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4 Unconventional Budgeting Tips Our Parents Should Have Taught Us

4 Unconventional Budgeting Tips Our Parents Should Have Taught Us

Yes, I am a financial service and banking professional, but it may interest you to know to I have also struggled with budgeting a number of times. Like you, I’ve been flat broke at times due to one ‘story’ or another.

The biggest “story” I hear is, “if I had more money, then everything would be better.” But that is a myth and i can attest to it. When business was booming for me and I mean Blowing up!. Hell, my net monthly income was a mid 5 figure, yet I was still finding my self juggling my business and personal expenses almost every month. So let’s move away from the ideas, for now, that you need to either have multiple streams of income or start a new home based business to get a hold of your finances.

Over and over again I had wholeheartedly declared that I would no longer stray from my budget, but like an overweight child starting on a diet, I found myself facing and yielding to diverse spending temptations like they were cupcakes. Hmmpphh!

Here are a few typical things we often say when it comes to money issues:

1. Why don’t I ever have enough money?
2. Where did it all go?
3. Why can’t my family spend less? (Totally my favorite. LOL)
4. Wait, I’m broke again?
5. By next month, we will tighten up the reins, get on track and start saving.

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…I call them “money conversations.” They were all part of my arsenal. Tormenting me as though I was possessed by a thousand demons.

But the year 2009 came with a messiah in the form of a ‘personal effectiveness course’. The veil was finally pulled from my eyes, and I realized that I had been asking the wrong questions all along; making statements that only fueled the fire of my ‘money conversations.’ Oh! the years I wasted telling myself this garbage. Wasted years, indeed.

I literally had a mental block when the ‘money conversations’ topic was brought up in the course. My mind tried so hard to shelter myself from the pain already stuffed deep down, hoping the world would give me a temporary sense of happiness and fulfillment. It felt like the Visa commercials where the view from your hut overlooking the Tahiti is priceless, but to get that priceless moment; it’ll cost $10k for just one trip. See? Even the big wig ad agencies have played on our internal weakness of that need to buy stuff to help us get a temporary relief of our real inner pain. Sad, isn’t it?

…So how do we fix our budget issues?

Gotcha!

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You thought this article was really going to be about budgeting, right? Aww. Cute.

The bitter reality is that it is YOUR THINKING, you will discover to be the problem, not the money. YOU are the actual challenge. Even our parents at one point realized this bitter truth, either they thought it was to late or they just weren’t kind enough to pass it along.

Don’t worry; you weren’t born with this. It has been passed down your family line not by DNA, but by generational habits. It is like when you first discovers what “little white lies” are and how they could be used to your advantage, and gotten away with. That moment, one realizes that control over one’s choices is achievable and that, my friend, is where the fault lies.

4 unconventional budgeting tips our parents should have not only told us but showed us:

1. “If it is meant to be then it is up to me”

Take responsibility for all your budgeting short falls and get the “stories” out of your head. Your mindset will be paramount when getting your budget in shape! This should not be something you “have to do” but rather “get to do”.

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2. “How is this situation or transaction impacting my budgeting habits?”

Keep asking “the question.” While transforming your budget, you will GET opportunities to constantly ask yourself that specific questions and it is NOT okay to NOT answer it. The next time you are tempted to make a purchase, like concert tickets or that new purse ask “the question.” When you get a year end bonus and you are debating to pay down your auto loan or take that vacation ask yourself “the questions”. This budget tip may seem lame, but I assure you that when you challenge your subconscious habits with this question you will WIN this budget war.

3. You have landed on budget island, it is time to burn the ships and conquer your budget

Take massive and drastic actions NOW. Get a journal and take 10 minutes on the first page and write what your financial life will look like in 3 years when you conquer your budget challenge. Go through your bank and credit card statements and categorize the debit transactions. Look at what is essential and whats not. Now cut the financial fat and get rid of everything (for now) that is not essential. You will not reward your self till you can prove to yourself that you can responsibly manage your money.

Go to your bank and set up a “special” savings account that will set aside all the money that is left over from your income after you have paid your essential bills and obligations. This is easy to do since you know how much you make and how much you actually need to spend to keep yourself alive. and we call this my friend, a budget! WOW! For some of you this will be the FIRST time you have actually put this in writing and I want to congratulate you on taking the first steps to budget bliss. What you will find is that if you stick to this budget, you see the “special” savings account grow.

I want you to set a 12 month goal of what that balance will be and what you will spend 30% of that on to really pamper your self. Do you have it? Great! Now add that to your journal as a goal! I want you to look at your first journal entry and that goal everyday for the next 12 months. You should write in that journal every day and record at least 1 thing you did that helped you get one step closer to your financial destination and how it makes you feel. I also want you to enter in at least 1 thing that you are grateful for that day at that moment. because when you have an attitude of gratitude, great things happen!

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4. Get a coach or an accountability partner

This last one is for the people who know they will need to get a push to get their budget under control. I find it funny that people seek out someone to help them get into better physical shapes or even to become a better actor or actress, but they never think about getting a financial coach or just having someone who will hold them financially accountable. Enlisting the services of a financial coach or accountability partner will increase your success rate by 72%. And some of us need all the help we can get.

I assure you that from the moment you start taking on your real inner challenges, your budget will flourish. Face your fears and get to work!

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

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