Fix the Cause

How is that "reduced spending on the small things" going? For those of  you that are having a hard time I hope the next story will be a motivator. Rethink the reduced spending amount on the small stuff . Don’t for get to pay down the dept with the extra cash.

I got a phone call from my friend, Karen, the other day.  She told me that a mutual friend, Brenda, had just been diagnosed with cancer. Brenda had suffered several years of a restricted existence due to emphysema. She was a smoker, despite a family history of both diseases. Karen said she just could not understand why a person would do something she knew could cost her quality of life and life itself.

While not as extreme, we can consider our spending behaviours as costing us more than our paycheques: our health and well-being for one. Ask most women how they feel when they think about their present and future financial situation and you’ll hear words like “anxious”, “depressed”, “frustrated”, “distressed”, “overwhelms,” even “scared”. These are not descriptions of mental and emotional well-being. Canadian women cite finances as the number one cause of negative stress in their lives. Fifty-two per cent of us say that stress impacts negatively on our health - and with stress comes depression. At least one in ten of us will be diagnosed with depression at some point in our lives.

It’s not just our mental and emotional health that’s affected by financially-related stress, the stress can actually cause us an early death. A recent study has shown that women exposed to high levels of financial and emotional stress are more likely to die sooner than those who aren’t. Furthermore, women are more prone to stress than men, signifying that women are susceptible to diseases like cancer and heart disease.

And how do we address those stress-related health problems? Instead of dealing with the causes, our finances, we deal with the symptoms, and dealing with the symptoms all too often cost us more money, and so the vicious circle continues! Gym passes, the gym gear, spa treatments, dietary supplements and foods, exotic “cure all” potions, yoga classes, meditation and relaxation courses, alcohol, prescription and non-prescription drugs, “getaway” trips, socializing, retail therapy – the list goes on – may help you feel momentarily good, but your financial situation, the cause of your stress, hasn’t changed.

Are you an Addict ?

Here are five ways to tell whether you are addicted to shopping:

1. You get very excited by the prospect of a trip to the shops. We're not just talking about it being a nice treat. If it is more of a necessity that could not get through the week without then you could be hooked. Scientists have found that the euphoria experienced by addicted shoppers is similar to the highs and brain chemistry caused by falling in love. You literally get passionate about the high street.

2. Your mood swings are frequent. You may be animated and over-excited in a shop, even engaging shop assistants in conversation as you pursue purchases. But prepare for the inevitable crash of emotions as the money is spent and the glow fades and you end up gloomy and sullen.

3. You look on social events such as weddings and parties not as a chance for fun but an excuse to shop.

4. Your cupboards are full of new clothes, shoes, jewelry and make-up, either unworn with labels still attached or worn once and never touched again. You don't actually care what you buy so long as you are buying.

5. You're in debt because your income cannot support your habit. 

Think about this while you work at keeping the small stuff spending under control. 

 

So , how did it go?

So how did that go, any new thoughts or realizations? I am sure some of you were surprised at how much or how little you spent on the small stuff. How about your state of mind, were you able to separate the state of mind about money from the actual money? Do you think you could be happy even if the debt is still there?

Now I am no psychologist but I know that how we feel about things has more to do with what we think about them than any thing else. As an example, which I think many of you can relate to, you get a rip in a brand new pair of hose (they were expensive too) and it up sets you because it is money wasted. You will be late for the meeting because you have to buy a new pair on the way.  Now you can choose to dwell on that and tell your story all day or decide to “be prepared “. Start to store an extra pair in your desk at work and you may want to ask some one to smooth off the corner of the desk where you got the snag. Then get on with it and enjoy the rest of the day. Do you see the difference, one person just pouts and does nothing to fix the situation and the next solves the problem and enjoys the rest of the day?  Not all issues are this simple but they work on the same principle. So what will be you attitude about the money in your life? Fix the situation you are in or just pout about it?

The attitude is up to you but I can give you some tip on how to help pay down the debt or save for that rainy day. That is where this “latte factor “will help to free up some cash. Now if you are not spending any thing on the small stuff I say let go and live a little, if the budget allows some freedom.  If not , water and air are basically free.

Example

Please work your own out in the same style. Or just use the total amount for the week

Item	@	#	Total
Coffee/Tea	$3	6	$18
Lunch out	$10	3	$30
Friday Drinks	$7	2	$14
Saturday Brunch	$12	1	$12
Total			$74

I don’t know about you but $74 dollars is more money than I want to spend on the small stuff each week. You may think this is high but if you were to track it for a year this is not all that far out as Christmas lunches, birthday event etc… etc... etc… all add up. 

Look at this as a yearly value.  $74 X 50 weeks (2 weeks vacation) = $3700. Now I don’t want you to stop having fun but pick a loan / card and pay a little extra each week.

Here are some changes you can make and still not feel deprived.

1. Buy a coffee press and good coffee or tea and make your own. The cost is about $6 per week  for a saving of $12
2. Go out for lunch 1 day a week for $12 and save $18
3.  Saturday Brunch only on payday Saturday. $6 savings week if you get paid ever 2 weeks
4. Drinks only now and then, say one time a month. Save $10 a week.

Still having fun and enjoying some of the little pleasure but saving at the same time. The amount you will save every week will be $46 dollars and leaves you $24 to have for the small stuff.

Now pick the loan or credit card with the highest rate of interest and pay this $46 each week. Do each it week or all of it on pay day. Don’t wait to the end of the month the money will not be there.

PS some thing does not become a habit until you have done it thirty times. Hard work but the pay off is great. 
comments welcome