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"

This Is The Single Best Way To Stop Being Frustrated With Your Finances

If you were to ask someone to tell you the best way to end their Money troubles you would probably get a different answer from every person you asked. 

Some would say if they could only win the lottery, others might say if they could just make a few hundred
more dollars a month, or get a nice raise this year.  Others would say to get more education or get a promotion.  Yet still, others might add they need to do better on their budget or even read a good book on finances. 

Yet, the single most important item that helps people get on sold financial footing is not any of the above.
While making more Money certainly does help, it is not the "making" side of the Money equation that ultimately solves the Money dilemma.  It is your spending!  You have heard of the phrase "It is not what you make, but what you spend" that matters.  

Who is better off?  Person A making $100,000 a year but spends $102,000, or person B who makes $50,000 and spends $48,000? 

Person B of course!  Despite making half as much, Person B is $4,000 ahead financially than Person A. If that continues, in 5 short years, Person B is $20,000 ahead. That is enough money to buy a nice used car.

How do you get a grip on your spending?  

It all starts with your mind, and the knowledge that your spending is even more important than your earnings.  Making more money is great and desired, but spending less than what you earn is even more important.   In my New Book,  "The Allowance System – Wealth Secrets for ADULTS",  I talk about ways to get your mind keenly focused so you spend your hard earned money wisely.  I also give you tools to take that knowledge and use it wisely and effectively to accomplish money wisdom and tell you the best places to quickly accomplish your money goals.  

Click Here To Find Out More About My New Book…

Not only have I become completely debt free, but I’ve helped several others organize their budgets, implement an allowance system, and get them on right track to financial freedom. And now Ican help you!

Best of Success,

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