Comments on: The Most Important Personal Finance Concept? http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/ Bringing the Frankness to Frugality Mon, 22 Dec 2014 23:12:58 +0000 hourly 1 http://wordpress.org/?v=4.0.1 By: Kipp http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1355 Thu, 13 Nov 2014 16:42:43 +0000 http://franklyfrugalfinance.com/?p=618#comment-1355 That is true Mark, they can really do well by practicing personal finances and turning those small savings into cash flow for years to come. The great news is that you say they have small amounts or no debt, that is a solid foundation and alot better than where others start their journey.

]]> By: Kipp http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1354 Thu, 13 Nov 2014 16:41:26 +0000 http://franklyfrugalfinance.com/?p=618#comment-1354 I feel the same way you do Steven, I just am not a big fan of debt overall. Although you may receive a better long term return on investing, you will make out on the cash flow side by paying off your debts early which also reduces your current needs for income. I am leaning even more in this direction nowadays, I desire to work doing something that provides true happiness, and that is much easier to do without a noose of debt declaring you must make so much money to maintain your lifestyle.

]]> By: Mark T. http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1352 Thu, 13 Nov 2014 03:26:27 +0000 http://franklyfrugalfinance.com/?p=618#comment-1352 I’ve had friends come up to me and tell me that they don’t really need to think about personal finance because they don’t have much savings and don’t have much debt. While reducing debt and increasing savings is basically 95% of personal finance, my friends can still practice increasing savings and maintaining zero debt.

]]> By: Even Steven http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1351 Wed, 12 Nov 2014 21:20:52 +0000 http://franklyfrugalfinance.com/?p=618#comment-1351 I’m definitely less of a numbers guy when it comes to paying off debt. I used to think I could outsmart debt(balance transfers, low interest rates, etc), but it turns out I got distracted with outsmarting debt and instead chose to focus on paying off debt for many of the reasons you mentioned above, Cash Flow primarily. Student Loans 3.63% interest rate, invest, invest right? Nope I’m going to pay it off and have an extra $200 cash flow, that and all of that extra money I have been throwing at my SL is mine, all mine and I can choose to do whatever I want.

]]> By: Kipp http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1339 Tue, 11 Nov 2014 18:12:39 +0000 http://franklyfrugalfinance.com/?p=618#comment-1339 Thanks Laurie, I agree! More cash flow means more options! Some people aren’t that comfortable in dealing with rentals (such as myself) while others may not be too comfortable investing in the stock market. Everyone needs to find the method of generating cash flow that works best for them.

]]> By: Kipp http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1338 Tue, 11 Nov 2014 18:10:44 +0000 http://franklyfrugalfinance.com/?p=618#comment-1338 I like not spending money either! But I should say, I do not mind spending money on doing something I enjoy or going to visit friends out of town.

]]> By: Kipp http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1337 Tue, 11 Nov 2014 18:09:26 +0000 http://franklyfrugalfinance.com/?p=618#comment-1337 That is alot of debt Steve! My total monthly payments don’t even add up to that much, although, I have paid off some student loans already. But even if those were not paid off, I don’t think my mortgage, car, and student loans would have added up to that much. Great work getting that paid off! I do struggle internally with the need to invest and the desire to pay off lower interest debt. Long term investing should win out, but with no debts you could weather just about any financial situation.

]]> By: Kipp http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1335 Tue, 11 Nov 2014 18:04:05 +0000 http://franklyfrugalfinance.com/?p=618#comment-1335 Not many people argue for paying off low interest loans, more so if they are fixed rate loans. What types of low rate loans are you referring to, like an ARM mortgage, or a student loan? Everything I have is fixed so I do not have to worry about rate increases, but from a cash flow perspective, you can really free yourself by paying even these loan interest loans off.

]]> By: Kipp http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1334 Tue, 11 Nov 2014 18:01:49 +0000 http://franklyfrugalfinance.com/?p=618#comment-1334 Hi Brian,

I am a big fan of living below one’s means, and I am in agreement with everyone on this. I feel it is just one subset of mastering your cash flow.

Thanks!
Kipp

]]> By: Laurie @thefrugalfarmer http://franklyfrugalfinance.com/the-most-important-personal-finance-concept/#comment-1332 Tue, 11 Nov 2014 13:32:27 +0000 http://franklyfrugalfinance.com/?p=618#comment-1332 This is huge, IMHO. The more cash flow you have, the more choices you have to grow wealth the way you want to grow wealth.

]]>