Overspent this Christmas?   Kinda wished you could have even gotten a few more gifts for family or friends, but know you just cant?   Is it going to take a while to pay off this Christmas?  While it would be awfully tacky to take back some gifts to even up the Money score, and carry around that guilt no less, there is something you can do to avoid that situation next year.   Thats right, pay off this Christmas as fast as possible.   Maybe New Years will have to be a little less glamourous, the thermostat a little bit lower, and the budget a little tighter for a while.  But once you do, you will then be able to work on saving for next years Christmas.

Most credit unions or banks will let you set up a separate Christmas account to set aside for Christmas.  If they dont, just open up a separate account just for this purpose.  Get one that pays interest if possible.  Save little by little each paycheck and by the time December rolls around you have a nice pile of cash to spend for Christmas.  Sure makes it easier on the budget, and a lot less stressful as there is Money to spend and you know Christmas spending is not putting you into or further into debt.  Isnt is much more fun to spend Money you have versus spending Money that you dont have? 

Here is what to do.   Figure up what you spent on Christmas this year.  Be honest and add up EVERYTHING.   Then divide that total by the number of paychecks you will receive between your starting date and December 1st.  That is about the amount of money you need to be depositing into your savings each paycheck to save the same amount of money that you spent last year.  If Christmas was tight this year, you might want to round up a little bit, so you will have more money to spend in December.

Just remember not to pull out any of that Christmas money till December, or only in emergencies. 

Merry Christmas!

"Money…its a hit" so sings Pink Floyd in the song Money.  There are few things that play such a prominent role in almost everyones life.

How many times have you heard people say "if I could just have a million dollars, or If I could just win the lottery life would be complete!"?   And yet in many cases, those that do win the lottery wind up a year or two later worse off, in trouble with the law etc, after winning a real lottery.   Why is that?  We want this thing called Money Sometimes more than we should!  One thing is for sure.  Money (whether having lots, or the lack of) changes us.  Money changes our outlook, mood, and attitude about ourselves and the world around us. We must be careful of the change it can bring.

Is money really a liberator or a captor?   It has to do with perspective.

Money in its purest form is just a means to an end.  A means to something you want.  Unless you barter or trade, you cant get the things you need or want without money.  What you get is usually determined by how much money you have.  If you dont have enough, you must wait till you have enough money to purchase.  Usually if we stay in a situation where it seems like we never have enough, we are driven to find ways to make more money.  In a lot of cases, greed motivates us to work more (i.e. workaholics), to spend more than we make, be dishonest (Bernie Madoff, Enron etc).  You get the idea.   So, of course, money is essential to life, you must have it.  What we do with the money we have, and how much money we "think" we need is crucial to whether money is a liberator or a captor.  Your attitude, value system, and life balance will determine whether money captures your life or not.  We will take the three angles of attitude, values, and balance and discuss.

Attitude

Attitude towards the earning of money is so important.  Do you think that you never earn enough?   Do you continually look for new ways to continue to make more money? Can you honestly say that if you earn X dollars per year that you will be content in your heart and mind?  If you dont have a figure in mind that defines "enough", you may end up chasing an elusive goal that you will never get to.   Deep down that spells a lack of contentment and a restless heart.  Define "enough" and be satisfied, and enjoy life!  If you dont, you will chase things to the detriment of time, family, church, and other intangibles.  Know and accept that someone will always have more. Be content where you are financially.  Might you be disappointed at times because you dont have the money you think you need?  Yes.   Better to be a few times disappointed than to spend a lifetime dissapointed because you think you never have enough.  If you are this way, money might have too big a grip on you.

Value System

Your values help shape your attitude.  For example, when you purchase something, does it always have to be new?  Does it always have to be name brand?   Do you always pick an item based on the lowest or the highest price?  Do you think you must have the best of everything?  Are you afraid that you will be looked down upon if you dont keep up materially with your neighbors?  Do you know the difference in paying top dollar for something because it will be an investment or because it will make you look good?   If you understand that material things are not all of what makes up life, then you will go a long way from overspending, and if you dont overspend, then it is easier to come up with that figure of what is "enough", and money will be less of a captor.

Balance

Balance in the whole of life will determine where you spend your money.  Where your money is, your heart will be also.   You can tell a persons determination of what is important by what they spend money on.   I suggest you have a balance between charity, necessities, and want to haves.  You cant spend all your money on charity, any more than you can spend all your money on "want to haves".  This is where the budget master of the house comes in and creates the much needed budget.   Periodically review the budget with your spouse if you are married.  It will help make sure you are balanced in your spending.  If you are balanced, you are one step close to contentment, and money becomes less and less a captor.

Check these three things in your life and within your family.  Determine what is "enough".   Dont let the things of this world captivate you so, that you think you must have them no matter what.   Make sure you have balance in your spending.  Use a budgeting system to achieve balance such as the "Allowance system" which can be used effectively for all members of your family.

In my last post, I talked about 7 different ways to begin building Wealth.   This gave you the chance to brainstorm and do some long term planning and thinking about goals to set, actions to implement to get out of debt and build long term Wealth.   But what about all those suprises and curve balls that life seems to throw at us?  The unexpected that comes, especially after we think have gotten our plans all set and implemented.

That is exactly what just happened to our family.   This change forced us to make some very tough calls concerning our budget, Money and ultimately our lifestyle.   The situation?  Higher school costs, and higer taxes coupled with a reduction in pay at work forced us to re-evaluate our budget.  There were unpopular decisions that had to be made as we downsized ourselves to cope with less income and still pay for the higher cost of school.  This is happening everywhere - the downsizing of people’s budget is not an uncommon thing, in today’s economy.  Yet, we must deal with reality.

These 5 suggestions will help one downsize effectively and make this process as painless as possible.

1. Let as many areas of your budget "Share the Pain" in your downsizing.  In our family, 7 areas helped absorb the extra costs.  Three people’s weekly allowance, the weekly food allowance, the monthly allowance for the next car, charitable giving, and our retirement savings all took a hit to help us keep the budget balanced AND yet achieve an overall balance in life.

2. Evaluate whether you need to possibly look for more work or Money making activities.  It could be as little as weekend work, or as big as a career move, or starting your own business (home business or otherwise).   Remember one of the three ways to make your finances balance, is to make more Money.  The other two being cutting expenses, or making more income and cutting expenses at the same time.

3. Take responsibility and be determined. Dont start spending more than you earn!  Make the necessary adjustments regardless of how painful.  Lots of people, when faced with higher costs, turn a blind eye and just "hope everything turns out OK".  Wrong!  You cannot assume. You cannot hope for a miracle. You must take action and stick to your budget.  And yes, It can be done!

4. Be sure and look long term.   Our decision this month to cut back was the result of looking down the road (14 months ahead to be exact) and realizing there were higher costs ahead.  Look into your financial future as best and as far as you can and look for situations that might need some advance planning.  The sooner you find out that you need to adjust, the easier it will be to make the actual adjustment.  Wouldn’t you rather have 14 months to save for an upcoming expense versus 2 or 3 months?

5. Budget Master, make sure you have the agreemennt of your spouse. Make sure all other family members understand what is happening and why it is happening.  It is tough to downsize.   It is impossible to downsize without your spouse’s support!

Taking action ahead of time, making the proper adjustments, and sticking to your plan will keep you out of trouble.  Times like these make having a plan and a system to keep your plan all the more critical.  "The Allowance System – Wealth Secrets For Adults" will help you create a good financial plan and give you the system that will consistently allow you to stay on top of your finances. 

Best of Success,

 
David Dickinson
Author, Trainer, Educator, Entrepreneur
"The Allowance System FOR ADULTS"

Regardless of how you manage your Money, there are certain areas where one can save some big bucks.  Over the course of a lifetime they can really add up to substantial savings and make the difference between living an average lifestyle vs. living a great lifestyle.

What is even better about these places is that they are areas where almost every person spends.  These three areas also happen to be the places you spend the most Money as well.  So if you save, you will save a lot. You can use this advice immediately and for years to come.

The 3 Top Places To Save Are:

A. Grocery Store

B. Buying your next Car

C. Purchasing your next Home

Do your best to save in these three areas.  Imagine saving $5,000-$10,000 every time you bought a car.  Imagine if you could save $10-$20 a week on your groceries.  It would be like getting a $500 raise every year.   $25,000 on your house.   These are big numbers that you do not want to overspend on.

Because these are the three biggest areas most people spend their hard earned Money, "The Allowance System FOR ADULTS" could not in good conscience leave these areas untouched without offering strategies to help you save in these major areas.  Each of these three areas has a chapter dedicated to developing and adopting strategies which will allow for a lifetime of savings in these three big and critical areas.

In addition, we show you how to take your budget and simplify it. Budgeting does not have to be hard!  We also show you how an allowance system, designed for Adults, can be of great benefit to you.

Best of Success,

 
David Dickinson
Author, Trainer, Educator, Entrepreneur
"The Allowance System FOR ADULTS"

Discover The Secret To Having A Budget That Actually Works!

Making budgets can sometimes be a challenge for many, and pure boredom for others. We all know that we need not just a budget, but a good budget that will keep us out of trouble.  Long detailed budgets take forever to maintain and keep up with.  There are better things to do in life, than to be tied down to making sure your budget is in line. 

There is a way around this. It is not a magic wand, but it is a new way to organize your finances. In my new eBook, "The Allowance System – Wealth SECRETS FOR ADULTS" we will introduce you to an allowance system. Not the kind you had as a kid, but one that is designed for adults and families. One that is simple and easy to maintain.

The secret is not the allowance itself, but how to use the allowance in a time efficient manner.  Here is a step-by-step process:

Step 1 – Track What You Spend For 30-Days

Step 2 – Make A Budget

Step 3 – Implement "The Allowance System" And Make A Better Budget

Best of Success,

 
David Dickinson
Author, Trainer, Educator, Entrepreneur
"The Allowance System FOR ADULTS"