Your Money Really Matters: KISS your money

KISS is a modern day acronym often used as a substitute for the phrase “Keep it Simple Stupid.”

KISS is a modern day acronym often used as a substitute for the phrase “Keep it Simple Stupid.”

It is sometimes aimed at someone proposing a complex and convoluted solution to a problem when a simple straightforward answer would do.

One of my favorite Will Rogers quotes is “I would have written you a shorter letter, but I did not have much time.” It is easy to be verbose and run on, but it is much more difficult to be concise and to the point.

Computers have added a new level of sophistication in the use of spreadsheets, statistical analysis, illustrations, charts, graphs and color presentations. Unfortunately, many times these presentations go right over the heads of the clients receiving the presentation.

If clients don’t understand the what and the why of their plans, those plans are likely to gather dust and not get implemented. There has got to be a better way.

Keep it simple and save

The KISS method for creating family wealth is simple and straight forward. When using KISS in this context, it means, “Keep it Simple and Save.” A simple, understandable and doable plan is the ultimate in financial sophistication. Let’s see how this KISS method works.

The first and most important step is to spend less than you earn. Sounds simple, but you have to understand and track your income and expenses consistently to know whether you are over or under spending.

Take the time to track your family’s income and expenses over the next 30 days. You can setup your own spreadsheet or use online resources or purchased software programs like Quicken or Microsoft Money.

If you are like most Americans, your expenses match your income. However, when credit card expenditures are included, many families are overspending their income.

How can you reduce your expenses by 10-20 percent right now? First, look at your cable/satellite TV, mobile phone and computer/game expenses? Next, look at items such as clothing, entertainment, eating out, transportation, etc? Consider alternative ways to reduce expenses such as buying clothes during seasonal sale periods, cooking meals at home, carpooling and using public transportation.

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