What to do When Discipline Escapes You

So, I’ve been really bad about writing lately.  I started out thinking I could get at least 2 posts up each week – that quickly got knocked down to 1.  Now, I think I’ve fallen more towards the monthly column.  For shame!  Quite honestly, the way things have been going – I’m not making any promises that things will change, but maybe I just need to change my perspective.  I’m trying to be more active on Twitter, and would love to Guest Post more often, too!

Sitting back and reflecting, it’s pretty easy to see some ties to my blog writing and personal finance – after all, I’m here to give some PF perspective, right?  Momentum is a powerful friend or foe, depending on which way the wind is blowing.  How do you mitigate the effects of momentum?  Discipline.

If you’ve ever read anything about personal finance, or traversed some of the major sites in the personal finance blogosphere, you’ve probably noticed a disciplined community.  There’s some pretty motivated individuals out there!  I might be the exception.  Inherently, I’m not very disciplined.  It takes a looong time for me to develop a sense of routine.  I’m lucky – despite my past financial struggles, I was able to establish discipline through debt counseling and personal finance education and turn things around.  Discipline gave me the power to stop the momentum sweeping things away in the wrong direction.

If you’re not an inherently disciplined individual, it can be almost impossible to start a new routine and stick to it.  The perfect situation won’t occur.  Your schedule won’t magically open up.  There will always be ONE more reason to put something off!

The busy digital landscape is a procrastinator’s dream (or nightmare, depending on how you look at it).  Time management is becoming more and more important.  All these things require the development of discipline.  Which, ironically, also requires discipline…

If you’ve been putting off creating a budget, or reevaluating your expenses, take advantage of your next burst of productivity.  Set deadlines, and segment the project with benchmarks.  Set priorities – sometimes you can’t do everything on your list, but don’t let that stop you from doing something!

So, what does this mean about my blogging?  Well, I’m in the midst of reevaluating my priorities, so no promises for now!  You might see more “snippet” thought-based posts – or links to articles I find particularly valuable.  I’ve enjoyed putting together quotes that I find inspirational – so I might try to make that a weekly feature.  I’ll try to get back on a schedule, but don’t hold me to it overnight!  In the meantime…

What have you been procrastinating on?  What’s the one thing that’s stopping you?

What My Diet Taught Me About My Budget

Summer’s almost here – beach season!  This was my year, back to the bikini-babe of college days.  I had a plan.  I started off the year with a hardcore diet, knowing how hard it would be to dedicate real gym time with kids and a hectic work schedule.  On the first try, I lasted 2 weeks, then fell off the wagon for the rest of the month.

If at first you don’t succeed…  I lasted 3 weeks in February, then fell back off.  I’ve been off and on since then.

First, let me say that I may be among the unmotivated few - a lot of people have success with diets! I’d like to think that fellow diet slackers are out there.

At the beginning, my energy was up and my motivation was high.  I was losing weight and feeling great!  I had a stranglehold on my lifestyle, and was showing NO MERCY!

Then, determination waned as my old lifestyle crooned and wooed.  I couldn’t socialize without the diet having an impact on what I ate and how I talked with friends.  The constantly intensive maintenance was nothing short of exhausting!  I broke down.  I ate a lot.  I gained back more weight than I had lost in the first place!

I decided last week to quit “dieting.”  Instead, I’m going to focus on making better choices (when available) and controlling my portions.  The difference?  I’ve freed myself from dieting constraints, and allow an occasional outlet for my piggish cravings.

Okay, this is a personal finance blog, not a diet journal… so how does dieting relate to budgeting?

If you view your budget as a constraint, shackling you and preventing you from enjoying the life you feel you could have otherwise, chances are you are going to fall off the wagon, and the severity of your frugality will be counterproductive.

A budget should be a recipe (yum!) for a balanced financial plan, merging your savings goals with the expenses required for living.  It should be a plan, not a pressure.  Non-necessities and rewards, even minor ones) should be allotted within the budget to give leeway and freedom to stray a little, because you don’t want to stray a lot when temptation strikes.

State of Perpetual Motivation: How I Stay Inspired

Inspirational fodder isn’t hard to come by.  Type “Inspirational Quotes” into Google, and the databases churn out over 37 Million results.  Millions of blogs, quotes, stories, websites – all intended to flip the switch in your brain to get up and conquer the world.  I love reading these inspirational quotes from time to time, or reading posts in the blogosphere about taking action. 

I stumbled across this quote from Rabindranath Tagore today, and was inspired enough to make my first graphic (go easy, I’m a novice).  I knew nothing about the man who had taken pen to paper before I was even born, but the lack of context didn’t diminish the immediate power of his words (on a side note, his story is fascinating if you have some time).  The quote, as it is to me, speaks of positivity and personal ownership.  Above all, it’s a reminder that I can control my point of view, even when life is spinning out of control.

There are many ways to get motivated, especially in the world of personal finance.  You can find encouragement by reading articles, or seeking expertise.  You can read stories of success, and ride vicariously on the victories of others.  You can learn from documented struggles (not failures, people!).   You can jump in and try, excited to learn from the results.  Ultimately, I find that actionable motivation boils down to two sources:  information and community.  Once you think about it like that, inspiration doesn’t seem so hard to come by, does it?

The modern ease of access to both information and community makes it increasingly possible to slake a thirst for betterment.  Personal achievement has never been more personal – we’ve just got to want it!  Ultimately, aren’t the truly inspired those who have made the decision to seek inspiration – not necessarily those who have found it?  I believe this to be true.  This is the mentality that drives us past the roadblocks and detours that will undoubtedly crop up.

No matter your goal, no matter your methods of motivation, the tools you need to make it are within reach.  All it takes is the decision to go for it.

What keeps you motivated?  Are there any other ‘sources’ of motivation you’d add?

Risk vs. Reward: What We Can Learn From Super Bowl Commercials

I love watching the Super Bowl.  It doesn’t matter if I have a horse in the race, every year I take one Sunday to cast my lot as a die-hard sports fan.  It’s water cooler talk you don’t want to miss out on!  Now that I’ve recovered from my wing and pizza coma, I can’t help but reflect on what used to be my favorite part of the event: the commercials.

With hyper-inflated Super Bowl ad costs, the stakes have never been higher for companies to make an impression with the millions of viewers who tune in to America’s biggest live event.  The prevalence of social media makes it easy to gauge the immediate impact a Super Bowl spot might have on public perception.  More often than not, the cynical (or just critical) rule the airwaves – and a brand image can be tarnished by a flop.

Super Bowl commercials are a ‘fake field goal’ affair.  If it works, you’re a genius.  If it fails, you’re a goat.  It’s the deep bomb, the ‘Hail Mary’.  It’s a serious case-study on risk vs. reward.

I think of risk aversion as an innate human tendency.  Our culture paints it as a weakness; I choose to remember that it’s a survival instinct.  The truth:  every choice we make is an evaluation of risk.  To get anywhere towards our ultimate goals, we have to throw the ball deep every once in a while.  Preparation makes the difference between a gamble and strategy.

One of the hardest aspects of money management is the initial determination of where to put your money, time and skills.  Still harder: reevaluating, and deciding to pull the plug on something and reinvest somewhere else.

Thinking about these gargantuan commercial investments in time, money and creativity, I inevitably pause to think about my own creative and budgetary investments.  Am I doing everything I can to make them a success?  Do I have the right mentality to turn any failure into an advantage?

Do you?

Sudden Onset Poverty Syndrome: Is Your Budget Designed For Failure?

It’s the sad truth:  the majority will spend more than we have, but less than we’d like.  Especially in these economic times, it can be tough to afford everything you need and have enough left over to spend on things you just want.   For several years now, standard market costs have continued to rise but wages haven’t grown to match.

A recent study discovered that 1/3 of Americans couldn’t survive for any length of time if they lost their jobs.  If they’re laid off or fired?  Immediate budget crisis.  Further indication of the “fingers crossed” mentality: a previous survey showed that 56% don’t even have a budget!

Now, the obvious conclusion is that most Americans are skating on the edge of a razor – unable to prepare adequately for an unintended drop in income or a sudden rise in expenses.  Scary stuff, but there’s something a little deeper within those figures that I think deserves some attention.

To the chalkboard!

• 56 out of 100 Americans operate without a budget.  A clear dichotomy makes it fair to conclude that 44 out of 100 do have a budget.
• Roughly 33 out of 100 couldn’t survive without their current flow of income.
• It follows that…. 11 out of 100 have a budget, but couldn’t survive without income for any period of time!

That’s right:  Statistical allowances aside, these numbers indicate that it’s likely there is a significant portion (11%) of Americans who have a budget that isn’t effectively helping them to prepare for emergencies!

I call it the bare-minimum budget (BMB).  It’s just enough to cover current expenses, using current income – with no investments in the future.  For some, this may be all they can afford.  For others, it may be a simple choice to cover expenses and spend whatever is left over.

Take some time to reconsider your budget.  If you can, make regular contributions to savings, as well as an emergency fund.  It’s okay to invest in yourself, but don’t neglect your future!

Are you dropping a BMB on yourself? (Aw, come on – who couldn’t see that coming?)  Be careful – it could blow up eventually.

[UPDATE] David over at Young Adult Money worked up a pretty comprehensive list of Emergencies you might not be prepared for financially!

How Often Do You Perform a Personal Audit?

Benjamin Franklin once wrote:  

Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.

In the world of sports, the multitude of recent scandals and their virility illustrates the propensity of the public to exact external judgment – the so-called ‘court of public opinion’.  Some may cite the human tendency to exhibit schadenfreude, a term used to describe the delight we feel in spectating on the suffering of others (especially those previously lauded or idolized).  For examples, look no further than the vilification of Barry Bonds, Tiger Woods and, now, Lance Armstrong*.  We live in a TMZ world, my friends.

I’m not typically drawn into sports conversation (don’t worry, I’ll come around to finance), but I have found myself sitting as a so-called ‘juror’ of late.  It’s easy to pass a verdict, to live in someone else’s drama – it’s an escape from our own stresses. 

It can also be a trap.  I think it’s a unique opportunity to look for personal motivation.  To take stock of our own lives – are we auditing ourselves and our own habits?  My new goal: perform a quarterly self-evaluation and identify 5 things I want to be better at.

Benjamin Franklin’s words perfectly describe any budget.  Rampant vs. frugal spending, savings vs. waste – it all factors into the total evaluation of our financial outlook.  When was the last time you really thought about what you could do better?

Debt is stressful – no doubt about it.  The danger is that it can be avoided.  Don’t have money to go out with friends?  Put it on credit.  Low on gas money?  Put it on credit.  Credit cards are useful, but credit card debt can add up quickly.  Miss one paycheck that you were counting on, you’re in a hole.  Taking stock, I’ve got a lot of bad credit card habits I need to work on. 

Here’s my list of financial habits to improve:

1. Waiting until the last minute to pay a bill.
2. Checking receipts against the statement.
3. Shoes.  Gotta stop.
4. Caving in to kids at the store.
5. Waiting days to return a RedBox movie (those dollars add up!).

What are yours?

*It’s important to mention that I intend to make no judgment (at least not in this post) on these particular individuals, I’m only attempting to illustrate the difference in public perception pre/post scandal.

The Buffet Marketplace: Be Careful What You Subscribe To

As many in the market shift towards ‘freesumer’ or discount options, subscription services have become a popular business model.  Words like “unlimited” and phrases like “one low rate” are the norm - we can’t get enough!

You can subscribe to movie rentals, download endless bytes per month, receive razors or vitamins in the mail, and even swap out ties whenever you want – buffet-style. The more you use, the more you save, right?

RIGHT???

Quite often, NO.  For the first couple of months, in our ‘enthusiastic beginner’ stage, it might be worth it - our lifestyle is being molded to match our new-found tool.  

Sidebar: It’s similar to conversational economics - when I learn a new word, I can’t possible imagine how I formed a sentence without it!  For two weeks, I try to pepper that sucker into every conversation (just wait, I’m going to fit “zeitgeist” somewhere into this post).

There lies the problem with most subscription services: we try to fit them into our lives.  A subscription service is undeniably valuable if it cuts cost while you maintain pre-existing usage.  If we increase our intake, the value of the subscription is dependent on the persistence of a sudden lifestyle change.

For one, lifestyle changes are all too often temporary.  For another, these lifestyle changes aren’t always for the better.

This weekend, I went out to the movies with a friend who had recently received a subscription to Moviepass.  This is a relatively new service, offering unlimited movie tickets.  That’s right, you can see one movie for free each day (but you can’t see the same movie twice) just by using a loaded card and tracking phone app. 

My first thought?  Sign me up!  With movie tickets running around $10 pop, why wouldn’t you?  What a cool service!  There are so many movies I want to see!

Not so fast.  The subscription cost?  $360/year!  That’s right: You’d have to see 36 movies in a year to “break even.” 3 movies a month.  That’s a total of 31 movies OVER the average consumption rate.  It’s entertainment obesity!

There are very few people I know who can truly benefit from such an opportunity (my friend is one of them).  Often, subscriptions only offer true value to the zealots of any niche.  If you aren’t already one of them, your budget will be suddenly inflated, but you’ll feel the psychological rewards of saving.  You’ll spend more than you would’ve and have more than you need.  It’s the silent budget-killer.

Subscription services are cutting edge – the latest and greatest offerings float into the zeitgeist (bingo!) and convince us that we could be zealots.  We become so enamored with the ingenuity and brilliance of each new service that we forget to look at the price tag!

The bottom line:  every subscription, unless it meets a pre-existing need, is a calculated risk.  Don’t forget to calculate!

How To Survive a Cold on a Budget

The common cold has a wide spectrum of effects, from sniffles to the down-and-out flu-like symptoms.  I, unfortunately, found myself sidelined with the latter of those two polarities this weekend - no fun at all.

If you’re lucky, there’s a quarantine zone you can go to where the kids can’t get sick, because if there’s anything worse than being under the weather, it’s when your kids are.  Oof.

If there’s anything I learned this weekend, going to the store with a cold is just as dangerous as going hungry.  Anything and everything that can offer any fraction of relief ends up in your basket, and the cost can be extraordinary.

It might seem easy to accept the consequences in your debilitated state, but there are a few rules of thumb I employ to keep my costs (and fever) down.

Generic Vs. Branded Medicine

Sometimes, the cost for generic medicine can be up to 50% less, and everything I’ve read supports the idea that there is absolutely no difference in the quality of ingredients or effectiveness.  Why not pay less for the same product.

Don’t Double Up

Check the boxes!  If you’re buying Cold medicine that contains acetaminophen, don’t buy Tylenol, too - you won’t be able to take both.  Just like comparison grocery shopping, find a complement (like ibuprofen) if you’re worried about the prevalence of a certain symptom.

Ask The Experts

It should be stated clearly that I AM NOT A DOCTOR, just a mom with a bad cold passing on what I’ve discovered in my own stuffed-up experiences.  Just remember, that pharmacists are available in most drug stores - and if you’re uncertain which medicine will be best for your symptoms, it couldn’t hurt to consult an expert for free instead of spending money on something that won’t help.

Colds are the worst, but they’re also a good opportunity to get further in a good book, with some good soup and a fire going.  Keep a negative situation positive, and don’t let your road to recovery take you off the path of financial prudence!