Financial Freedom for the Christian
Family
Bob Vallier
http://www.bobvallier.com/table%20of%20contents.htm
There is a lot of good information in
this book and most of it is free on his web site. Because I read
everything on this topic that I can, I have heard most of this
already. Actually putting this knowledge into practice is another
thing all together.
I did learn 2 distinct things:
Saving Strategy (pg. 76)
The author had a
staircase of things that should be done to save well. This is one
instance that you should not skip steps or take them two at a time.
Step 1 –
Eliminate all High Interest Debt. (Credit cards, Loans, etc..)
Step 2 – Start an
Emergency fund and leave it alone (1-2 months ready cash)
Step 3 – Start an
Education Fund for your Children (Coverdell or 529)
Step 4 – Long
Term Savings Strategy (410K, 403b, IRA, etc..)
Step 5 – Set a
goal to pay off your house
Step 6 – Start an auto replacement fund (Set a car payment aside
monthly for a few years and let the interest work for you).
Step 7 –
Speculative tax shelters
Strategy on Allowances for
Children(pg. 112)
The author give 6
methods for giving an allowance. I am partial to the Allowance Tied
to Responsibility method. But the author stresses to explain to the
children in detail the method you choose.
Here are the
excellent rules the author gives:
A. The system you use should be explained to the child at the time it
is started.
B. An allowance should be initiated at around age six.
C. The amount should be reasonable and should increase as the child
grows older.
D. The parents and child should agree in advance on the kinds of
expenses the allowance will cover.
E. The allowance should be paid weekly on the same day each week.
F. The allowance should always be paid, and not withheld as
discipline or to influence the child's behavior.
G. Once the amount of the allowance has been established, the child
should not be given more money just because he has spent all that he
had.
H. The child should be allowed to make his own spending decisions.
I. The child should be assigned an agreed upon chore list which he
will be responsible to do for the benefit of the entire family. No
pay is received for doing these jobs.