Can you really change your spending habits and save money in just seconds?

Yes, you can!

Is it your goal to finally get financially organized in 2016?  Do you want to spend less of your money on things that don’t matter so you have more to spend on the things that do?   Maybe you made a financial new years resolution and don't know how to start?  Then this is the first step you need to take!

It is estimated that American companies will spend about $77 billion (yes, BILLION!) on marketing in 2016 alone.  What are they doing with these billions you ask?  They are strategically capitalizing on your “fear of missing out”, by banking (pun intended!) on the fact that either a good deal, repeated exposure, or an emotional connection will be enough to entice you into buying their product when you hadn’t planned on doing so prior to seeing their ad. 

Granted there is no way to eliminate all advertising from your life, I mean c’mon the Superbowl is around the corner and we all know Budweiser has a special way of making us cry with those damn horse and puppy commercials, but what you can do is limit your temptation to buy things that you haven’t specifically budgeted for in your monthly spending plan.

My guess is that like me you are getting daily emails from the likes of Target, Nordstrom, Groupon, Living Social, Macys, Staples, Home Depot and every other retailer you have ever purchased something from in the last 10 years!  If you want to take control of your spending in 2016, the first step is simply to take the few seconds to actually open those promo/sale emails, scroll to the bottom and click “unsubscribe.”

Right now you are probably saying “but I don’t even read them, I just delete them, so what’s the point?”  Remember that repeated exposure thing I was talking about earlier?  Eventually there will be an email that has just the right subject line to pique your interest or comes at just the right time (like when you are having a bad day and feel like rewarding yourself with something pretty) for you to actually look at it. That’s all it takes for temptation to grab hold and quietly drag you away from your goals.  If you were cutting down on your sugar consumption you sure as heck wouldn’t want daily emails from Dunkin Donuts or Sprinkles, nor would you be browsing pretty pictures of cakes and desserts online.  So if you want to cut back on unnecessary spending the first step is to cut back on unnecessary advertisements.  If you continually find yourself justifying the “window shopping” then it may be time to look a little deeper at your spending patterns to identify the self-sabotaging behaviors that are keeping you stuck in your current financial situation.

Let me tell you, as good as I am with my money, I used to be a sucker for a good Groupon (why not try a new activity, right?) until I tallied up the amount of money I had spent on these “good deals” that I have never used.  There was the $99 for 20 exercise classes, the $19 for a rock climbing lesson, the $39 for an annual subscription to the botanic gardens, the $25 for a paint nite event, the $25 for a Match.com 3 month membership (and had I actually redeemed it, it would have come complete with a continued monthly membership fee).  These few things alone total $207.  Let me tell you, these weren’t even things I was looking to buy.  I didn’t wake up that day and think "Gee I need to buy an exercise package".  No, I saw the ad and thought, "hmm, I should be working out, it seems like a good deal, sure I’ll bite".  In hindsight, there are way better things I could have done with that $207.  Things that would have made a difference like putting that towards my RothIRA, or putting it towards the principal on my mortgage, or even simply donating it to a good cause.  The same goes for you.  I’m sure you can think of better ways to use your money rather than wasting it on “good deals” that simply catch your eye at the right time! Maybe use it to pay down those pesky credit cards faster, or save it to use towards something that will actually be of benefit to your life.​
​
The same goes for weekly circulars and coupon deals! Do you think retailers would be sending these out if they didn’t drive their sales up?  However good the deal is, it’s not really a bargain unless you actually need the product. So save yourself the inbox clutter and the temptation, and simply unsubscribe, it only takes a few seconds of your day.  Trust me, down the road when you are in the market to buy something specific, the good deals and the sales will still be out there, all you have to do is look for them and chances are you will save even more by searching and comparing prices rather than simply letting the deal come to you.

As always, if you need a helping hand to figure out what the next step is to keep you moving towards your financial goals,  if you want advice when making a big financial decision, if you need clarity about what it is you truly need to live your life on your terms, or to make sure your money is working hard for you, make an appointment today and I will help you sort it all out.

Imagine a classroom full of small children.  Perhaps you are imagining colorful walls, cubby holes, tiny chairs and tables (omg…how cute!), and all the buzzing activity that goes along with a preschool or an elementary school.  When the teacher in this classroom engages the kids in an activity they are focused, determined, creative, artistic, learning, growing and having fun!  Now imagine that the teacher stops paying attention…or simply leaves the room for a few minutes.  Gasp! You guessed it!  It won’t be long before pandemonium ensues, kids start to wander, someone is writing on the walls, inevitably someone gets hurt and starts crying… welcome to total meltdown mode. (Well maybe it’s not that bad but definitely not the ideal situation! You don’t need to have kids to know what I am talking about!)

Now when the teacher returns, getting these little people focused, happy and harmonious again is going to be even harder than it was in the first place. Adrenaline and anxiety take time to move through these little bodies.  This poor teacher is going to have their hands full.  Perhaps they should have just stayed in the room? Ah, hindsight.

You are probably wondering what I am getting at with this analogy, but trust me I have a point. When it comes to your finances, YOU are the teacher and your money is a classroom full of small children.  If you pay attention to your money, guide it, give it purpose, keep it engaged, it will easily become a happy and fulfilling part of your life.  If you look away (i.e. not looking at bills) or stop paying attention (not knowing exactly where your money is being spent) chaos, pain, and maybe even some crying are inevitable.  And getting back on track one you've started and then looked away is going to be even harder but it must be done.
​
Just like little fingers without a task, your money will find a way to get itself into trouble.  That’s why a spending plan is so important.  Your spending plan is your lesson plan! You would never attempt to teach a group of children without some sort of plan so why would you try to deal with your money without a plan?!    Some people will call it a budget but to me that term has such a restrictive connotation.  I hear budget and immediately think, “Great, there goes any and all fun!”.  But it doesn’t have to be that way.  A budget denotes strict limitations whereas a spending plan is simply an outline of where and how you intend to spend your money.  In order to keep your dollars from getting into mischief like buying things you don’t really need or even want, it is extremely important to set a task (intention) for every dollar coming into your life.  This intention could be to save it, use it to pay down debt, or even to spend it. 

For the most part dollars that have a task to do are well behaved and will do what they are told.  If they act up (begging to be spent on stuff you don’t need), give them a time out, just like you would a small child.  Would you allow a 5 year old to have ice cream just because they are screaming their head off after you said no?  Probably not, a time out would be in order to allow for them to calm down, regroup and start thinking rationally again. So when in doubt, put your money in “time out”, weigh your options (think about how spending this money will affect you in the long term), and give yourself a moment to make some rational decisions.

Having a spending plan in place will not only help you to make those rational decisions but it will also allow for fluidity and changes in life as needed.  Sometimes small children have meltdowns for no logical reason that will inevitably throw off your entire day.  Since you can’t actually strangle these tiny terrors, as a teacher or parent you would need to take a deep breath, regroup, adjust your schedule and get back to the remainder of your regularly scheduled activities as soon as humanly possible.  This should be the same method you use in your financial life.  There will be times where your car has a meltdown or an unexpected bill shows up.  As much as you’d like to strangle your car I’m going to advise against it. Simply allow yourself to take a few deep breaths (you are totally allowed to be pissed off), pull out your spending plan, regroup, make some adjustments and get back to normal life as soon as possible.

If you continue to nurture, encourage, and be patient with your finances like you would a small child I guarantee you that your money will grow into a well rounded, supportive, sustainable, caring and dare I say joyful aspect of your life.

As always, if you want help honing your financial skills, figuring out what it is you truly need, or to make sure your money is working hard for you, make an appointment today and I will help you sort it all out.

P.S. Hats off to all you parents, teachers and tiny human caregivers out there.  You all are AMAZING!
  ​