Beyond Budgeting and into Wealthy Mentality
July 30, 2011
What I find so great about budgeting is once you realize that you control your wallet and not the other way around, only then can you really start breaking down the limitations on what you are capable of achieving. Yes, budgeting helps to keep you out of debt, but it is also there to put money aside for personal goals, whether it be relaxing on a beautiful beach enjoying our earthly treasures, taking those tango lessons that will foster a certain spice for life, or maybe something less comfortable such as starting your own business.
However, budgeting alone does not guarantee financial prosperity. This led me to really question people’s relationship to money, and how it either holds them back or helps them grow, just like any other relationship. What I have come to find is that there are three approaches to spending that exist regardless of how much money you have.
The development of these approaches is rooted in our personal relationship to money, which can most clearly be brought to light during moments when money is tight. Many people run through money like water. They spend on impulse and go into debt as a result of overlooking the severity of the situation. There are those, protective in nature, who decide to cut spending and compromise or hold off on goals, convincing themselves that one day things will get better. They spend enough to make ends meet, even put away a little bit for a rainy day. If something happens to their income, they tend to tighten their belt and spend less…they cancel their vacation or cut back on dinners out, just to manage. And lastly, there are those who view money not as a burden but as opportunities to achieve. They maintain their standard of living as the minimum and proactively find ways to see their goals through or face unexpected expenses, without falling into debt.
The last approach springs from a wealthy mentality. The first two types of people have either the mindset that they are not capable of making more than they do today or simply haven’t spent the time to find out. The “wealthy mentality” consists of looking for ways to make more money rather than finding ways to spend less. When something happens to their income or their expenses start to rise, their first thought isn’t “how can I cut cost”, but “how can I make more money?” I believe that this difference in belief can make a huge difference in why some are more financially successful compared to others.
The good news is that this approach can be followed by anyone. Think about it, if you were able to take away the boundaries on how much money you felt capable of making, how far would you go? It may be more within your reach than you think. That’s why my business is such a great tool for people in various economic situations. With my extensive experience, I can, not only guide you through understanding your finances, but also help you find new possibilities.
A Web Site that Helps You Save Money – and Space
March 21, 2011
Hello fellow money handlers! I think the crisis in recent years has helped us develop strategies to reduce our spending and focus on where it really matters. Here is a way to do that and have fun at the same time! I have recently come across the web site, NeighborGoods, where its community promotes the continual use of already used goods. You know that thing you always felt too bad to throw away, hiding in the back of that kitchen cabinet or in a storage box in the basement or even worse…the garage, taking up perfectly good car space? This web site has paved the way for a new online community, where those items can be bought, sold, and even borrowed. I have discovered people on this site to provide anything from a vintage guitar to a cheese grater. Although, I doubt one was exchanged for the other. The point is, it can be! Photographs are posted by members, giving their “neighbors” an idea of what they’re getting into. They also provide the terms and conditions that neighbors borrowing must accept upon consideration.
The next time you decide to do a good house/apartment cleaning, I hope this message will be in the back of your head encouraging you to confront that fear of dealing with those mystery boxes you have stewing around, as I know we can all relate to. Clearing the load is just a mouse-click away, and the best part is you get to meet people, build the community you want by inviting your friends, and keep a little more money in your wallet while you’re at it. Happy savings!
First-Rate Customer Service
November 4, 2010
The other day I was walking with a friend of mine to a restaurant. As we were walking and talking, she opened her purse to take something out of her wallet and a bunch of receipts fell out as she struggled to keep everything. I expressed my concern on the welfare of her wallet and how she is treating it like a dumping ground!
I wondered how she can keep track of her money and her spending with things looking the way they did…then I started to think about her job and how she is really good at it. She is always on top of her clients’ files and is very successful at what she does. Why is it that she puts so much care in servicing other people but when it comes to her own life, the service is mediocre!
When it comes to business service why do we strive to provide the highest level of service and we expect to receive the same from others, but we just don’t dedicate the same amount of care and time in our own lives!
I ask you to demand first rate customer service when providing service to yourself; cleaning your apartment, making a meal, balancing your check book, spending time with your family, what ever it is, give 100% service and you will get a much happier customer!
My History with Money
February 2, 2010
I’ve been thinking about what I want to say on my blog. My services as described on this site relate to coaching on financial and money matters on a very personal and intimate level. After careful thinking, I’ve decided I would like these blogs to be a reflection of me and my struggles around money, how I got to where I am today and my hope that I can help you understand your own relationship with money and how to gain financial success. Of course, I would also have up-to-date news as well as some financial data that can be useful to you.
I’m 33 years old and was raised in a middle class family. Besides growing up in a war-struck country, I can say my childhood was pretty typical; I had two loving parents who tried to raise me with all the traditions their parents raised them with. I have siblings both older and younger, so that makes me the middle child.
Growing up, I didn’t get to learn about money until I was around twelve or thirteen — much too old in my view. I guess that is typical of our society. My father had his own business and he was doing well that I never felt the pinch of not having enough. We lived in a nice house with a nice backyard and a pool. I had my own room and got everything I asked for (I was, in general, a modest girl so I didn’t ask for much). Hence, money was never a concern.
It wasn’t until my teen years when we moved to Switzerland that I started to realize there was a restriction of some sort to getting what you wanted in the world. At first we lived in a hotel and had meals prepared and everything served to us. After a few months, we moved to an apartment and we began buying food from the supermarket. I remember my mom complaining about the cost of groceries and the value of what we were getting compared to the price we had to pay. My mom was used to the bazaars where she was able to buy a box of herbs or pounds of fruits with such ease and now she not only had to be cautious in her spending, but things were extremely scarce compared to what she was used to. I remember thinking how strange that was. How unfair it was not to be able to get as much of what you wanted. The idea of sacrificing something (money) in order to get something else (groceries) or needing to choose one thing over another thing was very foreign to me. I don’t even think I still fully understood what money was or where it came from.
My dad (the money maker of the family) couldn’t work in Switzerland since he didn’t have a work visa and we were living off his savings. At times, talk around the house centered on his lack of work and hence money; again, two ideas that meant very little to me. With all of this, I was still not exposed to the hardships of not having a steady cash flow, living in a very high cost of living country and not knowing when, or if, it will all change. My parents seemed to be more determined to keep us all “unharmed” from the harsh realities of adult responsibilities. Needless to say, as an adult, for a long time, I had a disconnect between the money I made and the money I spent. I did start working part time from my late teens. But the money I made became added value to my teen life and not a means to an end. I now had extra money to buy cool things with and that’s when it all began… my parents still paid for all my expenses; room, food and clothes.
This pattern continued even after my college years when I got a full-time job and now made so much more money that I had no idea what to do with it. So I did what any sane adult does: I bought a car, went on expensive trips around the world and spent money on clothes. When I began to live on my own and pay my own bills, that’s when my bad habits began to become a problem.
I often wonder, if I had learned the value of money at an earlier age, would my relationship with money be better? I think it is important to train kids early on about money. Not only can the experience be lots of fun for them, but they can learn to have a healthy relationship with their wallets years before they go off to college. College years are often the first time many people begin to take on financial responsibility and where they learn, unfortunately, to make life-long mistakes.
Total U.S. household debt currently is $14 trillion, with average household debt ranging between $10k-$20k — and that doesn’t include one’s mortgage. Most people have 5-10 credit cards open at any given time. What this all means to me is that most of us are living beyond our means. Now, we can argue that it is the economy’s fault, or that we don’t make enough money or that health insurance costs are too high. But I know for myself and most people I know in my life, the problem is much closer than that and it would be wise to look a bit at our own relationship to money and how we are contributing to the national debt!
I hope that going forward, you find this site to be of value and I hope it helps with your current financial life. I’ll be offering tips and advice on financial strategies, budgeting, approaches to credit, debt and other related topics. My hope is you’ll see enough value in my expertise to contact me for professional advice and help.
Happy reading!