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#10 - 5 Uses of Money

Writer: Treavor Dodsworth CFP®, CPA, CKA®
Treavor Dodsworth CFP®, CPA, CKA®
Oct 21, 2019
2 min read

The following concept was the main point that stuck with me after going through the CKA® training. It is practical and straightforward. Ron Blue, the presenter, made the case that there are five uses of money:

  1. Giving

  2. Taxes

  3. Debt

  4. Lifestyle

  5. Savings

Most, if not all, of our money transactions can fit into these five categories.

The case was made that budgets should be constructed in this order. Giving first, taxes next, and so on. If you switch debt and lifestyle, you could get into trouble. For example, you can see how if you set your gas and eating out budget (lifestyle expenses) before taking into account your mortgage payment that could be problematic.

Inevitably if you start with your income and then begin subtracting out these categories, you will end up with either a deficit or an excess at the end. If there is a deficit, you need to walk back through and figure out how to zero it out. Can you increase income in some way? Can you eliminate debt by selling an asset?

What happens if there is excess? This is a question I have been pondering and occasionally talking to my wife about (everyone say poor Allie). My natural default has been to save (invest) the excess. Others natural default may be to apply it to the other categories (giving, debt, lifestyle). Is there a universal right answer? More on this later.

Interesting Article(s) or Video(s) A Wealth of Common Sense - When Performance Leads Assets

  • Ben Carlson looks at two examples in history comparing fund performance and the correspondingly fund inflows. “There have always been performance chasers and there will always be performance chasers.”

  • On October 12th, Kipchoge made history by running a sub 2 hour marathon. Mike Boyd goes into detail about how great of a feat this was and how Kipchoge made it happen. This was too fascinating not to share

Thank you for reading! What should happen if there is excess? I would love to hear your thoughts!


 
 
 

2 Comments

savannapatt.er.s.on.7.0.4
Sep 03

soicauxsmb24.com mình lướt thử vì trước giờ hay xem mấy trang soi cầu khác, nhiều nơi trình bày rối và phải bấm qua lại hơi mệt; bên này thì mình vẫn hơi nghi ngại kiểu “không biết có nói quá không”, nhưng đọc vài phút thấy họ viết thẳng và khá dễ theo, nhất là phần soi cầu MB ngày 3 9 2026 đặt ngay theo ngày nên khỏi phải mò; mình chỉ xem nhanh chứ không soi kỹ, nhưng cách họ dùng mấy khối thống kê tách đoạn làm mắt quét tiện, và tiêu đề kiểu “Dự đoán XSMB 3 9 2026” đóng khung rõ ràng nên biết đang ở mục nào, kéo xuống cái là gặp đúng block…

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nolafo.wle156+abc123
Aug 07

Mình hay coi dự đoán miền Bắc như một kiểu giải trí nhẹ nhàng, đọc cho vui rồi tự đối chiếu xem suy nghĩ của mình có trùng không. Hồi trước toàn đoán theo linh cảm, nhưng càng theo dõi càng thấy dễ bị cuốn theo mấy chuỗi số nhìn “ngon” mà chẳng có căn cứ. Dạo gần đây mình thử xem du doan mb từ vài chỗ khác nhau, rồi tự lọc lại theo cách riêng, mình thích những nhận xét có giải thích rõ hơn là chỉ ném ra con số. Trúng thì vui thật, nhưng mình vẫn nhắc bản thân đây chủ yếu là may rủi, đừng để ảnh hưởng tâm trạng. Mình cũng hay đọc bình…

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