How Much Money Is Enough for Peace?

A friend of mine has a saying, “If you want to know what you believe, look at what you’re experiencing.” So true. But many of us don’t want to look at what we believe or how we behave with money because we’re afraid of what we might find. And, we often don’t have a safe way of doing so. That’s where money coaching is helpful.

What we believe affects how much money we make, manage or or build for the future. For example, the overspender justifies her purchases with excuses - “Well, I’m not spending that much, I only shop at the dollar store.” The avoider doesn’t look at his bank account balance, or save for retirement because it’s too far away to feel real.

Our core money beliefs are ingrained deeply within. We have  we’ve stopped asking WHY we need to work so hard or acquire money.  But what money means to us is a key question to understand. Kansas State University and the Klontz Consulting Group show that How much money is enough for you? That’s a question I ask when giving presentations and the answer tends to be twice what they’re currently earning. When they reach that next goal? The new goal is – you see where we’re going here – twice again.

Take the Quiz by clicking on this link and find out if the beliefs that run your money bus are: Money Worship, Money Vigilance, Money Avoidance, or Money Status and you’ll find there are recommended steps to deal with each type.  Then call or email me and we’ll talk about the results in a 15 minute complimentary conversation. 

 

Budgets and Diets: Restriction or Freedom?

Women spend $25,000 on shoes and in Britain L 133,000 on beauty products in their lifetime.*  Saving for retirement or saving period gets pushed aside with the “I want what I want and I want it now” pattern we consumers are so good at.

One of the biggest mistakes women say they make with their money is not saving enough for the future because they’re caught up in survival today. This is an interesting dilemma because by spending today and not saving for the future, the struggle is likely to be the same in ten or thirty years. Contrast this with one young woman, Kari, who considers herself a “money hoarder.” She started saving half her paycheck as a teenager. She finds it hard to spend money on herself, but she’ll be fine in retirement. There aren’t many Kari’s out there.

Putting ourselves on a savings plan feels the same as being on a diet. Yuk. We feel restricted, limited – it’s NO FUN. Or we feel we’re in jail waiting for a chance to bust out – shoe sale anyone?  According to Gary Becker and Kevin Murphy in “A Theory of Rational Addiction*” when you're struggling economically you’re unlikely to focus on long-term activities. The immediate is much more compelling.  

There’s a mind-set change that needs to happen to be able to have some shopping fun, while keeping in mind the long term goal of having financial peace in your later years. Just think about how good those shoes might taste if you’re trying to make it at 75 on social security alone.

*Daily Express Study quoted: http://tinyurl.com/2a2cvjw  Mail Online  http://tinyurl.com/67z36fd

* The Awesome Column, Joel Stein, The Times May 2012