May
15
Being cheap is to buy single-ply toilet paper just because it’s cheaper than double ply. Being smart with money, on the other hand, is to buy double ply toilet paper on sale — even though it’s more expensive than single ply. I’m not saying that all cheap people buy single ply — I’m sure plenty of them buy double ply. What I am saying is that being cheap is a knee-jerk reaction. “That’s too expensive” is an automatic response that’s usually baked in from an early age. On the other hand, being smart with your money is a skill that’s developed. Not a knee-jerk reaction. It’s knowing how much you can spend, and being smart enough to say “no” when you can’t afford it and “yes” when you can. (And saying “yes” is as crucial as saying “no.”) People who are smart with money don’t buy cheap junkie dollar store cutlery that’ll shread your rib eye steak to pieces and make it taste like tin. Instead, they save up and find a good deal on a Wusthof set that’ll perfectly cut their steak into mouth-watering pieces. So the goal when you’re budgeting isn’t to become a knee jerking cheapo — […]
May
09
For most of my adult life, I acted like a kid with my money. Kinda like a financial version of Tom Hanks in BIG. Even though I had a beard and a receding hairline, when it came to spending, I hadn’t changed much since first grade. If I wanted it, I bought it. The only difference between the “first grade me,” and the “older me” was that I had a Visa. And because of my financial immaturity, I racked up some serious debt. I hated the feeling of owing the credit card company money — never mind all those interest charges. Grrr. Listen, it wasn’t easy, but today I’m as wise as my grandpa was with money. (FYI: My grandpa was magnificent with money — he was a natural saver and was always after me to stop blowing my money on Upper Deck baseball cards and start investing in “real stuff.” If I had listened to him back then, I’d probably be a kazillionaire today.) Looking back, here are the top five things I’ve done that have changed my finances forever. 1. Stop being impulsive I used to buy things without planning on it. Even when I’d go to “just take a […]
May
02
Accountability doesn’t always work. If you’re saying: “I’ll need you to be on top of me or it’s not going to get done.” It won’t work. That means you’re not ready. On the flip side, if you say: “I can do it all on my own — I don’t need you at all.” That won’t work either. That also means you’re not ready. But there’s a sweet spot between those two opposite attitudes. And here’s how it sounds: “I can do this. But I need accountability for the dips and the tough parts.” That means you’re ready. And that’s where accountability works. P.S. This applies to weight loss, getting fit, reaching a business goal, and of course, taking control of your finances.
Apr
25
I love being silly and telling cheesy jokes. To prove it to you, here’s one: What’s Forrest Gump’s Gmail password? 1forrest1 Get it? Run Forest run! 1forest1! Lol! 😆 Contrast to daddy jokes; finances are dull and boring. To most of us, there’s nothing exciting about budgeting or spreadsheets. And to make things worse, most of the financial pro’s our there are as dry as doorknobs. But it doesn’t have to be that way. You can find humor and silliness in anything you do — and, yes, that includes balancing your chequebook. That’s what James Cunningham did. His financial literacy program, Funny Money, has gotten thousands of high school kids (hard to get interested in anything that’s not an iPhone) to become totally engaged in learning important money lessons. And that’s a valuable lesson for me and you. Us adults, magically morph into distractable teenagers just thinkin’ about our finances. We’ll answer “important” work emails, do the dishes, and watch paint dry just to avoid dealing with our money. So how can do you infuse fun into your finances? The truth is, we all have different senses of humor, and you’ll have to develop your own way. But to give […]
Apr
17
Superman is faster than a speeding bullet, more powerful than a locomotive, and able to leap tall buildings in a single bound. But he’s not invincible. Kryptonite weakens him. If he gets too close, that little glowing green rock will bring him down to his knees. Let me ask you a question. Does Superman hang around kryptonite or does he try to avoid it? It’s obvious: He avoids it. Just like the Man of Steel, you and I also have our own kryptonite — financially speaking. We all have stores that weaken our financial resolve and make us buy — think Costco, Best Buy, Apple, Zara, and Barnes & Noble. But instead of avoiding our kryptonite stores (like Superman would), we walk or click right into them, and convince ourselves that we’re just going to “look.” But we all know, when we get too close to our kryptonite, we get weakened and buy stuff we didn’t want to get. And the stores know this. They use sneaky Lex Luthor ploys to draw you in and make you buckle. But don’t fall for it. Instead, be like Superman: Know what your financial kryptonite is, recognize the tactics it uses to draw […]
Apr
10
Budgeting is 80% emotional and 20% numerical. In other words, 80% of your success with budgeting is based on your emotions, while only 20% is based on your numbers. Learning how to deal with fear, jealousy, and regret are the main components of budgeting you need to master. Sure, an app can crunch your numbers. But it can’t master your financial emotions for you. That’s your project. Once you nail the 80% — the financial emotions — you’ll look and treat money differently. And when your perspective shifts, something magical happens — you’ll become smarter with money and finally start to feel in control of your finances.
Mar
26
Tension is what makes us take action. It’s the urgency that we feel when we need to get something done. If there isn’t enough tension, we “push it off” and don’t do anything. With finances, for example, we feel tension when we see a larger than expected credit card bill or a line of credit that just keeps on going up. We know we need to change. But our first gut reaction is to run away from the tension — to get rid of it. So we bail ourselves out by consolidating our debts, refinancing our mortgages, or asking a wealthier family member for a loan. And the debt cycle continues because we got rid of the tension but never really changed our financial behaviors. Let me ask you: What if we didn’t seek to mute our tension, but ran towards it? In other words, instead of procrastinating, what if we: Started to save for unexpected expenses? Came up with a solid plan to pay off our debt? Figured out a way to get smart with our money? Seth Godin put it best when he said: “When you encounter the tension of now, caused by the urgency of action, veer […]
Mar
19
Mint, Quicken, Mvelopes, and YNAB are just a few budgeting apps out there. They’re all useless. Useless, if you’re not ready to change. All too often, we look for tech to solve our problems. That’s our starting point. Like if we find the right computer program or app, all our financial worries will go away. So we load all our data in and categorize for hours. Finally, we can see where it’s all going, look at some pie charts and graphs. But then we continue with our regular lives. Nothing changes. Know this: Your willingness, determination, and tension are the main ingredients when it comes to budgeting — not an app. Tech isn’t the solution. You are.
Mar
11
Here are some common things we say: I can’t lose weight. I can’t have supper with you tonight. I can’t get that project done on time. I can’t be happy. Here are some financial (and common) things we say: I can’t pay off my debt. I can’t save money. I can’t budget. I can’t make more money. I can’t, I can’t, I can’t. Does that sound familiar? We say “I can’t” to ourselves all the time. And in some weird way, it makes us feel better — like we become exempt from the trouble because we simply can’t do it. But you and I both know, “I can’t” is just an excuse. Really: I can’t = I won’t. Ouch, that doesn’t sound so good, right? Here’s an idea. Instead of I can’t, try “I can if…” Permit yourself to dig deeper. I can if _____________________________. (Go ahead, try it. Fill in the blank.) What would happen if you became a “can-if” person? Like everything is figureoutable. How would your world look? Could something so simple have a profound effect on your finances and your life? I know it does. Do you? Tell me in the comments below.
Feb
26
Most of us keep our finances to ourselves. Kinda like holding a deck of cards to our chest. I get it — we’re afraid what people think about us. Maybe they’ll think we’re a failure. Or worse, maybe they’ll see that we’re a fake. So, as a result, we end up alone in fear of our finances (and interestingly, you can have a spouse and still feel alone.) But what if there was a different way? What if there was a safe-bubble; a group of people who had the same struggles as you, and were all heading in a new direction? Like a community, or a tribe, that gives support and comradery. An openminded group that gives honest feedback, and collectively helps you, and you help them fix their finances. No judgment calls. Ever. What would that look like? How would that make you feel? If someone was holding out their hand and said “Hey! Let’s get out of this place. We’re all heading in a new direction. Hop on!” Would you take the leap? Let me know in the comments. I’m curious.
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