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Showing posts from June, 2017

Still Packin' Your Payday Blinders?

Know anyone who thinks everything will be okay as soon as payday arrives? "Come on payday!"
Does that same person, shortly after payday, think everything will again be okay as soon as the next payday arrives? "All I have to do is make it to next payday!"
Focusing on the next paycheck as the cure-all for money problems is what I call wearing "payday blinders." It's like walking a path in deep fog with a flashlight that shows you only the trail ahead. A person who focuses only on the next paycheck is missing out on a whole world of possibilities that lie just out of sight beside the trail.
What if the "payday blinders" were removed? What would be possible with a fog free picture of your income? How can we do that? What would that look like?
Rethinking How To Manage IncomePutting aside the payday blinders requires rethinking both how we look at, as well as how we keep track of our income. Budgeting and tracking expenses are methods that are actuall…

How To Slay The Spending Money Ogre Part 2

Are you working on a spending money log as suggested in Part 1? Nice. Keep going for the full month. A good appreciation for how much you spend on out of pocket expenses is the base from which you start the process of taking control of spending money.

No idea what a spending money log is? Or why it's important? Before continuing here, read Part 1. The background information in that post is needed to fully appreciate the process discussed in this post.
Focus On Weekly Spending The key change that will bring your spending money under control is to start "paying" yourself the same amount of spending money on the same day every week. How much and which weekday are your choices that you make here and now.

A spending money log is invaluable in that it gives you insight into the daily spending habits of which you may or may not be aware. In addition to possibly bringing some surprises to light, a spending money log will help you answer these two key questions. Take a moment to ta…

How To Slay The Spending Money Ogre Part 1

Have you ever heard someone complain "I don't know where my money went!"

Do they often follow this statement with something like "I can't pay my bills!"

These feelings are the result of a problem that is all too common. We'll take a look at a prevalent contributing cause here. Then, in Part 2, we'll look at a very easy solution for getting control of this problematic aspect of your household finances that you can start doing today.
It's So Simple ... Right?When people enter the workforce they typically have the goal of getting a paycheck. When, as is usually the case, they have no idea how to effectively manage the money they earn, the receipt of a paycheck becomes the default trigger that drives their day-to-day financial cycle. I call this the Trigger Model.
Get paid.Pay the bills that are due.Use what's left for spending money until next payday.Most people manage their day-to-day finances this way because, with no formal training, this is the…