Another great post from my colleague Mikelann Valterra. Why reinvent the wheel, when she has said it all so eloquently!
Creating Gloriously Boring Savings and a Money Ninja trick to pull it off.
As you know I do not give any advice on investing but feel this article, thanks to www.goldengirlfinance.ca, gives some excellent general principles.
Also many of my clients, as I did( do??), have very big issues with instant gratification! Enjoy the read.
Time, money and marshmallows | Personal Finance | Golden Girl Finance.
Do you have, or know someone who has, problems with delaying gratification? Share your story and/or thoughts here.
8 Wise Tips on How to Avoid Overspending …
May 2, 2012
Don’t you love to see things, reduced in price, just when you need or planned to buy them? This is a true bargain.
But what about the stuff you didn’t plan to buy? You know the ones… “It was such a bargain, I couldn’t pass it up”,
“but it was on sale”. I’ve done it more often than I’d care to admit and justified it. I’m sure, many of you have too. We’re lured into the purchase by the sale signs!
However, there is a saying:
“You can’t have too much of what you don’t need”. In other words if you don’t need it, you probably shouldn’t be buying it, no matter how much of a bargain it is!
This comes into play particularly, when things are on sale. Retailers know that most of us are attracted to bargains; valued items which we see reduced to “sale price”.(That is the price which the retailer knows will get it moving out the door, as fast as possible!) This appeals to our psychological side. We get an extra emotional “hit” when we think we are getting something cheaply. It makes us feel good. For those of us who use shopping or buying “stuff” to fill some unmet emotional need, this is mana from heaven! Not only can we buy it, but maybe we could buy two (for the price of one!) or buy this AND something else (two hits for our buck!).
You may have an earlier post of mine http://wp.me/pDpjD-10 “Do you REALLY need it or just want it?”, which tackles this issue in more depth. Suffice to say, it is very important that we differentiate between our needs and wants when making buying decisions. I know that I used to buy things and tell myself I “needed” them; the reality was that I just, at that moment, “wanted” them. Sometimes I’d get them home and know almost immediately that I’d never wear that colour, style or whatever! I was purely lured into the purchase by the item being on sale, or just my need to buy something to satisfy some other unmet, often unrecognised, need. The retailer had won again.
So, if you really do NEED something and find it on sale, well done, you’ve truly got a bargain! However, if you have just bought something because it was on sale, you could have saved yourself more money, by simply not buying it!
I’d love to hear your stories about some real and imagined bargains you’ve got, in the comments below.
Make sure to discuss any money problems with your other before they become your significant other!!
March 22, 2012
One of the most common reasons couples come to see me is disagreements over money. This is not surprising as it is one of the leading causes of divorce.
So the statistics are against you to start with….imagine how they escalate if the issue is something you have hidden from your significant other, especially if it was an issue before you committed to one another!! This is particularly if your problem is with debt. Discovering unknown debt, particularly if it is a large amount, can be a real honeymoon stopper! It can even be a marriage stopper.
I know that when I got together with my partner, my overspending very quickly became an issue between us. In fact, it was really why I finally found help to deal with it. Now, whilst we still have very different attitudes to money, they’re out in the open and we can discuss money with that knowledge. Now, I’m not saying it makes it easy!! It is however, less fraught than it would be, if it had come to light once we had committed to one another.
So, if you are just developing a relationship with someone who, you think, might be “the one”, find a time when it is just the two of you, maybe over a quiet drink, meal or coffee and begin to talk. You can start by simply asking ” Do you think of yourself as a spender or a saver?” Ask them about their money goals, do they have any? Inquire about their debts – do they have a student loan, how big is it? Do they have credit card debt, again how big is it? Do they save for something or just put it straight on a credit card. Obviously it is better if this is a two way conversation and not an interrogation!! Share with them your goals and attitudes towards money and if you have any debt. It is better to be out in the open.
If you’re reading this and thinking ” Great, but it’s too late for me, we’re married and he/she doesn’t know that I have $15K of credit card debt” Tell them NOW! The sooner the better. It is always better if you tell them than they somehow find out on their own. The deceit then somehow just seems worse and is more damaging to trust in the relationship. Your partner could then be thinking “What else have they hidden from me?”
So, be proactive and discuss your attitudes to money before your move in together or get married….trust me it can save a lot of heartache!
If you have been in either situation, please share your experiences in the comments section below.
You may or may not have noticed that I have been absent for a while.
I have been struggling with some physical health issues for some months now and just before Christmas decided that I could no longer continue to work whilst dealing with such pain. After discussions with my health professionals I stopped work and claimed on my income protection insurance. Whew!! It was such a relief. At last I could concentrate on getting better and not be struggling to get more work so that I could continue to meet my financial obligations.
Over the years I have often complained about the cost of my income protection insurance and wondered at it’s value. I had been well then of course. Now I just cannot tell you how it has eased my mind and my life. If I hadn’t had that regular money coming in I would not have been able to afford much of the physio, massage etc that I’ve had. Maybe not even all of the medication. I’d long been over my limits of my health insurance. More on that later.
I believe that without it, my recovery, which is still ongoing, would have been severely compromised. Most of all I would have had to rely on a sickness benefit, which, whilst better than nothing, wouldn’t have covered much. I know that I would have been constantly worrying about money and how I was going to pay my bills. I would have gone through much of my savings.
So what do I advise my clients. Firstly, I recommend they see an insurance broker or some other well qualified professional. However, in general terms I tell them the following:-
- life insurance is for those who have dependents. ie if you were to die today (perish the thought) how would your partner and family manage?
- Income protection is for those who rely on their health to generate an income. This particularly means the self employed.
- Health Insurance is for those who want to have some say on the timing of elective surgery eg joint replacements, cataract surgery
- House and contents is advisable. The Christchurch earthquakes have given many of us a salutary lesson.
I only make suggestions as I am not a professional insurance advisor but these recommendations are based on my own personal experience and that of my clients.
I do not make any suggestions on business or professional insurance.
Many people have unnecessary insurances and we have all heard the stories of those who do not have any!
Get some professional advice on your insurance needs. Do you have enough insurance? Do you think you have too much? I’d appreciate your comments.
I’m never going to complain about the costs of my Income Protection insurance again. I might complain actually, but I’ll keep on paying it; I know how valuable it is!
Some end of year tips frpm the good folks at PocketSmith
December 15, 2010
http://money.yahooxtra.co.nz/money-management/budgeting/the-end-of-the-year-is-approaching%E2%80%A6-are-your-finances-ready
Missing in Action
September 9, 2010
I’m not sure how many of you will have noticed, or maybe you’ve all given up on me, but its been a very long time since I posted here.
There’s a variety of reasons.
Firstly, I had to have have some more surgery and the recovery and rehab have not been altogether straight forward. Also, as I’m sure many of you know, it’s not always easy to get back into something….think here exercise, dieting, saving money….as some examples!
I’m back now and, hopefully, you will hear from me on a more regular basis.
