If you think you don’t have money to save because your current cash flow is tight, you can still develop the habit of saving and giving first.  When any money comes in, immediately set aside 10% into a savings account for you.  If you are short at the end of the month, you can transfer the required money out of your savings.  If you consistently develop this habit, you will find that over time you will not require the full amount of the money transferred into savings and it will begin to accumulate.  This is the concept of pay yourself first.  You did and you needed the money so you used it.  You need to start small to develop the habits that will produce big results over time.

When do you start this process? Don’t wait until you have money.  Don’t wait until you have the appropriate accounts set up or until something has happened.  Start now and start young.  This is a perfect skill to implement with children as soon as they are old enough to understand that money has value.  For many kids, this is at about age 4 or 5.  They don’t need to know the different values just that it has some value. They will learn that when money comes in, you put some into different places for different things – simple.

You know the principle: something in motion will stay in motion until it meets with resistance. Well, we also know that the most effort is exerted in getting something into motion.

This principle applies to finance as well as physics. The hardest part is to get a habit, strategy or plan into motion. However, once you’ve started, there is a period of time when things will almost coast along provided you can make it past the initial stages to reach momentum. When you do, your plan, strategy or habit will continue until met with resistance, which might be self-made or created by something beyond your means.
A good question to consider is what is it financially that you know you ‘should’ do, but just don’t seem to be able to get started?
And, if you are doing something financially that is taking you toward your goals, what can you do to minimize the impact of resistance?

Have you noticed how life doesn’t stand still, no matter how hard we might wish it would? We go from day to day, month to month and season to season. The days get shorter in the fall and, for some reason, the money seems to get smaller too as there are often more expenses in the fall – at least there are when you are working, and especially if you have any kids or students heading back to school.

It’s easy to get caught up in being busy and to jump from task to task without taking time to reflect and plan. Yet, this is the best time to do that. Why? Because when you are busy, it is the best time to mentally take stock of where you are, where you’re going and what needs to be done along the way. Pick up the phone and make an appointment to review your finances if you need to… the Christmas season and the new year is just around the corner.
And, as you’re doing your reviews, make sure you stay focused on the task at hand and what’s important to you. It is far too easy to get side-tracked because something seems important and necessary at the time, but perhaps really needs to be reviewed. Stay focused on one thing at a time. Make plans and stick to them. Get help and you will be accountable to your results. One thing is for sure, whether you think so or not, you are moving forward -hopefully in the direction you want.

So much of dealing with money and building a solid foundation of skills and knowledge begins with how you spend money – not just what you spend it on as so many people claim. With that in mind, remember that spending money can make you wealthy. Fear and scarcity and ad hoc, trial and error finance will keep you broke. Here is the history of Retail Black Friday.

And, if you are participating – start with rule number 1: use cash for your purchases even if it means having to take a cash advance on a credit card, or making a payment in advance to your credit card.

Here we are again – HO HO HO… Year end, a time for celebration, reflection and giving. And, along with the giving, some spending money and time with people you love.

It’s easy to get caught up in the busyness and forget priorities. Because so much of the Christmas Season is connected to finance, we thought we would start this month off with a special Fast Action Tip for not only surviving, but also thriving through the holidays making a difference in your life and the lives of others.
Your tip is to slow down. Yep: stop, look, listen. There are many beautiful sights and many beautiful activities. Pay attention to what’s going on around you, the people, the music, the messages, the packages, the hurriedness and the feelings you have as you carry out your everyday activities.
How will this help you survive and thrive, and how do you slow down? Make lists of your activities, your purchases and your priorities each day. That way, you have a road map to start with. Then, at the end of the day, review your lists, add your spending and cross reference your priorities with your time. Now you have a system in place to measure and manage your progress, which are tools used in business. You are carrying out your day-to-day business in a controlled confident manner that will give you a foundation for making decisions that support your true priorities and values.

Press on… hold or fold? In investment circles, this is known as buy, sell or hold. In business, it would be quit, restructure or carry on. With credit, it is more likely give up (file bankruptcy or formal credit plan), refinance or live with it.

Any way you look at it though, the world of money frequently has 3 choices: stay the course, rearrange things, or quit and start over. This week, we’d like to encourage you to consider exploring options when you are faced with financial decisions.

Whether we’re talking about employee benefits or extra features attached to your credit card, those large and small add-ons can be significant. As an example, some credit cards will cover rental car insurance premiums. These premiums are often more than one day’s rental. Sometimes there are restrictions where you must reserve the rental car with the affiliated credit card. A benefit like this can save you money and simplify the rental car process. Employee benefit programs usually have some sort of life and disability insurance coverage. But, under what circumstances do they pay out? For how long? And, what happens if you leave your work? Knowing you have a benefit is not the same as understanding the specifics so you can plan and streamline other areas of your finances to integrate these things. And, thinking you have a benefit, then discovering at the time of claim that what you thought you had wasn’t actually the way the benefit worked is not the time to do your research. This is often the case with disability insurance claims or some household insurance policies.

Where would you start to fully understand the specifics of your benefits? Begin by sourcing your policies, employee handbooks and other information about extra benefits attached to financial vehicles. Make sure you have a record of the details and that someone in your family could easily find them if you were unable to handle your affairs. Next, start to make notes about what benefits you have so all this information is in one place. While you are documenting your benefits, highlight the language that might be unclear, or questions that come up, or potential gaps that surface so you can take this information to your financial professional for review. Benefits, especially insurance benefits, are not something to be taken lightly.

Today? Tomorrow? Whenever? There are always things to spend money on, just like there are always opportunities. When you are out shopping, whether it’s for groceries or for a new home, be aware of when you feel pressured to buy something right now because it’s a ‘once in a lifetime’ deal; or because you will miss a good buy; or because there is only one. When you understand how your fear of missing out affects your emotions, you will put yourself in a position to take control of your decisions so they are more calculated and in alignment with your big picture goals, values and priorities.

How do you do this in the moment? A note book and pen or cell phone works wonders for you to make notes about the thing, price, why you want it, why you want it now, and what the consequences of waiting are? Are there any potential consequences of buying now versus waiting? And, does anything else have to happen first? Complete a written mini analysis, or better yet, prepare a written list of what you are going to spend your money on before you go out shopping. Give yourself time. Put things on hold if you need to so you can prepare your written analysis – it doesn’t have to be complicated – just personal so you stay in control of your financial decisions.

This question is asked so frequently that it is almost becoming as popular as “Would you like fries with that?” Deciding if you want fries is a relatively simple decision: are you hungry, do you like them, etc. But the warranty question instantly brings up doubt: “What if the thing stops working?” “Will I have money to pay for it?” “Maybe it’s not a good deal after all?”  Perhaps you have adopted a standard response where you either always say yes or always say no. Maybe you just don’t care and are irritated by the delay in processing your transaction, or maybe you simply don’t care, and if you feel ‘rich’ at the time, you’ll go for the warranty and its subsequent extra expense, and if you’re not, you will take a gamble and pass on the extra expense.

What is the best way to handle this question when it comes up? Because we all know it will, whether you’re buying a new $40 computer accessory or a $3000 appliance, you’re going to be faced with the question and therefore the decision and, like all your financial decisions, you have to take control of the situation. So, let’s make this easy, there are a lot more detailed questions you can ask and other information that is important to know, especially on larger purchases. To get you started so you are in control, you need to remember two things: 1) What percentage of the purchase price does the warranty represent? In all likelihood, it will be in excess of 10%. For example, a $100 item will likely have a warranty price of $15 or more representing 15% – hmmm… do you want to pay a 15% premium? 2) Do you have money that you could access or have available to pay for a repair or replacement on the item if it did stop working? If so, then do you need to pay the premium upfront – likely not. If not, then perhaps the additional money on the front end is worthwhile. However, if you decide to say yes, you have to ask a whole series of additional questions such as under what conditions can you claim on the warranty? Will you remember that you have the warranty?

Where will it be stored if you have to use it?

Ultimately, it’s your call. However, do yourself a favor and take control on the front end and become aware of the cost of the warranty and the cost of the repair or replacement on the item before you just adopt a simple yes or no.