Saturday, January 8, 2011

John's Money Tips for the New Year

Ok here we go with the next tip - last post we talked about stocking up on off-season supplies - today we are going to jump-start the new year with some new perspective about what you are really doing with your money.

Just like many of us ate too much and gained a few pounds toward the end of the year we now are being more aware of what we are eating and eating less to get the physical part of our lives on track.  Well, in the same way we have to spend less and track our spending to get the finanacial part of our life back on track.

So here is the first tip to get started.
We are going to SHOCK our system.......
For one week write down everything you buy in a notebook or journal.  Just like a food journal this will give you an awareness of what your are really spending money on.  Just like food we tend to think we are eating less than we are,  with money we tend to think we are spending less than we are.

You will be surprised at how much is spent on small unneeded things or impulse buying.

Some things you may notice is how much you are spending on coffee drinks, sodas  or eating out.  A suggestion on the impulse buying would be when you see something you want to buy and it wasn't planned - walk away from it for 24 hours and then decide if you still want it.  Most of the time you won't. 

"Financial success is 80% behavior and 20% knowledge"  Dave Ramsey


Meems said...

This is a great way to begin 2011, Kathy. Thanks to John, too. I am going to 'make' myself read these as it is a subject I don't readily enjoy. I mean who wants to know "exactly" what we spent every penny on anyway?

But like all 'disciplines' it is a good habit to gain control of our spending trends. These days it is imperative with retirement and the economy in the tank! I need these "nitty-griity" reminders and I'm sure others do as well.

Meems said...

gritty... not griity. Ack!

Anonymous said...

Good and sound new years advice. It might be time to shrink my dunkin donuts budget;)
Thx for sharing.

Deborah said...

That's a good tip. Every little bit adds up. It's amazing how I will go to Target just needing hairspray and walk out with 5 other items.

I'm looking forward to your next post :)

CoachK said...

Hi Meems
Thanks for stopping by - Believe me - I hate this subject but do realize it is a necessary subject - John is almost giddy with the joy of sharing this information ;) Not just for the post but the fact the I'm having to read it and apply it for the sake of the blog. I keep telling my self this is good for me ;-)

CoachK said...

I detect a bit of sarcasm - as we know who is the one who goes to Dunkin Donuts too much ;)

CoachK said...

So true - its amazing how quick it can add up. Are you really looking forward to the next one??? I'm not sure I am - it makes me too accountable ;)))