When you “urge to splurge” or “crave to save,” the first trick to assessing whether to act on it is to determine if it’s driven by a belief that may be distorted or unrealistic. We may have received messages from our culture or key people in our lives that have carved out some mischievous traits in our habits. Get the math done that answers the question of “how much” saving and spending is right for you.
1. Know your dominant money personality “rascals” and strive for balance. When one is overly dominant and steering you in the same direction too often, lopsided results happen. Borrow some traits from other types to find balance.
2. Resist Impulse Purchases (RIP) – they rip off the savings you need to build. Write down the item and refuse to buy it until you’ve had a 48-hour cooling off period. Remember to estimate the true cost of the item (interest earned vs. paid).
3. Use the “Pampered Buck™” & “Dollar Holler™ questions in decision-making. Ask yourself, “Is this taking good care of my money, so it will take good care of me?” and “What would my healthy money say to me about this decision if it could talk?”
4. Avoid using credit cards to overspend. Run several examples to learn the costs. Visit www.moneyrascals.com to use the FREE calculators that show how much interest you’ll pay over time. Try several scenarios to see how paying a little bit more each time pays off the balance a lot sooner and saves you tons in interest charges.
5. Be ‘AHA’ driven. Heighten your values-awareness and align actions with them. Your life satisfaction and results will improve when Actions Honor Awareness.
6. Be organized enough to find important records & buy yourself peace of mind. Studies show people who can do that are happier (Roper 2002).
7. Assess and put in place enough life insurance to pay debts & replace lost income. Don’t procrastinate! And don’t guess. Have the amount calculated by a professional, or use programs that build in all the future value and other money factors you need.
8. Contribute to qualified retirement plans so you get a break on income taxes. Make time your ally instead of your enemy. The longer your money grows, the less you have to put in and the sooner you achieve financial freedom.
9. Know what it takes to “get there” by matching your goals with time and money. Social Security is not a retirement plan. Know your future income needs and get the amount you need to save calculated, so you know how to apply savings and spending.
10. Use The Power in Your Money Personality/Money Rascals book to get fit for good! Lose your financial baggage & think of changing from the inside out as an adventure.
© 2009 Susan Zimmerman, ChFC, LMFT. 14530 Pennock Av, St. Paul, MN 55124. 952-432-4666 for plan help. Published in Speaking of Women’s Health Tips book, Cincinnati, OH, 2004.
Money Rascals: Flasher Rasher Asher Basher Clasher Dasher Casher Stasher
Visit www.mindfulplanning.com , www.mindfulspeaking.com, and www.raysofhope.us. Email [email protected].