Money Management for the OVERWHELMED

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. 

“The greatest weapon against stress is our ability to choose one thought over another.”  William James 

Stress and adversity hit us all. What defines a person of strength is how she/he handles the challenges. Follow William James’ advice, choose calm thoughts, and tackle one task at a time. 

Be calm & hang on to your sense of humor.

MAIN TOPIC: THINGS AREN’T GOING AS PLANNED

Have you ever felt like the s—t is hitting the fan? At every corner there is a new problem or difficulty to contend with? All of your plans and expectations are in the toilet!

Welcome to my world. There are a lot of stressors in play now-not really financial – but other things going wrong ALL AT ONCE. Unfortunately, when things go wrong, we still need to go on living and keep up with our responsibilities, especially our financial ones. What happens if in the midst of chaos, you let your finances go on the back burner? …….TROUBLE FOLLOWS….   Fees, interest, and more expenses make things WORSE. 

This article is for those times when EVERYTHING SEEMS TOO MUCH. When your mind is consumed with lots of other things, do the bare minimum. Keep focused, don’t freak out, and only do what’s necessary.
 

PRACTICAL APPLICATION: READ THIS IN TIMES OF STRESS & CRISIS

Be in the present. I know your mind is going in all different directions, but you can’t concentrate with too much stimuli. Deal with the most important task first. 

Take a deep breath. No, really, do it. Now, take another one. 

During times of stress, your goal is this; do only these 4 money tasks. 

1. Pay all bills on time.
2. Continue with debt repayments, pay more than the minimum.
3. Continue to keep track of your money in your pocket and in your accounts.
4. Maintain adequate balances to avoid fees in your accounts.

THAT’S IT. NOTHING MORE. Or maybe you could smile and think about something funny, like penguins. 

When things get crazy, slow down and SIMPLIFY. But don’t forget basic money management. If you do, MORE STRESS WILL FOLLOW. 

Read more about this topic at Funny about Money in Getting over it, Strategies to Conquer Stress and Money. 

Add to the conversation. How do you deal with stressful and overwhelming times? What are the tricks that work for you? 

 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. 

Take a moment to slow down and follow the 4 steps.  

BarbaraFriedbergPersonalFinance Around Web 

I am honored to have my work showcased at these sites recently. Why not stop by the CARNIVALS and round ups to check out the fine articles?   

Carnival of Personal Finance at Budgeting in the Fun Stuff published No Brainer Money Management for College Students  

KNS Financial  referenced IF you Need Extra Money; Do not do this, on his site last week. 

Dividend Monk and Invest it Wisely both included  The Best of BarbaraFriedbergPersonalFinance; 6 Month Anniversary Edition in their round ups this week. 

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! 

Suburban Dollar
Sustainable Life Blog
Sweating the Big Stuff
The Amateur Financier
The Centsible Life
The Consumer Boomer 

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

Money & Relationships-Make it Work!

“I’d marry again if I found a man (or woman) who had fifteen million dollars, would sign over half to me, and guarantee that he’d be dead within a year.” Bette Davis

 You gotta take relationships with a bit of levity or you’ll never make it through! This quote is the perfect solution for money and relationship problems. Unfortunately, it’s a bit unrealistic. Maybe a million or two is more doable.

No really, read on and find out how to handle money stress in a relationship.

MAIN TOPIC: She’s a Saver, He’s a Spender

This article is the 3rd in a series relating poor money behaviors with stress (#1-Shopping to Solve your Problems & #2 Procrastinating Dealing with Financial Matters). The topics are inspired by an article entitled Emotions, Money, & Financial Stress by Nancy Losinno, published at the US Department of Energy, Brookhaven National Laboratory website. 

You know who I’m talking about. Bluetooth came out, he got it. Iphone, Ipad, flatscreen TV, etc. he bought them all. New car every few years was required by him. Meanwhile the debt piled up. She tried to save, but his spending counteracted all of her efforts. 

I’m hesitant to continue, as the story is so familiar. We all know how it turns out…… fighting, stress, anger, depression, marital discord and DEBT.

Overspending in a relationship is unhealthy whether practiced by one or both partners.

Losinno clearly stated, that in a relationship the partners have the choice of creating WEALTH or a “FINANCIAL HELL ON EARTH.” Money secrets are devastating. Unhealthy family money attitudes can be disastrous. Money problems in a relationship can be the beginning of the end.

PRACTICAL APPLICATION: Get Real and Slam the Debt

It’s helpful to choose a partner whose money style is similar to yours. I am really lucky, el carino and I have very similar money habits. Neither of us is extravagant nor strives for extravagance. I probably shouldn’t tell you this, but…. since our 5^th month together, I have handled almost all of the financial matters (not all the decision-making of course) for the family, and that has worked out really well for us. Obviously, I am not recommending this alternative for others, but it’s suitable for our family.

PROBLEM 3: MONEY & RELATIONSHIP TROUBLES

Lack of communication in money matters is a big problem. So is a difference in money attitudes. The problems that arise from money secrets and mismatched money attitudes can be corrected.

SOLUTION:  

1. Discuss money issues with your potential or current partner.
2. Come clean. Lay it all out on the table.
3. Together, list your debts and spending secrets, even though it is hard. If you can’t do it alone, see a counselor or Employee Assistance Program (EAP) specialist (through work).
4. Schedule money talks regularly.
5. Make an agenda and list you financial issues.
6. Devise a plan to get rid of credit card debt.  Stick to the plan.
7. Make a budget or spending plan.
8. Find a middle ground for spending & saving that works for both of you.
9. Look for low cost alternatives for the spendaholic; a new CD instead of a new MP3 player.
10. Check out Oprah’s Debt Diet. After all, isn’t Oprah known for access to the best of everything?
11. Start small, make a small money goal to start. Then reward yourselves with a “free” prize. i.e. a picnic in the park, a TV night without the kids, listening to music together, use your imagination….

Compromise, compromise, compromise 

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.

•  Continue to talk regularly and honestly about your money problems.
• Motivate each other to spend less and look for ways other than spending to enjoy life.

Overcome a Passion for Procrastination (in dealing with financial matters)

“Procrastination is like a credit card: it’s a lot of fun until you get the bill.” Christopher Parker

This young actor hit the nail on the head! Avoiding and procrastinating seem fine, for a while. Later- the price you pay for procrastination is quite HIGH. Charge away with the credit card; if you don’t have the cash to pay it off every month, you are walking on a treadmill of pain.

MAIN TOPIC: Behavior is Everything-Avoid Financial Procrastination

This article is the second in a series relating poor money behaviors with stress. The topics are inspired by an article entitled Emotions, Money, & Financial Stress by Nancy Losinno, published at the US Department of Energy, Brookhaven National Laboratory website.

Procrastination is an evil and insidious behavior. It starts out benign and continues until it ruins everything it touches. Our summer guest Juan, discovered the problem with procrastinating the hard way. When he got his first credit card Juan checked on the balance on line, charged a few things, and didn’t pay the bill the first month. OK, not too much of a problem. But the reminders to pay came, and JOSE ignored them! Avoidance is procrastination’s ugly brother. He pushed the card out of his mind. It seemed too “complicated and difficult” for him to deal with. 

Lo and behold, the second month, after not paying the bill, his card was refused at a merchant. It disturbed Juan, but he quickly put it out of his mind, with an explanation to himself, “there must be something wrong with the card, I’ll worry about it later.”

After several months of non-payment, Jose racked up late fees and finance charges equal to his original balance. But he didn’t notice as he continued to procrastinate and avoid dealing with his bill. 

Juan had the money to pay the bill, but continued to avoid paying because it seemed complicated.

In our efforts to get Juan on track, we walked him through the payment process. 

Total time spent paying the credit card bill online: 15 minutes

Total late charges and fees: $125.00

 

Unfortunately, the story does not end here. After paying the bill in full, he attempted to use the card to pay for his summer school tuition. THE CARD WAS DENIED.

All of this stress and expense, not to mention potential damage to his credit rating, occurred because he PROCRASTINATED. 

PRACTICAL APPLICATION; How to Combat Money Procrastination 

Money is a great big mystery and secret for many of us. There are couples who don’t talk about it, overspend, don’t tell their partners what they buy, etc. Individuals use shopping as therapy and then PROCRASTINATE dealing with the bills. Overspending is bad enough, procrastination in dealing with the spending is worse.

PROBLEM 2: PROCRASTINATE handling money matters.

PROCRASTINATION in paying bills leads to problems; poor credit, debt, and stress. Just like other unhealthy behaviors; eating junk food, lack of exercise, money procrastination can be turned around.

Begin changing the PROCRASTINATION HABIT & reduce money and life stress.

SOLUTION:  

1. Be honest and ask yourself: “HOW HAS PUTTING OFF DEALING WITH FINANCIAL MATTERS WORKED OUT FOR ME?”
2. Schedule time on your calendar to deal with money stuff.
3. Make an appointment with your partner to talk about money.
4. List your debts.
5. Put every bill in a basket near where it is to be paid.
6. Pay bills 2 times per month or better yet, arrange to have regular bills taken out of your bank account.
7. If you miss a payment, do not compound the mistake by “ignoring it.” Call the merchant, and inform him that you are paying immediately, then DO IT.

New habits do not occur overnight. Habits are developed over time with regular practice. Day by day, rehearse these “solution steps.” When you catch yourself slipping back into the “passion for procrastination”, immediately, correct course and go back into action.

DO A MONEY TASK TODAY and reduce stress.

Stay tuned for part 3: Money & Relationships-Make it Work!

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. 

• Make a “MONEY to do” list of tiny action steps.
• Do one difficult money task each day.
• PRACTICE dealing with the bills even though it is unpleasant.

 Write in a talk about how you tackle the insidious passion for procrastination.

Image credit: [j]t

YAKEZIE SHORT CARNIVAL:

Check out these personal finance articles by talented Yakezie writers:

This 1 Question Will Change Your Spending Habits at Financially Poor           

Save on Gas-11 Extreme Tips at Car Negotiation Coach             

Is it OK to Splurge When You’re in Debt? at Cool to be Frugal                   

Categories: links, investing, money management, saving, make money

Welcome to a collection of amazing articles. Each one of these posts was chosen for its innovative ideas and thought provoking topics. After digesting this wonderful menu of diverse reading desserts, you will be smarter and wealthier.

Following are links to these delicious articles and a taste of their content. Go on and indulge.

The Oblivious Investor throws in a twist with 3 Good Stocks to Buy Right Now.

“Quick reminder: The fact that a company is growing (or is going to grow) does not by itself mean that its stock is a good investment. For a stock to be a good investment, there must be reason to think that its future growth is not already reflected in its price. Said differently, for a stock to earn above-average returns, the company must do better than the market expects it to.”

The Car Negotiation Coach at Findthebestcarprice reveals How to get Paid to Drive. INGENIOUS!

“Did you know you can make money just by driving your car? You can, if you are willing to allow a company to put an advertisement on it. These advertisements, called wraps, look like they are painted right on the vehicle, but they are just really nice decals. The programs are called ‘free car’ or ‘get paid to drive’ and they pay you for advertising for their product on the side of your car.”

In Best Way to get out of Credit Card Debt Fast, Wealthpilgrim offers a new take on an old subject!

“I don’t know about you, but sometimes when I face a daunting task I waste energy and time. Sometimes I spend too much time thinking about where to start. Other times I use the shot gun approach rather than focus my efforts. When I do that, my results are diluted.”

Littlehouseinthevalley reveals  how to make a quick call and increase your spendable income in Smashing the Bills to Smithereens! I love this.

“Constantly looking for ways to reduce our monthly bills, a few quick phone calls revealed a total savings of $63 a month without reducing our services! Here’s how I, er, my husband did it with my help. I keep an excel file that lists the averages of how much all of our bills cost on each month. I have everything listed in categories, for instance under the category of CAR I included auto insurance, car payment, and gasoline. Out of a total of about 25 items (a lot, I know!) I pay on a regular monthly schedule, I went through my list and highlighted the items I thought we could save on without downgrading any of our services. Those items took only a phone call and included the phone bill, DSL service, and auto insurance for a total savings of $63 a month, or $756 for the entire year.”

Something to think about…..from Investitwisely in How Rich are you?

“In the beginning of time, every man was equally poor, or equally rich, depending on how you look at it. Then we discovered agriculture, and the surplus of food enabled specialization of labour, which gave birth to cities and to civilization. Since then, we’ve been more or less divided into three economic groups: The poor, the reasonably well off, and the ultra-rich.”

As usual, Shawn at Watson Inc. keeps me thinking with this thought provoking Millionaires Make Return to Boom Levels.

“Additionally, don’t forget who the average millionaire is. Remember that the typical millionaire is not a Wall Street titan, a corporate fat cat or a celebrity but rather a hard-working entrepreneur (32%) or professional (19%). Moreover, even though both the 14th Annual World Wealth Report and the 2010 Global Wealth report rightfully exclude primary residences in determining HNWIs, keep in mind that approximately 97% of millionaires are also home owners.”

I’m a sucker for anything “efficiency related.” Hope you enjoy this one from Myfinancialobjectives entitled Bringing Your Efficiency Home.

“What I mean by the title, is how much more could you accomplish at home if you brought the same efficiency home with you that you use at work (assuming you are more efficient at work than at home)?  I recently posted about Time Management and how an efficient time management mentality allows me to save a lot of time both at work and at home.” 

Frugalconfessions writes about the positives of keeping an eye on your spending in Financial Limits and Boundaries Breed Creativity not Deprivation. She’s definitely a “glass half full”  person.

“then I would miss out on all of the great opportunities out there. For one, I never would have learned the Drugstore Game, which led me to write six columns called “Frugal Confessions” and start this blog! Having unlimited money would have caused me to spend more of it (necessity is the mother of invention, not abundance) as I never would have discovered great tools like Craigslist, followed many of the blogs that I do with people dedicated to saving me money, learned how to invest my precious resources, save for retirement, etc. Having limits in my life has only served me, not caused me deprivation. With limits, opportunities abound—have you taken advantage of yours?”

 Get the latest word on MOTIVATION research in Management Rewired by Charles S. Jacobs, discussed at Eliminatethemuda.

“More and more the science is showing that everything we thought we knew and understood about motivation may be wrong. Contrary to our perception, providing extrinsic motivators such as bonuses, gifts and rewards or even punishments for undesirable behavior may often be detrimental to our long-term objectives. There are more effective and efficient methods to motivate and manage, the author shares, but many of these methods are counter intuitive and challenging to implement.”

Let me know if you enjoyed the tasty tidbits of financial wisdom!

 image credit Chotda

Categories; spending, saving, money management

“Any sensible family has a budget that lays out how much will be spent for household and other purposes. Without such planning, things would quickly go awry.”
Walter Ulbricht

This German politician’s quote is as apt today as it was in the early 1900’s. Not only do things go “awry” without mindful spending and saving, but after “things go awry” we usually get depressed, anxious, and very unhappy as our financial life spins out of control.  

MAIN TOPIC; A PEEK INSIDE THE MYSTERIOUS WORLD OF BUDGETING

Budgeting is one of the most unpleasant of the personal finance activities. It takes a lot of discipline and a lot of work. And, the immediate payoff is tough to see. Although I have been successfully living on a “spending plan” (that just sounds like a better phrase than budget) for many years; before it became an ingrained habit, it was tough to keep up.

 Get some inspiration and ideas about living with a budget or spending plan from some of my on-line colleagues’.

 Get educated, inspired and wealthy!

And remember to let me know what you think. I love comments and questions.

In My 2009 State of the Household Financial Report, blogging heavyweight Len Penzo of Len Penzo dot Com opens the door to his financial world and gives us a peek inside. Treating his home finances like a business demonstrates focus, growth, and long term results. Insight into his finances is not only inspiring, but instructional in how to keep track of your financial position. Take one of two of his concepts and try them out!

Lakita offers some “easy to implement” ways to increase your cash flow in Personal Financial Journey. And, after all, who doesn’t want to beef up their  cash position? So check out the very practical 4 Ways to Increase Your Cash Flow. See if Lakita doesn’t inspire you on to more savings.

In Do You have an Inconvenience Fund? Jackie of Money Crush introduces a really smart personal finance concept. It’s so simple and easy to implement and definitely reduces you financial stress. Give it a read and try out her advice over at MoneyCrush!

In addition to a fascinating story about a young girl and a Porsche, The Financial Samurai, founder of the Yakezie Network offers some sound insight in, Why do People Spend More than they Earn? Get another viewpoint into this unhelpful habit. And make sure that YOU spend LESS than you earn!

Cars are ones largest expense after housing. If you add up the purchase price, maintenance, repairs, & gas, you’re talking about a big chunk of change. The Car Negotiation Coach at Find the Best Car Price offers a comprehensive tutorial on how to keep those vehicle costs in check. Take a suggestion or two from, Check Your Auto Financial Health, and save some cash.

In Budgeting Without Bean Counting, Joe offers a concise budgeting primer, along with links to more budgeting articles. Stop by Personal Finance by the Book for a short walk down the budgeting information trail.

If you like a good story with a personal finance lesson included then check out Dr. Dean’s article Economics 101 for Millionaire Nurses on his site, The Millionaire Nurse. These fundamental personal finance truisms never get old.

Bucksome at BucksomeBoomer reminded me once again of the frequently loose link between intelligent money management and high income. Celebrity Financial Dummies highlights some of the many examples the rich and famous make with their money. Read this and feel better about your own financial situation!

LeanLifeCoach of Eliminate the Muda hits on a reality of budgeting in What Sacrifices are you Willing to Make? So often we skate around this pivotal issue in money management. Sacrifice is an integral part of every aspect of life. No one can “have it all.” Accept this reality and watch your life contentment grow.

I read an article recently by Jane Bryant Quinn discussing How to Avoid Making a Budget (I don’t remember where I read it!). This famous financial journalist offered these bare bones tips for budgeting for those who abhor tracking expenses. She advised that as soon as you start working, SAVE 10% of your income and 50% of any raises. Have it taken out by your employer and put in a bank. Her premise was, if you don’t see it, you won’t miss the money. Further, she suggested that humans are adaptable and believes that one will get used to anything. So if you don’t feel like doing much else in the way of budgeting, why not take Quinn’s advice and incorporate her suggestions into your way of life!  Here’s a link to her website.

ACTION STEP:

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

Integrate one new tip from this wealth of personal finance information TODAY

Categories: investing, life, money management, & debt

“What is important for kids to learn is that no matter how much money they have, earn, win, or inherit, they need to know how to spend it, how to save it, and how to give it to others in need. This is what handling money is about, and this is why we give kids an allowance.”
Barbara Coloroso

Investing sounds exciting and glamorous. At the start of my investing career, I thought it was so cool to research investments and invest in the stock and bond markets; UNTIL I HAD MY FIRST LOSS. When I saw my first stock pick drop 50% in price, I WAS NOT HAVING FUN!

Investing is not a game, but an important activity to facilitate the accumulation of wealth. In the short run, investing is also an activity which can facilitate losing wealth.

Barbara Coloroso’s advice to kids holds equally true for ADULTS. For that reason, this list tells you in plain English what to do before you even think about investing* and why.

MAIN TOPIC

1. Open a bank checking account-You need to this account for your monthly expenses. Internet or bricks-and-mortar banks are ok.

2. Open a bank savings account-This is where you keep all of your short term savings. Build your emergency fund in the savings account. Internet or bricks-and-mortar banks are ok.

3. Write down your income and expenses for a month-I know this is a pain in the —–. You MUST do this to be in control of your cash. There is no way out! Start with a small notebook or day calendar. Pledge to do it ONLY one day first. After the first day, continue; one day at a time.

4. Make a budget or spending plan-I know this one is painful too; but do it anyway. Find one that works for you. Once you find out where your money is going, you can decide if you are getting enough pleasure from your spending.

5. Follow the spending plan-Do the best you can, you don’t need to be perfect. Adjust along the way. Maybe when you go out for drinks, you’ll decide a beer is as much fun as a martini, and more than half the cost.

6. Pay off all credit card debt-You cannot move forward financially with credit card debt.

7. Transfer a specific amount regularly into the savings account-Don’t worry about the amount in the beginning. Just develop the saving HABIT.

8. Save enough in the savings account to equal 6-8 months living expenses- Allocate this savings for unexpected emergencies and replenish after using.

9. Buy inexpensive TERM life insurance if you have someone (spouse &/or kids) depending on your income-Term insurance doesn’t cost much and if you die, your family/spouse do not end up in the poor house. 

10. Enjoy LIFE and the PROCESS OF LIVING! After all, you’re not doing all this planning to have a miserable life or ONLY for some far reaching goal.

 You must live and have fun along the way.

 *Caveat: If your employer matches your contribution to a retirement plan, then contribute enough to get the employer match. If you don’t contribute, you are throwing away free money.

ACTION STEPS:

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

1. Choose one step to take today.

2. Complete one step per week. Enlist a friend and complete the steps together; it will motivate you to continue.

“A festival marked by merrymaking and processions.”

Definition of carnival

I would like to invite you to a PERSONAL FINANCE Carnival. There will be lots of personal finance information and tips, and for those of you interested in more money and a better life……..IT WILL BE FUN!

What is a PERSONAL FINANCE CARNIVAL?

It’s a place where lots of authors publish articles about personal finance topics.

In one LOCATION you can get information about TAXES, CAREER, REAL ESTATE, CREDIT, DEBT, FRUGAL LIVING, SAVING, BUDGETING, INVESTING, FINANCE, and MONEY MANAGEMENT.

Why should I go?

• To learn 101 MONEY MANAGEMENT MYTHS
• To get some cash from Tips to Make Money on Craigslist
• To Get Rid of Debt Once and for All
• To gain access to a wealth of tips, information, and ideas to improve your finances and your life!

How long will it take?

• As long as you want!
• You choose the articles you are interested in.
• Read the posts at your leisure, and come back at any time.

Where is the CARNIVAL?

• It’s right here.

What are you waiting for?

Go have fun at the carnival!

Categories: personal finance, money management, values, parents, saving

“A penny saved is a penny earned.”

Benjamin Franklin

If you remember nothing else from this blog, embrace Ben Franklin’s wisdom. His intelligence and strength embodies the essence of BarbaraFriedbergPersonalFinance.

Main Topic

My dad was born into terrible poverty. His father was an unemployed factory worker for 6-7 years during the depression and his mom sold odds and ends on the street. When his dad worked, he never earned very much. My mom was not wealthy, but born into a family that knew they had to be very careful with money, or they would end up poor. When my parents met and married, they both had a commitment to hard work and saving money.

My dad managed to earn money in college by selling sandwiches with 2 partners to the other students in the dorms at night. One of his partners had the car, and the other had a wife who made the sandwiches. He was poor, but very ambitious. When he learned that his university was selling some old pianos at a cheap price, he decided to buy them all. Next, he sold each one individually at a profit. The university came back to him and was a bit irritated with him, for reselling the pianos. When the university administration confronted him, he said “You could have done the same thing. Everything I did was legal!” The take away from this story and one that replayed over and over in my life is this: Look for opportunities to increase your income.

In sum, both mom and dad, believed in working hard and saving money!

Don’t stop here and say, Duh….. there’s nothing new here… Read regularly and find out how to work hard, save money, and still have time and cash left over for fun, hobbies, and even a few luxuries.

Flash forward many years, their habits and strategies led to their accumulation of wealth. My own financial acumen is based on their early lessons. But, I didn’t stop with the lessons I learned from my parents, I went out and worked in a variety of areas, had some successes and failures, and further grew my financial knowledge through education.

Practical Application

My dad made a lot of money reselling those pianos. When he got that money, he immediately put a good chunk of it in the bank. Part of it went into savings that would be used for the future and the rest went into checking for his living expenses. He adjusted his spending to his available cash; and he didn’t spend money he didn’t have. From the time he was a small boy, saving was an automatic habit! Poverty gave him an indelible life lesson. Dad knew he needed money to help with his present and future expenses, and that if he spent it all on something frivolous, he would regret it.

When I was a kid, I got an allowance. I was expected to put part of that money in the bank. (And of course give some to charity as well). When I got some money for a gift, part of that money was supposed to go in the bank. I grew up believing that saving was a normal part of getting cash. I didn’t realize there was any other way! The thought of spending all my money was not an option. Sure, I spent some of the money I got, but not all of it. Actually, I enjoyed and do to this day enjoy the power and control of seeing my savings grow. It’s actually more fun than blowing all my money on something I won’t remember or appreciate in a day, or a week, or a month.

Action Step:

 Whenever you get ANY money; paycheck, gift, gambling winning, lottery winning, even cash you picked up from the ground, put part of it in a savings account. Don’t think, just do it! Make it a habit.