I am fascinated by how people relate to their money, or NOT, as the case may be. Money management is FUN.
I was raised by frugal, honest, hard-working parents. I've always paid myself first and taken care of bills after I contributed to my savings/investment account(s). I've paid my bills in a timely manner and I've never "bounced" a check. I do not pay interest or late fees on revolving credit accounts and never have. I have never had enough money to squander it so foolishly. Money is a fascinating hobby and one that is not terribly difficult to master with some effort and practice. I am one of those sickos who actually enjoys paying the bills and reconciling the accounts. If you look inside my wallet you will find the bills all faced and ordered in ascending order. I do not keep change in my wallet, I put it in a jar and save it, usually applying it to the principle of whatever note is outstanding. Sometimes I put it toward an item I wish to purchase.
I am routinely shocked by the sloppy and cavalier way so many treat their money. I believe a healthy resect for money is another way of demonstrating respect for yourself. I am a blue collar worker, a very skilled tradesman and have never earned a tremendous amount of money but I have carved out a comfortable lifestyle for myself and lack for nothing. I do not "go to bed with gimmees and wake up with the wants". I learned early on to discern the difference between "want" and "need" and how to take care of each in a satisfactory manner. Learning how money works was the key to it all. Once you understand the fundamentals of compounding interest and self control you are nicely on your way to a very comfortable life.
I have watched several of my high earning friends "crash and burn" in the past decade simply because they did not bother to apply themselves to master the fundamentals of basic money management. I was teased relentlessly for having a "room-mate" and driving a "junk" car. But my car is paid for, cheap to register and insure. When required maintenance reaches the tipping point I will simply purchase another used one. My home is paid for, too... it was paid for by someone else, and all the time they were paying for it and we were splitting the bills I was saving, investing, and putting money into home improvements.
Perhaps the best decison I ever made was to marry a man who shared my views on money and was equally committed to diligently working toward a comfortable future. Working in concert with someone who has a similiar outlook has made it all easier and a good deal more fun.
As for investing, invest in things you understand and/or use yourself. Understand risk and your willingness to assume it. Make sure you have invested in some "little old lady" things and always have some cash (Index Funds are great) and branch out from there. Naturally, I'm less than thrilled with the statements on the "riskier" things I've purchased, but I still have time on my side and other savings/investment vehicles that are more staid and more secure.
My single greatest worry is healthcare. I do not delude myself, a catastrophic health calamity would wipe use out... we're certainly not alone in that!
