Home » Posts tagged 'willpower'

Tag Archives: willpower

Her Story

KYM Money Management Success Strategies Institute begins Monday – January 9, 2017. Sign Up Today.

Her Story
By Dwight Harshaw, BBA, Personal Finance Counselor

Dwight Harshaw, BBA

Dwight Harshaw, BBA

Recently, a story came to light in my hometown about a 27 year old woman who was cited for a misdemeanor sex charge. She was caught by an undercover detective in a sting operation targeting escort services. It was her first night on the job. How did she get there? She said she lost a second job, she was going through a bankruptcy, and her wages were being garnished. Her financial problems overwhelmed her and drove her to making an unfortunate decision, which destroyed her young career. I don’t know her and this is not a condemnation. I have great empathy for her. I am captivated by her story because-before she resigned-she was a high school algebra teacher, with a master’s degree, in her fifth year of service. What happened?

I don’t know any more than what has been publicized but in looking and speculating about her situation through a personal finance lens, I think she may have found herself in the circumstance that a lot of young people and people in general are in; they are besieged with debt. The average college graduate is nearly $20,000 in debt. (Source: Demos.org, “The Economic State of Young America,” May 2008) Many have fallen prey to the constant stream of messages (advertising) that are designed to persuade people to value things (depreciating assets, junk) more than money (financial security). Once young graduates get their credentials and jobs, they want the material accoutrements that they believe they should have. On top of school loans and credit card debt, they pile on more debt. And then, there are the ordinary living expenses of life to contend with. Before they know it, they find themselves in unsustainable financial predicaments. More attention needs to be given to the importance of wealth building, especially at the start of a career.

 

Stylish Woman Dancing with Martini in Hand

 

Wealth Building

Wealth building is simply being knowledgeable about money and making it work for you more than it works for others. To become a wealth builder, there are 4 things you should do. You should steer clear of new debt, establish an emergency fund, pay off your student loan debt early-if you have any, and save for your long term future.

 

Avoid Debt

The young lady is bankrupt and suffering wage garnishment. When credit is so easy to obtain, it is hard to be responsible. We use it to buy non-financial things that give us temporary pleasure. We buy expensive wardrobes of which the styles come and go; we buy new cars which lose value as soon as the deal is done; and we purchase things that we simply don’t need, but the debt on those things goes on, long after the usefulness and excitement is over. Credit should be used responsibly-never! Okay rarely. Debt avoidance is a virtue.

 

Emergency Fund

If she had an emergency fund, she might not have been faced with a decision that put her career in jeopardy. An emergency fund is a fund dedicated specifically for extraordinary immediate crisis needs; it smoothes out a rough financial time. Car repairs, job lost, medical bills, household maintenance problems or things that cannot be paid for with out-of-pocket cash qualify as emergencies. It should be a priority to fund it with at least 1 to 2 thousand dollars initially and with 3 to 6 months of your take home pay ultimately.

 

Pay off student loan debt

Some are fortunate to not have student loan debt when college life is over. If that is not your fate, I have this advice; pay your loans off as soon as possible. Double your payments or add an extra amount to reduce the total interest and time that you will pay on your loan(s). Be sure to follow the protocol of the lender for early payoff. The sooner you pay off your student loan debt, the sooner you can get on with building wealth.

 

Retirement

The money you save early on in your career will be the most valuable when you retire. The elements of time, dollar cost averaging, and compounding are a wealth builder’s best friend. Save to the maximum level in tax advantaged retirement plans offered by your employer. If nothing is offered or you can afford to save more, establish a traditional or Roth IRA and fund it to the max or with as much as you can. Ultimately you want to save at least 15% of your annual income for the future because the burden of providing for your retirement is on your shoulders. The money you save early will be worth more and be more useful in the years to come than the value of any consumer item you may buy today.

Her story is all of our stories. All of us have made unwise financial decisions. On a positive note she is young, smart, and hopefully ambitious. She will recover over time and this will all be a distant memory. Time heals. When you find yourself off track financially, get back on. To be a wealth builder, remember this; it is wise to pay with cash rather than with credit, have money set aside for a crisis, pay your debt off early, and save for your long term future.

 

About Dwight Harshaw: Dwight Harshaw is a personal finance counselor, realtor and writer. He has a BBA from the University of Arkansas at Little Rock in Finance with an emphasis on financial planning.

twitter-i

like-us-on-facebook

Copyright © 2016 CWR Media – All Rights Reserved

Can You Live Without It?

Guest Contributor Lionel Shipman

Lionel Shipman Owner - Shipman Consulting

Lionel Shipman is the owner of Shipman Consulting, a personal and business finance-consulting firm specializing in helping individuals and businesses improve their financial outlooks. The primary focus of the firm is facilitating seminars and classes to educate, motivate, and empower people to take charge of their financial lives. The firm also offers one-on-one consulting services.

Please visit the firm’s website for information at  WWW.ShipmanConsulting.Com.

Email address: Contact@ShipmanConsulting.Com ; Twitter: @LShipmanSC

 

Know Your Money
Monday – November 14, 2016
(First  published September 17, 2014)

Can You Live Without It?
By Guest Contributor – Lionel Shipman

 

Can you recall some old love songs that included the words “I can’t live without you”?  The song talked about living everyday with that special person and the consequences of living without them.  Well, you can live without that special person, even though you may not want to.  It may be a huge adjustment but you can do it.

Can you recall a day when you were walking in your favorite department store desiring a certain pair of shoes?  As you casually decided to try on the shoes and take a stroll in them, you noticed that the shoes felt wonderful to your feet and the price was not bad. With the biggest smile, you looked at everyone around you as well as the sales attendant and said “I’ve got to have these shoes.  I cannot live without them”.

Well, that is the mentality that many people have regarding their spending.  It is the “I cannot live without it” mentality. Instead of people working toward getting their financial houses in order, they are casually spending on things they cannot afford or even need.  If there has ever been a time to spend carefully and manage your money, the time is now. 

I am not trying to promote fear; rather, I am aiming to instill sound financial judgment into the hearts and minds of people, especially when it comes to spending.  It reminds me of the biblical parable regarding the man who built his house on sand as opposed to rock.  When the storms came, the house built on sand crumbled and washed away; whereas, the man who used rock as the foundation, his house withstood the effects of the storm and remained intact. Well, many consumers’ financial outlooks are not only crumbling but are being washed away because of the “I can’t live without it” mentality.

Can't Live Without It!!!

Can’t Live Without It!!!

Check this out. Without using any names, I recall a couple of years ago a person discussing with me that paying off debt was going to be their main goal for the year. However, every month this person was spending and making unnecessary purchases such as dining at expensive restaurants and buying sporting gear, at the same time trying to justify their spending spree. This person’s actions implied that they just could not live without it.  Who cared that the charges were paid by credit card and were not paid off by the end of the month the charges were made?

Here is another example. My wife and I met a couple that ventured on a cruise vacation even though their home mortgage was in the beginning stages of foreclosure.  Granted, I believe taking a vacation is important.  However, when the mortgage or rent payment is due, a vacation can be postpone to a later date or one can consider taking a modified vacation by placing a beach towel on the floor, getting some snacks and a mixed drink, and enjoying a television marathon of vacation hotspots on the Travel Channel.  I know that sounds humorous.  But, what is the alternative?  Keep spending because you deserve it (new shoes, clothes, car, expensive vacation, etc.)?  Keep spending because everyone else is doing it?  Keep spending because it makes you feel good?  Keep spending because you have worked hard all year long?  Can you live without it?  Yes, you can live without it.

During my personal financial seminars, I always stress that everyone should enjoy life to the fullest.   However, we must control our spending and remove the “I can’t live without it” mentality.  Regardless of the discounts, rebates and percent-off offers, we (consumers) should not allow the “it” to control how we allocate and spend money.  Consumers should remind themselves that the “it” will no doubt be there when they are in a better financial position to afford it.  Don’t worry, the great sale in the department store will most likely happen again.

The “I can’t live without it” mentality reminds me of the cliché “keeping up with the Jones’.  When a neighbor or friend decides to purchase a new house or car, why do we feel pressured or obligated to do the same or better?  Why do we strive to live like our favorite entertainer or sports figure, knowing that our incomes are nowhere near theirs?

If consumers continue spending carelessly and allow the “I can’t live without it” mentality to lead their financial lives, they will be placed in a position where they will have no choice but to live without it.

© Copyright CWR Media, 2016.   All rights reserved.

Can You Live Without It?

          Guest Contributor Lionel Shipman

Lionel Shipman Owner - Shipman Consulting

Lionel Shipman is the owner of Shipman Consulting, a personal and business finance-consulting firm specializing in helping individuals and businesses improve their financial outlooks. The primary focus of the firm is facilitating seminars and classes to educate, motivate, and empower people to take charge of their financial lives. The firm also offers one-on-one consulting services.

Please visit the firm’s website for information at  WWW.ShipmanConsulting.Com.

Email address: Contact@ShipmanConsulting.Com ; Twitter: @LShipmanSC

 

Know Your Money
Wednesday – September 17, 2014
Can You Live Without It?
By Guest Contributor – Lionel Shipman

 

Can you recall some old love songs that included the words “I can’t live without you”?  The song talked about living everyday with that special person and the consequences of living without them.  Well, you can live without that special person, even though you may not want to.  It may be a huge adjustment but you can do it.

Can you recall a day when you were walking in your favorite department store desiring a certain pair of shoes?  As you casually decided to try on the shoes and take a stroll in them, you noticed that the shoes felt wonderful to your feet and the price was not bad. With the biggest smile, you looked at everyone around you as well as the sales attendant and said “I’ve got to have these shoes.  I cannot live without them”.

Well, that is the mentality that many people have regarding their spending.  It is the “I cannot live without it” mentality. Instead of people working toward getting their financial houses in order, they are casually spending on things they cannot afford or even need.  If there has ever been a time to spend carefully and manage your money, the time is now. 

I am not trying to promote fear; rather, I am aiming to instill sound financial judgment into the hearts and minds of people, especially when it comes to spending.  It reminds me of the biblical parable regarding the man who built his house on sand as opposed to rock.  When the storms came, the house built on sand crumbled and washed away; whereas, the man who used rock as the foundation, his house withstood the effects of the storm and remained in tact. Well, many consumers’ financial outlooks are not only crumbling but are being washed away because of the “I can’t live without it” mentality.

 

Can't Live Without It!!!

Can’t Live Without It!!!

 

Check this out. Without using any names, I recall a couple of years ago a person discussing with me that paying off debt was going to be their main goal for the year. However, every month this person was spending and making unnecessary purchases such as dining at expensive restaurants and buying sporting gear, at the same time trying to justify their spending spree. This person’s actions implied that they just could not live without it.  Who cared that the charges were paid by credit card and were not paid off by the end of the month the charges were made?

Here is another example. My wife and I met a couple that ventured on a cruise vacation even though their home mortgage was in the beginning stages of foreclosure.  Granted, I believe taking a vacation is important.  However, when the mortgage or rent payment is due, a vacation can be postpone to a later date or one can consider taking a modified vacation by placing a beach towel on the floor, getting some snacks and a mixed drink, and enjoying a television marathon of vacation hotspots on the Travel Channel.  I know that sounds humorous.  But, what is the alternative?  Keep spending because you deserve it (new shoes, clothes, car, expensive vacation, etc.)?  Keep spending because everyone else is doing it?  Keep spending because it makes you feel good?  Keep spending because you have worked hard all year long?  Can you live without it?  Yes, you can live without it.

During my personal financial seminars, I always stress that everyone should enjoy life to the fullest.   However, we must control our spending and remove the “I can’t live without it” mentality.  Regardless of the discounts, rebates and percent-off offers, we (consumers) should not allow the “it” to control how we allocate and spend money.  Consumers should remind themselves that the “it” will no doubt be there when they are in a better financial position to afford it.  Don’t worry, the great sale in the department store will most likely happen again.

The “I can’t live without it” mentality reminds me of the cliché “keeping up with the Jones’.  When a neighbor or friend decides to purchase a new house or car, why do we feel pressured or obligated to do the same or better?  Why do we strive to live like our favorite entertainer or sports figure, knowing that our incomes are nowhere near theirs?

If consumers continue spending carelessly and allow the “I can’t live without it” mentality to lead their financial lives, they will be placed in a position where they will have no choice but to live without it.

 

© Copyright CWR Media, 2014.   All rights reserved.

It’s Another Weekend

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

 

Know Your Money
Friday – July 18, 2014

Knowing Your Personal Finances
It’s Another Weekend
By Donell Edwards

 

As another weekend approaches if you are a regular follower of this post, or if you are new, I have just three words for you; Stay The Course.  All of you Weekend Warriors know that it is time to put on your battle gear and prepare to go to war against the desires and temptations to spend needlessly during the weekend.  As we repeatedly recommend, do not get off your budget over the weekend because you reason that, you have earned it, or because you deserve it, but remember the ultimate goal is to get out of debt and start building wealth.

There are lots of things that we have mentioned in past posts that can result in succumbing to your own desires, or allowing yourself to be influenced by others to engage in activities or to do things that cause you to overspend your budget.  You simply cannot allow this to happen.

To get out of debt requires sacrifice, determination, and self-control.  It is a process, and it takes time, but you will just be spinning your wheels and starting the process over and over again if you keep making new debts, and if you spend money that could have been used to pay down debt to splurge.

Of course, a little enjoyment within your budget is acceptable.  The problem is not monitoring spending and letting things get out of control and overspending the budget.  The weekend is one of the times when this most often occurs.

 

Young Couple with Their Daughter and Son (8-12) Going on a Picnic

 

So, stay the course, be determined, exercise self-control, and don’t let anyone or anything cause you to waste your money this weekend.  Check your budget and monitor your spending first to see what you can do and what you can spend.

To help you, there are several articles that we have featured  in our Must Reads section in the past that I strongly recommend that you read or review again if you have already read them, at the end of this article.

 

Must Reads From Previous KYM Posts To Help You Get Ready For the Weekend:

Why Do We Splurge On Things We Don’t Need?
http://www.seedebtrun.com/everything-i-need-to-be-happy/

The Dangers Of Credit Cards
http://www.moneysmartguides.com/dangers-credit-cards

10 Reasons To Use A Cash Only Spending Plan
http://ht.ly/uZyDX

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to comments@knowyourmoneyglobal.com.

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

 

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

Copyright © 2014 CWR Media – All Rights Reserved

 

 

The Seven Enemies of Change

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

 

 

 

Know Your Money
Tuesday – May 27, 2014

Knowing Your Personal Finances
The Seven Enemies of Change
By Donell Edwards

 

Today’s topic is the seven enemies of change.  For most readers of this blog who are genuinely interested in improving their personal money management skills, it will be necessary to make some changes in your life and habits.  We have mentioned this before and have repeated the necessity to make changes because it is so important to understand that deeply ingrained habits that were learned over a number of years, or perhaps a lifetime, are not easily changed.  One of the major problems for many people is the lack of the willingness to change.  There may be a number of reasons for a person having this attitude.  Because change is not easy.  So today, we will discuss seven of the enemies of change.  These are by no means all of the enemies of change, but these are seven that we feel are of particular importance.

Doubt – Some have doubts about their ability to make changes.  They have grown so accustomed to managing their financial affairs a certain way for so long, they do not feel that they can make any changes.  Or, they doubt that making changes will be beneficial.  So, doubt prevents them from having the willingness to change, or to see any advantages in making changes.

 

Fear – A powerful enemy of change is fear.  Fear is much stronger than doubt and is much more difficult to overcome.  One of the greatest fears many have is the fear of losing control.  When it comes to managing personal finances, it may be necessary to relinquish some control to a mate, a relative, or a professional counselor or adviser. This is a scary scenario for some to contemplate.   Then, there is the fear of change itself.  Most people are comfortable with their own way of doing things and fear the impact that changes may have on their life.  They fear the sacrifices they may have to make.  They fear the effect it may have on lifestyle and relationships.  So, fear not only prevents them from having the willingness to change, it prevents them from making changes.

 

Weakness – It takes a lot of inner strength to make changes.  When it comes to managing money some are weak when it comes to resisting the temptation to buy things they don’t need, they are too weak to make the sacrifices they must make in order to live within their budget,  they are too weak to implement any changes in life that require willpower and determination.  So, weakness prevents them from making changes, or if they attempt to make changes, weakness prevents them from following through on their decision to change.  

 

Laziness – Making changes requires great effort.  When it comes to managing money it takes effort to monitor and control spending.  It takes effort to develop a realistic budget and to follow it rigidly.  It takes effort to resist temptation, to make sacrifices, and to communicate with others who may be involved or affected by personal money management decisions.  Some people just do not want to take the time and energy to take control of their personal money management, so they allow laziness to prevent them from making beneficial changes.

 

 

Jump Through Hoop --- Image by © Royalty-Free/Corbis

Jump Through Hoop — Image by © Royalty-Free/Corbis

 

Denial –  Alcoholics will tell you that they do not have a drinking problem.  In spite of all of the evidence, they will vehemently deny that they have a problem.  Some who live from paycheck-to-paycheck tell themselves that if they can just make it one more paycheck, or one more month, they will be able to get over the proverbial hump.  But it seldom happens.  Bills go unpaid, or get paid late, ultimately resulting in some bills going into collection.  In spite of all of the evidence, many people in this situation are in denial.  They cannot accept the fact that they need to make changes in the manner in which they manage their money, they need help.  Denial is one of the most powerful of all enemies to change.

 

Delusion – Delusion and denial are closely related enemies of change.  Whereas denial is the refusal to accept the obvious facts, delusion is usually the catalyst that causes the denial; it is a false belief or manner of thinking that a person deceives themselves into believing is truth.  So, a person is deluded into denying the reality of their situation, and thus has an aversion to change.

 

Complacency – As creatures of habit it is a lot easier to remain in our comfort zone and be content with the status quo, rather than to embrace change, even beneficial change.  This complacent attitude is another one of the enemies of change.  Again, some delude themselves into thinking that everything is just fine the way it is, and they ignore warning signs that finances are getting out of control, or that they are already in trouble with the way they are managing their personal finances.  They see no need for change.   

 

So avoid these seven enemies of change, as well as all other enemies of change, because change is essential to your success in managing your personal finances and in all aspects of life.

Behavioral change is very difficult, so in today’s Must Reads we present a series of very short articles on behavior change written by Kendra Cherry, who is a licensed psychologist and also the psychology expert at about.com.  In her articles Dr. Cherry discusses how to get started in making behavioral changes, the essentials of change, and the different stages of change.  I highly recommend that you read these articles to help you recognize and defeat the enemies of change. 

 

Must Reads:

Behavior Change:  Getting Started

The Elements of Change

Stage 1 – Precontemplation

Stage 2 – Contemplation

Stage 3 – Preparation

Stage 4 – Action

Stage 5 – Maintenance

Stage 6 – Relapse

 

 

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to comments@knowyourmoneyglobal.com.

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

 

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

Copyright © 2014 CWR Media – All Rights Reserved

 

 

The Real Value of Money

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

 

 

Know Your Money
Thursday – May 22, 2014

Knowing Your Personal Finances
The Real Value of Money
By Donell Edwards

 

I am writing today’s post as the result of a response that I got to a post to one of the groups that I belong to on LinkedIn.  I recently submitted a post to all of my LinkedIn groups to inform them about this blog and to invite them to visit the blog.  I cited a Harris Poll which shows that many Americans have serious problems managing money to emphasize the need for a blog of this nature.

Here is one of the comments that I received which shows why so many people are in trouble with money management, and why they don’t get the point:  If you don’t have money, then there is nothing to worry about. Make your money and then you will know your money.

The person who made this comment may have been well meaning, or they may have been a little facetious, whatever the case, they totally missed the point.  This blog discusses money but it is not about materialism or getting rich, it is about managing money more wisely and building wealth, the blog is about life and the role money plays in life.  It is about understanding the real value of money.  It is about using what money one has in the best way to live a fulfilled and enjoyable life, to help others, and to make the world a better place.  It is about learning to budget and not overspend, it is about paying off debt, saving, and accumulating wealth.

Now allow me to explain.  Most people associate wealth with money, however, as I learned from my college Economics instructor, the late Mr. Herbert Benjamin, Wealth is all of the material things produced by labor for the satisfaction of human desires and having exchange value.  The factors in the production of wealth are land, labor, and capital.  Wealth includes all of the factors of production, and must also be material (matter from which something can be made; raw or processed material), capable of satisfying human desire, and have exchange value.  Therefore, money is not wealth, medium of exchange.  Neither are shares of stock, bonds, or other securities, they are only evidence of ownership.  True wealth, from an economic standpoint,  is possessing all of the factors of production, land, labor, and capital.  So accumulating wealth involves more than possessing money.

I am a Christian, and I respect those of you reading this blog who may not be Christians or who have no faith, that is your right.  However, I am a Christian and I am not ashamed of my faith.  The Bible helps understand the real value of money, and it says at Ecclesiastes 7:12,  For wisdom is for a protection [the same as] money is for a protection; but the advantage of knowledge is that wisdom itself preserves alive its owners.  I always like to compare Bible translations to get a better understanding and the Kings James Bible translates this scripture as, Wisdom is a defence, and money is a defence.  The Bible In Basic English translates, Wisdom keeps a man from danger even as money does.

So, the true value of money is to protect us from calamity, to defend us against the unexpected, and to keep us from danger.  Now, before some of you go to one of the most misquoted scriptures in the Bible to show that money is evil, 1 Timothy 6:10, that scripture does not say that money is the root of all evil, it says that the LOVE of money is a source of all kinds of evil (Good News Bible).

How is money a defence and protector?  If you should lose your job, and that happens frequently in today’s world, the mortgage or rent continues, the bills keep coming, the utilities must be paid, the car note is still due, the family still needs grocery, and the list goes on and on.  It is not uncommon for people to be unemployed for months or longer before finding work, and then in many instances their income is much less than it was on their former job.  That’s how money is a protection.  If you have used your money wisely over the years and you have an emergency fund, if you have an additional savings account, perhaps you have investments, that wise use of money will serve as a protection for you and keep you from the danger of a severe financial reversal.  So, unlike the comment to my LinkedIn post putting the emphasis on making money, the real issue is what you do with the money you make.

Money is also a defence in other ways.  If for some reason a child is arrested and charged with a felony and bail must be posted, and an attorney must be hired to defend him, money is a protection.  What do you do as a parent in that situation if you do not have the money to help your child, or you have not handled your financial affairs in such a way that you can get access to the money you need.  That is a helpless feeling for a parent.  This is the real value of money, helping you to keep your family from danger.

Another major way that money is a protection is in retirement.  Many young people believe they are invincible and give no thought to getting old one day and how they will take care of themselves.  So they do not plan, they do not save, they have not set aside anything for retirement, or they started late in life and they do not have enough set aside to take care of all of the expenses of old age.  This is why it is so important to learn at a young age how to manage money effectively and to plan for your future, because you will not always be young.  One day, much sooner than you think you will be old.  Money is a protection, and is a defence against the burdens and expenses of old age if we have learned and applied good money management practices during our life.

We live in an economy in this country that requires money, so there is nothing wrong with having money, there is nothing wrong with riches or wealth, what is wrong is for one to make the pursuit of riches their main goal in life.  So, it is very, very important to understand the purpose, the real value of money, and to learn how to manage money effectively.  The real value of money is to serve as a protection.

 

 

 

 

Must Reads:

How Our Money Beliefs Hold Us Back

 

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to comments@knowyourmoneyglobal.com.

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

 

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

Copyright © 2014 CWR Media – All Rights Reserved

 

 

Special Savings Series: Getting Started – Do You Have What It Takes?

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

 

Know Your Money
Monday – May 12, 2014

Knowing Your Personal Finances
Special Savings Series:  Getting Started – Do You Have What It Takes?
By Donell Edwards

 

Good morning everyone!  This week we zero in on saving, following up on our special series last week on managing debt.  Hopefully, you are at a point in the process where you have begun to carefully monitor your spending on a regular basis, you are evaluating your spending and eliminating wasteful spending and overcoming bad habits, you have prepared and are rigidly following a realistic budget, and you have gotten your debt under control, or you are in the process of doing so.  These are all steps that must be in place and should be accomplished before seriously working to have a successful savings plan.  One other important step in the process is implementing an emergency fund, which we have discussed briefly in previous posts.

 

Our special series this week will discuss saving directly, as well as other aspects related to your success in establishing and maintaining a successful savings plan.

 

So, are you really ready to start saving?  Over the past two months we have talked about the importance of controlling spending, and the fact that in addition to having a realistic budget and doing the proper planning, it takes sacrifice, willpower, determination, and a willingness to change in order to successfully control spending.  Obviously, in order to save there must be funds to save.  Those funds should come from effectively managing the income that you have, implementing and closely following your budget, and paying down your debt.  As you pay down your debt or receive income occasionally from other sources, use that money for your savings.

 

The first savings project you should have is your emergency fund.  One of today’s Must Reads, Before You Start to Pay Off Debt…Do This,  discusses the importance of an emergency fund.  It is important that you have planned so that once you start saving there will not be anything to interrupt your regular contributions to your savings.  That is where your emergency fund comes in.  There will be unscheduled expenses like vehicle repairs, appliance repairs, home repairs, paying for insurance co-pays or deductibles, and a variety of other things.  An emergency fund allows you to continue to follow your budget and continue to save and care for those expenses.

 

 

Smiling African American businessman

 

 

Most experts recommend having an amount equal to six months living expenses in your emergency fund.  It is a good idea to do this in stages.  First set a goal to accumulate at least $1,000 in your emergency fund.  Do not spend this money for vacations or anything other than real emergencies.  Then as your next goal build that amount to 3 months living expenses.  Once you achieve that goal, then continue until you have 6 months living expenses.  After you reach 6 months living expenses continue to add to the fund until you feel comfortable that you have enough breathing room in case of a severe emergency.  And again, do not spend this money for anything other than emergencies.

 

As mentioned earlier, it will take sacrifice, willpower, and determination to stay with your savings plan.  But, if you are not a person who understands the importance of making sacrifices, if you do not already have willpower, and if you are not determined, how do you acquire these qualities.   In our other Must Read for today, 9 Ways to Harness Your Willpower to Save Money, writer Marilyn Lewis cites a comment from a book review in Mother Nature News from The Power of Habit by Charles Duhigg showing how habits begin with conscious choices, “Then we stopped making a choice, and the behavior became automatic. It’s a natural consequence of our neurology. And by understanding how it happens, you can rebuild those patterns in whichever way you choose.”  So, by repeatedly exercising self-restraint, resisting temptation, and making sacrifice, these choices become habits.  These qualities can be learned with time and effort.

 

So, do you have what it takes to become a saver?  If you don’t, now you know how to get it. 

 

Must Reads:

Before You Start to Pay Off Debt… Do This
http://www.enemyofdebt.com/2014/01/before-you-start-to-pay-off-debt-do-this/

 

9 Ways to Harness Your Willpower to Save Money
http://blog.credit.com/2014/02/9-ways-to-harness-your-willpower-to-save-money-75365/

 

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to comments@knowyourmoneyglobal.com.

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

 

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

Copyright © 2014 CWR Media – All Rights Reserved