Don’t Get Audited: The IRS’s Dirty Dozen Red Flags (AOL DailyFinance).  I recently described generosity as An Irrational Financial Act.  Unfortunately, the IRS seems to agree.

Claiming an Adult Child as a Dependent on Your Taxes (USA TODAY).  Got an unemployed adult child living in your basement?  Here’s what you need to know about the tax implications.

Ensure Those References Help You Land a Job (MSNBC).  They’ve agreed to serve as a reference for you, but do you know what they’ll say?

When Is It Bad to Kill a Credit Card? (Bankrate.com).  There are a lot of misconceptions about the pros and cons of closing a credit card account.  This article does a good job of helping you make the right decision.

Retirement in America is “Endangered” (MarketWatch).  Not exactly a feel-good story, but perhaps a helpful wake-up call.

And from the blogosphere…

Kids & Money: Teach Your Kids About Credit Cards (Bargaineering). Better to have them learn how to use credit cards while they’re still at home than after they leave.

Focus on Reliability and Fuel Efficiency (The Simple Dollar).  Good advice for those in the market for a car.  For more help comparing the ongoing costs of cars, check out this True Cost to Own tool.

Future of Shopping (Wealth Informatics).  Interesting review of retail trends, some of which may actually benefit shoppers, not just the retailers!

5 Kids Expenses to Budget For – Apart From College (Parenting Family Money).  All the more reason to get in the habit of living well within your means before you have kids.

10 Ways to Protect Your Financial and Personal Information When Shopping Online (Bible Money Matters).  Great ideas for staying safe when traveling in cyberspace.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

He told about a friend—“educated and rational,” who earned a high income, but could never save any of it. Raised in a strict church that required payment of the tithe with the same level of humor and grace the IRS uses in requiring payment of our taxes, not surprisingly, his friend had drifted away from the church.

Now in middle age, with two degrees from prestigious universities and a thriving career, Karlgaard’s friend found himself in church once more. There he heard another message about tithing. But this time it wasn’t a finger-wagging lecture; it was a simple, compelling promise: give 10 percent and you will be free from financial worry.

That day he and his wife decided to take the minister up on his challenge. “Almost immediately,” Karlgaard wrote, “a mysterious transformation took place.” Besides giving 10 percent of their income to charity, the couple found they were able to start saving 10 percent as well—they call it “the 10-10-80 rule”: give 10 percent, save 10 percent, and live on the rest.

Karlgaard also wrote about another friend who said tithing helped turn down “the decibel level” of his life. “Every possession speaks to you,” he explained. “Everything you own wants attention. When I began to tithe, I found a freedom from my possessions. I don’t hold on to things as tightly any more.”

Of all the things we can do with money, giving it away seems completely, utterly irrational, doesn’t it?  It just doesn’t compute that increased giving would somehow make it easier to save money, right?  And freedom?  Doesn’t that come from a focus on accumulating as much as we can?

It turns out that generosity is a key component of what it means to use money well, and that’s why the fourth of my 11 principles for simple, meaningful success is: Give Some Away.

Here are three reasons why.

Generosity is Part of Our Design

The Bible says we were each made in God’s image, and since God is infinitely generous, that means generosity is woven into the fabric of our spiritual DNA.

When we don’t give, or give only token amounts, or give from a sense of guilt or obligation, we deprive ourselves of one of life’s great joys.  But when we give generously with grateful hearts, we live in concert with our design.  It’s no wonder that generous people are generally happier and find life more meaningful than those who are not generous.

Generosity Reminds Us of Our Priorities

The Bible says, “Where your treasure is, there your heart will be also” (Matthew 6:21).  I remember a time when my wife, Jude, wanted to give some money to a friend doing missionary work in a country that I wasn’t sure I could find it on a map.  Up to that time, I never thought of that country.  It just wasn’t on my radar screen.

However, after we started sending some money there, I noticed every time the country was in the news.  And I took great interest in each letter Jude’s friend wrote about her work.

My heart went there because some of our money was going there.

Giving regularly and generously to support God’s work in the world is a very powerful way to keep our hearts focused on God.

Generosity Leads to Blessings

I am very confident that giving in order to get something from God is nothing less than an affront to God.  I want nothing to do with the prosperity gospel.

Biblical generosity is motivated by gratitude; it’s a response to God’s generosity.

Still, many passages of Scripture clearly state that there are blessings that flow from generosity, such as Proverbs 11:24: “One man gives freely yet gains even more.  Another withholds unduly but comes to poverty.”

Some people trace material blessings to their giving.  Others experience blessings related to their health, relationships, sense of peace, and more.  Still others, such as Rich Karlgaard’s friends, find it easier to live within their means and experience financial freedom when they start giving.

It seems irrational.  It doesn’t make sense on a spreadsheet.  It’s one of those hard-to-explain but impossible-to-deny realities that there is a link between generosity fueled by a grateful heart and blessings.

Making It Practical

Next week I plan to go into more detail on generosity, responding to some of the most common questions I get about this topic, such as, “How much should I give?” And, “Where should I give?”

For now, I’d love to hear your feedback on the three major points in this post: Generosity is part of our design, reminds us of our priorities, and leads to blessings.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Open Low Minimum Roth IRAs for Kids (Kiplinger’s).  Kids who contribute to a Roth IRA will head into adulthood with a great financial advantage.  Here are three companies with kid-friendly requirements.

How to Master the Art of Negotiation (US News).  It’s amazing what you can get if you just speak up.  We recently had a not-so-great hotel experience, so I brought it to the attention of the chain’s customer service department.  I didn’t even make a specific request, but they credited my loyalty account with 50,000 points!

5 Things I Look for In a Great Job Interview (Inc).  Words of wisdom from one who has interviewed lots of candidates.

Job Hunters Still Not Careful on Social Media: Study (MSNBC).  Your resume is a carefully crafted work of art, but what about your social media presence?

Tweet Your Way to a New Job: 8 Twitter Templates (CBS MoneyWatch).  Are you using Twitter as part of your job search?

And from the blogosphere…

What’s Next After Debt Freedom? (The Simple Dollar).  It’s always encouraging to hear about people gaining true financial freedom.  This post also reinforces the importance of Knowing the Why Behind Your Goals.

Financial Goals That Are Easy to Accomplish (Canadian Finance Blog). This list includes several important steps people often put off.  It’s well worth it to review this list and schedule these activities.

A Crash Course in Couponing 101 (One Money Design).  Good advice for getting value from using coupons without making it a second job.

The Ins and Outs of Getting and Using Your Free Credit Report (The Consumerist).  When was the last time you checked your credit reports?  Here’s how to do it and what to look for.

9 Healthy Habits to Help You Manage E-Mail Overload (Lifehack).  It’s so tempting to check e-mail throughout the day, but the advice in this post is consistent with that of other productivity experts.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

As you’ll see in the following video, now you’re ready to start truly managing money with Mint.

If you have any questions about Mint.com, meet me in the comments section.

Related Posts:

• The Key to Getting the Most from Mint.com
• Getting Started With Mint.com
• How Does Mint.com Keep User Information Safe?

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

If you’re not familiar with a blog carnival, it’s a showcase of some of the best writing from throughout the blogosphere, with bloggers submitting one of their best recent posts.  This particular carnival, which features rotating hosts, has been in operation since the summer of 2005.

I thought it would be fitting to intersperse this week’s picks with quotes that feature additional words of wisdom or points to ponder.

Editor’s Picks

“The ancient Greek definition of happiness was the full use of your powers along lines of excellence.” – John F. Kennedy

There were lots of great entries in this week’s carnival, but I thought the following two were especially good.

Bob at ChristianPF shares an important idea he calls Get Your Financial Life on One Page, which recasts what can be a tiresome financial chore into an act of love.

Roshawn Watson at Watson Inc asks Do You Have the Courage to be Wealthy?, pointing to a key character trait that can either hold us back in so many areas of life or propel us forward.

Money Management

“Action expresses priorities.” –Mahatma Gandhi

Laura Edgar from NerdWallet offers some good guidance for Sticking to Your Resolutions, along with a quiz to see which of two approaches may be best for you.

SB at One Cent at a Time says resolutions aren’t enough; you need to become obsessed with what you want.  Read more at 5 Obsessions Towards Financial Freedom and Becoming Rich.

Sustainable PF offers rational ways for Beating Irrational Financial Behavior.

Jon the Saver from Free $ Wisdom shares 3 Financial Lessons I’ve Learned From Angry Birds.  Don’t worry, you don’t need to have played the game to get the lessons.

Jeffrey at Saving Advice provides Money Lessons Learned From “The Firm,” a movie that demonstrates in many ways the old adage: money changes people.

Investing

“October:  This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Diva at Diva in Debt covers the latest personal finance controversy with More Bad News for Suze Orman.

Div Guy at The Dividend Guy Blog helps clear the fog from our economic binoculars with If You Want to Know Where the Stock Market is Heading, Read the Following.

Philip at PT Money brings us up to date on 2012 Traditional and Roth IRA Contribution Limits.

FIRE Finance offers Three Good Habits of Successful Retirees, reviewing the traits of successful long-term investors.

Economy

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” – Ronald Reagan

PK at Don’t Quit Your Day Job submitted Another Salary By Major Chart, which may help those headed for college choose a productive path.

Taxes

“Did you ever notice that when you put the words ‘The’ and ‘IRS’ together, it spells ‘THEIRS?’”  – Author Unknown

Glen Craig at Free From Broke encourages us not to pay more in taxes than we have to with 10 Common Overlooked Tax Deductions.

Career

“Work while you have the light. You are responsible for the talent that has been entrusted to you.” – Henri-Frederic Amiel

Mike at The Financial Blogger shows other bloggers what’s made a big difference in his success with This Image Will Make You a Believer.

For business owners, Peter at Bible Money Matters has a helpful reminder on How to Prepare and File A 1099 For Contract and Freelance Workers.

Credit

“Before borrowing money from a friend, decide which you need most.” – American Proverb

Erik at DollarVersity opens up a bit of a debate with Are Credit Scores Still Relevant?

Real Estate

“A man builds a fine house, and now he has a master, and a task for life.” – Ralph Waldo Emerson

Martin at Passive Income Now has advice for landlords in Maintaining Your Rental Property Once You Hand the Keys Over.

Frugality

“Economy is half the battle of life; it is not so hard to earn money as to spend it well.” – C.H. Spurgeon

Squirrelers offers 12 Expenses to Cut, reminding us of some discretionary spending that we may have re-categorized as essential.

Finance

“Money is better than poverty, if only for financial reasons.”  – Woody Allen

Roger Wohlner at Chicago Financial Planner offers The Similarities Between Buying Coffee and Choosing a Financial Planner.  A key to choosing well in both cases is knowing what you’re getting for your money.

Budgeting

“Planning is bringing the future into the present so that you can do something about it now.” –Alan Lakein

Dan Meyers from Your Life, Their Life explains Why We Use a Cash Budget, backing up lots of research that shows people tend to spend less when they pitch the plastic.

Saving

“In the old days a man who saved money was a miser; nowadays he’s a wonder.” –Author Unknown

Martin at Studenomics reminds us of a classic way to start building savings in What’s the Best Way to Start Saving Money Right Now?

Other

“Plans are worthless.  Planning is essential.” – Dwight D. Eisenhower

Money Beagle has ambitions to get lots of stuff done this year.  Hence, My List of 500 Things To Do This Year.  It may sound overwhelming, but when you break the idea down month by month, it may just help you stay organized, reduce clutter, and avoid buying things you don’t need.

Thanks to everyone who submitted posts for this week’s carnival.

If a tool was available that served as a financial roadmap, showing you clearly how to live within your means, be generous, and save or invest for future goals, wouldn’t you use it?

And if this same tool helped create a sense of financial teamwork and trust in your marriage, wouldn’t you use it?

What is this magical tool?

Why, of course, it’s the lowly, much maligned, much misunderstood budget – or, as I prefer, Cash Flow Plan.

It’s what enables us to live out the third of my 11 principles for simple, meaningful success: Plan to Succeed.

What Rich People Know

When some people think of a budget, they think only certain types need one. People with lots of debt.  People with a low income.

The wealthy?  No way, or so they think.

In fact, one of the most interesting findings from the classic book, “The Millionaire Next Door,” is that over half of all millionaire households use a budget to guide their finances.

As authors Thomas Stanley and Wiliam Danko explain, “Planning and controlling consumption are key factors underlying wealth accumulation…Operating a household without a budget is akin to operating a business without a plan, without goals, and without direction.”

Succeeding to Plan is Planning to Succeed

Haven’t ever used a budget?  You could start today.

I walk through the four steps to setting up and using a budget in the Budget Quick Start Guide that’s available for free on the Resources tab of my site, so I’m not going to repeat them here.  You’ll find my Recommended Spending Guidelines there as well, which will help you develop your plan.

The Guidelines cover four different size households (1-, 2-, 3-, and 4-person households) and nine different incomes, ranging from $30,000 to $150,000.  Just find the one that most closely resembles your circumstances.

You’ll see that these are ideal plans, meaning they assume no debt other than a reasonable mortgage.

If you have other debts, you’ll have to adjust your spending in other categories to allow for the debt payments.

But, But, But…

Whenever someone comes to me with a financial dilemma – they’re deep in debt, can’t find any money to save, can’t stop fighting about money with their spouse – I always ask whether they’re using a Cash Flow Plan to guide their household finances.  The vast majority of the time, the answer is no.

And the “no” is often accompanied by a quizzical look as if I didn’t understand the question.  “But what I was really asking…”

I did understand.  It’s just that I need more information.  Objective, factual information.

To be sure, there’s a ton of emotional stuff involved in managing money – temperaments, moods, stressful circumstances, the emotional imagery used in advertising.  We often get in trouble with money when emotion overrides logic.

A well-designed Cash Flow Plan gives us the logical, factual information we need to live within our means, be generous, save and invest, avoid debt, and spend smart.  Assuming there’s enough income to meet basic needs, that’s true for every income level and household size.

Are You the Type?

I firmly believe everyone would benefit from the use of a budget.  Rich or poor, young or old.  Everyone.

It isn’t drudgery, and it isn’t something you go on like a diet.  It’s simply the single most powerful tool available for successful money management.  Why not start putting this tool to work in your life today?

What questions do you have about using a budget?

Other posts in this series on the 11 principles that lead to simple, meaningful success:

• The Purpose of Money (Principle One: Know Who You Are)
• How to Recession-Proof Your Career (Principle Two: Earn Diligently)

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

For those interested in giving Mint a try, I’m showing how in a series of short instructional videos.  In the video below, I’ll show you one of the most important steps for getting the most from Mint – how to set up a plan for your income and expenses.

If you have any questions about using Mint, ask away in the comments section.

Related Posts:

• Getting Started With Mint.com
• How Does Mint.com Keep User Information Safe?
• How a Budget Leads to Financial Freedom
• Avoiding a Common, Costly Budget Mistake

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Of course, there’s no such thing as guaranteed employment anymore.  But there is such a thing as guaranteed employability.

It comes about by putting into practice the second of my 11 core principles for simple, meaningful success: Earn Diligently.

Learn to Earn

In most jobs, if we’re standing still with our skill set, we’re quickly falling behind.  Things are just advancing too quickly – technology, cultural trends, ideas.  A key to keeping up is continuous learning.

Many employers offer some form of tuition reimbursement, and yet a tiny fraction of eligible employees typically take advantage of that benefit.  If your employer will foot the bill for more education, don’t leave that money on the table.  The skills you learn may lead to advancement opportunities, and they will very likely help you land a new job if necessary.

Even if your employer won’t cover the cost of school, there are no- and low-cost ways to keep your skills sharp, like the software training available from Lynda.com and the lectures on iTunes U.  Of course, you can check out the latest books in your field from the library, follow industry blogs, listen to audio books and podcasts, and more.

One of the best forms of professional development is being mentored.  I’ve been blessed to have some great mentors during my days in corporate America (Thanks, Carl!) and in my current work (Thanks, Dick!).

To find a mentor, seek out someone in your field who’s more experienced and/or successful than you are and ask if you could connect on some type of regular basis.  Very often, successful people enjoy coming alongside someone who’s at an earlier phase of their career.

When you approach a prospective mentor, though, make sure you’re ready to explain why you’re reaching out to them and what you hope to learn.

Be Great at Being Yourself

If two people have the exact same professional skill set and experience, what’s left to set one apart from the other?  Interpersonal skills.

Communication skills (especially asking good questions and listening), relationship building, time management, project management, and the various facets of Emotional Intelligence can help keep you in demand.  All of these skills can be honed through the no- and low-cost options mentioned earlier.

Other personal habits matter to your career as well – from grooming to your use of social media. Staying physically fit can also make a big difference.  Doing so gives you energy and communicates a lot about your discipline, life balance, and self-respect.

Cast a Wide Net

By some estimates, 80 percent of available jobs are not posted.  They get filled through referrals.  If you find yourself between jobs, having a great network is essential.

Of course, LinkedIn is today’s networking platform of choice.  When you connect with someone – a co-worker, former co-worker, former classmate, friend from church – you gain potential access to their network.  At very least, you could ask your connection for an introduction to someone in their network.

Once you have a network of 100-200 people, it’s amazing how easy it is to find someone who knows someone in a company where you’d like to work.

So, build your network.  You’ll be able to see your connections’ updates – promotions, new employers, and more. But stay in touch with some of your contacts via an occasional e-mail or phone call as well.  Find out the latest.  See if there are ways you could help them.

Keep Your Career Insurance in Force

When the job market gets tough, it’s the person who’s been taking the steps above that will make it, either with his or her current employer or another one.  It’s like holding an insurance policy on your career.

Of course, you could experience times of transition between employers, but those times will tend to be far shorter than average.  And if you’re following all 11 principles I’m covering in this series, you’ll be financially prepared to ride out those periods between jobs.

What other factors have helped you stay employable?

Other posts in this series on the 11 principles that lead to simple, meaningful success:

• The Purpose of Money (Principle One: Know Who You Are)

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Keeping Your Online Accounts Safe (CNNMoney).  Sure, it takes some extra work to follow these guidelines, but it’s wise to stay vigilant about online security.

Money Milestones: What Kids Should Know About Money and When (Time).  No, your three-year-old doesn’t need to know about Roth IRAs, but there are some things about money kids can learn at that age.  Here’s your guide.

401(k)’s Not Working for Gen Y (MSN). For young people, playing it too safe with your retirement savings is one of the riskiest things you can do.

The Best Ways to Teach Your Kids to Save (Main Street).  Interesting to see the not-so-obvious benefits of opening savings accounts for our kids.

Credit Information That’s Really 100% Free (MSNBC).  I agree with the author of this one – if you’re going to try one of the free credit score services, go with the one that doesn’t require your full Social Security number.

And from the blogosphere…

Five Resolutions for Aspiring Leaders (HBR Blog Network).  Good career management advice – whether you’re young or…more experienced.

How I Fed My Family for $100 a Week (LearnVest).  Proof that it’s possible to manage the grocery store tab without superhuman effort.

What Easter Island Can Teach Us About Money (Wise Bread).  No quick tips on how to save a buck or two in this post – just a great, thought provoking read about the dangers of short-term thinking.

8 Frugal and Fun Martin Luther King Day Activities for Kids (Money Crashers).  Make Monday more than a day off from school for the kids with these free or low-cost ideas for helping them understand what this important holiday is all about.

Frugality Advice From Millionaires (Get Rich Slowly).  I don’t really consider this to be frugality advice (you probably know I’m not crazy about the idea of frugality); it’s simply good solid money management advice.  Just as was shown in the book “The Millionaire Next Door,” most of the habits and practices of those who win with money are those that most of us can practice.

Got a question or a response to any of the above?  Be sure to leave a comment.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

People who’ve never used a budget usually hate the idea.   They think of a budget as the wicked witch of personal finance whose sole purpose is to drive any semblance of fun right out of their financial life.

In truth, it’s just the opposite.  A budget, or as I prefer, a Cash Flow Plan, is the single most powerful tool we can use for wise, effective, even joyful money management.

There are several different budget tools available.  The one we’ve chosen in our household is Mint.com, which automates a lot of the tasks related to using a budget.  If you’d like to try it, this video will show you how to get set up.

Mint is free.  The service makes its money through advertising.  Since it sees which bank or credit card you use, it might recommend one of its sponsors that offers better rates.  But I don’t find those recommendations intrusive at all.  To me, it’s a small price to pay for a great service.

If you have any concerns about security, watch this interview I conducted with Mint’s security architect.

Who else would benefit from this post?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.