There are time-tested, proven precepts about money and our talents. These precepts have been true since the beginning of time and the beginning of money. This article will discuss the seven commandments of making money, saving money and using your talents appropriately.

Behold, the Seven Commandments

These are the seven commandments of financial management and career success:

Commandment 1: Start thy purse to fattening.
Commandment 2: Control thy expenditures.
Commandment 3: Make thy gold multiply.
Commandment 4: Guard thy treasures from loss.
Commandment 5: Make of thy dwelling a profitable investment.
Commandment 6: Insure a future income.
Commandment 7: Increase thy ability to earn.

Allow me to explain each commandment and offer some guidance on how to sustain your life and career in a way that's consistent with that commandment.

COMMANDMENT 1: START THY PURSE TO FATTENING

This commandment is real simple: Set aside 10% of what you earn. Period.

COMMANDMENT 2: CONTROL THY EXPENDITURES

To remain faithful to this commandment you must do three things:

Examine your living habits;

Eliminate expenditures that are not necessary; and

Live within your means.

These principles are easy to say and hard to practice. What does it mean to "live within one's means" and eliminate "unnecessary" expenses? Here is some advice:

General

• Practice identifying "needs" vs. "wants." When I was a kid my dad used to make me calculate the cost of the things I "needed" and calculate the number of hours I would have to work to earn enough money to buy them. This is an exercise and perspective that has benefited me enormously through life.

Credit Cards

• Remember the golden rule: Don't buy anything on a credit card unless you already have the cash in the bank to pay for it. If you stay faithful to this rule, you'll always be able to pay your credit card bills without incurring those high finance charges. You'll also be able to keep your own money in the bank longer where it can accrue interest. Last but not least, you'll have a detailed listing of your expenditures.
• Only have one credit card.Refuse to pay annual fees. If you call and debate, you should be able to get the credit card company to waive its annual fee.
• If your card has a balance, shop around for a card that has 0% interest on transferred balances. Move the balance over, cancel your initial card and don't charge anything new to your new card. Put yourself on a payment plan to knock out the debt.
• Philosophy: Don't use a credit card to buy something you otherwise couldn't afford. The only things you should finance in your life are homes, and cars (and even this one is debatable). Use credit cards in a way that benefits you, not the credit card company.

Eating Out

• Try not to do it!
• Pack your lunch each day. You'll eat healthier this way and you won't waste leftovers and allow food to spoil. You can pack a lunch for less than $1. It's hard to eat out for less than $5, even at McDonald's.
• If you want to eat out - to treat the family or such - there are lots of coupons to be had. Look for restaurants that offer weekly "kids eat free" nights: See www.kidseatfree.com!
• Order water with your meals rather than a soft drink. This saves between one and three dollars per person.
• We have awesome neighbors. About once a week, we call each other, compare what leftovers we have in the fridge and trade or go over to the other's house and have a smorgasbord dinner. This is a fun time of fellowship and we also find some new recipes to try ourselves!

Entertainment/Recreation

• Share babysitters with other families. Split the bill.
• Find a couple of families you know well and that your kids enjoy playing with their kids (and vice-versa). Trade turns letting the kids spend the night or just watching the kids. You can get a babysitting-free date night once or twice a month this way!
• Check out the dollar theatre or go to a matinee.
• Dust off those old board games, cards and dominoes. It's amazing how much family fun you can have around a game of Uno and a plate of sliced apples, peanut butter crackers and grapes. Our family has a weekly game night - every Sunday evening we play games and sit down to a "snack" dinner. It's a blast.
• Invite other families over to enjoy the game night and/or movie night. We all have video tapes/DVDs and games that we can share. Have everyone bring a dish to share.

Banking

• Refuse to pay ATM fees! Why pay for access to your own money?! Open a separate "ATM" account with a bank that is everywhere, such as Wells Fargo. Have a budgeted amount to be deposited into this account on a monthly basis for dining out, recreation, entertainment, etc. This is a great way to control "want" as opposed to "need" spending!

Conclusion

That's all the time I have for this week. I will continue next week with tips on grocery shopping, buying clothes, paying bills, insurance and mortgage. So have a safe and frugal week, everybody.

CAN MONEY BUY HAPPINESS?
What If You Won the Lottery?

Is winning the lottery really a ticket to happiness?

By Glenn Demby

Following Mark's advice should save you a lot of money. And that will probably make you at least a little happier. But I'd like to suggest an alternative: Rather than pinch nickels and dimes, why don't you go out and win the lottery?

Unfortunately, winning the lottery isn't guaranteed to make you happy. On the other hand, it doesn't hurt. Statistically, people who win lotteries of about $200,000 to $250,000 are apt to be happier than people who win smaller jackpots or don't win any lotteries at all.

These are the results of a recent UK study of the link between winning a lottery and mental wellbeing. The finding that winning a lot of money contributes to happiness is, of course, no surprise. The interesting aspect of the study is its scientific quantification of the happiness factor engendered by lottery success.

According to the study, the happiness that winning $200,000 to $250,000 brings endures beyond the initial "rush" of cashing the ticket. Two years after they had won the lottery, winning individuals completed a GHQ (General Health Questionnaire) form used by medical researchers to study psychological strain or stress. Lottery winners had higher GHQ scores than individuals who hadn't won a lottery (or won only a small one) by an average of 1.5 points. That represents a 10 percent improvement in mental wellbeing.

What does it all mean? I guess it suggests that winning a bunch of money isn't so bad for one's psyche. Who'd have thunk it?

Source: Gardner & Oswald, "Money and Wellbeing: A Longitudinal Study of Medium-Size Lottery Wins," July 2006, http://ftp.iza.org/dp2233.pdf

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