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The Best Little Money Book

Tip of the Month

What I Learned

The Money Team published a book called The Best Little Money Book a few years ago. I gave a copy of the book to the women who clean my house. Yesterday when they arrived, Adriana was doing something on her cell phone.

She looked at me and said, “Every day I move money into savings so that when the rent is due I do not see such a big amount of money going out of the checking account. I got this idea from your book.”

This gave me the idea to write about what they had learned. While they were eating lunch, they shared their lessons:

  • “Our rent is $1,200 a month. I divided this by four which means I need to save $300 a week. I divided this by 5 which means I have to put aside $60 a day (from earnings from my job). When the rent is due I can move the money from savings to checking and pay the bill.”

  • “We learned about wants and needs. Now we think before we buy. Is this something we want or something we need? We would like to have a microwave and it is a want and also a need but the money is not available right now so we will wait since there are other ways to prepare our meals.”

  • Both Stacy and Adriana agreed that they have learned to prioritize and this has changed the way they use their money. Some examples include:
    • Not eating out as often
    • Making a grocery list and sticking to it
    • Buying less red meat and more chicken because it is less expensive

  • Adriana said they no longer put all their money to debt but pay a reasonable amount to debt each month and save enough to pay for current expenses. After they told me this, I referred them to a website called PowerPay.org. This website has multiple useful tools. PowerPay helps you determine how to pay off your debt faster using power payments. There is also a calculator to determine how much car payment you can afford, how much mortgage payment you can afford and, best of all, a spending plan that shows you how your spending compares to suggested averages per category. This free website was developed by the Utah State University Cooperative Extension.

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Let us hear how this book has helped you become financially fit by sending us an e-mail to moneyteamservices@gmail.com