Suze Orman should feel very honored. Her books are the only financial books I have ever read. She once lived in her car and is now one of the most respected people in the financial world. She doesn't give the normal financial advice and that is probably why I like her. I don't do anything normal when it comes to money.
When I retired from the University, I was 63. I was working in my own business and for the first time in my adult life, I didn't have a pay cheque going into my account. I thought I would do what many people do and that is keep track of what I spent. I was only in a few days when I realized that I have never been so depressed about money in my life. It was a job keeping track of spending. Remembering to write everything down, then adding it up was so stressful for me. I didn't make it to the end of the month before I abandoned this activity, and the journal was in the garbage. I decided to just throw caution to the wind and spend when and where I wanted. I had been doing that for most of my life and why change it now. I have always believed the less you focus on money the more you have. If that is true, I should be a billionaire.
I heard a financial expert speak about a financial detox. A financial detox is a way to take a break from your spending habits. It helps you look at what you spend and make changes for the better. It spiked my interest because it had some words I liked, such as: declutter, purging and no spending. Here is her advice to reset finances with a detox.
1. Review subscriptions and apps. Check on your credit card statement for the ones that you are paying for and not using. This was easy for me since I don't use apps or have subscriptions.
2. Declutter your home. Sell, sell, sell. I did a massive declutter at the time I renovated. I staged my beautiful things and tried to sell them by putting a cheap price on them. I ended up donating most of the items because they didn't sell. Some people enjoy selling as a way to make "fun" money. I just can't be bothered to sell anything for $5 or $10. But, if it is a way to motivate you to declutter, sell, sell, sell.
3. Become aware by keeping track of spending for a week. It was suggested to build fun money into the budget. This is an awareness exercise which I think would be helpful to many. You are to start by getting a spending journal to keep track of your spending. Buying a journal would be the only part I would enjoy. I am pretty sure there wouldn't be a thing written in it.
4. No spend challenge for a week or weekend, no spending except for essentials. I would throw the essentials of food and gas in on the challenge. Fill your car up at the start of the week and try to make it work for the entire week. You would need to buy enough produce, milk and bread to last a week. What a great opportunity for people to use food they already have or to become aware of the inventory of the frozen and pantry food. My fridge freezer is all I have and is often nearly empty as is my pantry. I realize I have easy access to food, and I like to buy fresh, which is not an option for everyone.
5. Shop at home first. Some people have the luxury of having storage spaces for the decor. My storage space is "Winners". I think it would be shocking if a person lined up the pantry goods and did meal planning. Rework your wardrobe. Let's face it, we all have clothes we rarely/never wear, change it up and you will feel like you have new clothes.
6. Find ways to stay motivated; vision boards, implement a no spend once a month. I do believe working towards a purchase is motivation to have a no spend week. It was suggested to do a no spend week or weekend once a month. That could become a real family event, kind of like a lesson to the kiddos on money. Creating a vision board of the things to purchase by saving on the "no spend" time would make it fun and rewarding. This may be the only one I would ever do.
Clearly, I did poorly on the detox. I really tried and I like the concept, for others. It would be a great thing to do if you are mindful of your money or as a family activity. I think a family would be surprised at how much money they spend on eating out, ordering in or just picking up coffee. Those are mindless ways to spend. Paying cash is something that is rarely done and is another eye-opening experience on spending.
My money advice has always been, if you need money, make it. When I worked on the wards, if I needed extra money, I picked up extra shifts. When I worked at the University, I picked up sessional work. I always wanted to run my own business, and when I did it built itself as my retirement plan. There are jobs I wouldn't want to do but in reality, there is no job beneath me. Let's face it working in nursing meant there was always work. I would have picked up a second job if I needed to. Everyone has a skill, use that skill to make money. Those people that can sew, repair clothes. If you are a handy person, fix things for others, to me that is a get-rich-quick opportunity. If you like kids, baby sit. If you like to clean, develop a clientele, another gold mine of opportunity. The list is endless; pet sitting, dog walking, mowing lawns, snow removal, painting, tutoring kids, and so many more opportunities when you think about it. If I needed to, I would probably go towards baking and cooking as a chance to make extra money.
Good advice Faye!
ReplyDeleteAnother interesting blog, Faye.
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