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May 21

Tools for Finance Novices

Learning how to design a budget—and stay on one—is a key to building wealth. “If you don’t understand your budget or are exceeding your budget, you’ll never get ahead,” says Paul Jarvis, a certified financial planner in Fargo, N.D.

Recently, I was asked by the Wall Street Journal my opinions on the best web based and mobile based apps for 20 and 30 somethings for the article, “Websites for Finance Novices.” I have found that individuals with the best financial habits are those with a budget and are able to separate wants versus needs.  The tools I recommended in the article relate to cash flow and budget management because if you can understand your cash flow then you can not only build wealth but also maintain wealth.  This, what would seem, simple concept applies to the wealthy as well as those buildling wealth. 

“They became millionaires by budgeting and controlling expenses, and they maintain their affluent status the same way” —The Millionaire Next Door (Stanley/Danko)