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« 10 Bad Habits and What They Cost You | Main | What Do You Splurge On? »

April 06, 2010

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While this will not help you to accumulate a great amount of savings, it will help you to save for a special treat or something you have been wanting to buy for your home. My husband and I have two large jars in which...one we save all our coin and the other we throw dollar bills and sometimes a five or ten bill. You will be surprise, in a short amount of time, just how much you have saved without realizing it. In this economy, every little bit helps!

I agree with the principles in this post, but I've found a much simpler way to sum up the key difference between those who are successful managing their personal finances and those who are not.

Those who are not successful with money tend to view money as something that you use to buy more and more expensive toys. Money allows these people to keep up with the Joneses, buy a bigger house, a nicer car, a more expensive wardrobe, etc. Viewed this way, money becomes an end in and of itself.

Those who are successful with money tend to view money as a means to create flexibility and freedom in your own life. Money allows these people to quit a job they hate in exchange for a lower paying one they are truly passionate about, retire at whatever age they would like, sleep better at night, give to causes they believe in, etc. For these people, money is nothing more than a means to an end.

I think the best principle in this article is the first one. Money is definitely a mental/emotional game. In short, money problems are usually emotional problems.

@bad-brad---People who buy toys to keep up with the Jones' usually have emotional problems. They are often people who grew up in the poorer half of their peer group and seek to make up for that by overspending. Of course, it doesn't work. But you can't correct the habit until you correct the underlying emotional problem.

I like #1 a lot.

I like #14...don't drive yourself crazy for cash.

I like this list, and these types of lists in general. Its good to have guidelines to keep in mind as we make decisions on a day-to-day basis.

I am revisiting my approach to #10 - failure. I have been of the mindset that its ok to fail, as you can learn a lot from your mistakes. Thinking about that one a bit lately, I'm starting to look at that differently. If you do fail - ok, you can make the best of it and learn from it. There should be lessons you can take from the experience and get better. That said, failure isn't necessarily ok. It is better to play to win, and really be committed to it. Failure should be something that you can learn from, and can be profitable...but winning is better.

In financial terms, as Buffet has alluded to, its important not to lose money.

All great, but #7 really jumped out at me, today. "...choosing to spend only on the things that matter to you, while cutting costs on the things that don't." I've been on a mission to cut costs for the last two years. It started with coupons and progressed to energy reduction, etc... I've done a ton of reading and have learned SO much! I'm amazed (and embarrassed) at how much money/resources I have wasted over the years...and on things that didn't really matter. Just a few examples:
I now use the shortest cycle to wash my clothes w/half the recommended detergent and ONLY when I have enough for a full load. I had a clothesline installed last summer and line dry when the weather permits.
I refill my hand soap pumps w/Cucumber Melon scented Suave body wash that I got for free.
I bought four pairs of nice work pants (think office attire) for fifty cents each at a garage sale.
I think I've done just about everything a person could do to reduce my energy consumption at home.
None of these things have left me feeling uncomfortable or like I'm doing without. It's really opened my eyes and put me into a whole new mindset!

I like #14, money can't buy you happiness.

Sometimes we focus more on earning...be wealthy..possess more cash etc etc..yes it is important but we tend to forget to spend time on things more important than money. A time well spent. Yes working overtime can bring more food on the table but would you sacrifice your time with your family missing out on a lot of things. We should balance everything. Our landlady once told me, don't wish for something you will end up regretting in the end. She started from scratch, someone was good enough to send her to college. She worked as a teacher and was pretty good handling her finances, maybe because she was married to an accountant. Aside from this she sells jewelries and what have you. Now, she owns 27 apartment and other properties, his husband died and now she's alone. She lives in a big house with one ever loyal housemaid. She's really sad and would come up to me crying, because she wanted to be rich she never had the time to be close to her kids. Yes, they gave him a good life, all her kids are professional but then they rarely visit her. She regret why she chose too much wealth over her family. That's something money can't buy, the missed recital, communion, graduation etc. is not something you can't buy. There should always be balance in everything.

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