it seem a waste of time to sign up for webinars or workshops on finance. It is never a waste of time to see yourself and your family doing better financially.

Family wealth begins with a thought.

Count yourself in and take advantage of learning tips on how to handle your money. You are not too young—or too disadvantaged—to (at least) learn advice on how to:

• Save money for your first house
• Invest in the stock market
• Start your own business
• Save for your retirement years.

Paychecks promise prosperity... sort of.

However, there are opinions about whether working a regular job will make you rich. Quite a few factors come into play; such as, how much you bring home each pay period. Are you the only one working? Are you dealing with health challenges? Do you provide care for aging parents?

When trying to manage your money better, the following tips are reasonable attempts to keep more money in your pockets from your payroll check:

• Brown-bag your lunch
• Vend less
• Buy what’s needed
• Scale back on entertainment

Think about bringing your lunch.

Brown-bag your lunch for a while.

Taking your lunch to work can be intimidating when you think about the drab colors of your leftovers compared to co-workers unwrapping lunches fresh from the food truck; or those who went out for lunch to get salads with vibrant greens, crisp yellow and orange bell peppers, and firm red cherry tomatoes.

Waiting your turn at the microwave, you scan the room as the aroma of food flows through the air. You look at your lunch of leftover baked chicken breasts and stir-fried veggies and feel that surge of victory for not spending money on lunch. That’s a bit dramatic, I know. But, feel good you are taking steps to manage your money better. Don’t get discouraged when the money you save on lunch must be used for something else!

It happens.

Just when you decide to go for it, something comes up, huh?

*sigh*

You suddenly remember you opened the last bar of soap! The last time you had to use shampoo to shower because you tried to stretch the soap to the next paycheck! No biggie! You’re still winning! Get the soap! Put away the change (from what would have been lunch money) and add it to the money you will save when you brown-bag your next lunch.

In the beginning of trying to save money, it might feel as if all your needs show up at the same time just as you decide to give saving money a try. No worries! Things level out after a while. Challenge yourself. Brown-bag your lunch for a month to see how much you can save.

If you really want to go all out, include taking breakfast to work.

Morning routine ramped up with a master plan.

It sounds like a lot of work to save a little money, but think of the bragging rights: Spartan Saver! Then too, it doesn’t have to be a deluxe breakfast.

You don't want to get food wasted before start time.

However, if you get to work 30 minutes early because of your commute schedule—or you just go early to sip coffee and read the paper—consider making something simple like breakfast sliders using sausage and small pretzel buns (personal favorite).

Package them separately, two per bag. That way, you can pack your breakfast along with your lunch. Make it easy: reward yourself once or twice within the month so you won’t spaz out or feel deprived.

Watch out for those vending machines!

Vending machines hide your money.

Vend Less

Let's do a timeline on vending snacks. You stop by the vending machine in the cafeteria a few times during the day:

• You get a roll to go with coffee: $1.25
• Mid-morning break, snack w/drink: $2.50
• You vend a sandwich for lunch w/drink: $3.75
• Mid-afternoon break, snack w/drink: $2.50

That went quick, huh? You spent $10.00 already on snacks in one day. In the course of the work week, you see how easy it is to spend $50.00 on snacks? Congratulations! You found $200.00 more you can save hidden in the vending machine.

You can scratch getting a part-time job off your list.

Get what you need, window-shop the rest.

Something strange happens when we go shopping; be it for food, clothes, or arts and crafts to decorate our space. We go in the store for one thing and come out with everything except what we originally went to get!

We know what we need to buy, but we get sidetracked with what we would like to buy.

It is so liberating to buy what we would like to buy!

Even though we know it will make things tight until the next paycheck, we splurge with the intent to buckle down and do better next time.

The truth is, we want to see a symbol, something to show for our money.

Needs are continually replaced. After stocking up on food, toiletries, cleaning supplies and such, we want to look around and see material growth of some kind. Even if it's just a figurine on the table.

When we think about the long haul into our retirement years, we do well to master more of buying what we need rather than what we want.

However, buying a few movies is a good idea... and a need.

Frugal Entertainment: A Classic Budget Move

No matter how strong a Spartan you try to be with your money, you need to enjoy yourself. You don't have to go to a club every weekend to have fun... or do you? Feels like it, huh?

Anyway... unless you have the best group of friends this side of town... you may face the challenge of being misunderstood for "suddenly" not wanting to hang out anymore.

It's just for a short time to build your defense fund. You "heard" right!

Build your defense fund! You are fighting to keep more money in your pocket! You are also fighting to stay above the poverty line. The upside of scaling back on entertainment is you canhave fun at home.

You don't have to worry about driving home after a night of dancing or flagging a cab after an evening of fun. The most you will have to do is pick up popcorn you spilled dozing off to sleep while watching a movie!

Investing in the stock market doesn't have to be just a dream.

Research how to invest in the stock market.

Buying and selling stock is not just for rich people. You can do it, too. Thinking about the stock market might feel like doing the impossible; but remember, you are working on doing something different with your money to have better days ahead.

You do not have to spend money to find out how the stock market works.

As a matter fact, let no one pressure you into buying stock. You only want information to get a feel for how the stock market works. Ask questions.

Every person active in the stock market started right where you are this moment. They had a desire to know and put in the work to find out. You may have heard people talk about mutual funds. Start your research on mutual funds.

Big business comes from big dreams.

People who start their own businesses usually do so from a hobby they have outside their regular jobs. If you could make a living doing what you love, what would it be? It may seem a natural move for people who love cooking to go into the catering business or open a restaurant.

They don't have to go into business just because they can cook. Some people just like to cook for family and friends to enjoy the company.

Remember when someone offered to pay you to cook a cake for them? You turned down the money, but offered to bake the cake anyway.

That was noble. Next time... take the money.

How often have you been the one nominated to decorate because you do it so well and were offered pay? Interior decorating or event planning can be the answer to making extra money to supplement your paycheck.

Should you decide to go into business for yourself, find out as much as you can about your kind of business. When you are ready, visit the website of the Internal Revenue Service (IRS) to apply for an Employer Identification Number (EIN) to get started. Browse the site for more information about being self-employed.

Adjusting your life after a temporary lay off is only a hurdle.

Navigating setbacks beyond your control.

The irony of life is your best plan to build wealth for your family can suffer a setback through no fault of your own. It's easy trusting—the job that allowed you to buy a house—will be the same job there for you to finish paying for the house. That’s until you hear rumors of a possible lay off. Building family wealth under these circumstances raises the challenge of protecting your sense of stability, security, and community.

Turn to family, friends, and food banks to link a support system.

Families in love prosper well.

Most will agree family should come through for each other when money problems arise; but support may fall short when family doesn’t want to:

• Risk going into hardship themselves helping family
• Be deceived
• Break their apartment lease
• Support adults indefinitely

All the above reasons are legitimate. Try to understand the reasons. Don’t take it personally. People who speak passionately about the power of family (and how family should stick together) might be the same people who cannot or will not work with family to keep them out of homeless shelters, extended living facilities or off the streets, period.

You might find out, family members who are barely getting by, will be the family members who will help you; no questions asked. If you are better than lucky to have family who will make room in their homes for you until you can stand on your own again, it will be helpful to them that you:

• Be transparent about your plans: Let them know your efforts in trying to turn your situation around.
• Honor their house routine: If they turn lights out at 9:00 p.m., you shut down at 8:30 p.m.
• Clean up after yourself: This includes washing dishes used, wiping down the face bowl when done.
• Don’t cook at night: Try to eat with the rest of family, even if you’re having take-out.
• Offer to help around the house: The host family might say no, but at least give them that opportunity.
• Apply the Vegas Rule: What happens in that house stays in that house.

So you see, building family wealth takes more than money. Self-discipline and unconditional love are significant traits for all members to have when building family wealth.

Share your plans with family, friends, or even co-workers to inspire them.

A family’s compassion for each other during crisis is something money will never be able to buy.

Per Linda Davis Taylor, Next Avenue contributor to FORBES, a family that operates like a business has a good start for building family wealth.