Welcome to a new guest contributor, the Broke Bytch. She is a new college grad with a minimum wage job. Enjoy her irreverent tips for saving and spending. Caveat; Her ideas are her own and I bear no responsibility for their content!

Broke Bytch Background

Like most people in their early twenties, I’m strapped for cash.  Sometimes I feel like my monetary impairment keeps me from going out and living life to its fullest.  What can you do for fun these days for free?  I’ve done my research and most articles professing solutions to a lack of funding suggest things like: reading a book, taking a walk, going on a hike, stargazing, window shopping, renting a movie from the library, sunbathing; I think you get the idea.  Well if you’re like me, you can only go on so many walks and hikes or read so many–ha! I had to stop, its too absurd, I’m out of college, please, like I read.

So I  made a list of my greatest spending categories and came up with cheaper alternatives, so I wouldn’t feel so burdened by my my financial state.

My greatest spending categories list looked something like this:

1. Housing
2. Food
3. Entertainment
4. Transportation
5. Cell phone
6. Clothes

True Confession About My Housing Arrangements and Other Cheap Living Options

First, before I begin showering you you with my unbridled wisdom, I must confess I partake in one of the biggest money-saving techniques out there:  I live with my parents.  However, if you are unable to afford this luxury, there are other solutions.

A potential option, other than cramming into a hole in the wall with twenty other roommates is to look for an in-house caregiver or nanny position. Aupair-World is a cool site to check out.

Ever considered farming? If you are flexible in where you live you could work on an organic farm or WOOF. This organization profiles farms world wide, so it’s a great option for those broke souls with wanderlust.  Other benefits of farming are, you won’t need a gym membership or sleeping aids because you’ll be working so hard doing back breaking labor.

Skip the apartment altogether and travel instead. In terms of traveling on the cheap STA travel  and couch-surfing are awesome options. In fact couch surfing is promoted by NPR, the Frugal Traveler, the New York Times, the Guardian, and Time Magazine, so it must be okay.

If you can’t live with your folks “rent free” you could even rent a room in someone’s home. All those people who got slammed by the mortgage meltdown are now renting out rooms to help with the mortgage payments. And if the family is really helpful, maybe they will even do your laundry (although don’t count on it).

What to Expect From the Broke Bytch

…Wait, wait, one more thing: as you can already gather from my previous paragraphs, I’m not exactly a short-winded person, so in order to make my mind-numbing awesomeness easier to digest for all of you weak-minded individuals, I’ve broken down my entries into manageable chunks.  Therefore my subsequent entries will be grouped as follows:

1. Food: How to not eat through your wallet, no matter how high the fiber content
2. Entertainment and Transportation: Time to wake up from your drunken stupor and get home (oh wait, that’s me..)
3. Phone and Clothes: Brrrring, brrrring, Its the 90’s calling, time to get some new duds, dude (because that is apparently how the 90’s talk)

I would like to promise a particular schedule, but I’m too busy trying to make a buck to commit. Why not pick up the RSS feed and then you’ll be sure to catch every column.

See you next time,

Broke Bytch

How do you slash living costs?

I’ve been a mom for 2 decades and a daughter for quite a bit longer. I’m also a bit of a control freak when it comes to consumption. I don’t want anyone telling me what to buy and when. That said, I’m not a total malcontent. I’m lucky to have a wonderful spouse. El Carino doesn’t share my viewpoint and insists on taking me shopping for Mother’s day. (And of course I appreciate it!)  So, last week end we hit the outlet mall for a sale outfit from Banana Republic! At 40% off it was quite a bargain.

Cheap Mother’s Day Gifts Any Mom Would Love

Jr. Carina is not as financially set as her dad, and this article is informed by her wonderful gifts to me over the years.

Gifts Under $20.00

Magazine Subscription; I love decor and anything “home” related. There are many magazine subscriptions to be had for under $20.00. Some mom friendly recommendations include; House and Garden, Redbook, More, Good Housekeeping, Oprah, Real Simple, Self and many more. Although that list is rather gender stereotyped, consider your mom’s interests and hobbies and choose one that is a fit for her. Obviously, if your mom is interested in personal finance like I am there are scads of magazines. One of my low cost favorites is Fast Company.

Books; Sometimes mom wants a particular book but hesitates to buy it for herself. Downloads for Kindle and eReaders are a real bargain and you could surprise your mom with one she would enjoy. Used bookstores are great spots for bundles of bargains. I recently picked up a coffee table book chronicling the American Home for $1.00. Two recent favorite reads are The Girl with the Dragon Tatoo by Stieg Larsson and Risk Less and Prosper by Zvi Bodie and Rachelle Taqqu. Game books like Sudoku and Crosswords are great for keeping mom’s mind sharp. One of my all time favorite gifts was a Doonesbury cartoon book.

Pampering Treats; It doesn’t cost much to indulge mom. Buy a designer lipstick for under $15.00. Lotions and bubble baths are so sensuous. What about a premium nail polish? Buy a small perfume sample, on sale during this season. Consider the treats that mom covets.

Music; Who doesn’t like music? Downloads, full price, and discount CDs abound. Introduce mom to a new artist you think she might enjoy. Download it onto her phone or MP3 player. If your mom is a bit old school like I am, you can grab a CD from the bargain bin or a music resale shop. Songs from your mom’s teens and younger years can bring back those memories of carefree days.

Free

I adore home made gifts. Anything my daughter has made me over the years is still a treasure. In fact, a beautiful plaster of paris shell paper weight has a place of honor on my bedroom shelf. There’s nothing like those adorable kids paintings in a frame to spruce up a bare wall. And the framed photos with artistic editing  are sitting in my office.

Arts and Crafts; The list is only hindered by your imagination. Mom will appreciate a painting, drawing, sculpture, or collage for the day. Paste some photos of you and mom on a box (use one that’s laying around the house), cover with a few coats of mod podge, and you have a lovely keepsake box. For inspiration check out pinterest.

Beauty Services; Give mom a home manicure or pedicure. The time you spend together is priceless and creates a memory. Or treat mom to a massage.

Time; Mom’s cherish time with their kids, especially as they get older. Give mom an afternoon of mom and kid time. Do something free like visit a park, go for a walk, visit a gallery, window shop, or go antiquing. Jr. Carina and I recently visited a local museum and made clay sculptures together. It was so fun, and her two clay animals are a constant reminder of the afternoon together. Gear the time towards mom’s interests and passions. Select a special and memorable activity.

Food; Of course there is the time tested breakfast in bed. What mom wouldn’t like that? How about trying a special family lunch or dinner with a unique menu? Barbecues are perfect this time of year. For brunch there are amazing pancake and french toast recipes. My mouth is watering right now!

Spend some time thinking about what mom likes. If she’s like most moms, she puts others first and would really appreciate a nice hand written card and a “from the heart” gift.

HAPPY MOTHER’S DAY

For More Cheap Mother’s Day Gifts;

• Country Living
• Savvysugar
• Free Money Wisdom
• Financial Highway

What are your favorite low cost Mother’s Day Ideas?

image credit; google images_ingles360_blogspot

Bankrate wants to Know; HOW ARE YOU DOING IN A DOWN ECONOMY?

Read my entry into the KissMyAssets Contest!

Read my entry into the KissM

Here’s my advice for living large in a down economy. FORGET ABOUT THE ECONOMY; LIVE A ROCKIN’ LIFE.

My family and I are living an amazing life in this down economy, learn how you can too.

The News is for Entertainment and Sensationalism

Don’t even think about the news, or the dour talking heads on your TV. You are the master of your own destiny. Life and success transcend money. Whatever your current circumstances, you have ultimate control over your greatest resources, your time and your mind.

To get you started, here are a few ideas that I’ve employed to create an awesome life experience in spite of a down economy:

1. Spend a few minutes with that gratitude journal and write down the gifts you already have in your life. Don’t sigh, I know this is quite “Oprahish”. This strategy is a sure fire mood booster. You are already living better right now than royalty of the 1800′s. The luxuries of microwave ovens, computers, cell phones, indoor plumbing, electricity, video on demand, and more make our lives spectacular.

2. If you have friends, you are already wealthy. For wonderful fun in a down economy, gather a group together for a cheap and fun filled gathering. We love potlucks with games both indoors and on the field. Try some touch football, soccer, charades, Taboo, or Wii tournaments. Low cost, high energy fun. Plus, record the event and make a memory that will last.

3. When cash is low… travel. Take a bus or train to a neighboring town and visit the free parks and museums. Pack a picnic lunch and feel like you are a million miles away. Last week end we traveled to a nearby city and wandered through the streets and city parks. It felt like we were in another world and we came home refreshed and invigorated, all for the cost of a train ticket.

4. Finally, prepare yourself a gourmet cup of tea or coffee at home. Sit by the fire or the heater, curl up with a good book and indulge in a break. Allow yourself to recharge and reinvigorate yourself by carving out some personal time.

What Goes Around Comes Around

Economic conditions are cyclical. Great economies are followed by downtrends, and ultimately things get better. We’ve found it a challenge to enjoy ourselves during a down economy. And I am certain that things will turn around in the future. They always do.

Barb Across the Web

• Moolanomy highlighted three of my articles in his posts; How to Communicate with the IRS, Alternatives to Investing in Low Yield CDs,  and Haggling to Get a Better Price.

How are you coping in a down economy?

Ikea customer says, “I love those light fixtures.”

The partner replies, “Come on, it’s not on the list.” (eavesdropping transcript from IKEA)

That simple exchange left me speechless. Then made me anxious. Were the items I was purchasing “on the list”? Whew, yes they were. It’s so ingrained in me to shop with a list, I sometimes don’t even think about it.

Do You Have the Discipline to be Wealthy?

 Wealth in money and life are made up of a string of smart decisions.

I learned “list making 101″ from my parents at a very young age. We made “to do” lists, grocery shopping lists, and going to the mall lists. My daughter, now in her 20′s, said when she discovered at a young age that she could write an item on the refrigerator shopping list and I would buy it, it seemed like magic. Not exactly, the entries for candy and treat food were not automatically put into the shopping cart! But I give her credit for ingenuity.

That couple in Ikea exemplified the single minded determination to stick to a goal. They obviously had a budget and specific items they planned to purchase. Would one splurge have made a huge financial difference in the long term? Probably not. But, a lifetime of self indulgence and “I deserve it” type of thinking causes a life filled with financial stresses.

Financial Implications of Self Indulgence

Imagine two couples; disciplined couple one, the Smarty’s and indulgent couple two, the Spendy’s. Assume these couples were identical in income and location.

The Smarty’s Habits

• Shop with a list.
• Plan for rewards and indulgences.
• Contribute regularly to their workplace retirement accounts.

The Spendy’s Habits

• Shop frequently without a list.
• Treat themselves to indulgences whenever they feel like it.
• Don’t bother contributing to their retirement fund because they believe in LIVING FOR TODAY.

Outcome of Smart Money Habits

Look at the amazing wealth amassed from a small amount of money. The Smarty’s saved $40.00 per week from avoiding impulse shopping. They added that $40.00 per week to their investment account and let the magic of compounding return work.

SMALL SAVINGS = MORE MONEY

On the other hand, the Spendy’s were self indulgent. When they wanted something, they bought it. The Spendy’s filled their lives with impulse purchases.

The outcome? It’s unlikely that this spur of the moment spending made them any happier or more fulfilled. It’s probable that this spending filled their lives with clutter, bills, and stuff. Not to mention that later in life, they certainly lacked the necessary funds to retire.

 Self indulgent splurges are quickly forgotten. Saving and discipline lead to long term wealth and feelings of self control and strength.

Little Changes Matter

Spend a minute examining that NOT SPLURGING chart. Invest just $40.00 per week and be over four hundred thousand dollars richer at age 65. 

Do you have the discipline to say no to yourself?

SECRET SAVINGS TIP; The simple strategy of sticking to a shopping list can yield monumental results.

Caveat; I didn’t say never splurge. We all need rewards and splurges in our lives. The trick is to plan for these indulgences and make them meaningful.

Women’s Money Week

I’m participating in Women’s Money Week next week. Women have historically been laggards when it comes to finances. This week is about encouraging women to speak up about money, take control of our finances, and reshape our financial future. Women’s Money Week will run from March 5th-11th, 2012 on WomensMoneyWeek.com — coinciding with International Women’s Day.

Following are a few of the participating blogs in Women’s Money Week (I’ll include a few more each day next week):

Are you a list maker or not? How do you handle splurges and indulgences?

NYC CONDO

“Owning a home is a keystone of wealth.. both financial affluence and emotional security”. –Suze Orman (from stjamescantor.com)

For as long as I can remember, real estate was a part of my life. On Sunday’s we would pile in the car to look at real estate my parent’s company owned or preview property for sale. One of my first jobs out of college was in real estate sales. I started investing in real estate in my 20′s and to this day, work for a real estate holding company.

This past summer, El Carino and I relocated and purchased a “short sale” condo. Our home is 2 stories, 1,800 square feet, with 4 (tiny) bedrooms. Comparable homes to ours in New York City sell for $2,000,000.00 to $3,000,000.00. Our purchase price was nowhere near that amount.

My interest in real estate transcends real property and extends to home decorating. In order to meet my decorating “fix” HGTV is my television destination. One of my favorite shows is “House Hunters.” The program tails buyers across the country as they look for their ideal property. I cannot get away from the reality that….

An identical property can sell from $200,000.00 to $2,000,000.00, depending upon its location!

We moved from a very low cost of living area to a more expensive one (not NYC). Consequently, the house we sold cost less and had more square feet than the new home we bought. And, as I boldly stated, a comparable home to ours would easily cost in the millions in New York City.

COST OF LIVING COMPARISONS

Real Estate Strategy

I’ve discussed this topic before; building wealth can be accelerated by living in a low cost of living area. Life is all about choices. Do you want the excitement of living in LA, Chicago, NYC, or San Fransisco? If so, be willing to pay 100% to 400% more for a home than in St. Louis, Missouri. When El Carino was job hunting, I was a regular visitor at a cost of living calculator. Every time he had an interview, I plugged in the numbers to determine what salary was appropriate for the job and location. In fact, in the early parts of our lives, we deliberately chose to live in lower cost of living areas to maximize our lifestyle and savings.  Those decisions paid off quite well. We fed our love of the arts and theatre with occasional visits to major cities and returned willingly to our less expensive abode. Paula at Afford Anything takes the concept globally, and talks about the lowest cost of living spots internationally.

I encourage anyone who is younger, mobile, and interested in building up a nice nest egg to consider their geographic location and cost of living when considering their future. Tens of thousands of dollars can be saved each year by opting to live in a less expensive area. Live in middle America and you too can have a million dollar home (by New York City standards) for a fraction of the cost.

Would you sacrifice the excitement of the “big city” for thousands of dollars in long term wealth?

cost of living data credit; cnnmoney

]]> http://barbarafriedbergpersonalfinance.com/how-get-home-for-song/feed/ 14 http://barbarafriedbergpersonalfinance.com/personal-finance-tip-save-and-make-money-collaborative-consumption/ http://barbarafriedbergpersonalfinance.com/personal-finance-tip-save-and-make-money-collaborative-consumption/#comments Mon, 06 Feb 2012 06:00:27 +0000 Barb http://barbarafriedbergpersonalfinance.com/?p=2873

 Is Collaborative Consumption for You?

It wasn’t long ago when communities pooled their resources for the good of the group. Neighbors worked together to build a barn. In fact, the Amish still practice that communal approach today. I’ve been a suburban dweller my entire life and was raised to abhor waste. In spite of my upbringing I certainly don’t want to be perceived as a mooch. Here’s the conundrum; when I go out to buy a hedge clipper I cringe knowing I’ll only use it only once or twice per season. That same discomfort occured when I recently considered buying a 12 foot ladder to change a light bulb in our cathedral ceiling hallway. I decided to borrow a ladder from my generous neighbor, but am worried about what to do the next time a bulb burns out. (Although I did thank the neighbor with  box of treats.)

It seems that I am not alone. There are others out there with the same dilemmas. If it’s for lack of funds, or interest in the  sustainability of the planet, there is a growing minority who prefer to share resources instead of adding to the glut of stuff in our ever crowded world.

What is Collaborative Consumption?  

COLLABORATIVE CONSUMPTION

In a recent issue, Success magazine put out the revolutionary idea of sharing our resources. According to the article, the venerable Time magazine calls collaborative consumption one of the “10 Ideas That Will Change the World”.

The concept posits that it is better to share or rent than to buy.

As I drive to work at the University, I pass several “zip cars” parked in the lot for community members to rent on an “as needed basis.” If I was a university student and only needed a car on occasion, I wouldn’t hesitate to participate in this transportation sharing plan. Underscoring the popularity of this concept, RelayRides.com has joined the car sharing craze, with a twist. RelayRides allows those who have a car a means to rent their car to others. Imagine this, you can make money off of your car when you don’t need it.

Zimride.com is another take on the ride sharing concept. Need a ride from Virginia to Pennsylvania, but have no car? Check the Zimride site and see if anyone is making that trip. A guy driving from Richmond, Virginia to Harrisburg, PA is looking for passengers to share the cost of a trip and will take you along for a small fee. Going somewhere and want to defray the cost? Adverstise your trip and see if you can snare a paying passenger or two.

Like to travel, but hate the expense of hotels? Try out Airbnb.com, the world wide lodging sharing site. Find apartments, and homes across the world to rent or rent out your own space. Have an extra room and want to make some cash? List it on Airbnb. I first read about this concept when a guy was making extra money renting out everything, from his wife’s blender (she wasn’t too happy about it!) to a room in their home. It worked out quite profitably for him.

Skillshare.com is such an amazing concept that after visiting the site I want to jump in immediately and search for classes to take and teach. According to their site;

Learn Anything From Anyone. Our vision is to increase the global passion index by building a new world of education. Skillshare.com

 Swap.com is another opportunity to get what you want and get rid of your unwanted items. As in Skillshare.com, after visiting this site, I’m ready to dive in and give it a try. I need a new blender and wouldn’t mind trying out a bread maker. Next, I’ll have to look around the house for stuff to unload.

According to their website, The Swap.com Market is the world’s largest swap marketplace. Simply list things you have and things you want. If there’s something you want, you can use the stuff you have to swap for it. Don’t want to swap? Feel free to offer another form of payment.

Here are a few more ideas for those interested in making the world a bit smaller; Swishing.com offers clothes swapping parties for the UK readers. Visit their site for a list of the upcoming events. Thredupup.com is great for moms and dads who don’t want to add to the kids’ clutter. This site caters to parents who want to trade “anything kids” from toys to clothes. Parents, this one’s for you.

These opportunities are expanding quickly with several gaining venture capital to grow their models. Our world clearly is becoming smaller and smaller.

 Do any of these ideas resonate with you? Have you participated in collaborative consumption?

image credit; the facey family

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This guest post is written by Jason, from New SUV.org. I was especially interested in publishing this article as El Carino and I are starting our search for a replacement vehicle for our 1998 SUV. Every 10 to 15 years we consider buying a new car, whether we need one or not.

Buy a Car For the Holidays?

December is a great time to buy a new vehicle. And no vehicle is better to have in the winter than an SUV. While most people are more preoccupied with buying holiday gifts; car dealers and salespeople are anxious to clear models off their lots and boost their 2011 sales totals.

Here are the top 7 tips to save when buying new SUVs:

#1. Know Your Credit Score. Financing deals are only good if you qualify for them. If you are planning on financing a new vehicle, do all you can to raise your credit score. That way, you will have a better chance of qualifying for the best financing deals. (Barb’s tip-put as much down as you can possibly afford.)

NEW SUV

#2. Look at Financing and Rebate Deals. Many automakers are enticing buyers to purchase with great incentive packages. Compare deals and evaluate what they will mean to vehicle pricing. Saving several percentage points on a loan rate can add up to a lot of money over a five year loan period. (Barb’s tip-Why not try for a shorter loan period?)

#3. Consider Buying Online. While no one should buy a car without a test drive, more people are going online to buy vehicles. Websites such as truecar.com allow you to research car insurance prices and lock in the lowest rate at participating local dealers. One buyer reported paying $3,850 below invoice for his model via truecar. (Barb’s comment-I’ve had great luck getting bids online.)

#4. Know Invoice Pricing Ahead of Time. Dealers can put a dizzying array of price add-ons that can make it difficult to determine what are actually mark-ups. Don’t let the dealers solely dictate pricing. Bring invoice pricing information with you for SUV models you are interested in.

#5. Know Your Trade-In Value. If you are looking to do a trade-in, it can be a good idea to see what dealers are offering on it prior to shopping for a new vehicle. In high sales tax states, trade-in value is especially important as you can offset the value of the trade-in towards the purchase price of your new SUV. ( (Barb’s tip-Consider selling the car yourself, you’re likely to get a higher price for the vehicle.)

#6. Evaluate Your Vehicle Needs and Vehicle Quality. Buying the right vehicle can save you a lot of money in the long run. Some people buy a car only to realize a few years later it no longer fits their needs. Plan ahead and carefully review total vehicle ownership costs. Purchase price alone doesn’t tell the whole story. You want a vehicle that is reliable, practical, fuel-efficient, and a style you can live with. (Barb’s tip; Don’t forget to review the cost to insure the new vehicle.)

#7. Don’t Buy More than the SUV from the Dealer. Car dealer’s make a lot of money from add-ons. Stay away from buying “fabric protection”, “VIN etching”, “paint protection” and other dealer services. This is where dealers make a significant portion of their profits.

By following these tips, you will be on your way to saving on your new SUV purchase. Vehicles are one of the largest expenditures people have so it is important to plan and spend the time necessary to save on vehicle costs.

Any other recommendations to consider when buying a new vehicle?

image credit; cartradeindia

How to Live Well if You Work in a Low Paying Field

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In Part 1,  I responded to a reader who wondered Why I Freelance for pay well below my normal hourly rate of pay. I talked about a variety of satisfactions I get from educating others about personal finance and wealthy living.

In Part 3; How You Turned Your Passion Into Cash, others share success stories and welcome your input as well.

This question got me thinking about the millions of folks out there who are passionate about doing work that does not pay well. These fields include acting, music, the arts, social work, community service, non profit work, lower pay administrative work, service jobs, restaurant work, retail sales, and many other jobs. In fact, there are probably more lower paying jobs than those that pay well.

Pay level satisfaction is impacted by your own perceptions. Many newly employed college grads, are thrilled to have a job at any pay grade!

I am certainly not imposing my personal values on whether your job is ”well or poorly” paid. I’m offering suggestions to live wealthy, regardless of income.

You may be in a lower paying job, either by choice or by default. Here are some ideas about how to live well and build some wealth in spite of your pay grade.

Adjust your expectations; Forget how anyone else lives. I’ve been fortunate to travel the world. In most countries even the wealthy live in what we in North America would consider small apartments. No matter the size of your family, you do not need a large home. Scale back, live in a smaller home or apartment than you thought was comfortable. Add a roommate or two. You may be surprised at how little you really need. Want some privacy? Go to the library or for a walk.

Take public transportation; Although El Carino and I both have (old) cars, I take the train or walk whenever possible. Jennifer from Little House in the Valley rides miles on her bike.

Use your tax dollars; You pay for parks, libraries, free community art and theatre programs with your tax dollars. Get that money back by using those resources for your entertainment and enjoyment. There are tons of “free” events in most major cities, especially around the holidays.

Eat well and cheaply; Stick to a simple diet. Consider some vegetarian dishes spiced up to make flavorful and delicious. I love a meal of beans and rice. Make a big batch and freeze some for later. Buy in season fruits and vegetables. Go light on meat and prepackaged processed foods. You’ll be thinner and healthier as well.

Spend mindfully; Make it difficult to overspend, don’t spend your leisure time at the mall near temptation. Think before you spend and plan your shopping trips.

Save something, no matter the amount; Get in the habit of saving. Have a small amount transferred from each paycheck into a savings account.

Get out of debt; However you do it, you cannot live on less with debt! For debt help, read these recommendations from top personal finance bloggers; Consumerism Commentary, NoDebtMBA, Debt Sucks Blog, Debt Free by Thirty, Fat Guy; Skinny Wallet, and Money Help for Christians.

Enjoy what you have!

Make sure to read Part 1: Why I Freelance; How to Live Well When your Passion Doesn’t Pay Well.

And Part 3; How You Turned Your Passion Into Cash; be sure to chime in with your story.

image credit: Cuba Gallery

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Newsweek’s cover story, “Money Brain, the New Science Behind Your Spending Addiction”, posits a biological basis for overspending. Apparently, the brains of savers and spenders are different. That’s right, now you can blame your biology for your debt!

Call me harsh and unfeeling, but I throw that science in the same pot as the findings which purport that there is a “fat gene”, or an “addiction” gene. Not that I’m suggesting the science is not there. It probably is accurate. Nor would I be surprised if there was a “moneybrain” predisposed to instant gratification in lieu of delay.

Regardless of the biological underpinnings, a predisposition is not the same as a certainty. And even if there is a biological basis, it does not mean that we have no ability to control the propensity.

Neruoeconomist Paul Zak of Claremont Graduate University reminds us that “you develop willpower and patience through practice. If you defer gratification, the payoff can be greater than with immediate gratification, but you brain has to learn that.”

In other words, practice makes permanent. The more you practice something the more it becomes a part of your life. Practice eating healthy and it becomes a habit. Practice exercise and you become fit. Practice saving and investing and you become wealthy.

What if I Have the Brain of a Spender?

• Do you feel as if you want to buy and have difficulty deterring spending?
• Do you have a tendency to shop now, and regret later?
• Is your closet filled with items with their tags still attached?
• Do you have a big credit card bill that does not get paid off every month?

You may have a spending brain!

As with any predisposition, you must ask, is it working for you? If you can afford what you buy while still saving for your future. If you’re not in debt, then maybe it’s not a problem. Obviously, if your income is large enough, and you commit to some saving, then your spending isn’t dangerous.

But, if you are in debt and can’t seem to stop spending, then you need to change or risk great financial and personal distress.

I WANT TO STOP SPENDING, WHAT SHOULD I DO?

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 thoughts, activities, and plans.

As with any type of addiction or bad habit, you need to decide that you want to change. There are multiple ways to stop overspending and start saving. Try these out:

1. Automate your savings. Make sure you have a set amount taken out of every paycheck and transferred to a retirement, savings, and/or investment account.
2. Don’t tempt yourself. Just as alcoholics are better off staying away from bars, you need to avoid malls, electronics shops, on line shopping, or whatever venues trigger your spending impulse.
3. Substitute spending with another activity. Make a list of pleasant activities that don’t cost money. Playing games and spending time with family is something I recommend. Think about things that you and your friends and family can do together.

Spending gene or not, you have ultimate control over your life. Don’t squander it.

What do you think, is there a biological basis for overspending? Do you think you might have a moneybrain?

image credit; Pictorial Life

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In what began as an afterthought to Black Friday, Cyber Monday has become the No. 1 online shopping day of the year. There are signs that consumers plan to  spend heavily online this holiday season. LA Times in Cyber Monday Retail Sales May Hit Record

Health Benefits of Daily Shopping Revealed

Finally, there is scientific proof that shopping improves your health!

There is empirical evidence that daily shopping may cut women’s risk for early death by 23% according to this months More Magazine, Retail Therapy Works! Wow, More found the best research around when it hit on this research reported in The Journal of Epidemiology and Community Health.

Frankly, I’m speechless. If this is in fact true, I’m having a hard time wrapping my head around this concept. Could daily shopping actually be healthy? What a paradigm shift!

Summary of the benefits of shopping:

• Fun to spend.
• Personal interaction with fellow shoppers and sales people along the way.
• Get out of the house.
• Restock the home with food and sundry items.
• Expend physical energy while running errands.

Actually, it makes sense that shopping keeps you engaged with the world around you and keeps you off the couch! Think of those folks in other countries who head to the market daily for their food items. It’s a satisfying and fulfilling lifestyle.

Does Cyber Monday Count?

If I were to use my incredible intelligence to analyze the “cyber Monday” shopping phenomenon, I’d have to say that it probably does not improve our health. After all, there’s not much exercise in sitting on your butt clicking the keys on your laptop and taking your credit card in and out of your pocket!

ACTION STEP

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

• Use this news not to shop til you drop. Use the research to enjoy the errands that are part of daily life and to eradicate the guilt that may accompany shopping.
• Continue to shop mindfully and sensibly.

What do you think? Is shopping health promoting?

image credit; Kangaroobie