The goal of this book is to show you how you can become the master of your finances now and for a lifetime. With the explosion of new technologies over the past twenty years, we have found more ways to spend our money in ways that remove us from the immediate impact of our actions. The problem is, despite the added convenience these technologies have ushered in, we still have to live with the consequences of our spending. Money for Life illustrates, through the fictional story of Ryan and Christine Richardson, how we all can use the principles of an envelope budgeting system, and how technology can improve, rather than erode, our awareness of the money we’re earning, spending, and saving on a monthly, weekly, and even daily basis.

Background
We live in a society driven by financial excess. Unfortunately, the compensation for this lifestyle is often poor health, debt, or even the demise of the family. While the 1990s were arguably one of the most prosperous decades in history, collectively we are pursuing a course that could ultimately leave us financially destitute. Total consumer debt in the United States exceeds $1.8 trillion.1 In the early ’90s, according to the Economic Policy Institute based in Washington, D.C., average household debt was a staggering 80 percent of annual net income. Today, that number has grown to an unbelievable 109 percent. Not surprisingly, the number of those now seeking protection from creditors through personal bankruptcy is also growing at an alarming rate.

The resulting stress has severely impacted families. Studies show that financial issues remain a significant cause of contention in homes and one of the greatest contributors to divorce. While many of us may not directly experience personal bankruptcy or broken homes, far too many people are making choices daily that have the potential of bankrupting their financial future and destroying their ultimate happiness.

The good news is that despite the worrisome financial dynamics of our complex society, there are tools available to help reverse—or altogether avoid—the downward cycle of debt, daily financial stress, and frustration.

The story told in these pages focuses on one specific family. But the situations, issues, and conflicts could arise with almost any family in any circumstances—at any age, in any part of the country, and at any income level. Therefore, the lessons learned and solutions put into practice by the people in this story will apply to anyone who is having trouble keeping expenditures under control.

By putting this information in the context of a story, you will be better able to identify with, understand, and relate to the problems and issues described. To highlight the principles embodied in the storyline, a section called “Applied Principles” has been included at the end of each chapter. These sections will break down and explain what is going on in the characters’ financial situations, and how they were able to use the principles of envelope budgeting and the new tools available to get their financial houses in order.

By combining a very typical story of financial difficulties with a clear explanation of the principles used to solve the problem, Money for Life can change the way you look at your money, how you plan for your future, and, ultimately, your life.

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