The Art of a Variable Cost Account $$

financial well-being Aug 22, 2018

How do you budget for expenses you know you’ll have but aren’t consistent every month? This includes things like changing your oil, replacing your car tires, going to the dentist, purchasing contacts, etc.

A variable cost account is one effective way to prepare and manage these expenses. It allows you to “normalize” or even out how much money you spend on variable expenses. This will help you reduce stress and have greater control of your finances.

To create a variable cost account, follow these three steps:

1. Go to the bank and open another account. A savings account is usually preferred as a checking account is easier to spend from.

2. Determine how much you need to put away each month.

  • Review your spending over the past 5-6 months. Identify how much money you spend on variable costs – things that did not occur every month but you did need to buy them.
  • Once you’ve reviewed this number, take a guess at your projected variable costs in the...
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Grandpa's Powerful Practice of Sound Financial Health

financial well-being Apr 19, 2018

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My grandfather was a self-made millionaire. He was born in 1920. He once told me that he planned his money out for retirement to live until he was 80 years old. 

He thought he would be long gone by then. He passed away at age 96 - 16 years later than he thought. How is it he still had money left to his name when he passed?

Over dinner one evening a couple years after I graduated from college, my grandfather asked how things were going at work. I said they were going well. He next asked me if I had had any raises or promotions since I began working.

I was caught off guard by the question but indeed my income had been steadily going up. My grandfather then shared a piece of wisdom I have never forgotten.

He told me that most people’s income goes up over their lifetime. He took a finger and drew a diagonal line in the air representing how as life goes on (the x axis), a person’s income typically goes up (the y axis). He took his other hand and...

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