How to make change easierJune 20, 2018
Talking About MoneyJuly 3, 2019
“Money skills are 21st century survival skills.”
– Dick Wagner
In the last few decades we’ve replaced money with the basic skills that kept our forbearers alive.
Not long-ago people needed the skills to build their own shelters, grow and raise their own food, dig wells for fresh water and pits for waste, chop and split wood for heating and cooking fuel and make their own clothes. Today most of us buy or rent our shelter, buy food, pay to have fresh water piped into our homes and wastewater piped out, use money for electricity and gas to heat our homes and cook our meals and buy our clothes. We have replaced craft skills with money skills for our survival.
What are some of the money skills? Perhaps the most important is managing our cash flow. Debt management is a key skill. Other money skills include saving for short-term needs like emergencies and unexpected opportunities. Also saving for mid-term needs like education, entertainment and transportation while saving for the day when we no longer earn an income (by choice or not). Managing the risk to your financial well-being is a skill; knowing how much risk to transfer to others and how to transfer that risk cost-effectively.
In the context of our Financial wheel podcast, money skills are the spokes. We’ll devote several episodes to equip you to have the right conversations about money skills.
Thom Allison, CFP®