Are You an Emotional Spender?

Are you an emotional spender?  Honestly, until about 6 months ago, I spent when I was happy, sad, bored…. it really didn’t matter what I was feeling.  I shopped  I have been working hard to stay on a budget but it is hard!

Did you know “The number-one problem in today’s generation and economy is the lack of financial literacy”?

Why??? The truth is, the problem is a struggle with self-control. You went to the mall to buy a birthday gift for your niece, and walked out with a new pair of shoes for yourself. You’ve tried a budget, but somehow you always seem to find something to spend money on that wasn’t in it. Can you relate? If so, consider these practical strategies to get your emotional spending under control:

1. Sleep on it.

If you think you just have to have it, whatever it is, make it your rule to sleep on your decision. Very few things are so urgent you can’t wait 24 hours to make your purchase.

2. Phone a friend.

Be accountable to someone!  You are more likely to reach your goal if you tell someone you’ve set one. So, tell a friend about your goal to stop digging yourself into more credit card debt. Then when you find yourself about to make another purchase you can’t afford, call them up and let them talk you down.

3. Never go shopping alone.

If you can’t trust yourself to phone a friend, then don’t go shopping alone. Of course, my biggest problem (and maybe yours) is online shopping).  The simple click to get what we want, NOW!  Headed to the mall, have someone with you who will hold you accountable.  Shopping online, STEP AWAY from the computer.  Leave it in your cart for 24-hours!  Refuse to use “retail therapy” to deal with loneliness, boredom, or disappointments. Find a new hobby which keeps you active, helps you to connect with others and builds new relationships. Focus less on accumulating stuff and more on enjoying experiences with people and things which matter most to you.

4. Plan for it.

STOP right now!  Take out a notepad and jot down the most important thing you need, and then the most important thing you want. Do you know how much each will cost? Jot it down. Not sure, find out.  How long would it take you to save for each? Practice delayed gratification (so hard for a recovering addict to do!). It forces you to appreciate the true value of your money, which will help you spend your money more consciously.

5. Keep a picture of your goal in front of you.

I have a vision board I carry in my planner so I am always reminded of what I am working towards.  Post pictures where you will see them on a regular basis so you are reminded of your goal. Whether it is on your refrigerator, in your purse, or on your bathroom mirror, make the vision plain and visible.

6. Take the credit cards out of your wallet.

I LOVE this saying…” if you want to get out of the hole you’re in, stop digging!”  If you’re in debt, it’s time to stop adding to your debt. And if you’re an emotional spender, keep your impulse purchases to a minimum by leaving your credit cards at home. No need to make it easy to charge it.  Better yet, cut up ALL of your cards (maybe keep one for emergencies).

7. Use cash.

I will admit, I am not a cash person.  I use my debit card for most things.  I actually feel like I spend less than when I use cash.  Crazy, right?  There are always those places which don’t take cards too so I can’t spend. Research shows though, forking over cash makes you spend less. As simplistic as it sounds, one of the best ways to curb spending is to determine your budget for various expenses (i.e., lunch, groceries, clothing, etc.), then take out your budgeted amount in cash.  Dave Ramsey’s system from Financial Peace University is AMAZING!   While it can be easy to lose track of how much you spend when you swipe a credit or even a debit card, cash forces you to count and keep track of what you spend in a concrete way.

If saving or spending is a problem, I challenge you to stop spending emotionally and start managing your money wisely.  Which of these tips were most helpful to you?

Have a ThirtyOne-derful day!

Got A Pay Raise?

Thank you to Julie of The Hallway Initiative for the inspiration for this post which appeared in MoneySavingMom.

“Nothing stimulates creativity like a good crisis.”

Living on a budget has never been a strong point for me.   I can remember very short periods of time in my adult life when I was credit card/debt free.  Then those addictive traits reared their ugly head and it was back.

Finances were almost always tight as a single mom.  As my own boss, my income depends on me which means it is sometimes inconsistent.  I have been  reading books on personal finance, working on a detailed budget (YKES!), and always on the look out for money-saving ideas. I ran into MoneySavingMom.com awhile ago and am eating up every penny-pinching post.  My initial thought is always to go back to work full-time then the realities of health struggles and age (everyone wants young social workers) hit me.  I will admit, I am great at managing money for others but when it comes to my own account it is a totally different story.

I don’t know about you but when I used to get a pay raise at work, my spending increased.  I mean now I could pay the bills (at least the minimums) and have extra money in my account.  The truth was (and still is) despite how much money is in the bank, I need to remember how I budgeted during the lean times.

I love these four strategies to maintain a frugal mindset:

1. Think in terms of stewardship.

I often forget everything I “own” is a gift on loan from God. When I remember it’s all His, no matter how much or little He’s given me, I am challenged to be a better steward with His things. I need to work with my money the same way I manage other people’s money.  Even during lean times, I found ways to help others in need.  It may not have been in cash but it may have been in groceries or time.  It is when I do things like this, the blessings come back in multitudes.

2. Keeping a budget.

This is probably the hardest thing for me.  I don’t remember much talk about budgeting when I was growing up.  I have tried to stick to a budget off and on for years with limited success.  I think I was the most successful with a budget when Elsie managed my money and bills in my early days of recovery.  I couldn’t trust myself to have cash laying around so she monitored it all.  Bills got paid and money got saved.  sticking to a budget is one of the best ways to maintain control of your spending.  It helps you keep track of your expenditures and reminds you to be wise with what you have. And, if finances permit, it’s perfectly okay to increase certain budget categories, such as giving, saving, and splurges! Just make sure you’re doing it deliberately rather than on a whim.

3. Keep up with penny-pinching resources

There are a lot of them out there…. I don’t necessarily mean “Extreme Couponing” unless it is something you love to do but I do have a few favorites besides MoneySavingMom.com.  I am always scrolling through financial blogs, keeping up with new frugal tips and making sure I am remaining a good steward of my money.

Some of my favorite resources include:

• The Total Money Makeover by Dave Ramsey
• Living Well Spending Less
• Money Saving Mom
• Lynette Barbieri

4. Save for the next crunch

This is where I made my mistake years ago.  When my finances were Just because your freed up for a moment, I didn’t plan for the next squeeze.  I didn’t listen to Dave Ramsey and other financial giants recommend building up 3-6 month’s worth of living expenses. If you’ve never been able to do so before, do it now while you have money left over at the end of the month (even if it is $10).

I haven’t done a perfect job of thinking in terms of stewardship, continuing to keep a budget, keeping up with penny-pinching resources, and saving for the next financial crunch, but those are the four strategies I’m working toward at this time.  I tried to keep in mind it is progress  not perfection.

What are some of you favorite money saving tips or resources?  Share them with us.

Have a ThirtyOne-derful day!

 

Is it Possible to Budget on an Irregular Income?

Budgeting – I cringe when I hear those words.  I used to say “don’t know how to budget” so guess what, budgets never worked.  The funny thing is as a grant writer, it was one of the things our funders loved about me.  I was always on budget or under budget.  Now, I am learning to apply it to my personal life……..

As a full-time direct seller, my income can be irregular.  There are months when sales are AMAZING and there are months when sales are less than desired.  I have always used the fact my income was irregular as an excuse not to stick to a budget.  I mean the key to getting and staying out of debt is a budget, right?  So I went on the hunt for some tips to help me (any maybe you) manage your money better when you don’t get a regular paycheck.

Budgets are easy on a fixed income but are a challenge when you aren’t 100% sure how much money you’ll bring in every month.  Honestly, the budget challenge is the fear factor which kept me from working my business full-time.  Not having faith in myself or in God to provide for my needs.  I have monthly bills to pay – old credit card debt and school loans along with the monthly cell phone, cable bill and our grocery bill.  Sounds basic enough, right?  I mean how tough can it be?  Here are some tips I found…

STEP 1: SET YOUR MINIMUM MONTHLY BUDGET

Your monthly bills stay the same, no matter what your income.  The first step is to figure out what your income and expenses were on an average for the last three months. You have to know there the money goes every month to build a budget.

List the bills you pay every month like rent or mortgage; car, house, or medical insurance; groceries, gas, and utilities.  Figure out the minimum number it would take to balance your bills.

STEP 2: SET EXCESS MONEY IN A SEPARATE ACCOUNT

Now you know the bare minimum amount you need to stay afloat each month.  On pay day, pay the necessary bills first, pull out cash for groceries and gas to last the month, and put the rest into a separate account.  Sounds easy right?  The cash system (or envelope system) by Dave Ramsey is a great way to get started.Building up a reserve of cash from your “feast” months, you’ll have funds to rely on during the “famine” months.  I have set up separate savings accounts for my business and personal to “save” for those famine months.  Transferring money “excess” amounts over or even a minimal amount every month allows me to save for those tough seasons.

STEP 3: DON’T GO CRAZY ON PAY DAY

It is going to be tough to not go crazy when you get a large paycheck, especially after a famine month. Resist the urge to spend.  You won’t have money to set aside in your separate account for famine months if you spend excessively on unnecessary things. I’m not saying don’t enjoy a night out, just don’t make it a habit so your account drops to zero.

STEP 4: TRY TO LIVE WITH LESS

There are lots of ways to strip down spending to reduce your budget. We reduced our cell-phone bill, and cut got our cable bill.  I negotiated a lower payment rate on outstanding school loans which reduced the monthly bill.  I found when I went into saving mode, I wasn’t tempted to spend money on things I don’t need.  Now, I am not putting out to the Universe “I can’t afford this” because negative thoughts bring negative actions. BUT what I am saying is “I have plenty of money in my accounts” to bring more positive into my Universe.  When you save, you widen the gap between your minimum monthly budget and how much you have to use during your lean months.

STEP 5: BRING IN MORE INCOME

I know this sounds like a no-brainer, right?  If no matter what your try, you are still having trouble paying the bills in your famine months, it’s time to bring in more income.  Now for those of us in direct sales, it may be working our business a little harder or helping our team reach their goals.

Want something a little bit more concrete?  You can pick up a side job to bring in extra income and pad your bank account for when you need to rely on your savings. Find a way to monetize your skills, gifts and talents to earn some extra income.  Maybe it is being a freelance writer, or if you love graphic design, market your services to websites and bloggers. Maybe you are great at organization and secretarial skills, so become a part time virtual assistant for businesses and websites.  Extra income will help during the famine months and it will help to make them go away faster.

Do you live on a feast or famine income? What is your advice to people struggling to make a budget?

Have a ThirtyOne-derful day!

Money Saving Apps

I will be the first to admit that I am technically challenged.  I am on a mission to pay off debt so I am moving into the digital age for coupons and savings apps.  So, pull out your smart phone and check out some of these money saving apps.

Shopkick – rewards you with “kicks” when you visit participating retailers like Macy’s, Target, Best Buy, etc.).  Admit it, you go to at least one of these retailers every week.  You also can earn “bonus kicks” for scanning specific items while in store. NO, you don’t have to purchase them, just scan the UPC code.  Once you’ve earned enough reward points you can redeem them for retail and restaurant gift cards.

Checkout 51 – to save on groceries. Every Thursday morning, Checkout 51 updates with a new list of offers. Simply choose the offers you like, purchase them at any store then upload a photo of your receipt through the mobile app or website. When your account reaches $20, Checkout 51 sends you a check.

Ibotta – Before heading to the store, choose the offers you like then go shopping. (The more offers you select, the more you can earn.) After you check out, take a photo of your receipt which Ibotta will verify and then credit your account. Cash rewards can be deposited directly into a PayPal account. Every time you redeem an offer a new one will be sent to you.

SavingStar – offers e-Coupons for participating stores that are automatically added to your store’s savings card. The savings are stored in an account and once you’ve saved $5 or more you can be paid through a bank transfer, PayPal account or Amazon.com gift card.  This is a great way to save and use the extra money to pay off debt.

Retail Me Not – Before you shop use this app to find coupons and coupon codes for most major retailers. You can use Retail Me Not for online shopping as well.  A great way to get the best deals.

Shop Savvy – Use this app to scan items in the store to compare prices so you can see if you can get a better deal. This is super helpful if you have a specific item you’re looking for and want to find the best price.

Gas Buddy – This app helps you to find the best gas prices in your area by listing current prices at the gas stations closest to you. You can even earn points when you report a gas price.

Every Dollar – Dave Ramsey’s free online budgeting tool with a iPhone app. Helps you to create your budget for the month and allows you to connect your bank account for a small fee.

Mint – This free budgeting app automatically tracks your accounts and allows you to see exactly where your money is going. This is one of the top apps recommended by money saving individuals.

Ebates – my favorite site for saving money when shopping online!  Earn bonuses too when you help your family and friends save.

What are YOUR favorite money saving sites?  Share them with us.

Have a ThirtyOne-derful day!

Budgeting Works

For many of us, this was one of our New Year’s Resolutions.  The holiday bills have started to roll in.  Maybe bad weather caused you to miss some hours at work.  Maybe you lost your job.  Maybe hours have been cut due to lack of business.  Whatever the reason – this is probably the last thing on your list right now.  Great intentions when we start the new year but like most resolutions by the 3rd week, they are starting to lose their luster.

Setting up a budget is tough.  Monitoring your spending is tough.  Believe it or not, when you have control of your money it is empowering.  You can also reach your financial goals one step at a time – even if they are baby steps.

The basic idea of a budget it simple – spend less than you make.  I know the kids need XYZ.  I know you will put it on the card and pay it when you get paid. I have heard (and used) all of these reasons as to why I can’t save or stay on a budget.

The truth is that once I figured out what I was actually spending money on, what I wanted to spend money on, and how to automatically save – life got so much easier.

Do you really know where you money goes?  I mean most of us will say we do but if we had to track every penny spent in a given week, could we?  How can you create a budget, if you don’t know where your money is going.  I have to admit this is the toughest part.

If you use a programs on your computer like Quicken or Quick Books, that is a great place to start.  Look at your spending from the past three months.  Now it may not count the Starbucks coffees or lunches if you use cash.  If you are like me and use your debit card for EVERYTHING, this will be very easy.  The key is to put ALL spending into a category.

Here are some categories:

1. Needs: rent, utilities, basic groceries, car payment, paying off debt, etc.
2. Wants: eating out, shopping, vacations, etc.
3. Savings: retirement, emergency fund, savings for future purchases (such as a house down payment)

So, how does your monthly spending look? Are you spending more on wants than needs?  Are those needs being put off?  Believe me, I cringed when I saw that most of my budget fell into the needs category due to debt.   It was time to make some changes.

I started to prioritize my want spending so that I could save and pay off that debt.  I looked at my wants and decided which was the most important to me.  Then I started cutting some things out.  WaWa stops when I worked to pick up food when I could make and take it from home.  I stopped getting my nails done every 2 weeks and  made it a monthly treat.

Then I set up an auto transfer to start saving.  Okay, so it may not be the recommended 20% but it is a start. On payday, I automatically pay myself first.  I will admit that on months when I am short due to a smaller paycheck, I may borrow BUT I always do the transfer.  Start with $5 a paycheck and put it in a savings account.  It will slowly grow.  I actually do $25 a month then if I get a bonus or any extra money, I split it between debt reduction and savings.

Budgeting does work.  I stomped out my inner gremlins around budgeting and money management a few months ago.  It made a HUGE difference in how I look at my checkbook.  I have money saved plus bills are paid.  I am using the snowball method to pay down debt.  Honestly, it wasn’t easy but give it a try because it was so worth it.  Start somewhere even if it is figuring out where your money ACTUALLY goes instead of just guessing.

I would love to hear your best tips for budgeting.  Have a ThirtyOne-derful day!