"It is a myth to believe that 'If I only had a little more -
- or a lot more! -- money than I'd be happy. Unless you have a
balanced "relationship" to money, having a little more money just
might make you more unbalanced and miserable. Spenders will
overspend more wildly, avoiders feel more anxious, money monks
more conflicted, hoarders will save more compulsively. So the
goal is to move toward money harmony, not merely to amass more
money." Olivia Mellan
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From Mark Zaifman's Blog
www.spiritusfinancial.com
"When it comes to managing your personal finances, spending,
particularly overspending is one of the most challenging aspects of
living within your means. It’s not that you don’t have good intentions,
because most people really do want to stay on a spending plan, it’s
more complex than that. Spending money causes an emotional rush in our
bodies. It’s a natural high. It’s short term pleasure for what could
turn out to be long term debt. It’s the nexus between money and your
emotional intelligence (EQ) that often creates the problem of
overspending.
Create a speed bump on the road to spending
Each time you wake up and go to work, you’re making a conscious
decision to trade your precious life energy, the limited time you have
on this planet; and trade that time for money. That’s a powerful
decision with huge impacts on your lifestyle. Are you receiving the
highest amount of compensation possible for the exchange of your
precious life energy?
Now take it one step further. You’re hearing about the new 3D TV’s
that are about to hit the consumer outlets later this year. Let’s say
these new TV’s are going to sell for $4,200 each. Gulp! is your first
reaction. Second reaction is how cool it would be to have that TV to
watch movies on. Then you think about the cost. Well, you say to
yourself, I just received that 1.99% 6 month interest offer on my
credit card, I’ll put it on my card and pay that sucker off in 6
months-no doubt about it. Next comes the purchase and the amazing
“sugar high” you feel throughout your entire body when you sign on the
dotted line. And the finale is the hangover that occurs later when
buyer’s remorse kicks in and you wonder why you just spent that kind of
money on a consumer item.
Here are some suggestions on creating a speed bump to at least slow
down the momentum on your potential road to purchasing an item. First,
make sure you avoid impulse purchases. These are usually emotionally
driven and tend to be the reason most people suffer buyer’s remorse.
Stop yourself before making the purchase, and give yourself a cooling
off period for at least 24-48 hours. If, after that time, your purchase
still feels right, at least you’ve given yourself time to really think
it through.
Second suggestion is to calculate how many hours of work it will
take to make this purchase. Don’t use your gross hourly rate, instead
be honest and use your net hourly wage, taking out taxes, cost of
commuting, clothes, etc. Then say to yourself, is it worth trading x
amount of hours of my life energy for this purchase? This exercise has
usually stopped me dead in my tracks when I’ve been tempted to exceed
my spending plan.
Keeping yourself honest
Making a new year’s resolution to stop overspending or even creating
a “budget” are all good things on the road to living within your means.
But even with the best intentions, it’s harder than most people think.
The only true solution to the problem of overspending is to develop the
discipline to stay within a spending plan. Otherwise, consumption
quite naturally becomes excessive, and the rude awakening arrives with
the monthly statement.
To guard against overspending, I recommend creating and maintaining
a credit card expense journal, which is similar to the check stubs in a
checking account. Keep a weekly running total of credit card expenses
and deduct the end-of-week total from your checking account balance.
Then when your credit card bill arrives, you have already deducted the
expenses out of your checking account and you’re able to pay your
balance in full that month. If you’re unable to pay the full balance
off each month, that’s ok short-term, but realize that month you
borrowed money and you didn’t live within your means. If this occurs
for more than 3 months, you have a trend that needs to be looked at
closely.
Increase your money consciousness
Awareness into your relationship with money is one of the greatest
gifts you can ever give to yourself. Does it take courage to look
inside and understand what’s causing the fear, anxiety, overspending,
under saving, under earning, conflicts with your spouse/partner,
etc-you bet it does. Yet at the end of the day, what most of us truly
want, is not the house up on the hill, or the latest sports car or
other material possessions, and yes, many of us desire these items, but
at our core, what I would argue we’re all really in search of is peace
of mind.
It’s the feeling that your financial house is in order and you feel
at peace with your money and your life, you feel secure about your
future. And security in regards to your finances is a big thing. When
you feel out of sorts with your money, and especially about your
financial security, you’re causing yourself undue stress, which can
ultimately lead to illness and even disease. Nothing can be more
important than your health.
If money has often caused you stress and anxiety, tell yourself this
year will be different. Become fearless. Summon the courage and look
inside at what’s causing you to feel the way you do. Monitor your
thoughts carefully. Remember, as you think, so shall you be.
As you embark on this journey of self-discovery, know that what’s
waiting for you on the other side is financial freedom. This feeling of
liberation is worth its weight in gold."
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"Wealth consists not in having great possessions but in having few wants."
Esther De Waal
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"Instead of a family outing revolving around a shop or an eatery we're now likely to take a walk along the river. We've seen we can subsist on much less."
Molly Nee
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"When a family member wants to give our children a gift, we suggest they buy them dance or swim lessons. We also request gift cards to such places as pottery-making stores or Build-A-Bear Workshop, which we can use any time of the year. Our children do receive some regular presents for holidays and birthdays, but getting a few lesssons and gift cards means they aren't overwhelmed with stuff at the holidays. Plus, they get to reap the benefits all year long." Jessica Brown (from an article in Family Fun Magazine)
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"One of our favorite outings is to the zoo, but for our family of eight, it's cost-prohibitive. That's why when Christmastime comes around, and relatives ask us what to get the kids, we ask for annual passes to the zoo. For several years, two uncles have in together to get us a deluxe pass. It saves us a lot of money, and, for the uncles, buying just one big present is much cheaper and less stressful than buying for six nieces and nephews!" Debbe Carson (From an article in Family Fun Magazine)
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By Mark Trumbull
"Starting Thursday, credit-card users are getting more time to avoid late fees and maybe rate hikes. A new consumer-protection law won’t lift all debt burdens, by any
means, but supporters call it a victory against some of the most
abusive practices of the bank-card industry. Here’s a rundown on what the Credit Card Accountability,
Responsibility, and Disclosure Act means to you, both right now and in
February when Phase 2 takes effect." Click Here for the full article.
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It's a hunt. It's therapy. It's a way of life. But
has it gotten out of control? Aimee Lee Ball investigates why we spend
the way we do.
Alas, our romance with shopping seems to be coming
to an end—or at least it's up for careful reevaluation. According to
research from Stanford University, more than one in 20 adults are
compulsive shoppers, purchasing things they don't need, use, or even
want. That's because shopping, once devoted to procuring necessities,
has come to fill multiple emotional needs—it's entertainment, a bonding
activity, a sport, a form of self-expression, and, quite often, a means
of solace. "These days what you buy is a way to connect to others and
showcase your personality and values," says Kit Yarrow, PhD, professor
of psychology and marketing at Golden Gate University in San Francisco.
So what happens now when more than five million people have lost their
jobs since December 2007, and many of us are trying to curb our
enthusiasm? Ironically, "when people feel economically insecure, they
tend to reassure themselves by shopping," says George Loewenstein, PhD,
professor of economics and psychology at Carnegie Mellon University in
Pittsburgh. The thinking is: "If I were economically secure, I would go
shopping, so if I'm shopping, I must be economically secure." And
that's just one thing to be aware of as you head for the mall. Here are
a few others:
For the full article
click here
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"Junk is the stuff we throw away. Stuff is the junk we save."
Frank Tyger
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"You cannot bring about prosperity by discouraging thrift. You cannot establish sound security on borrowed money. You cannot keep out of trouble by spending more than you earn."
Abraham Lincoln
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