Mark is winning with his money!

I am not sure who wanted this to happen quicker; my eight year old son Mark or I. For some time now he has been saving money to buy Nintendo DSi. Here are some things I reassured in as I was watching him earn, save, give and spend his money.

Long awaited package

Finally!!!

1. Setting a reasonable goal  - helps you stay focused and motivated. Mark's savings plan started with us asking him one question - "what would you like to buy for your self?". He did not have to think long - DSi was something he wanted long before his dad knew what it was. To help him stay motivated from time to time I would ask him to tell me how much he already saved, if he knew what the latest prices for Nintendo were and if he had any ideas on how to earn more money. (Side Note - in our family there is no such thing as allowance, instead, we have commissions. Allowances teach kids all the wrong things - Parents are ATMs, money grow on trees, entitlement is a norm of life and finally how to "occupy Wall Street". On the other hand Commissions will teach your kids - responsibility, work ethics, independence, creativity and many other positive character traits and life skills.)
2. Working on achieving your dream - pushes you to be more proactive. When Mark realized that saving enough money for his toy will not happen over night but the process can be expedited if he could earn more money, he really surprised me. As he was watching me sell our unwanted stuff on ebay and craigslist he asked me if he can do the same and he actually sold a couple of his toys he was no longer playing with. Every time he volunteered to help out in the kitchen, vacuum around the house, help dad pull weeds in the backyard - Commissions always brought a smile to his face. Funny how quickly he started asking us - "what else can I do?" You see desire to have some thing, get somewhere in your life, or do something different with your life - will not get you far - you need a plan and you need to work your plan to achieve your dream
3.  Achieving your goal - Priceless. Finally! After long months of saving his earnings Mark saved enough to pull the trigger and buy his DSi. But not so far, we had to do some "fishing" to find the best deal for  the money. Although he had enough money to save a brand new DSi from any store that sold electronics, I had to show him what he could purchase used from ebay for the same amount of money. Many attempt were made to win various packages, but only one was Mark's!  This week Mark is celebrating his victory! His victory is an inspiration to me and Tanya as well. One day we too will achieve our Financial Freedom and it will be an unforgettable moment - I know it for a fact!

Proud Owner of Nintendo DSi, 11 games and many Accessories

Needs vs. Wants

According to the Merriam-Webster Dictionary, a " want " is defined as having a strong desire for something. The word " need " is defined as lack of the means of subsistence. In every arena of our life, the two concepts are opposing elements (Merriam-Webster Online).

Tanya and I find it very helpful to have a"Need" and a"Want" (or a "Wish") lists in order to stay within the budget and keep our finances in order. Both lists consist of items that are over $200 and do not fit percentage wise in any of the categories in our monthly budget, so we are saving money to purchase such things with time.
This strategy will help you avoid compulsive spending, emotional purchases and out of control petty purchases. We recommend keeping your need list very short and sweet - the most essential things you really need for your family's basic needs. To cross STUFF off our lists we are following two rules;
                                                   
                                              A. BUDGETING and B. SAVING

Need List - Not constant - Things can be added, scratched off, demoted to a "WISH LIST" and moved up in the importance latter.

1. Vacuum cleaner. We have one now, but it broke number of times, old (at least 7 years) and does a very poor job vacuuming. So, we are saving money for Dyson.                                     
2. Bar Stools. We have moved into our house in February, 2012, however we are still in the process of saving money for our Bar Stools so we can eat by the kitchen counter. Meanwhile we are having our meals at the dinner table instead, or at the island standing :), no big deal. Although I should say that Isaac is the only family member who always has a place to sit - in his high chair!                                                                                     
3. Entertainment Center. We wanted to purchase one for a long time. Nevertheless, more important items have always superseded importance and now, since we got rid of the cable - Truly Directing our TV, we are actually reconsidering and thinking of moving this item down to our Want List.                                                                                 

Want List  - is similar to our Needs list, but it is not crucial for us to have these items to have a quality life. The following STUFF can wait until after our Needs List is done with.

1.  Couches. Our current couches have served us well and we intend on keeping them for a long, long time. However we WANT to buy a newer set for our family room and move the set we have into the play room for kids to enjoy.                                                                                     
2. Hardwood floor. Our house was built in 2005 and the previous owner took good care of the floors, however, we would like to some day (my prediction in 7 years or so) to have hardwood floor installed in the house.                                                                                        
3. Pool. I always wished to have a pool in the backyard. I will not even speculate on when this want will be moved on to our "NEED" list. Perhaps we should create a "Dream" list. Keep Dreaming!

As we are saving money, we are also constantly watching the prices and looking for bargains. What are your needs and wants? Don't let your emotions break your wallet and your budget! Budget, Save, Buy at the bargain prices!