It’s now less than three weeks to Christmas and I have some good news and some bad news
If you set out to fix your personal finances in 2013 and haven’t made that happen yet then I hate to break it too you but it’s probably not going to happen this year
(That would be your bad news.)
If you are a regular reader of mine and I just described you above (i.e. you did not fix your finances in 2013) then I actually feel a sense of failure on my part. If you wanted things to improve this year and they didn’t, then I haven’t done my job well enough and I feel like I have let you down in some way.
Now of course I realise it is a two way street and maybe you weren’t looking to me for help, but clearly if that was the case, I didn’t convince you I had the answers you were looking for.
(So that would be my bad news!)
There is good news though..
I was chatting with one of my Simple Wealth Steps customers on the phone this morning and we were discussing the course and how she was going.
She is pretty happy with her progress this year and her comment was that she realised there hadn’t been one big magic moment in the course that suddenly gave her the secrets to financial success but that it was a gradual change in attitudes, thought patterns and habits.
She told me that during each week, after reading what I had to say about the topic of the month, different thoughts would come up on that topic that would challenge her and cause her to question her existing beliefs or attitudes and over time it was clear to her that she was evolving into someone with a different mindset around money.
Later in the day I had a phone call from another of my Simple Wealth Steps ‘students’ and we were discussing his budget. He sent me a copy so I could view it on my computer and the conversation ended up going to chocolates and peanuts!
You see his budget said he should be stashing around $1,000 a week away but in reality he was going backwards.
What was going wrong?
I used Chocolates and Peanuts to explain.
If you have a weakness around any food (such as peanuts or chocolates) you will know that you just can’t have one! Once you start eating the only thing that stops you is the pack running out! It’s a funny thing that when it does run out though you then just accept it’s time to stop eating.
I explained to him that money is the same. If you have a weakness with spending money and you only stop when the pack is empty (well the account in this case), then you had better set up a system to limit the size of your weekly pack of money.
The solution was simple. Money for the 3 F’s (Food, Fuel and Fun) needs to be transferred weekly to an account that is allowed to be emptied each week and once it is empty you have no choice but to stop spending until next week.
Money put aside for bills should not be easily accessible.
It seems my student had all his money in one account and even though there was a budget plan it was not working because the target balances were never being achieved due to the never ending feasting on any balance above flat broke!
I think we made progress there!
So there is my good news and my bad news for today….
Even better news though is that I am gearing up to help make your 2014 the year for financial change and success (if that’s what you want).
If you are sick and tired of being sick and tired of being broke or stressed about money and really want to make a change, then NOW is probably not the time to try to fix things, but definitely IS the time to start planning for next year so you can get off to a good start.
More about that next time though!
Have a great week.