Money. Purpose. Joy.

It's quiz time. What money management tool is used by over half of all millionaires in the U.S. yet is widely despised by most non-millionaires? Answer: a budget. The lowly budget's image problem was the focus of a recent article by syndicated columnist Gregory Karp, and I was pleased to be part of the story ( read the article here ). Most non-users seem to think of a budget as a ball and chain. But those who use one say it gives them control over their money and helps them build savings.

Matt's View

If you'd like to give a budget a try, and I highly recommend that you do, I have a "quick start guide" along with simple forms you can download for free on my web site . I can't vouch for the late Rodney Dangerfield, but I think budgets deserve our respect--and our use.

How would you define "the American dream?" A nice car? An annual vacation? A home theatre system? A recent MetLife survey asked that question and the most common answer was financial security. In previous surveys, the American dream was defined as a combination of home ownership, a happy family life, and a stable career. But the study's authors say the need for people to take more responsibility for their retirement savings along with a decline in job stability have pushed financial security to the top of the list.

Matt's View

Instead of trying to define the ever-changing American dream, a concept greatly influenced by marketers, I prefer to encourage people to focus on what's most important to them. Successful, joyful money management involves knowing what gives our lives meaning and then weighing financial decisions based on how well they'll support those priorities.

Need some help prioritizing what matters most? Across the board, researchers who study the causes of happiness say close, supportive relationships top the list. What financial decisions are you facing? As you run the numbers, make sure you also consider the impact they'll have on the most important people in your life.

As part of a special section on Baby Boomers, Money magazine recently asked several Boomer celebrities about the best money management advice they ever got. Novelist Alice Walker pointed to her father's encouragement to get in the habit of saving money as early as possible. Her first deposit was 50 cents that she earned selling eggs as a youngster. Actor Bradley Whitford, who starred in The West Wing, has never forgotten the lessons contained in the riddle his father told him: "Who's happier, the guy with $11 million or the guy with 11 kids? The guy with 11 kids. Why? Because he doesn't want more."

Matt's View

When I was in my mid 20's an unusually successful friend gave me this advice: "The key to wise money management is spending less than you make." I remember thinking that there had to be more to it than that. A few years later I found myself so deep in credit card debt that I was having a hard time making the minimum payments. That was the wake up call that gave me a hunger to learn how to manage money well, a subject I've been studying ever since. No matter how good the advice, I guess the one receiving it has to be ready to learn.

What's the best money management advice you've ever received, who gave it to you, and how has it impacted your life? Please send me a note . Maybe the advice can help others who are ready to learn.

Something that's actually become less expensive over the years is term life insurance. According to a Wall Street Journal story on 2/21, longer life spans are driving the prices for such policies down, and the growing popularity of level-premium policies is making it easier to compare costs among providers. The article pointed out that if you have a term policy in which the premium rises each year you may be able to save by replacing it with a level-premium policy. And even if you have a level-premium policy, you may be able to save. At the very least, you may be able to extend your coverage for about the same annual premium you're paying now.

Matt's View

You can get quotes via QuickQuote.com . To get a firm price you'll need a health evaluation, but an initial check on the Internet will give you a feel for whether you may be able to improve on your current policy. Two words of caution: Be sure not to drop your current coverage before getting approved for a new policy, and stick with companies rated highly by evaluator A.M. Best. Ratings are available from the above web site.