Money conjures up all sorts of preconceived notions for people. The subject can be emotionally loaded and money is one of the least talked about subjects in our society. Yet, money is simply how we barter and exchange our energy. In our fast moving society, we often move at such speed we make sloppy decisions.
To make your life easier and be more attentive to your money, I offer seven tips, or “treats”, for you to not get tricked in the coming weeks and months:
1. Emotions should not rule.
Money is tangible and important to our lives. With that in mind, we need to be sure our emotions are not distracting us from money. Attitudes about money influence behavior and can take the form of avoidance, impulse spending, over saving and more. Check in with your emotions but do not let them rule decisions.
2. Use planning and understanding for your finances.
People tend to do the same thing they always do, including when it comes to money. If you do not review your spending or get quotes for services, even little amounts add up quickly. When you do, you may be surprised at what you spend. The Seemingly Small Money-Saving Habits That Add Up Over Time
3. Manage your money; Don’t let it manage you.
Study after study demonstrate that wealthy people are organized around their money. They have a plan for savings, investing and spending. Reevaluating their system helps them move forward in their financial life. The time invested up front to create the system pays back dividends over a lifetime. This includes how they manage money the “old-fashioned” way. Paper checks are dead. Cash is dying. Who still uses them? - The Washington Post
Wealthier people and older people use the majority of paper checks. Are they wealthy because they are tracking their money more carefully? Consider trying it for yourself to find out. Autopay may not be the best answer to paying bills. Autopay Is Making Us Worse at Managing Credit-Card Bills - WSJ
4. Convenience is not always the financially smart approach.
Credit cards are great. Debit cards support our spending while not getting into debt. However, easy, may not be the best solution for all spending. Discounts are often offered for those who pay cash because business have to pay fees on each and every transaction no matter how small. Want a Discount? Pay in Cash - WSJ These fees add up quickly especially for the Mom & Pop stores who operate on tight margins. Being a good customer may mean more than frequenting a store. Community minded may get you a discount and benefit small business owners. Carry a bit of cash on you. Why many business owners would love it if you stopped using your credit card - NPR
5. Saving for the long-term and short-term are different.
Your retirement accounts need to be considered as long-term money and not to offset bills, debts and inflation now. Instead, build up savings to have when financial distress comes your way. Keep your retirement accounts where they are to avoid extra income taxes, penalties, and a delayed retirement.
Americans are pulling money out of their 401(k) plans at an alarming rate - CNN
6. Create a plan, not a rationalization for your money and expenses.
This seems like #1 but using your intellect to justify spending is not financial planning. The flaw is that a rationalization is not based on sound financial principles and your overall situation. Your thinking alone does not make a financial decision the sound money approach. If It’s Under $5 It’s Free: The Logic of ‘Girl Math’ and ‘Boy Math’ - WSJ
7. Experience rules.
No matter our age or profession, personal experience is the greatest teacher. Be gentle with yourself when you make a mistake. That is part of life. Repeating it puts you in the danger zone financially.
I teach about consciousness around money. That will get you the furthest in life and wealth. Conscious behavior often means we must slow down, take our time when making decisions and align our priorities with our values. Then, we can make the best choices for us over the long-term and short-term.