Getting Comfy with Your Money

Chapter 1:
Our Relationship with Money

Who Should Read This Book
How This Book is Organized
What to Expect
What Not to Expect

We learn very early growing up that money is something we want to have so we can buy things. Our relationship with money through life is initially defined by this basic need. We come to believe that we have to get more and more money so that we can buy more and bigger things.

This is a simplistic view of money that often leads to problems. When our emphasis is on more spending, it’s very easy to sink into debt. Being in debt with no way to easily get out can result in emotional issues that can degrade our quality of life. Being stressed, frustrated, angry, frightened, and unable to sleep because of money can even destroy relationships with our friends and loved ones.

Instead of being a convenience, money can seem toxic. It can feel like a necessity that makes us uneasy. We can even be uncomfortable just talking about money. But, money is not the cause of our distress. The fundamental issues are that we have not been taught to:

  • understand how our everyday money works, nor
  • appreciate the need to plan our spending.
The intent of this book is to fill in these blanks of your money education so that you can begin to feel comfortable with your money.

Who Should Read This Book

This book is meant for everyone who has or will have an income and would prefer to live a life free of stress about money. This includes:

  • high school and college students;
  • young adults;
  • middle-aged adults;
  • adults about to retire;
  • retirees.
The information and software discussed in this book are applicable to any wage earner regardless of how much or how little their income may be. It’s not about how much you earn, but how well you manage what you earn.

How This Book is Organized

The first objective of this book is to help you understand all of the parts of your everyday money, how all the parts work together, and the software planning tool that was built just for you.

  • Chapter 2: How Your Money Works - Learn the six parts of your money and how they work in relationship with your income and your choices.

  • Chapter 3: Paychecks are Important, Not Paydays - It’s all about the timing between when you receive your income and when you spend it. In this chapter, you will see how you will benefit from doing a couple of your day-to-day money tasks differently than you may expect.

  • Chapter 4: How Income Companion Works - This chapter introduces Income Companion: the software designed specifically for managing household finances. You will see how the program works the same way that your money works.

  • Chapter 5: The Program - You find out where and when to get Income Companion. How you get started, when you will use the program, and playing “What If?” are overviewed.
The next two chapters cover the sources of money that you may need for large purchases or as a backup to help pay for unforeseen events.

  • Chapter 6: Borrowing Money - This chapter looks at the options you have for borrowing money along with the metrics used by lenders to decide on your creditworthiness.

  • Chapter 7: Insurance - This chapter defines important insurance terms and introduces the major types of insurance that you have available for protection against a large, unexpected loss.
At this point you are ready to start getting comfy with your money. The last chapter is your cheerleader urging you to get started.

  • Chapter 8: Getting Comfy With Your Money - Choose to start today.
What to Expect

When you have finished this book, you will:

  • know the six parts of your everyday money and how they work;
  • understand why paychecks are important, but paydays are not;
  • know how to avoid living paycheck to paycheck;
  • have an appreciation for how Income Companion works the same way as your money;
  • be able to measure your progress toward financial health and peace of mind;
  • have an appreciation for navigating the financial marketplace to borrow money;
  • have a basic understanding of insurance and the various insurance products;
  • be ready to start using Income Companion.
Your relationship with your money does not have to be painful. After reading this book, you will understand how to keep your money in perspective. You will have the requisite knowledge about both your money and Income Companion to get and stay comfy with your money.

What Not to Expect

Up until now everything you have learned about managing your everyday money has probably been based on monthly or payday budgeting. A monthly or payday budget is a plan for how you will spend what’s left over from the next paycheck after you pay your bills. To create a budget you concern yourself with concepts which could include:

  • Wants vs. needs expenses
  • The 50/30/20 budget rule
  • Budget categories
  • Determining monthly income, identifying high-priority bills, estimating other expenses
  • Paying yourself first
  • Tracking expenses
Personal budgeting is supposed to help you stop living from payday to payday; however, since budgeting applies to your next payday, a monthly or payday budget actually encourages you to live paycheck to paycheck.

There are other issues with personal budgeting that prevent people from either starting or sticking with monthly or payday budgeting for very long.

  • Every dollar left after paying the bills has to be given a job. Such a detailed plan is inflexible. An unexpected expense can immediately make a budget useless.

  • Sticking with a budget requires keeping track of how every penny is spent to ensure spending stays within the plan. This level of detail is exhausting.

  • Negotiating a new budget every month or before every payday is stressful and time-consuming. When more than one person is involved, making each new budget can lead to bad feelings and arguing.
Before continuing in this book, take a moment to think about any experiences you may have had with budgeting. Then take another moment to consciously set aside what you may have learned or think you know about budgeting. Clear your mind. Take the effort now to forget everything because you will find none of what you know about monthly and payday budgeting in this book.

You are about to learn an entirely new way to view and manage your household finances. Start by making your mind financially a clean slate. Take a deep breath…or two. Now continue reading with an open mind.

2 Good Software

© Copyright 1976-2022 George Gilbert