EXCITING NEWS: I was selected to deliver a national training in San Francisco this November entitled: Personal Finance Solutions for Busy Mental Health Professionals. This 3 hour workshop includes material from my upcoming eBook. Stay tuned to get first crack at the NEW EBOOK. And it’s FREE to my readers.

“Life consists not in holding good cards but in playing those you hold well.” Josh Billings

Build skills in all areas. Set goals. Success will follow.

MAIN TOPIC: Pay attention to your Spending

Esmerelda  is a college student with lots of money trouble; ATM fees, overdrawn account fees, credit card late and interest fees, rescinded credit card, late fee on tuition account, and overspending in general. Hundreds of dollars in fees and interest ate up her meager savings and caused her LOTS OF STRESS!!

I want to save you from Esmerelda’s troubles.

At the beginning of the school year, you college students are on your own for the first time with worries about friends, school and MONEY. I’ll leave the friends and school worries to someone else. But I CAN TEACH YOU WHAT YOU NEED TO KNOW ABOUT MONEY MATTERS while you are in college.

IT IS YOUR RESPONSIBILITY TO HANDLE YOUR OWN MONEY whether you get cash from mom & dad, loans, jobs, or any combination. Follow these steps and you’ll have LESS MONEY STRESS NOW & LATER.

PRACTICAL APPLICATION: Get Control of your Cash

1. Open a checking account and savings account with NO FEES, for college students.

2. Arrange with employer to have check AUTOMATICALLY deposited in your savings account.

3. Use an on line account or bricks and mortar bank or credit union.

4. Ask these questions and only open if they say NO FEES in writing:

Do you have an account for college students with no fees at all?

Does this account offer free ATM withdrawals?

5. If you need a loan for school expenses, go straight to the Financial Aid office for HELP. Work with them as long as it takes to get the money you need. That’s what they’re there for!

6. TOTAL ALL YOUR INCOME- Estimate income from job, loans, parents, scholarship, and aid. WRITE DOWN YOUR INCOME IN A NOTEBOOK or chart like this one. Categorize by month or lump sum.

7. Complete a chart like the following and write down every expense you are responsible for; cell phone, tuition, rent, utilities, car payment etc.; include amount; date due; how paid. These are charges that are FIXED and don’t have much flexibility.

8. Add up your expenses write in the last line of the chart.

9. Next, add any expenses that you control; beer, restaurants, entertainment, etc. These are your DISCRETIONARY EXPENSES. These are the easiest places to cut spending.

10. TOTAL ALL YOUR EXPENSES.

11. If you have a credit card, use only for emergencies. If you don’t have the cash, don’t spend it!

12.  If you have a credit card, PAY THE BALANCE DUE IN FULL AT THE END OF EVERY MONTH.

13.  The money that is not due monthly, like your tuition or insurance, should be in your savings account. Make sure that the amount you will need for these infrequent payments stays in the savings account until you need it.

14.  Pay every bill early. At least a week before the bill is due, pay it.

15.  Bunch up bill paying into 2 times per month.

16.  Look at your income and expenses-Are you spending on things or experiences that are worthwhile to you? REALLY THINK ABOUT THIS ONE. If not, curb your spending.

17.  Read The Secret to Saving without Sacrifice here.

18.  Studies come first, but if you have extra time, consider partying less and get a part time job.

19.  Every month, put your discretionary money from each category in an ENVELOPE and label it. For example, $80.00 cash goes in an envelope at the beginning of the month. After you spend that $80.00 you are done with entertainment for the month!!!

20.  At the end of the month, analyze your income and spending. Complete another Income and expense tracking sheet. Make changes according to the info from the prior month.

ACTION STEPS:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

1. Read the entire article again.
2. Choose one or two steps to begin immediately.
3. Write in your planner the steps to take.
4. After completing the first steps, repeat until all are completed.

Write in with your questions and experiences.

YAKEZIE PERSONAL FINANCE BLOGS

After every article for the next several weeks, you will be introduced to several Personal Finance web sites in the Yakezie network. Each one has their own unique voice and style. The consistency in all is their desire to help others. Consider visiting a few each day!

 The Debt Hawk
The Millionaire Nurse Blog
The Saved Quarter
The Wealth Artisan
Ultimate Money Blog
Watson Inc

EXCITING NEWS: I was selected to deliver a national training in San Francisco this November entitled: Personal Finance Solutions for Busy Mental Health Professionals. This 3 hour workshop includes material from my upcoming INVESTING ebook. Stay tuned to get first crack at the NEW EBOOK. And it’s FREE to my readers.

“Always bear in mind that your own resolution to succeed is more important than any other.” Abraham Lincoln

Many researchers have stated that taking control of ones’ own life, maintaining a positive attitude, and being resilient in the face of setbacks are the keys to success. Who can argue with the long lasting contributions of Abraham Lincoln?

MAIN TOPIC: Do you have these qualities of the RICH?

When El Carino (my hubby) approached me with enthusiasm over a Money Magazine article, I KNEW IT HAD TO BE FABULOUS.  Thus I rushed to read, Do You Have What It Takes To Be Wealthy?  from the September issue of Money. The article lists the qualities of the RICH and supports them with research.

Sound too good to be true? Just gain these qualities and you are on your way to the bank! Hold on, not so fast. No offense to El Carino, it is way too simplistic. Tell me what you think!

Wealthy Americans possess these attributes (according to Money Magazine):

Optimism: But not an over the top, Pollyanna attitude.

Loaded parents: Wealthiest 20% of families have a 55% chance of staying in that bracket.

Healthy: Chronic health problems are associated with financial problems.

Intelligent: But not too much-don’t need to be MENSA smart! The top 2% of the population (IQ>130) have a tough time keeping their cash!

Educated:

College degree-gain $450K in lifetime wealth

Graduate degree-gain $570,00K in lifetime wealth

Thin, tall, & attractive: Earn more (2 out of 3 isn’t too bad)

Only children earn the most: Ostensibly because they receive more parental attention

Married one time & stay married:

93% wealthier than unmarried

Divorce reduces wealth by 77%

Married-no kids: Wealthiest, next those with one offspring

Personality traits:

Persistence-the best

Materialistic-the worst

Niceness-not much

Exercise & no smoking: Not a huge surprise here

Men earn more than women: Traditional men (with stay at home wives) earn the most

Entrepreneurs are the wealthiest

Frugal lifestyle: Correlates with wealth (Go personal finance bloggers!)

PRACTICAL APPLICATION; Take this Article with a Grain of Salt

Many of the wealthy traits reflect qualities totally out of your control; wealthy parents, birth order, intelligence, appearance, height, and gender. This is not helpful! If you can’t control these qualities, then what difference do they make? Furthermore, there was minimal data to indicate the actual percent that these qualities contribute to wealth. For example, if 10% of the wealthy are married with no kids, who cares. Plus, some might argue that kids (not teenagers) add to one’s overall wealth!

Isn’t it common sense that persistence is an attribute of the rich? No smoking and exercising indicate discipline, another obvious success trait! If you don’t know men earn more than women and have more financial success then you must be living in a cave. If you are relatively intelligent, you don’t have to be a rocket scientist to figure out that you will probably be richer than someone less brainy.

The more I write this post, the more frustrated I am with the Money article. This article definitely goes in the “tell me something I don’t already know” category!

My unscientific OPINION: Control what you can in life and forget about the rest. Set the goals that are important to you. If you desire wealth, make a plan, break it down into manageable steps, persist in spite of obstacles, and be patient. Focus on the PROCESS, the outcome will follow. Although Money is one of my long term favorite magazines, skip this article.

What do you think? Am I just being cranky or does Do You Have What It Takes To Be Wealthy?  adds very little to the pool of knowledge related to wealth?

WHAT DO YOU THINK IT TAKES TO BE WEALTHY?

ACTION STEP:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

Set some personal success goals. Make them specific and quantifiable. For example, present 2 new ideas to the boss every other week, commit to saving 15% of your income, brain storm ways to earn extra cash.

Follow this action step and take control of your future, don’t leave it to your birth order!

Read these articles by my personal finance colleagues with more ideas for getting wealthy; there’s something for everyone!

• Compare Yourself to a Millionaire by Jaime at Eventual Millionaire
• Mike at Oblivious Investor writes about one of the greatest investors of all time, Benjamin Graham on Asset Allocation
• Single Guy Money writes How to Make Money on Craigslist
• Neal at Wealth Pilgrim tells how to Make Money During Retirement
• Learn how Saving Money Today made $60 for Eating French Fries
• Matt at Dividend Monk tells you 8 Reasons to go with Dividends
• Joe Plemon at Personal Finance by the Book states, You Can Afford that Baby
• Kevin at Invest it Wisely recommends Couple Living in a Small Space (great way to SAVE MONEY)

BarbaraFriedbergPersonalFinance around the web this week:

• Monevator and Oblivious Investor selected The Magic of Compounding for their link round ups this week
• The guest post from BFS, No Debt if I was a Doctor was featured on her site, Budgeting in the Fun Stuff  and at KNS Financial

image credit: Anadelmann

MAIN TOPIC: How Daniel Makes Money

Imagine this, you just got your Master’s degree in chemistry along with a teaching certificate and you need 3 jobs just to make ends meet; teaching at a community college, working part time at a lab, and substitute teaching at a high school. You may be thinking, wow, this guy has a masters degree so his future is set, no worries, smooth sailing ahead. I’ll admit, I kind of thought that myself.

Actually, he had no other options, because the employment market in S. California was so tight that those 3 jobs were the only way he could make a living at that time. Flash forward a couple of decades, the same guy has a well paying salaried job at a major Medical School doing exactly what he loves. Then why is he still working 3 or MORE jobs?

Today, in addition to his salaried job, he works for a temp agency doing chemistry projects on the week ends, writes books (6 at present count), scholarly articles and book chapters, lectures at national conferences, and trains others in his field. Most of these activities bring in additional income!

You may be thinking, so what. What does this have to do with me? I have no graduate degree, nor do I intend to get one, and no one cares about what I know or would pay me for anything. Plus, I hate chemistry. Anyhow, this guy must be working 24-7.

Well, you are wrong.

First off, yes, he does work on the week-end mornings. But when he gets home from work, he relaxes and watches TV, reads, or exercises. On the week-ends he has plenty of time for friends and fun. How does he do it?

PRACTICAL APPLICATION: Anyone can make Additional Income

Before I continue, anyone who tells you it is easy or quick to make additional income is LYING! It takes persistence, discipline, follow through, and delaying gratification. In fact, learn to welcome stress and failure, because there is no success without those situations.  This quick article will get you started on the path to make more money. Additionally, although education usually increases your ability to boost income, so does having specialized skills. You may even take for granted what you have that someone will pay for.  

Here’s how Daniel started out. Many years ago, when he wasn’t making too much money, he sent out dozens of resumes offering to speak and train others in his field of expertise. After about 1 year of letter writing, he was hired by a professional training organization to be one of their presenters. They took care of all the arrangements and sent Daniel around the country to deliver seminars and workshops for chemists. This was a nice boost to his income, even though it was tiring and he had to take vacation days from his work to make the presentations.

Simultaneously he began writing his first book. After a long time and lots of letters, that book got published. Meanwhile, he continued to grow his reputation by writing scholarly articles and presenting at conferences in his field.  Over time, he became more and more well known. His next book didn’t take quite as long to get published. And after a while more requests for training came his way.

Initially, the extra income was not too much, but he kept at it and each book delivers on-going and increasing royalties; and his speaking fees grow. Over the years, Daniel has honed his ability to make Chemistry entertaining and engaging, further increasing his opportunities!

HERE’S WHAT YOU CAN DO TO MAKE ADDITIONAL INCOME:

1. List everything you can do that someone might pay for. Think creatively. I have a friend who babysits one night a week for a wealthy family and makes $15.00/hour. Do you play an instrument; know computers or social media; what about carpentry; landscaping or gardening; basic auto repair; scrapbooking; EBay selling; Spanish; or cooking? The list is endless.  
2. Advertise your services or teach a course at a community college or continuing education facility. Don’t be shy. You may think everyone can do what you do, but they cannot!!
3. Make flyers and post them around your area advertising your services.
4. Put an ad on Craig’s List and update it every week.
5. Consider advertising in the newspaper or a community paper.
6. Market, market and market yourself some more. Brainstorm the ways you can advertise your skills. DO NOT BE SHY. You are offering to help someone!      
7. BANISH these thoughts from your mind, “What if no one hires me, what if I’m no good; what if I don’t like it.” Because if you let those thoughts in, you will do NOTHING!                 

ACTION STEPS:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

• Write your plan out IMMEDIATELY. List all of your skills, NOW.
• Make list #2, all of the ways you can market your services.
• Ignore any fear or apprehension you have.

How have you made extra money?  What worked the best for you?

YAKEZIE SHORT CARNIVAL

Check out what other personal finance bloggers are saying and be sure to stop by their websites.

7 Things I Learned Watching Honeymooners Re-runs at Saving Money Today             

It’s Called Personal Finance for a Reason at Sustainable Life Blog           

CVS Paid Us To Shop! at KNS Financial   

GUEST POST by Mr. Credit Card 

Today, Mr. Credit Card from Ask Mr. Credit Card  is going to share some thoughts about the importance of improving yourself  and learning new skills as an employee. Mr Credit Card has recently compiled a review of identity identity theft protection services, which you might want to check out.

If you hang around the blogosphere enough, you will notice a recurring theme; the desire of many to get out of their JOBS’ and work for themselves. Very often, the reasons cited include:

• Poor job fit
• Spend more time with family
• Hate answering to a boss
• Lack of job security in corporate America

Most the reasons cited above are true to a certain extent. But instead of  drooling about the prospect of starting your own business, why not use your time as a corporate employee to improve yourself and acquire new skills? You might actually find that doing so may get your a promotion or  a leg up when you strike out on your own. Check out these skills to further your career.

1. Learn to delegate – One of the things employees must learn as they progress up the organization is to delegate. We’ve all seen this again and again. The best salesperson on the team is a terrible manager or the smartest programmer stinks as the boss.  There is a transition from team member to manager. Very often, the person who is successful at a specific task fails when he or she gets promoted because they never learn to delegate.

Learning to delegate is a very important skill to learn. You frequently hear successful entrepreneurs talk about working ON their business, not IN the business. If you fail to delegate, you may find it difficult to grow your own business.

2. Learn to be productive – I guess in certain corporate jobs, it is easy to just coast along. But if you want to rise to the top, you have to be productive. That means getting your most important task done first. And not being overly distracted by things that do not really matter.

3. Polish up on presentation skills - Demonstrating good presentation skills is crucial in the corporate world. But they are also very important if you have your own business. After all, you have to pitch to venture capitalists, vendors, and other organizations if you are seeking any partnerships. If you lack presentation shills in a corporate setting,  likely you will be poor at promoting your own business too.

4. Enhance your people skills – Some folks do not succeed in the corporate world because they have poor people skills. You could make the argument that perhaps this is an impetus to strike out on one’s own. And there are many professions where you can get away with poor people skills. For example, a freelance computer programmer or writer may not need these as much as someone in other professions. Still brushing up interpersonal skills can go a long way towards advancing your career or even growing our own business. A business owner needs people skill to deal with employees or his/her business partners.

5. Build relationships – Very often, folks who are shy of promoting themselves view others who are “close” to their bosses as brown nosers. I used to think that way too. However, having become my own boss, I actually appreciate employees who update me,  ask my opinion, and  ask questions when they are unsure. I enjoy a close relationship with my employees. Here is the truth. In the real world, you will only be promoted if you have the trust of your superior and this only happens when you build a strong relationship with him or her. Furthermore, you can only get things done with peers if you’ve built sound relationships.

If you have your own business, the ability to build relationships is even more important. Business owners who lack this skill are at a disadvantage because strong business relationships relate to future success.

6. Get things done – There are many folks who simply do not get things done on time or properly when given a project to do. There are plentiful reasons and excuses. But to be truly successful in whatever you do, you must develop the habit of  getting things done by hook or by crook.

 A key attribute of successful executives and business owners is the ability to get things accomplished on time.

Summary 

 There are many folks who are unhappy with their present jobs for a variety of reasons and want to eventually “start their own business” or “earn passive income”. But I would suggest that even if you are unhappy with your present corporate job situation, there are skills to learn that could earn you a promotion, increase your  job fulfillment and even a higher salary. At the very worst, improving yourself will give you a better shot at success when you do strike out on your own.

So do not moan and groan about your present situation. Instead, make use of your time now to improve yourself (and obviously plan your next venture). You will  be much better off with an action-oriented  attitude no matter what the future holds.

“I feel like this is something I’ve been capable of doing. I felt like if I put in the hard work and committed to the journey eventually it was going to yield some fruit.” R.A. Dickey

After toiling 12 years in the minors, this 35 year old NY Mets knuckleball pitching sensation is 6-0 this season.  Called up from the minors on May 19^th, Dickey never gave up believing in himself. He is the epitome of determination, optimism, and perseverance.

MAIN TOPIC: Stress Happens

When I was growing up, one of the saddest times for my dad was when he lost his mother prematurely, to an illness which could have been prevented. He got through the pain of losing his mother by distracting himself and throwing all of his energy into his work.

And whenever I balked at some responsibility or task, saying “No, I don’t want to do this.” My mom would reply, “It does not matter, PUSH YOURSELF to do it.”

Over the years, I adopted these action oriented coping styles. Although being solution-oriented and prolific do not get rid of stress or pain, these traits yield a positive outcome.

Stress and anxiety leads to productivity and success!

PRACTICAL APPLICATION: Use Stress to your Benefit

Through investing over a long time, my husband and I have amassed a sizeable net worth. That wealth comes from regular investing and compounding of the interest and dividends, combined with modest lifestyle choices. Additionally, we are very optimistic and solution oriented.

Every setback has a way out!

This disciplined and optimistic way of living has led to financial, personal and career success. Simply, success is culled from some smart habits practiced regularly. But don’t think I don’t know what it’s like to be lazy and unproductive; growing up, I was probably the most undisciplined, complaining procrastinator around!

Read on and find out how an optimistic approach and practicing strong habits combats stress and contributes to success.

 Martin Seligman, PhD, author of Learn Optimism and founder of the Center for Positive Psychology at the University of Pennsylvania describes two traits of the optimistic; permanence and pervasiveness.  Optimists believe bad events are temporary and limited. Optimistic people tend to be more successful and productive. The optimist will find a way out of a difficult situation.

We have some additional stress in our lives right now. My instinct is to grab a box of candy, get under the covers, turn on the TV and never get out!

Instead of giving in to the pull to binge and hide, I fall back on the habits that have made me wealthy and strong.

Stress fighting success habits:

1. Recognize and acknowledge that you are in a stressful situation.
2. Give yourself a bit of time to feel the discomfort and map out an action plan.
3. Don’t avoid the stressful event-figure out what you need to do to handle the unpleasant situation(s).
4. Practice a positive determined attitude. Act as if you can handle the difficulty, even if you are depressed and scared.
5.  Persevere, towards your goals in spite of the discomfort and stress.
6. If you have discretionary time, determine the most personally productive use of your time. Is it, revising the budget to find more cash to save, doing a home repair, or following up with a responsibility you’ve been avoiding.
7. NOW, it is time to get on with your activities. Put ALL OF YOUR ATTENTION into doing the best job you can right now. If you are at work, focus, put in 100%, do not get distracted.

Does this sound simplistic? Actually, it is not complicated to develop success habits. Be optimistic, goal oriented, solution focused every day and success will follow. 

ACTION STEPS:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

1. Right this minute-do one thing you have been avoiding.
2. Jot down how it worked out for you.

How do you handle stress? What are your keys to success in money and life?

Photo credit: MSNBCMEDIA.msn.com 

Categories: credit, debt, goal setting, life

“Say NO out of love, and yes out of weakness.” Suze Orman

This means, NO to yourself for frivolous spending, NO to your kids. And NO to extravagances (you cannot afford) or wasteful spending. You will increase love of yourself and those around you when you practice the discipline to say NO.

MAIN TOPIC: The True Cost of Debt

Keep positive-debt sucks, you got yourself in trouble, accept it, and move on. Until you face up to reality and make a decision to get rid of the pain. You will continue to perpetuate it.

Here is the cost of making the minimum payment:

Let’s say you have $5,000 credit card debt.

 With an interest rate of 20%

If you pay the minimum payment of $133.33/month (declining slightly in later months) it will take ALMOST 23 YEARS to pay off the debt, and you will have paid $7,732.00 interest. That’s right; you will have paid a total of $12,732.00 for the privilege of buying $5,000 worth of goods.

With an interest rate of 9%

If you pay the minimum payment of $87.50/month (declining slightly in later months) it will take ALMOST 21 YEARS to pay off the debt, and you will have paid $3,373.00 interest. That’s right; you will have paid a total of $8,373.00 for the privilege of buying $5,000 worth of goods.

Now triple the $87.50 and pay $261.00 each month.

With an interest rate of 9% and a monthly payment of $261.00 it takes only 21 months to pay off $5,000.00 and you will only pay $418.00 in interest.

FACE REALITY; you need to pay down debt, for these reasons:

• Reduce stress
• Secure your financial future
• Reach you goals
• Add your own reasons:
• ______________________
• ______________________

 PRACTICAL APPLICATION; Here is the Plan

There are all sorts of calculators, systems, and plans for debt reduction. I’m not suggesting they are bad, and if they work for you, great. But, my premise is consistent; MAKE IT SIMPLE. Debt reduction does not need to be complicated. Let me repeat this; DEBT REDUCTION DOES NOT NEED TO BE COMPLICATED!!

Here is a strategy to get rid of debt, NOW. I don’t know how long it will take, and if you want to find out, feel free to check out one of the debt calculators above. But the BarbaraFriedbergPersonalFinance premise of debt reduction is like the “NIKE” school of thought: Just do it! Don’t obsess on how bad it’s going to be or how long it’s going to take, just follow these simple steps and begin!

1. Stop using all credit cards. NO EXCEPTIONS!

2. Renegotiate your interest rates – Lower your interest rate(s) now and decrease the total amount of interest you end up paying.

Call the number on the back of the credit card and ask to speak with customer service.

Here’s how Luiza did it.

Luiza: Hi, my name is Luiza and I currently have a $5,000.00 balance on my “CREDITSTINKS” credit card. The interest rate is currently 20% and I would like to lower the rate to 9%.

Customer Service: I’m sorry, I don’t have the authority to do that.

Luiza: Please connect me with a supervisor.

Supervisor: What can I do for you?

Luiza: Hello supervisor, I would like to lower my interest rate to 9%.

Supervisor: I’m not sure I can do that.

Luiza: Well, I would like to keep my business with your company, but if you cannot lower my interest rate, I will need to transfer my balance to a card with a lower interest rate.

Supervisor: We want to keep you as a customer. We can only lower your interest rate to 14%.

Luiza: Then I guess I will need to follow up with one of the other companies who offer me a 1.5% rate for a balance transfer.

Supervisor: Well, I guess I can lower your rate to 9%.

Time spent: 10 minutes

3. Repeat process on every credit card. Don’t worry about calculating how long it will take to pay off your debt.

4.  Pay at least TRIPLE the minimum on THE SAME CARD EVERY MONTH.

5. Pay double the minimum on the remaining cards.

THAT’S IT. You are done. Look, if you can pay more, wonderful. DO IT! If you can only pay triple on one card (and not double on the others), do that and just pay the minimum on the others.

When the first card is paid off, move on to triple the minimum payment on the next one. As you see the balance on your debt declining, your motivation to pay it off goes up.

No purchase is worth the pain of being in debt!

ACTION STEPS:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

1. Make the call to lower the rate on ONE CARD TODAY. Don’t delay.
2. Read about  RichMomSingleMom’s  heartfelt pain of debt, and let it motivate YOU like it motivated her! (She’s now well on her way to wealth!)

RELATED POSTS:

Help I Can’t Save, I’m too Far into Debt-Part 1

Help I Can’t Save, I’m too Far into Debt-Part 2

Categories: goals, values, wealth, time management

“Time is the most precious element of human existence. The successful person knows how to put energy into time and how to draw success from time.”
Denis Waitley    

Balance and time  are  key attributes for successful living. They go hand in hand with separating the important from the unimportant and prioritizing what to do when. Always remember that time is  not renewable!

MAIN STORY: Perfectionism vs. Sloth

I was raised to:

1. Finish what you start.
2. Never quit.
3. Maintain order and tidiness.

Consequently, I had a tendency to be highly self critical and believe that doing tasks well meant working on a task until it was PERFECT. The room was clean only when there was ZERO dust, dirt, or item out of place.

If someone left a phone message, it was to be returned IMMEDIATELY.

Dishes were to be placed in the dish washer PROMPTLY.

Clothes hung up RIGHT AWAY.

There are pros and cons to this type of upbringing; it developed certain advantageous qualities.

Pros:

Good attention to detail

Excellent follow through ability

Reliable and dependable

Good manners

Like all things in life, there were disadvantages to these types of standards.

Cons:

Spend way too much time on each task.

Don’t discern the important from the unimportant (everything is important).

Waste a lot of time on less important tasks.

Actually, the positives of this style are OK. In fact, persistence may be the most important key to success. But, the negatives create an environment of less achievement and more obsession on getting every last detail correct.

Fortunately, I eradicated most of the negatives through prioritizing and balance.

PRACTICAL APPLICATION: What are your priorities?

I started investing very young, in my early 20’s and opened an IRA as soon as I had earnings. Over time, I studied investing, and grew our family resources’.

At some point, I made a decision. There are a limited number of hours in the day, and I am extremely committed to:

• Spending time with family and friends
• My job
• Contributing to society
• Building BarbaraFriedbergPersonalFinance
• Appreciating and enjoying life
• Growing wealthy

This led to the realization that there are certain activities that must go; there is not enough time for everything. A certain degree of dust and disarray is OK. I relinquished my early training and decided that an immaculate home does not define me. Good enough is OK and perfection in house upkeep is unnecessary.

And, the “not so fun tasks” can be redefined to give SOME SORT OF BENEFIT. Even vacuuming can be fun. Don at Money Reasons figured out how to get his exercise and save cash by mowing the lawn.

Nevertheless, every last detail does not merit attention.

Conscious living is making a decision on how you want to spend your time.

Put the most time into your highest value goals.

Determine what YOU value in life, and spend your precious time going after it! For me, time is prioritized according to my core goals and values. I spend a lot of time with my husband, family, job, finances, & blog. And even if I have something less desirable to do, (after all we can’t avoid all unpleasant tasks), I look for a way to make it tolerable!

And that is why, I am wealthy (in money & life) and my house is dusty!

ACTION STEPS:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

1. List your 3 highest value activities; those pursuits that give you the most reward. They could be spiritual, family, work, fun, hobby etc.
2. Choose 1 day to focus most of your time and energy on your highest value activities.

Write and let me know how it works out!

Categories: Yakezie, investing, goal setting

“Success is the result of perfection, hard work, learning from failure, loyalty, and persistence.”
Colin Powell

MAIN TOPIC

This week I joined a network of personal finance bloggers: the Yakezie Challenge. Yakezie is a competition for improved readership and position on the coveted Wise Bread List of top 100 personal finance blogs. The underlying concept is that the competition to increase readership and interest in our personal finance blogs will spur the members to excellence. This group of personal finance bloggers must be committed to greatness by blogging regularly and they must be committed to camaraderie by agreeing to support and promote their fellow bloggers. The underlying concept of the challenge is that the competition to increase readership and interest in our personal finance blogs will spur all of us on to excellence. You can find out about all the members and how they are doing right here.

Once the blogger commits to the challenge he/she agrees to write about it on their blog.

This is where perfection entered. Perfection is “the state of being without a flaw or defect.”  As a recovering perfectionist, here is where I experienced a bit of a setback.

I procrastinated writing the “Yakezie Post” because I wanted it to be SPECTACULAR.

I wanted to show my readers and fellow Yakezie members that I was not only extremely knowledgeable about personal finance, but a wonderful writer.

Many perfectionists out there (you know who you are) are also closet procrastinators because they fear that their work won’t be perfect. This fear paralyzes the perfectionist. And the reemergence of my perfectionism caused me to delay writing the post while obsessing on how to make it PERFECT.

Fortunately, I overcame my procrastination quickly, with a small goal; in order to start writing about the Yakezie Challenge, I decided to read what some of the other members had written.

 That small step motivated me to GET STARTED. The reading also inspired me to put a different spin on the topic and relate the challenge to writing and investing.

I’ve written about procrastination and goal setting before, yet I’ve never directly related the topic to investing.

PRACTICAL APPLICATION

The best way to AVOID PROCRASTINATION, WRITE THE BEST ARTICLE, and to BE A SUCCESSFUL INVESTOR, is to get started IMMEDIATELY with one small step.

This concept is so important, that I’m going to restate it in different words.

THE BEST WAY TO ACCOMPLISH ANYTHING is to GET STARTED NOW. Stop thinking and TAKE ACTION.

Take Colin Powell’s quote to heart, read it, follow it, and there is your recipe for success in life!

For the Yakezie post, my small step was to get started by reading other personal finance blogs about the Yakezie Challenge. That was all the motivation I needed to help me get started.

How to Write a Perfect Article

The way to write a PERFECT ARTICLE is about the same; get started NOW! Then motivate yourself by reading some related materials; you’ll probably get inspired to dive in and start. And you may come up with some new ideas or a different take on your old ideas.

Furthermore, realize that PERFECTION is unattainable, and persistence is much more valuable. So get started, read a bit on the subject matter, and then write a draft, revise, and you’re done! Good enough is much better than PERFECTION!

OK, done with the “How to Write a Perfect Article Section.”

Now on to INVESTING

Don’t let fear of losing money or making a mistake stop you from INVESTING FOR YOUR FUTURE. The best time to invest is now. Read this really short book and learn all you need to know about investing.  Then, get started now and let the magic of compounding grow your wealth.

Investing is a very scary topic because it deals with money. But, if you break it down, there are wins and losses in every area of life; jobs, family, friends, sports etc. If you start investing now, even if you experience some short term losses, in the long run, you will have more money than if you waited longer to invest.

Continue to read BarbaraFriedbergPersonalFinance, because there will be A LOT MORE INVESTING DETAILS to come. But, if you are someone who is just starting out, and looking for the VERY FIRST STEP TO TAKE, then do this:

Open a brokerage account at a discount broker such as Charles Schwab, Vanguard, TD Ameritrade, Fidelity etc. You don’t need to be perfect here, just pick one and get started.

 And tune in for more investing information soon.

This may not be the perfect article. But if you learned these 3 things, then it was probably good enough:

1. Compete with your colleagues to improve and reach your potential.
2. Get started now, to reach your goals, and avoid procrastination.
3. No matter how old you are, INVEST for the future to grow your financial resources.

Caveat: Before investing make sure you have taken care of these 3 steps first:

Get rid of all credit card debt.

Purchase term life insurance if you have someone (wife, husband, &/or kids depending on your income).

Save at least 6 months living expenses in a bank savings account (on-line or bricks & mortar-it does not matter which).

ACTION STEPS:

Get a notebook and label it: “(your name) Personal Finance” and store it by the computer. Use it for all of your personal finance goals, thoughts, activities, and plans.

1. Open a brokerage account.

2. Get started on a goal you have been avoiding, NOW.

Categories: goals, values, personal finance

“Henceforth I ask not good fortune. I myself am good fortune.”

Walt Whitman   

Wow, I’m not even sure how to interpret that quote. Walt Whitman would fit in very well with the “simplicity-frugal movement” of today. Whitman’s Walden Pond inspired me to remember to appreciate the simplest pleasures in life. His writing exudes self possession, contentment, and the joy of living.

And isn’t that what we all really want?

MAIN TOPIC

A friend of mine, Melody (not her real name) really really wants a Rolex watch. I think they cost about $10,000. (I’m not sure because I have never priced one and don’t want to spend my time checking!) In fact, that is one of her important GOALS. I am not sure why she wants one but if I had to guess, I assume she equates owning a Rolex with wealth, status, and prestige.

Now, as far as I know, most watches today keep accurate time. Not only that, but there are some beauties for less than $10,000. In fact, give me $50.00 and I bet I can find a stylish and serviceable watch. On the matter of wealth, status, and prestige, there is certainly nothing fundamentally wrong with those values.

Then there is another perspective on this “watch topic.” I’ve noticed that my daughter and her friends eschew the watch for the phone. In fact, they seem to have no use for a watch at all (as evidenced by the one my husband and I bought her which is sitting in her bureau drawer). When we asked her why she doesn’t wear it, she responded with the practical retort, “What do I need a watch for, my phone has the time.”

So, on one end of the spectrum is Melody, a woman of middle income means dreaming of owning a Rolex, and on the other end, my daughter (and many of her post 1980-born cohorts) relinquishing the watch to the “antique” bin.

Well, who really cares? If Melody wants a Rolex, it certainly isn’t any of my business.

And each of us has the right to choose our own goals and values.

PRACTICAL APPLICATION

The more things you want, the more difficult it is to fulfill those wants.

If you are unsatisfied with what you have, and always want more, you won’t be very content.

So what is the solution, as there is usually SOMETHING that most of us want?

In life and money, if you are constantly striving and desiring more and more, YOU FEEL DISSATISFIED with what you already have. You divert attention from APPRECIATING WHAT YOU HAVE to focusing on what you LACK.

Jean Chatzky, in her book The Difference, offers a wonderful strategy for upping your happiness:

Compare yourself with those who have LESS THAN YOU DO,

not those who have more.

If Melody compares herself with celebrities, she feels poor and inadequate. She spends a lot of her mental resources striving for a Rolex watch which costs 30% of her annual income.

This anecdote DOES NOT suggest that there are good goals and bad goals, or that one should not have any goals.

Here is the takeaway.

Goals in life are important and need to be self determined. The best way to make goals and values WORK in your life and propel you forward is this:

• Make some goals that are reasonable and fit in with your values.
• As you work towards your goals ENJOY THE PROCESS. Pay attention to the path along the way; the process of living and working.

You may find that the JOURNEY is just as much fun as actually reaching the goal.

Spend some time with yourself, like Walt Whitman did. Think about what’s really important to you. Set some steps to get what you want. And for whatever reason, if you value having a Rolex and think it will give you pleasure, pick one up and find out for yourself. But along the way to saving and earning the cash to buy that Rolex, be sure and commit yourself to appreciating every step along the way.

 ACTION STEPS:

 Get a notebook and label it: “(your name) Personal Finance” and store it by the computer. Use it for all of your personal finance goals, thoughts, activities, and plans.

1. Starting now, really focus on what you are doing. Pay attention. Don’t just go through the motions. 
2. Spend 15 minutes alone with yourself. Write some financial, personal, & professional goals.

Let me know if focusing on what you are doing increases your contentment.

Categories, Saving, Goal Setting, Personal Finance

“Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success”.
Pablo Picasso

As the incredible modern artist Picasso said, goals and plans are essential to success. And I believe that as well, or I wouldn’t have included the quote. But this post is about more than just goals. Goals need very specific content to propel you forward.

MAIN TOPIC

Goals get you started, but if you want to get wealthy, you also need some basic information as well. This article will cover a bit of goal setting AND specific, BASIC information for beginning to build wealth. Along with my job (portfolio manger) and maintaining my website, I’m teaching an MBA class at an area college this summer. It is a really big task to prepare an entire graduate level course for the first time. There’s a lot to do:

Choose a text

Create a syllabus

Read text

Create assignments

Design PowerPoints

Create lectures

Learn electronic communication system: “Blackboard”

And more

As I see it, there are 2 options for dealing with a large task!

Option 1: AVOID

Option 2: Get started NOW with a really really small goal

 I chose option 2, and here was my “TO DO LIST”:

 1. Look at all the materials I already have including the old professor’s syllabus and emails from the department chair.

2. Organize the materials.

3. Make an action plan.

 I did it all in a little over an hour and I gotta tell you, I feel so GREAT! Actually, my “TO DO LIST” was really easy and it served 2 functions:

1. It forced me to START

2. Next, I created the supremely important ACTION PLAN

 The reason I feel so good, is not because I accomplished a huge amount, but because I STARTED! What I actually did was not really too much.

Research and experience proves that GETTING STARTED with a task is the key to avoiding procrastination and increasing productivity.

PRACTICAL APPLICATION

Getting your financial life on track is so much about JUST GETTING STARTED; especially if you are in a bit of a financial mess, have too much debt, haven’t balanced your check book in a while, or have a stack of overdue bills. Even the smallest step you take can be extremely important in getting yourself on track.

To reach a goal:

Do something, no matter how small.

It is ALWAYS better than doing nothing.

BASIC FINANCE STEP

The finance application of this POST is very basic. No matter where you are in your financial life, you need the proper vehicles for success. To get order and control there are 3 accounts you must have.

Start with the following 3 accounts! 

Set up these accounts immediately if you can.

Even if you don’t have a lot of money to put in these accounts at first, get them set up NOW.

Over time, have a regular amount transferred into each account.

You could have your paycheck deposited into your savings account.

Then have an amount for regular expenses transferred into checking.

And finally, transfer an amount for long term investing into the retirement account.

You can tweak the amounts later, JUST GET STARTED NOW.

ACTION PLAN:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

Select the bank for your checking and savings accounts. Find a bank which does not charge any fees for the account! Ask them, either in person or by email, how to set up the account. Check out bankrate  for on-line banks and other banking information.