Take On Today

A man falling into a net made of dollar bills representing his emergency fund

Why have an emergency fund?

Most people are familiar with insurance. Life is full of risks, and unexpected accidents can be extremely expensive. People buy insurance to reduce risk. Not to reduce the risk of an accident happening, but to reduce the risk of losing everything they own in the event of an accident.

Not everything in life is insurable; things wear down, break, and eventually need to be replaced. Additionally, certain emergencies require us to make unplanned purchases that were not budgeted.

This is where an emergency fund comes in. Think of it as a safety net to prevent you from falling into debt. Unfortunately, many people mistake debt as a safety net, when it is actually a snare. An emergency fund can catch you and help prevent you from having to borrow, go (further) into debt, or sell some of your possessions. Debt catches you differently, it covers you and holds you in place, not allowing you to progress forward until you’ve paid it off. For now, let’s focus on the emergency fund and leave debt for a different time.

If you do not have an emergency fund, my goal today is to convince you to start one. I plan to do this by walking through a fictional scenario that details the risk of falling into the wrong net.... read more

The Federal Reserve, U.S. Treasury, and a counterfeiter blame each other for inflation

The inflation blame game

One day, I was at the mall looking for a new pair of jeans. After trying a few on, I made my way to the cash register. When it was time for the guy in front of me to pay, he pulled out a money clip with a stack of dollar bills thicker than the folded pair of jeans I had picked out. I'm not sure if he was trying to impress me, the cashier, or his friends, but he slowly pulled out five $100 bills, one by one. Unfortunately for him, his dollar bills couldn't impress me, because shopping for clothes makes me hungry. I was too busy thinking about the delicious, golden Hot Dog on a Stick that would soon be in front of me. The cashier took the $100 bills and, after inspecting them for about 2 seconds, she said, “Sorry, I can't accept these. They are counterfeit."

Now the situation had my undivided attention... read more

Mangos on a tree branch, demonstrating how supply and demand impact inflation

What causes inflation?

In a previous post, I described inflation and the impact it has on your money, but I didn’t really talk about what causes inflation.

I need you to strap on your imagination helmet once again. Imagine a city where the only thing anyone wants or needs is mangos. Everyone gets their mangos from large mango trees located throughout the city. The nearest branch is at least 10 feet off the ground on every tree. Gravity is normal in this imaginary city, so the more mangos on each tree branch, the lower it hangs to the ground.

People get mangos by using metal pipes to knock them down. As each mango on a branch gets knocked down, that branch raises higher (due to carrying less weight). As soon as a mango falls, you have to give the owner of the tree the pipe you used to knock the mango down as payment. I know this all sounds weird but ... read more

A cartoon dollar bill with an intimidating stance and threatening facial expression

Money (changing the way you view it)

Some people say money is the root of all evil, implying that money is the sole cause of all the troubles in the world and that people who have a lot of it are corrupt because of their wealth. However, that statement completely misses the point of the original quote it's taken from (1 Timothy 6:10). The truth is that it is the love of money that leads people to all kinds of evil.

Money is not your friend. It doesn't care about you, your dog, or your pinky toe that you just stubbed on the chair that your Money bought you.

Money is not flattered by people who chase after it relentlessly and it isn't loyal by any stretch of the imagination. In fact, it will and often does find a way to leave you in a blink of an eye.... read more

A man thinking about a suitcase labeled $125,000, with money blowing out of it

Why I let $125,000 slip by

In a previous post, I demonstrated how I missed out on the opportunity to accumulate at least $125,000 more than I have to my name. I think it's important to elaborate on why I made this mistake.

Let's start with the reason that impacts pretty much every child, teenager and young adult. Poor decision making and the lack of rational thought. It seems auto insurance companies have it right when they charge substantially more to insure anyone under the age of 25, as more and more scientific studies seem to confirm that the critical parts of the brain involved in decision making are not fully developed until the age of 25 or later.

The next reason was ignorance.... read more

Inflation, in the form of a hand, stealing money out of a man's back pocket while taxes, in the form of another hand, taking money in the form of taxes

What is inflation really?

No one wakes up with a smile, saying, “I smell inflation in the air!” Most people understand that inflation means higher prices, and people aren’t fans of that.

I prefer inflations’s nickname, “The Invisible Tax”, because it reminds me of its insidious nature. The definition of insidious is “causing harm in a way that is gradual or not easily noticed”. This definition fits it perfectly because, although inflation is being discussed and debated everywhere, you really have to look at it from a different angle to see just how harmful it is.... read more

What Is Take On Today?

Take on Today is a blog that was created to help give you a new perspective on your relationship with money and your personal finances.

If you’re struggling to keep the lights on at home. There may be ways to modify your income so worrying about utilities becomes a thing of the past.

If you are buried in debt, there may be ways to dig your way out.

If you’re living paycheck to paycheck, there may be ways to modify your budget so you don’t have to depend on credit cards or worry about another overdraft charge. The same goes for you if you are living on social security and/or retirement.

If you are just starting out, you may not fall into one of the categories above, but there are ways to help keep it that way.

And finally if you have a solid financial foundation, but don’t have any future financial goals or don’t know how you’re going to buy your next big purchase, there are ways to plan for that.

You have gifts and talents that can be used to positively impact people around you. Don't let money distract you from reaching your full potential.

Don’t delay, Take On Today.

A suitcase labeled $125,000, with money sticking out of it, slips up and away from a man

How I let $125,000 slip by

"Your company has a 401k right? Make sure you contribute to it." Wise words my mother shared while discussing my first job to offer a retirement plan.

If I had followed the advice of my mother and most personal finance experts, based on my paycheck, I would have started by contributing the equivalent of $10 a day.

Unfortunately, like a dang fool, I did not take the advice, at least not immediately. I always planned to contribute some time in the future, but what difference would $10 a day make anyways right? As it turns out, quite a lot!... read more