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 about Investing. Stay tuned to get first crack at the NEW EBOOK; and it’s FREE to my readers.

The following is a guest post from Crystal at Budgeting in the Fun Stuff, where she writes about finding the balance between paying your bills, saving for your future, and budgeting for the fun stuff along the way.

Free Money Finance (FMF) had this post  which went over an article from Yahoo that listed the worst paying jobs for doctors.  The absolute worst paying position still brought in $175,000*.

Well, based on past posts  at FMF and others I’ve seen online, some commenters argue that doctors still carry high debts because they “have to”  live in the nicest neighborhoods, drive the best cars, and send their kids to expensive private schools.  They also have student loans.

FMF’s post argued that even with liability insurance and student loans, a doctor should be able to build wealth quickly.  I completely agree.

Let’s say a doctor has to spend 50% of his/her salary on insurance, taxes, and expenses like that.  That would still leave the worst paid doctor with about $87,500 a year.  I’ll also say that this hypothetical doctor has $150,000 in student loans as the average college debt for doctors was listed at $140,000. 

Well, if  I made $87,500 a year, I’d live and save a little off of $40,000 and put the other $47,500 towards my student loan debt.  I’d be debt free in less than 4 years.  Then I could send that extra towards my average $200,000 mortgage in Texas (paying it off in less than 5 years) or even add more to retirement savings.

This would mean that I could be completely debt free within 9 years of graduating and own a really nice house to boot.  I’d also have $2 million saved for retirement within another 21 years if I could get an average return of at least 6%.

What about the nice car and expensive private schools?

Well, do you know what your doctor drives?  I have no idea.  That $40,000 a year budget could easily include a car payment of $350 a month (ours did).  If I was a doctor, I’d drive whatever I’d like that could comfortably and consistently get me from Point A to Point B.  I like the Toyota Prius, so I’d buy one of those with cash or use my awesome credit to get a low rate in the beginning when I’m strapped.  I’d still have it bought outright within my first 2-3 years out of college.

I don’t have kids, but even if I did, the public schools where I live currently are one of the highest rated districts in Texas.  My kids could go there.  If they needed more mind stimulation, I could hire them a personal tutor or even afford to send them to private school with cash by the time they were in middle school.  I might have to drive a worse car or retire on less or push back retirement a few more years, but I could remain debt free.

Some of you may argue that it is impossible to live on $40,000 a year.  It’s not – we do it and live pretty happily.  We make about $60,000 a year after taxes, insurance, and benefits.  We save about 40% of that ($24,000) - 30% for retirement and 10% for shorter-term goals.  We live on the other $36,000 a year.  We have a pretty nice house (1750 sq.ft. 3 bedroom that was built in 2004), 2 cars, and even fun extras.

This article made me regret not liking science, math, or college enough to pursue a medical degree. 

*That $175,000 is an average and doesn’t take into account the doctors that make scraps working for charities or non-profits – please don’t yell at me for them. 

How about you, could you build wealth pretty quickly by taking home “just” $87,500 a year?

YAKEZIE SHORT CARNIVAL

Enjoy this personal finanance reading; stop by their sites to read more.

 How to Create a Budget-Setting Goals at KNS Financial

 How do you know if you are rich? at Living Financially Free Ministries 

Crank Up Your Money Saving Goals With SmartyPig at Free From Broke 

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   

“Every choice you make has an end result.” Zig Zigler

Realize this universal truth and act accordingly. As long as you make a conscious choice in how you live your life, you will be content.

MAIN TOPIC: Sell Stuff & Make Money

Picture this; I’m drinking my coffee in the local café, working on my laptop, and minding my own business.  Having forgotten my standard ear plugs, I was subjected to a rather loud conversation by two moms at the next table. Normally, I’m quite adept at tuning out extraneous stimuli, but for some reason (maybe because they were rather loud), I picked up way more of their conversation than I desired. Amid the comments about Johnny’s lengthy swim practices and hubby’s golfing, mom #1 mentioned that 7 year old Sammy was interested in the keyboard, and that she really should pick one up for him. 

This is when the wheels began turning. Although I lean towards the assertive, I do attempt to attend to social conventions. Here’s the dilemma, I have a perfectly adequate keyboard sitting in the basement in the “pending garage sale” pile, do I mention it or not? (I am on a campaign to DECLUTTER, inspired by Jacob at Early Retirement Extreme and Man vs. Debt. )

MY PROBLEM: Do I mention the keyboard FOR SALE to the stranger (risking appearing nosey and aggressive), or do I leave it in the “to be sold at garage sale pile”?

You probably figured it out already, but I politely mentioned the keyboard to stranger mom #1 who took my phone number.

PRACTICAL APPLICATION: Was I Right or Wrong?

What do you think, was I out of line or not? My thinking was as follows, “I have a keyboard that will be sold soon and if this woman was looking for one for her son, I WAS BEING HELPFUL.”  Although, I would benefit if she bought the keyboard, she would too, as I would save her time (easily available, in her neighborhood), and money (discounted and lightly used). 

Contrast this story with Simon, a neighbor, who is so UNASSERTIVE, that he recently purchased a juicer for $150.00 at Williams Sonoma, because he worried that if he declined the purchase, the sales clerk would think he was not wealthy! And Simon thought that being thought of as poor was worse than buying an appliance he could not afford! (And Simon is by no means wealthy!) 

Every day we make choices about how we wish to spend our money and our time. Those choices add up over a lifetime and can make the difference between wealth and lack thereof. I chose to risk challenging convention a bit by offering the keyboard to a stranger, mom #1, in the hopes of making a quick $80 bucks. Did I care if she thought I was a bit quirky or out of line? Not really, I define myself by my choices and living true to my values. I saw this action as offering a “win win” proposition. If she didn’t see it that way, that was her problem. 

What do you think? What would you have done?

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 risk and be assertive in your quest for wealth. Do something you wouldn’t ordinarily do either personally or financially. Remember to be sensible, not foolhearty!

image credit: Dogdejaya 

YAKEZIE SHORT CARNIVAL

Check out these interesting personal finance articles by my blogging colleagues. 

Fixed Rate and Variable Rate Mortgages: Which is Better? at Invest it Wisely      

 9 Tips to Help You Become Financially Fit at Financially Poor           

Man Finds Contentment in 89 Square Foot House at KNS Financial    

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.

“When I chased after money, I never had enough. When I got my life on purpose and focused on giving of myself and everything that arrived into my life, then I was prosperous.”
Wayne Dyer

 Ironic isn’t it that a personal finance blog writes so much about non-financial matters. If one focuses on passion and service in life, practices discipline in all things, then money becomes less of a target and life becomes richer.

 MAIN TOPIC: Behavior is Everything

This article is the first in a series relating poor money behaviors with stress.

What you do and how you act determines the outcome of your life. We have a visiting college student, Juan, in our home for the summer. He is a bright, talented, and accomplished young man who has developed some unhelpful habits. Like many of us, he procrastinates which leads to distress. He has difficulty discerning the important from the unimportant. On top of that, this young man is graduating college soon and is defining his next career step. Recently, Juan realized that he is an adult and must behave as one. No more partying and spending with abandon, with no regard for the consequences.

Wow, it’s a lot for a young person today to contend with. Juan isn’t so different than many adults; he has difficulty managing his finances and paying his bills. We are attempting to help him focus on his future and learn the link between HEALTHY BEHAVIORS AND LIFE SUCCESS.

If I said it once, I said it 1000 times to my own daughter; your behavior defines who you are! It’s not what you say, but what you do that matters! This article will steal borrow some concepts from an article I came across called, “Emotions, Money & Financial Stress.”

Feel free to pass along these ideas to anyone who is looking to clean up their financial lives.

PRACTICAL APPLICATION: 1st Dysfunctional Money Behavior and How to Combat it

Depression, stress, and anxiety are all byproducts of money stress. Current “happiness” research shows that those individuals who experience more control over their lives are happier. Learn to recognize unhealthy money behaviors, control them, and reduce stress.

 PROBLEM 1: GO SHOPPING to solve your problems.

 In the same way that overeaters use food to solve emotional issues, over-shoppers go to the mall to “feel better.” In both cases, the relief is short lived, and creates more long lasting problems. If you use food to fill the emotional hole, you get fat and unhealthy. Use shopping the same way and you get debt, bills, & bad credit. Not to mention a home filled with stuff you don’t need!

SOLUTION:

1. Next time you feel the urge for emotional shopping-STOP.
2. Slow down, take a deep breath, and ask yourself what the real problem is.
3. Really examine what is bothering you, and then determine whether the BEST solution to this problem is shopping.
4. Is the solution to your stress and problems a trip to the mall? Will shopping offer a lasting answer to the problem?
5. If shopping will not provide a long term answer to the stress, then do not shop. First, accept the fact that life has its stressors and all successful individuals have learned to TOLERATE A CERTAIN DEGREE OF DISCOMFORT. Do not feel like it is imperative to immediately eliminate the anxiety.
6. Next, take a step to relax, take a walk, write in a journal, or talk to a friend. Find an activity that does not involve spending, to practice for a bit. Realize that the stress will not continue forever.
7. Finally, brainstorm possible solutions to the problem/stressor. Do it alone or with a friend. Write down any possible resolution you can think of.
8. Take a break and do nothing for a bit. Let your mind clear.
9. Come back later and plan your next step.

Work on this dysfunctional money behavior first. Recognize when ”the urge to splurge” happens and follow the steps to develop a healthy alternative.

 Stay tuned for part 2: Passion for Procrastination, in Dealing with Financial Matters 

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.

• When the urge to spend, as a problem solving solution arises: DO NOT GIVE IN.
•  Make a list of relaxing activities.
•  Post your personal RELAXING ACTIVITIES prominently.
•  Practice one of these behaviors instead of shopping.

 RECENT FINDS IN THE PERSONAL FINANCE ARENA; No spending required!

CARNIVAL: Please visit the Carnival of Personal Finance at Funny About Money, where I’m featured, for more personal finance articles.

Check out the FREE sites I’ve been visiting recently, and enjoy:

Watson, Inc.-Free giveaway edition

Monevator

Wealth Pilgrim

Little House in the Valley  

Frugal Confessions

The Saved Quarter

 Len Penzo dot Com

My Journey to Millions

Digging Out from our Mess

“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: values, spending

“Car designers are just going to have to come up with an automobile that outlasts the payments.” Erma Bombeck

The great humorist, Erma Bombeck said this in jest many years ago, but…… there is a lot of truth in her humor.  On the contrary, read about someone who isn’t at all concerned about how long his car lasts!

 MAIN TOPIC; A Story that Knocked me Over

I took the car in for maintenance and was relaxing in the waiting room, minding my own business. Before I realized it, I was chatting with one of the auto shop workers. I mentioned that I read  an article by Joe Plemon at Personal Finance by the Book recently which discussed how 200K miles was the new 100K mileage for a car. I expected a car shop worker to agree with that comment and back up my enthusiasm for the concept of keeping a car for 200K miles.

The worker at the auto shop mentioned that it didn’t really matter to him, because he traded his car in every 2 years or so because he likes to drive new cars.

I couldn’t keep my mouth shut! I began lecturing him about how he would be saving lots more money if he held his cars longer.

He had the PERFECT response to me: “I like driving a new car. I don’t go on vacations, buy expensive electronics, or live extravagantly. As a matter of fact, my condo is totally paid off.”

That totally SHUT ME UP.

This man was living his values.

He wasn’t trading in his car every 2 years because he was financially ignorant, but because he valued driving a new car and was willing to sacrifice other things in his life to drive a new car!

Who am I to argue with that?

I don’t know whether he went through a goals or values analysis and deliberately thought through his whole spending process. But, he is a wonderful example of living in accord with your own principles.

In sum, he works at an auto shop (in a dealership), so he can get a good price on his cars and maintenance. He paid off his home. And he professes not to take fancy vacations or spend lavishly! Who am I to disagree with someone else’s values?

PRACTICAL APPLIATION; What does it Mean to Live in Accord with your Values?

Living well is not always obvious from the outside. Don’t make the mistake that I did and judge someone by where they work, what they do, what they own, or any outside criteria.

Think about this: What do you really want in life? What is important to you? And what are you willing to trade for living in line with your own values?

Think about which of the following is really important to you?

• Lovely vacations
• Beautiful clothing
• Spare time to fish
• An expensive TV/Cable package
• An iphone and/or an ipad
• Expensive electronics
• Eating at fancy restaurants
• Buying original art
• Kayaking
• Camping and hiking
• Going to sporting events
• Hanging out with family and friends
• Add your own interests___________

There’s no right or wrong answer. Spend your valuable time and money on what counts for you! And don’t assume you know what anyone else considers important!

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.

1. Play the Prosperity Game  to find out what you REALLY want. It goes like this, day one you get one hundred virtual dollars. You must spend it all (no giving it away). On day two, double the amount and spend it all. Continue for 30 days.
2. Jot down what you learned about your “wants” from this exercise. You may be surprised.

Photo courtesy of  Cars-photos.com  

Related Posts you Might Enjoy:

Are the Wealthy Really Happier?

How Television can Save you Money

Do you Need a Rolex Watch?

Why I’m Wealthy and my House is Dusty  

Yakezie Short Carnival: Candian ETF’s @ Canadian Finance Blog;  Slash your Monthly Car Payments in 10 Minutes @ Car Negotiation Coach-Find the Best Car Price;  3 Tips for a Couples Budget @ Financially Poor

Categories: life, values, spending, saving

“I shall tell you a great secret, my friend. Do not wait for the last judgment, it takes place every day.” Albert Camus

OK, my secret is not as magnificent as that of Albert Camus. But in my quest for authenticity I will share something I normally would keep to myself.

MAIN TOPIC: The BarbaraFriedberg Way to Cut Spending

I am incredibly lucky in that most of my work is done away from a traditional office. That means, if I have a computer and internet, I can get my job(s) done. To up my productivity, once or twice a week I head out to Panera, the public library, or a beautiful hotel lobby. As long as there’s free internet, I can work!

Getting out of my home office is a productivity matter. If the environment doesn’t change once in a while, I get way too sidetracked and distracted and my productivity goes down.

Does that happen to you?

Here are the pros and cons of each location:

Before moving on to the practical application, my decision making regarding spending is based on a VALUE for COST premise. If the cost is worth the pleasure or value I receive from the spending – GREAT. If the COST OUTWEIGHS THE VALUE – not so good.

 Read more about this philosophy in The Secret to Saving without Sacrifice.

PRACTICAL APPLICATION: Here’s the Secret

When I go out during the day, I always pack my lunch. For a break, I take my sandwich, some carrots and go out to my car (or the lobby of the library) and eat. (I still can’t believe I divulged this.)

Why do I do this? Because …….. the $10 it costs for lunch out does not give me $10 worth of pleasure. Conversely, the $2 worth of coffee- yes, worth the money for me.

Here’s how it plays out:

Annual Savings from bringing lunch 1 time/week:

Save $8.00/week X 50 weeks = $400.00/Year

And now for secret number 2; my husband and I spend the extra $400.00 on something that we really value, such as:

2 Nights vacation in a hotel

2 tickets + dinner for a Broadway show

Several trips to a minor league baseball game

Now I realize there are those out there who probably think I’m overly frugal cheap. Or would rather eat lunch out than go to a hotel, show, or ball game; and I get that.

The reason I shared my secret is to open the door to discussion.

What are the ways you save and where do you splurge?

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.

Evaluate your spending for a week and cut out the lower value/higher cost activities.

YAKEZIE SHORT CARNIVAL: Coupons are they Worth the Hassle? @ Beating Broke, Do Something Instead of Nothing @ Financially Poor, 6 Sneaky Ways Grocery Stores and Retailers Get You to Spend More Money @ Frugal Confessions

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: 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.