There are two words that are very close to the two words ‘family happiness’ – those two words are ‘family finances’! Note that I didn’t say ‘family wealth’ – happiness in a home, marriage, and family is often directly related to a parent’s ability to properly manage (not necessarily accumulate) and budget their finances. Unfortunately, it is true that more than 80% of all divorces result, in one way or another, due to finances. More tragic than divorce is the fact that families break up, children suffer, and society feels the negative ramifications of this all-too-common reality.

From the outset, it is absolutely important to note that the 14 essential principles outlined below are not designed to teach people how to accumulate wealth by applying the principles outlined. The sole purpose of revealing and explaining these principles is for one purpose: to help married couples and individuals around the world experience the family happiness that comes from applying simple financial principles. Will the application of these principles require effort and change? Surely! But doesn’t everything good and worthwhile in life also require constant change and effort?

Fortunately, with a little education, self-discipline and effort, we can really ensure that our ‘family finances’ result in ‘family happiness’. Can I suggest 14 ways how to achieve this?

1) Set a budget and live within your means: First, do you have a budget? If so, do you really live up to it? Do you really record all expenses, so that at the end of the month (when you sit down and review the finances…right) you know where every penny has gone? At the end of the month, when reviewing finances, did you buy something you didn’t need? Stick to your budget and live within your means!

two) Never rack up consumer debt: Do you know the difference between Good Debt vs. Consumer debt? Good debt is when you have to borrow money for some type of investment: a house, your education, or to start a business, etc. Consumer debt is simply buying anything on credit outside of these three areas. If you don’t have money to buy it, don’t do it!

3) Credit cards are NOT bad: Now, above in point 2 I mentioned never buying anything on credit that is not need or have money for. That doesn’t mean you can’t buy your groceries or other expenses with a credit card (in fact, I encourage you to). Proper use of credit cards is essential to your financial success. What is the correct way to use a credit card? It’s simple: never use more than 25% of your credit limit, make your payments on time, and pay your balance in full by the end of the month.

4) Understand the importance of building and protecting your credit: In my opinion, protecting your credit is just as important as protecting your social security number. Your financial future and success depend on that report/score. Do you want lower rates, better jobs, bigger loans, better wages, etc.? So you better protect your credit. I always tell people that investing in identity theft protection is as important as any life insurance program in our day and age. Now, do you know how to build and improve your score/report? It really is simple: never use more than 25% of the credit limit, make your payments on time and pay the balance in full at the end of the month (sounds familiar)!

5) ‘Wealth’ is not the accumulation of money, it is the correct management of it: Our culture and society certainly has a skewed perception of what true wealth is. If, for example, an individual earns $1 million a year, we assume that he is rich. Well, if that person spent $1.2 million that same year, that’s certainly not wealth, right? In fact, the promotions and pay raises we all seek in our jobs will do little good if we increase our expenses as our income increases. Robert Kiyosaki refers to this habit as the ‘rat race’. We need to learn how to properly budget, manage, save and invest our money, not just spend it. So true ‘wealth’ is getting out of this ‘rat race’, it’s financial independence, it’s passive income, and it’s time freedom. Learn now to manage your money before it manages you! Both men and women would do well to change their perception of ‘how much my spouse can earn’ to ‘how well she manages her finances’.

6) Self-discipline and self-control are essential: Self-discipline when it comes to money is far more important than any advanced accounting or financial management course. Parents would do well to develop this skill, and it would be wise to teach it to their children. However, please don’t misunderstand: ‘self-discipline’ does not translate into self-sacrifice or impoverishment. There is nothing wrong with buying “stuff” that is fun, entertaining, or enjoyed by children. Where the line needs to be drawn is on the questions ‘can we afford this’ or ‘is this in our budget’ or ‘do we really need this’ etc. And, ironically, self-discipline in financial matters will translate into self-discipline in other areas and aspects of life.

7) save save: That’s it, just save! Learn now to discipline yourself and budget 10% of all profits. Save for a rainy day, retirement, kids’ college, vacations, investments, etc. Avoid consumer debt, prepare for disasters or unemployment, and save 10% of all earnings – ALWAYS!

8) The importance of insurance: Do you have adequate and adequate home insurance, life insurance, health insurance, and car insurance? Otherwise, you are potentially setting yourself up for financial disaster. And, in our day and age, do you have identity theft protection? This type of insurance is just as important, if not more so.

9) wants vs. Needs: Wise is the wife, husband, parent, or child who can discipline themselves financially. The ability to sacrifice, to do without, to save, to be patient, and to determine wants versus needs is an absolutely necessary attribute to develop; ironically, this attribute is not only necessary for matters related to finances, but for all aspects of our lives!

10) The money is not bad: Unfortunately, most people have it ingrained in their minds that money is bad. The money is not bad; it is the pride that people develop in owning and accumulating money that makes others perceive money as ‘bad’. A rich person’s snobbish attitude, condescending comments, supposed superiority and arrogant actions are what is ‘wrong’, not money! ‘But money created pride’, some will wrongly say; no, the choice to be proud is what created the pride. Money is absolutely necessary for our daily survival; And if we choose, our excess money can also free up our time and create opportunities and resources that help and hurt other people’s lives. We need more people who choose to acquire wealth for charity and fewer people who develop the strength to suffer financially because they ignorantly believe that ‘money is bad’.

eleven) Communication and participation are essential: If you are married, are you both involved, informed, and making joint decisions in the family’s financial affairs? If not, the question itself should reveal the necessary changes that need to be made. Are children just given money, or are they expected to work and earn it? Grateful will be the child, and wise will be the father for teaching his child this reality of life in the real world. And perhaps just as important, children are taught the same principles outlined in this article: saving, compounding, credit, insurance, wants vs. needs etc? The fact that this article needs to be written should suggest that our educational system does not teach these important principles, which should suggest that if any parent relies on others to teach their children these necessary financial principles, they will literally pay for it. !

12) Invest in the appreciation of assets, not in the depreciation of liabilities: How often are we personally guilty of making sure our car is loaded with the best features, our clothes are up to date with the latest fashions, or our sheds and garages are filled with all the fun toys and tools? There’s nothing necessarily wrong with having these (see #13 below); however, how unfortunate it is when surplus funds (or worse, funds/debts obtained from credit) go towards more toys, cars and clothes instead of goods that will appreciate in value over time. The key to financial independence is not gained through pay raises, promotions, 401(k)s, or even the lottery; It is obtained by applying the principles discussed in this article and, more importantly, by buying assets that appreciate rather than liabilities that depreciate. .

13) Be balanced and enjoy life too: I sometimes read articles about couples saving every penny (literally) so they can retire in their 40s. Some can do this, and good for them. But, let’s be real and enjoy life too. Maybe you’re saving a few hundred dollars a month, or only $20, but take your wife on a date, treat your kids to pizza, go to the movies, etc. Have fun and be balanced!

14) give and you shall receive: It’s ironic that this is on the list, but it’s not the last thing, suggesting it’s the least important. In fact, it should be number one on this list! Learn now the great truth that when you give, you will receive. The ‘giving’ will be different for everyone. For some, it may mean giving to a charity, giving to a neighbor, a church, a family member, etc. But give without expectation or thought of reward or return, and you will receive much more in return, somehow, but it will happen!

In conclusion, never forget that it’s not about saving, budgeting or investing properly, it’s about happiness in your marriage and family life. A great credit rating, a great bank account, a great insurance policy, and even a healthy retirement account pale in comparison to marital and family happiness, which can be achieved by applying the above principles.