Courage
You can not teach that what you do not know. You can not lead where you are not willing to go yourself. If you are trying to teach your spouse how to improve upon your finances, you need to be willing to do all that you ask of the other. Same applies to you children. They see more of what you do, than what you say.
Case Study : Stan & Arlene Harbrecht
"We’re Already Tight...We Won’t Find Any More Money"

Stan and Arlene Harbrecht were from Tennessee. Stan was a truck driver, making a modest income of about $24,000 a year. Arlene was a schoolteacher. The Harbrechts had a daughter in college who was in real need of some money, but Stan was concerned because he just didn’t feel they had anything to send her. The daughter’s housing had come due and they needed an additional $110 a month to cover this expense. The Harbrechts had come to Time & Money for some basic coaching, but Stan was only mildly interested, and as their Money Mastery coach explained Principle 2, Stan said “I know how tight we are with our money. I can’t believe that you think tracking our spending is going to help us find extra cash. That’s baloney!”
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Value of Mistakes
“The better a man is, the more mistakes he will make, for the more new things he will try. I would never promote to a top-level job a man who was not making mistakes….. otherwise, he is sure to be mediocre.” - Peter Drucker.

This Peter Drucker quote gives me solace, for I have made more mistakes than anyone reading this blog. It is also the reason I am at peace when I make decisions, because I try to remain humble and teachable regardless of what happens. Now go out there and make allot of mistakes! (Don’t try to make them, just be aware that we do make them and to do our best and not cry over spilt milk.)

Thinking
Every person is what they are because of the dominating thoughts which they permit to occupy their mind. If debts, living pay-check-to-pay-check, arguing with spouse and an occasional bounced check always keeps you nervously sitting on the edge of your financial seat, you will not have any fun. And you may just die early.

The solution? Get a money management system and live it. Any system is better than no system. And, of course, the Money Mastery System is an excellent one. Life is short enough, you don’t have to live on the ragged edge.

IRS Updates Plan Contribution Limits
National Underwriter, October 23, 2006

The Internal Revenue Services has announced a $500 cost-of-living increase for the 401(k) plan deferral contribution limit.

The maximum Elective deferral for 401(k) plans, the federal Thrift Savings plan, 457 Plans and Similar plans will increase to $15,500 in 2007, from $15,000 this year, the IRS says
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Withdraw IRA On Time Or Pay Stiff Penalties
When reaching the age of 70, the law requires a certain amount of money to be withdrawn from an IRA each year. Those who fail to take the money out of the account are subject to some stiff penalties, including a 50% penalty tax PLUS the income tax on the amount that should have been withdrawn. So let’s say someone has $100,000 in their IRA account; they should be withdrawing $5,000-$7,000 a year. Let’s say they’re in the 25% tax bracket and they fail to withdraw the money. They could lose 75% of the $5,000-$7,000 in taxes (25% income tax plus 50% late withdrawal penalty)! This is an important rule that people should be aware of, especially those retiring.