Eight years ago, I dropped an article on reducing debt, breaking down the debt snowball vs. the debt avalanche approach. It blew up—big time. It happened to be one of my most popular articles ever. In a nutshell, the debt avalanche has you tackle the highest interest rates first, while the debt snowball says to start with the smallest balances. The idea? Knock out the little ones to build momentum and confidence for the bigger beasts. Beyond debt repayment methodologies, there’s a slew of software that can show fancy graphs and track your debt load. However, all these tools ultimately don’t make a difference without one key ingredient. Paying off debt isn’t just about these methods, apps, or fancy graphs. They’re tools, like the icing on the cake. The real secret sauce? Understanding your priorities and fortifying your willpower. Writing down goals sounds great, right? But without strong willpower, it’s like having a plan with no action. True progress happens when you actively build up your determination. It’s about taking actionable steps to strengthen your willpower, which is crucial for financial success. The Power of Speech What you say massively impacts your thoughts, especially the stuff you tell yourself. Athletes use mantras to […]
We’re knee-deep in our series on mastering cash flow (a.k.a. your guide to tracking down where your hard-earned dough is taking off to). Let’s hit pause and do a quick refresher. Cash flow, what’s that again? Here’s the 411—it’s a nifty tool that shows you exactly where your money is flying off to each month. It’s your income minus your expenses, all lined up nice and neat. Ever feel like your money pulls a Houdini act by month-end? It’s time to get your geek on and master the cash flow. The secret sauce? Getting started! So, let me share my method with you. Here are three steps to kickstart your journey: Step 1: Round up your financial papers Start by collecting or printing your bank and credit card statements for the past 3 months. I usually don’t venture further back because, let’s be real, recalling what I had for breakfast is a challenge, let alone remembering that $84.93 Amazon impulse buy six months ago. Sure, you could dig through your Amazon history, but that’s not the point here. While accuracy is a biggie, the real goal is to get your spreadsheet up and running ASAP. Small victories are the MVPs here. Remember, budgeting is 80% behavior, 20% crunching […]
Well, well, well, here we go again… Last week we started getting into the thrilling world of cash flow and spreadsheets. I know, I know, you’re thinking, “Whoa there, slow down with the excitement!” But stick with me here. Let’s say you’re not a spreadsheet enthusiast. You’re more of a creative doodler than a data analyst. Maybe those little cells and formulas give you the heebie-jeebies (I mean, come on, who even knows what =SUM((B2:B10>=A2:A10) * (B2:B10>0)) means? 🤯). Or perhaps you bought some fancy schmancy Google spreadsheet templates, but they don’t tickle your pickle. Don’t worry, I gotcha. What if I told you that you can tackle cash flow without spreadsheets? Yeah, you heard me right. Shout it from the rooftops: NO MORE SPREADSHEETS! Maybe you’re a creative soul who loves the feel of pen against paper, the freedom to doodle and sketch your financial dreams. Or perhaps you’re a spreadsheet savant, getting a kick out of crafting complex formulas so slick they’d make Bill Gates green with envy. Whichever way you swing, the aim of the game is to get the job done. So, what’s it gonna be? Spreadsheet or Sketchpad? If you’re a rookie in this financial rodeo, give both a spin. You […]
Today, we’re kicking off a topic that might seem as appealing as a pair of wool socks in a heatwave: cash flow & spreadsheets. Now, I know some of you out there just love getting all up in Excel’s business. You’re the type who gets a thrill from seeing numbers line up like well-behaved children on a field trip. And that’s cool. More power to you! But then, there are those like me who’d rather chug a cup of sheep eyeball juice than a sea of cells and formulas. I mean, it’s not quite THAT bad, but you catch my drift. Whether you’re a number nerd or an eyeball juice enthusiast, understanding your cash flow is as crucial as knowing which end of the toothbrush to use. As a self-confessed ‘creative,’ my relationship with spreadsheets was, for a long time, similar to my childhood feelings toward broccoli (and trust me, my mom would attest to the theatrics involved). But as I soon discovered, just like broccoli, spreadsheets – when prepared right – can be surprisingly tasty (and good for you!). Unearthing the Art in Spreadsheets Much like a painter’s canvas or a sculptor’s stone, a blank spreadsheet holds endless possibilities. […]
A good income doesn’t always lead to a good outcome. Being smart with money has little to do with your income and a lot to do with how you behave with it. Let’s meet two people who will show just how true this is… Jesse Livermore was the greatest stock trader of his time. Born in 1877, he was a trader before most people knew that was possible. By 30 he was worth the inflation-adjusted equivalent of $100 million. Jesse was already a well-known investor by 1929 when the US stock market crash that year ushered in the Great Depression. In a stroke of luck (and maybe a dash of genius) Jesse had shorted the market the week of the crash, betting stocks would decline. When most lost everything, Jesse had his best ever day of trading, ending up fabulously rich. In the next 4 years, overflowing with confidence, Jesse made larger and larger bets and eventually lost everything in the stock market. While Jesse was very good at getting wealthy, he was equally bad at staying wealthy. Even if you don’t see yourself in the “wealthy” category, the lesson applies to all income levels. Getting money is one thing. […]
I want to introduce you to the intuitive spender… But before I do, I want you to meet the intuitive eater (she’s the intuitive spender’s cousin.) The intuitive eater The intuitive eater is someone who’s slender and is in good shape. She’s able to maintain her physique because she eats when she’s feeling hungry and stops when she’s full. She doesn’t believe in dieting and enjoys having a banana split once and a while — without feeling guilty. Now that you’ve met the intuitive eater say “hello” to the intuitive spender. The intuitive spender Just like his cousin, the intuitive spender is in excellent “financial” shape — he’s debt free, pre-saved for his vacation to Italy, and his retirement savings are on track. The amazing thing is that he (the intuitive spender) doesn’t believe in budgeting. He views being restrictive as “silly.” That’s because he has an innate sense of what he can spend and not spend his money on without having to check in with a budget. The intuitive spender can tell the difference between his needs and wants. And even when he sees a “want” — like the latest designed Salvatore Ferragamo silk tie — he feels it and […]
Perfectionism has plagued me from eating healthy, working productively, and from having financial freedom.
Take eating healthy for example: In my mid-twenties I started to gain weight. I knew I needed to diet, so I joined a weight loss program. The day before my first class I ate my “last supper” will all the forbidden foods I could think of: Snickers as an entre, banana split for the main course, and ketchup chips for dessert. After I finished, I vowed never to eat junk food again.
I’ve always been good at theory. But terrible at taking action. For most of my life, I’d fantasize about what I wanted to do and where I wanted to go in life, but most of the time I never followed through. I was born like that. As far back as I can remember, I always had a huge amount of resistance starting any project of significance (and finishing Super Mario doesn’t count.) Even as a child, I wanted to do my homework but I always pushed it off until last minute and usually didn’t get it done in time. My teachers would tell my parents “he’s a smart kid but he needs to apply himself more.” And this pushing-off-mentality caused a lot of damage in my life — beyond my calculus marks. My finances suffered because I lived in the world of “intention” and not “action.” I used to dream about being wealthy — but always spent my money on stupid stuff and never saved. I read lots of budgeting articles. But didn’t do anything with that knowledge. “An ounce of action is worth a ton of theory.” – Ralph Waldo Emerson Quotes like Ralph Waldo Emerson’s would swirl around […]
“I’m not good with numbers.” Sound familiar? When you talk negatively about yourself — like the example of above — what are you really trying to say? Are you giving yourself an excuse — an exit out from dealing with your finances? By telling yourself that you’re not good with numbers are you really saying you’re not responsible? But what if the numbers part isn’t as hard as you think it is? That all you gotta do is read one short book and away you go (free book link on the bottom of this blog.) To some, that can be scary. Why? Because once you know what to do — and realize it’s simple — that makes you responsible to solve your financial problems. So, now, you have a choice: Either you can a) keep on believing that your not good with numbers and will be financially doomed forever, or, b) take twenty minutes, read the book, and take control of your finances. The choice is yours. Free book link: www.yourmagicnumber.com
Your experiences shape your worldview. Your worldview shapes your narrative. Your narrative shapes your actions. —- You can’t change your past experiences. However, you can change your worldview by understanding where it comes from. Is your worldview from your culture? Something that someone said to you? Is it from your mature adult perspective or your child’s perspective? Think about these questions. They’ll get you started. —- What does this have to do with budgeting? Everything. If you want to take control of your finances, you need to take control of your financial worldview.