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So we’re two full months into the new year and how many of you have been sticking to the New Year’s resolutions you made on January 1, 2011?
…Crickets?…
…Don’t wanna think about it??
Well let’s look at some “fun” facts…
Stat #1: About 100 MILLION Americans make a New Year’s resolution (CNN). That’s 1 out of every 3 Americans!
Courtesy of icanhascheezburger.com
Stat #2: Out of the top 5 resolutions, two are finance-related: Pay Down Debt and Save Money!
Stat #3: But only 12% of us actually achieve our resolution goals by the end of the year (WSJ)…
Stat #4: And 35% of us have already fallen off by February (CNN)!
So which bucket do you fall in? If you’re not happy with your current bucket, you can make a change today!
We’re in the CRITICAL ZONE, so here are my top 5 tips to making sure you have a fighting chance to meet your financial goals before 2012 rolls around!
1) Mindset, mindset, mindset!
It’s not about doing a crash diet budget. It’s about adjusting your lifestyle over time. As good ol’ Dave Ramsey says, personal finance is 20% knowledge…80% behavior!
REMEMBER: Until your mindset changes, your finances never will!
2) Plan how you are going to actually meet your goals.
Write it down, step by step. Track your progress in a spreadsheet or use free software.
3) Motivate yourself with mini-rewards along the way.
When you reach small milestones, it’s good to recognize that and keep momentum toward reaching the next step.
4) Tell a friend! A lot of friends!
They can encourage you AND hold you accountable.
5) Automate it!
Don’t leave it up to willpower. Decide what you want to accomplish, then set up automatic deposits or automatic payments. Out of sight, out of mind – don’t even give procrastination or excuses a fighting chance to change your mind.
What kind of challenges have you run into with your own resolutions? What tips do you have for others?
So how did I spend my $300 Las Vegas winnings? Did Dolla Thug save every penny until she got home to tuck it safely away in savings??? Ummm…not quite!
Courtesy of zazzle.com
The psychology of “windfalls” are a very interesting phenomenon…I spent most of it, but still had a pretty practical approach (meaning I didn’t blow ALL of it on Patron shots…only $100 went to liquor and more gambling…).
Details as follows:
The First Hundred – the boring, sensible approach: I made sure to tuck one of the $100 bills in my suitcase so I wouldn’t be tempted to spend it and could at least have 30% of my winnings when I got back…and the 70% I spent?…
The Second Hundred: We went shopping the next day and I allowed myself to buy these $80 beauties (which I’ve worn all of 3 times since March!…jackpot money well-spent lol I get some good compliments on these bad boys!):
The Third Hundred: As I stated before, the remaining $100+ I spent buying drinks for me and my friends, food, and gambling a little more here and there throughout the rest of the weekend. As suspected, no more significant wins were made!
All in all, I made out pretty good – no complaints!
I got lucky, but what are some of the common pitfalls of Las Vegas?
10 THINGS YOU SHOULD KNOW ABOUT VEGAS GAMBLING…
1) ALWAYS go with a gambling budget (that you can afford to lose! whether it’s $20 or $200) – and when that money is gone – it’s GONE and you push away from the table! When determining your gambling budget, keep in mind what your REAL financial goals are (winning the jackpot does NOT count as a legit financial goal). You don’t want to put your finances in jeopardy! I went to Atlantic City for our college senior trip, and went with a $40 budget, lost the first $20 on a tragic game of Black Jack. Decided to try the Wheel of Fortune slots, got down to my LAST $5 and knew this was it! Pulled the handle and won $170!! I don’t know where my luck comes from…I think I get it from my daddy, he used to love Atlantic City!
2) Casinos use chips for a reason. Although plastic chips are the equivalent of cash within a casino, you do not have the same emotional connection to little round pieces of plastic as you have to cash money (i.e. your strong desire to keep as many paper bills as possible). This disconnection with chips allows your brain to feel more comfortable with betting more chips than you normally would if you were actually using cash. It’s a very dangerous game when your brain is processing real money as play money. Always keep in mind that at the end of the day, when your chips are gone – your cash will NOT be returned to you!
3) Beware of (what I like to call) The Windfall Syndrome. This syndrome occurs when you win unexpected money, and therefore do not feel the need to act responsibly with it. i.e. “If I fritter it all away on all-you-can-eat hotwings, what difference does it make since I never planned on having this money in the first place?” This is part of why it’s possible for lottery winners to end up going bankrupt! They put windfall money in a separate category or compartment of their brain where they don’t feel it’s necessary to handle it with care as they may with their regular income (if they ever even handled their regular income with care!). When dealing with a significant windfall, it’s recommended that one WAIT before they spend the money (at least a week or more), until the initial emotional high has worn off. THEN set up a plan to spend some, save some, pay down debt, and most importantly WISELY invest some! And don’t fall for scammers!…and anybody approaching you about your new money is a scammer!
4) This is a rumor…but I wouldn’t put it past them! Some believe that casinos actually inject oxygen in the air to make you feel more alert, happier, optimistic and more willing to spend money despite any large losses. What do you believe?…Apparently this site debunks this oxygen myth.
5) BUT it is true that many casinos do not have clocks or windows in order to encourage gamblers to stay longer (i.e. lose track of time!) Bring a watch and/or your mobile device!
IT’S ALLLL RELATIVE
Back during my high school track days, a friend of mine gave me a ride home and when we pulled up to my average suburban house, he took one long look and said, “Wow, I didn’t know your family was so rich.”
Slightlymorethandirt.blogspot.com
With a puzzled look on my face that clearly said he had to be mistaken, I said, “What? What are you talking about?”
He replied, “If you don’t live in an apartment?…… You’re rich!”
And that was it. That was his definition of “rich.” There was no convincing him otherwise. That’s why I say it’s all relative.
$10.00 A DAY…OR $3.00 A DAY…FOR LIFE?
The proverbial Joneses to one person may be the poor house to another and vice versa. According to this study from the World Bank, “at least 80% of humanity lives on less than $10 a day.” Over 3 billion people live off less than $3 a day.
Imagine.
Seriously…
Imagine. Continue reading What Qualifies “Rich”?
Is the Jones’ income affecting the satisfaction you have with your own income?
Image courtesy of Dylan Taylor.
THAT GUY
When talking with your friends about how work is going, have you ever thought to yourself, “I WISH I made as much money as him!“ Come on…we all have had that moment (or moments). I do this, too – I’d probably be happier with my current job/income if I didn’t know people who started in the same place as me but are now currently working for 50% more money than me in better jobs. It’s very frustrating.
But on the other hand, I know others who started in the same place as me and have not made my income when they’ve probably worked just as hard as I have. That’s the way life goes, I guess…but make your own destiny and you won’t have to worry about how other people are doing, right? Right??? Continue reading Jealous of the Jones?
Are you of the mindset “save for the future” or “spend like the future will never come“?
Image courtesy of Jillian Group.
In a way, the second theory has some validity. There’s no guarantee that everyone will even live to the acceptable age of 59.5 years old to get to reap the full benefits of our retirement savings…valid point.
But what exactly am I giving up now in order to save for tomorrow? A nice bag? A couple pairs of cute shoes that I’ll be over next year? Can’t say spending all my money today is really worth it.
I do believe in balance – I’m still allowing myself to travel and do things I enjoy. I’m not completely depriving myself by being frugal. Personally, I love seeing the growing balances on my statements every month more than I like going through the receipts of my latest purchases (I’m strange like that).
Either way, I’m very motivated to improve my net worth every month, every day. Closer and closer to my goals (which will always change and challenge me).
So what do you think? Is saving a waste of time? Should we all just throw caution to the wind and spend all our money on traveling the world while we still have life on this earth?
That’s an interesting alternative…I can’t 100% argue with that idea, BUT my inner risk aversion is telling me not to do that so I’ll keep doing what I’m doing. I’ll let this article from the Steadfast Finances blog offer even more insight.
I don’t know about you, but I hate springing forward! I’m fine with falling back, but springing forward is so annoying.
Image courtesy of Rick Trotter.
TIME
Time is the most precious resource we have but we usually don’t realize it until it’s already gone. Losing that one hour HURTS (especially that first day back to work).
168 HOURS IN A WEEK
But it got me thinking…how much of our time is spent paying the bills? For example, at work…thinking about work…commuting to or from work…this can be a fairly depressing revelation. And most of us will remain in this routine until we’re 65!?! I’ve calculated it to about:
- 40% of my total time is work-related
- 33% is spent sleeping (especially weekend catch-up time)…
27% LEFT FOR ME
…And the remaining 27% of my total hours in a week is spent at my discretion doing things that I really want to do (besides sleep), things that I enjoy, and/or doing household chores or grocery shopping.
WASTING YOUR 27
Are you optimizing that precious 27%? Or are you wasting it away watching horrible reality tv (I know it’s not just me!). Continue reading Daylight Savings Time: Optimize Your 27
For the record, I am not a certified financial advisor of any kind and will not be held legally responsible for any misuse of the content of this site.
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