Two Common Objections To Using A Cash Budget

Two Common Objections To Using A Cash Budget

Written by Sam - Getting Finances Done

People have a big resistance to using cash in their budget. We’ve become so accustomed to using debit and credit cards that using cash is like a novelty. I wanted to address a couple of the concerns people have and why they don’t outweigh the huge benefits of using cash.

Objection #1: It’s Inconvenient

One of the main objections I hear about cash is that it’s inconvenient. It’s true that using cash may take a little longer than using credit cards. In fact, the credit card industry is well aware of this and emphasizes this point.

Have you ever seen the TV commercial with graceful music playing as people use their credit card to check out. Suddenly someone pulls out cash. The needle scratches and the music stops as the person fumbles around with their money and all the other people look on disapprovingly.

That commercial presents a powerful emotional image.

The fact is, cash isn’t that much more inconvenient. In fact, some cash transactions are faster than credit card transactions. Even more important, you want to remember the effect using cash will have on your budget. Think of all the time and pain avoided by not overspending and not having to agonize every month while trying to reconcile your accounts. That pain is much worse than the slight inconvenience caused by using cash.

To continue reading, please go to the original article here:

http://www.gettingfinancesdone.com/

How to Create a Financial Binder

How to Create a Financial Binder

Written by Sam Getting Finances Done

It’s a common worry. Am I spending more than I should? When are my bills due? Have I paid them? Am I on track to reach my financial goals? Am I going to be able to get out (or stay out) of debt? Financial worries are not only one of the greatest causes of personal anxiety; they can also be one of the biggest strains on a relationship.

Many people don’t have their finances well organized and therefore aren’t able to tell where they stand. Disorganized finances can have severe consequences; In the short-term, you may end up paying hundreds of dollars in late fees and penalties. You may be digging yourself deeper into debt without even realizing it. In the long-term you won’t meet your high-level financial goals.

Couples often end up re-hashing the same financial issues over and over again because they don’t have a way of tracking the decisions and progress they’ve made as a result of their arguments…er discussions. If your finances are not organized how can you ever have any hope of getting them under control?

The good news is that by taking one simple step you can start down the road of financial security and begin to get your finances in order. You can get a good overall view of your financial picture and establish a base from which you can build your financial future. It all starts with creating your financial binder.

What Is A Financial Binder?

A financial binder is a place to keep all of your high-level financial information including important decisions and goals you’ve made. Instead of containing transaction-level, detailed information about your finances, it is a place for summary-level information about such things as bank accounts, bills, financial decisions, savings goals, taxes, and credit reports.

Your financial binder doesn’t necessarily have to be a binder. Any form of organizing papers into categories could technically work. However, there are certain advantages to using a binder.

Binders are easy to expand. You can always add more tabs or upgrade to a larger binder (up to 5 inches).

Binders are easy to customize. You will inevitably want to create categories and information unique to your situation.

A Binder keeps items in one place and prevents them from getting misplaced.

Binders are portable. My wife and I sometimes like to review our financial progress during quarterly getaways. Being able to take our binder and go makes it easy to conduct these remote reviews.

Paper Vs. Digital Systems

Many people ask why they shouldn’t keep their binder information in digital form. Although your binder is paper based, many of the contents may be created digitally. Simply take the last step of printing out the documents after you work on them and you’ll have a nice backup.

Whenever you print a document, be sure to record both the date printed and the digital location of the file for later reference. While digital files do have advantages I discourage the use of exclusively digital storage for the following reasons.

To continue reading, please go to the original article here:

http://www.gettingfinancesdone.com/blog/archives/2009/08/how-to-create-a-financial-binder/

"8 Ways to Prepare to Become a Millionaire"

"8 Ways to Prepare to Become a Millionaire"

Written by Sam

Today I went to lunch with a very wealthy person. I don’t know exactly how wealthy , but based on his frequent trips to Maui, the fact that he earns a free plane ticket every month through his frequent flier points, and the fact that the other day he decided to go out and buy a truck just because he’s never had one before, there’s good reason to believe he’s close to a seven-digit earner.

As I talked with him, it raised a lot of questions in my mind about how managing my finances will change as my wealth grows.  If I were a millionaire would I still need to budget? Would I still want to track all my spending? Would I still need to negotiate with my wife about finances?

It seems logical that with an income over $1,000,000 a year you wouldn’t need to plan as vigorously. But in the end that’s a lie. Millionaires that manage their money irresponsibly can quickly lose it all and fall from grace (MC Hammer comes to mind).

Financial management principles are the same for millionaires and low-income-earners alike. Certainly the numbers your dealing with will change, but the basic principles and processes are still the same.

In fact, by following sound financial management principles and optimizing your frame of mind, you can accelerate the process of building wealth and know how to keep it when you arrive. Here are 7 ideas that will help you think about and manage money like a millionaire, regardless of your income.

1. Be Who You Want To Be    Earning more money amplifies who you are.

I’m going to borrow my first idea directly from my lunch partner who said “earning more money really just amplifies who you are.” While that might seem initially like a good thing, it really is a double-edged sword.

For some, becoming a millionaire leads to a life of over-indulgence and decay. We catch glimpses of this in the popular media and entertainment world; drug addiction, abuse, and infidelity. Blemishes in your character will still be there if you become wealthy.

Don’t fool yourself into thinking that having more money will solve your problems. It could make them worse.

On the other hand, if you have a mindset of serving and making a postitive contribution to your family and community now, you will be able to manifest those contributions with even greater power and effectiveness when you’re rich.

By focusing on the positive contribution you want to make in your life, you will be prepared to expand and amplify your contribution as you earn more money.

2. Build Your Relationships   Earning more money amplifies your relationship dynamics.

Let me tell you a secret: earning more money does not solve your relationship problems. Even though my income has increased significantly over our 10 years of marriage, we still tend to argue about the exact same financial issues.

If you have bad arguments over $100, just think of the how intense they will get arguing over $10,000 or $100,000. Working out your finances as a couple isn’t about the dollars, it’s about your values.

By making all your spending and budgeting explicit, and by working as a team, you can address those values differences before they get out of control. As you become more wealthy, you’ll have a trusted, agreed-upon system in place to manage your increase.

3. Spend Money Consciously, But On A Macro Level

Even as a millionaire you should know where every dollar is spent, but you don’t necessarily need to know line-item detail. Rather, you need to know how much is spent within broad, macro-level categories.

To continue reading, please go to the original article here:

http://www.gettingfinancesdone.com/blog/archives/2007/01/8-ways-to-prepare-to-become-a-millionaire/

34 Hard Truths To Know Before Becoming “Successful”

34 Hard Truths To Know Before Becoming “Successful”

Dr Benjamin Hardy

​ 1. It’s Never As Good As You Think It Will Be

“One of the enemies of happiness is adaptation,” says Dr. Thomas Gilovich, a psychology professor at Cornell University who has studied the relationship between money and happiness for over two decades.“We buy things to make us happy, and we succeed. But only for a while.

New things are exciting to us at first, but then we adapt to them,” Gilovich further states.

Actually, savoring the anticipation or idea of the desired outcome is generally more satisfying than the outcome itself. Once we get what we want — whether that’s wealth, health, or excellent relationships — we adapt and the excitement fades. Often, the experiences we’re seeking end up being underwhelming and even disappointing.

I love watching this phenomenon in our foster kids. They feel like they need a certain toy or the universe will explode. Their whole world revolves around getting this one thing. Yet, once we buy the toy for them, it’s not long before the joy fades and they want something else.

Until you appreciate what you currently have, more won’t make your life better.

2. It’s Never As Bad As You Think It Will Be

​Just as we deceive ourselves into believing something will make us happier than it will, we also deceive ourselves into believing something will be harder than it will.

The longer you procrastinate or avoid doing something, the more painful (in your head) it becomes. However, once you take action, the discomfort is far less severe than you imagined. Even to extremely difficult things, humans adapt.

I recently sat on a plane with a lady who has 17 kids. Yes, you read that correctly. After having eight of her own, she and her husband felt inspired to foster four siblings whom they later adopted. A few years later, they took on another five foster siblings whom they also adopted.

Of course, the initial shock to the system impacted her entire family. But they’re handling it. And believe it or not, you could handle it too if you had to.

The problem with dread and fear is that it holds people back from taking on big challenges. What you will find — no matter how big or small the challenge — is that you will adapt to it.When you consciously adapt to enormous stress, you evolve.

3. There Is No Way To Happiness

“There is no way to happiness — happiness is the way.” — Thich Nhat Hanh​​

Most people believe they must:

First have something (e.g., money, time, or love)

Before they can do what they want to do (e.g., travel the world, write a book, start a business, or have a romantic relationship)

Which will ultimately allow them to be something (e.g., happy, peaceful, content, motivated, or in love).

Paradoxically, this have — do — be paradigm must actually be reversed to experience happiness, success, or anything else you desire.

First you be whatever it is you want to be (e.g., happy, compassionate, peaceful, wise, or loving)

Then you start doing things from this space of being

Almost immediately, what you are doing will bring about the things you want to have

We attract into our lives what we are. This concept is confirmed by loads of psychological research. In his popular TED talk, Harvard psychologist Shawn Achor explains that most have happiness backward.

They believe they must first achieve or acquire something to be happy. The science shows that happiness facilities success.

For example, Scott Adams, the creator of the famous comic series Dilbert, attributes his success to the use of positive affirmations. 15 times each day, he wrote the sentence on a piece of paper, “I Scott Adams, will become a syndicated cartoonist.”

The process of writing this 15 times a day buried this idea deep into his subconscious — putting Adams’ conscious mind on a treasure hunt for what he sought. The more he wrote, the more he could see opportunities before invisible to him. And shortly thereafter, he was a highly famous syndicated cartoonist. It couldn’t not happen.

I personally apply a similar principle but write my goal in the present tense. For example, rather than saying, “I will become a syndicated cartoonist,” I write, “I am a syndicated cartoonist.” Writing it in the present tense highlights the fact that you are being who you want to be, which will then inform what you do and ultimately who you become.

4. You Have Enough Already

In an interview at the annual Genius Network Event in 2013, Tim Ferriss was asked, “With all of your various roles, do you ever get stressed out? Do you ever feel like you’ve taken on too much?”

Ferriss responded:  “Of course I get stressed out. If anyone says they don’t get stressed out they’re lying. But one thing that mitigates that is taking time each morning to declare and focus on the fact that ‘I have enough.’ I have enough. I don’t need to worry about responding to every email each day. If they get mad that’s their problem.”

Ferriss was later asked during the same interview: “After having read The 4-Hour Workweek, I got the impression that Tim Ferriss doesn’t care about money. You talked about how you travel the world without spending any money. Talk about the balance and ability to let go of caring about making money.”

Ferriss responded:  It’s totally okay to have lots of nice things. If it is addiction to wealth, like in Fight Club, “The things you own end up owning you,” and it becomes a surrogate for things like long-term health and happiness — connection — then it becomes a disease state. But if you can have nice things, and not fear having them taken away, then it’s a good thing. Because money is a really valuable tool.”

If you appreciate what you already have then more will be a good thing in your life. If you feel the need to have more to compensate for something missing in your life, you’ll always be left wanting — no matter how much you acquire or achieve.

5. You Have Every Advantage To Succeed

It’s easy to talk about how hard our lives are. It’s easy to talk about how unfair life is. And that we got the short end of the stick. But does this kind of talking really help anyone?

When we judge our situation as worse than someone else’s, we are ignorantly and incorrectly saying, “You’ve got it easy. You’re not like me. Success should come easy to you because you haven’t had to deal with what I’ve gone through.”

This paradigm has formally become known as the victim mentality, and it generally leads to feelings of entitlement.

The world owes you nothing. Life isn’t meant to be fair. However, the world has also given you everything you need. The truth is, you have every advantage in the world to succeed. And by believing this in your bones, you’ll feel an enormous weight of responsibility to yourself and the world.

You’ve been put in a perfect position to succeed. Everything in the universe has brought you to this point so you can now shine and change the world. The world is your oyster. Your natural state is to thrive. All you have to do is show up.

6. Every Aspect Of Your Life Affects Every Aspect Of Your Life

To continue reading, please go to the original article here:

https://benjaminhardy.com/35-hard-truths-you-should-know-before-becoming-successful-2/

The Holiday Feast Costs Significantly More Than Last Year

The Holiday Feast Costs Significantly More Than Last Year

68% of American households are adjusting their Thanksgiving dinner plans due to rising costs — here's how much you should plan to spend this year

By Sigrid Forberg   Nov. 18, 2022

Even with temperatures dropping across the country, inflation remains scorching hot.

And with food prices currently serving as a major driver of the country’s record-high inflation rate, families already struggling to keep costs down at the grocery store might be worrying what the damage will be when it comes time to shop for Thanksgiving dinner.  Making a meal for the whole family — and whoever else ends up at your table — can be stressful. But knowing what you’re in for might help.

A holiday dinner for 10 will cost an average of $64.05 or just under $6.50 per person, according to the 37th annual Thanksgiving prices survey from the American Farm Bureau Federation (AFBF). The AFBF comes up with this price tag based on the average costs of a dozen classic items found at the big feast.

This year's overall cost is a 20% increase from last year’s survey, when the meal was expected to cost an average $53.31. Here’s how much the prices have changed in 2022 for each part of your holiday meal.

1. The turkey   2022 price: $28.96

The centerpiece of the typical Thanksgiving dinner — a 16-pound turkey — costs about $5 more than last year, when the average price was $23.99.

While inflation is partly to blame for this price change, there are other factors driving up prices.

“The higher retail turkey cost at the grocery store can also be attributed to a slightly smaller flock this year, increased feed costs and lighter processing weights,” says AFBF Chief Economist Roger Cryan.

And while Cryan expects there will be an adequate supply of turkeys this year, some states that dealt with avian influenza earlier this year may deal with shortages.

2. Pumpkin pie mix   2022 price: $4.28

What would Thanksgiving be without a gourd-geous pumpkin pie on the table? A 20-oz can of pumpkin pie filling will cost you about 64 cents more this year, compared to $3.64 in 2021.

A 2020 YouGov survey shows that pumpkin pie is the most popular sweet pastry after the Thanksgiving meal, followed by pecan pie.

 To continue reading, please go to the original article here:

To read more go to the original article here:  LINK

10 Amazing Ways to Build Wealth at Any Age

10 Amazing Ways to Build Wealth at Any Age

Use these tools to build wealth, whether you're just starting out in life or trying to grow the money you've earned.

MTN Staff • August 29, 2022

Most of us aren’t born rich. Those of us who didn’t inherit millions can still take steps to build wealth.

We have more options today than our parents ever did. For example, we can get price comparisons in a flash thanks to the Internet – and the money we save can go toward wealth-building.

If we want to diversify our portfolios, there are plenty of creative (and safe) ways to invest. That’s true even if we’re just starting out in life or nearing retirement.

Use the following tools to build your wealth at any age.

1. Diversify your wealth with gold

Putting all your money in one place – stocks, bonds, crypto, whatever – is a recipe for losing wealth, not building it. Diversification is key to financial security. Here’s an easy way to start: Buy gold and/or other precious metals from Goldco.

Gold is an essential ingredient for modern electronics – a pretty secure industry. Silver is, too, and Goldco gives up to $10,000 worth of it to those who open qualified accounts.

Paper currency is highly regulated by law, and more can always be printed without any true backing. But ever since humans first figured out how to turn shiny rocks into valuable commodities, precious metals have represented worldwide value.

Adding them to your investment portfolio is a step toward wealth. Should you need to take some of it back out, Goldco’s “Highest Price Buy-Back Guarantee” means you’ll get top dollar for your holdings.

Goldco is the only precious metals company personally recommended by Fox News personality Sean Hannity. The company also earned an A+ rating from the Better Business Bureau and an AAA rating from the Business Consumers Alliance. Satisfied customers on Trustpilot, Google Reviews, Trustlink and ConsumerAffairs.com give Goldco 5-star ratings.

2. Protect your home from unexpected costly repairs

To continue reading, please go to the original article here:

https://www.moneytalksnews.com/10-amazing-ways-to-build-wealth-at-any-age/

5 Real Reasons You Won't Reach Financial Independence

5 Real Reasons You Won't Reach Financial Independence

Jacob Schroeder   May 17, 2021

We are not perfect, and those imperfections often manifest themselves in our finances. But never fall for the illusion that wealth is wholly dependent on your character and behavior.

To explain what I mean, let me ask: Have you met the Welfare Queen?

She is irresponsible and shameless, engaging in behavior counter-productive to financial self-reliance. She is a fraudster, gaming the system any way she can to receive tax-payer money and never work a day in her life. She is everything wrong about government largesse.         

You've never met her and never will. She is not real. She is the fictionalized version of an exaggerated incident. The Welfare Queen is a subversive trope, famously used by Ronald Reagan during his presidential campaign to criticize welfare programs. Do some people take advantage of federal programs? Absolutely. But it is disingenuous to portray some infractions as the norm.

Caricatures, like the Welfare Queen, are a way to tell a simple, clear story. They are also a way to charge the emotions of a desired group of people.

At their best, caricatures can help people easily understand complex topics. At their worst, they can advance harmful, racist ideologies. At their not worst but not good either, they can purposefully exclude important variables and create false impressions. As it is in personal finance.

Self-anointed financial gurus like to rail against their own trope: the hapless saver who will never achieve financial independence because of unaddressed character flaws and financially irresponsible behavior. It's almost a form of wealth shaming.

The reason, they say, so many people don't save enough for retirement is personal choices. Coincidentally, the solution for improving your behavior and growing rich is to buy their books, sign up for their courses and dish out loads of money to attend their conferences.

But that's not the real story any more than the Welfare Queen is. Maybe this caricature needs a royal name, too. How about the Wealth Jester? The person who is susceptible to foolish financial gestures that puts their future in jeopardy.

The truth is there are a variety of factors at play when it comes to building wealth. Certainly, personal decisions and habits make a difference. We, however, are also faced with forces that are far beyond our control. To think otherwise is to wrongfully fall for the Wealth Jester narrative.

Here are five bigger reasons people are unable to achieve financial independence.

1. Don't earn enough money

How is it all your fault if wages are set so low you can't save?

The ugly reality is that many people simply do not earn enough to become financially independent. Once the bare necessities are covered, there is little left over.

Less than 40% of American households have the means to cover an unexpected $1,000 expense -- much less build a nest egg.

To continue reading, please go to the original article here:

https://rootofall.substack.com/p/5-real-reasons-you-wont-reach-financial-independence

Financial Steps Proven To Improve Your State Of Mind

Financial Steps Proven To Improve Your State Of Mind

Mood Follows Action By Jacob Schroeder Feb 18

What if we have the psychology of money backward? Psychological research from the likes of various Nobel Prize winners has shown how emotions shape our financial behaviors, which has turned our focus toward changing the way we think to make better financial decisions. But the truth may be that changing our mental state starts with changing our actions. Perhaps, money can’t exactly buy happiness, but the way we use it can indeed improve our emotional well-being.

Watch sports on any given night and you’ll hear commentators spew an assortment of cliches to explain the outcome of a game: “They were more motivated.” “They had more passion.” And, my personal favorite: “They wanted it more.” Whatever “it” is. 

While such talk can make for a good story, it’s a whole lot of journalistic B.S. As if championships are won on feelings. Athletes don’t play better because they spend more time happily thinking about winning than their opponents. Moods matter; actions matter more.

Yet, we often put the emphasis on our feelings. If only I had the motivation, I’d exercise more. If only I felt inspired, I’d write that novel. If I were more driven, my business idea would take off. 

Certainly, mentality plays a role in all we do. Except we can’t control our thoughts or emotions as well as we like to think. For example, do not, I repeat, do not think of the number 23. See what I mean? 

We have the calculus all wrong. It’s our actions that shape our emotions. As endurance athlete and wellness advocate Rich Roll puts it: Mood follows action. This maxim was supported by neuroscientist Andrew Huberman, who told Rich Roll on his podcast: 

“Our feelings and our thoughts and our memories and all that is very complicated. But our behaviors are very concrete and they are the control panel for the rest of it… when it comes to wanting to shift the way that you function, to get better or to perform better, or to show up better, or to move away from things like addictive behaviors, it’s absolutely foolish for any of us to think that we can do that by changing our thoughts first. It’s behavior first, thoughts, feelings and perceptions follow.” 

It works in sports. After making the varsity basketball team, Michael Jordan didn’t set out to prove everyone wrong by thinking of himself as the greatest of all time. Hundreds of practice shots each day convinced him that he was the greatest. 

It works in art. What separates successful writers apart isn’t so much a deeper well of creativity but rather consistency. They show up to work whether inspiration strikes or not. As E.B. White said: “A writer who waits for ideal conditions under which to work will die without putting a word on paper.”

And, it works with money. Warren Buffett doesn’t simply wake up with more knowledge about businesses and markets than yesterday. He goes to bed with more knowledge about businesses and markets than yesterday after having read around 500 pages over six hours. 

Thanks to the field of behavioral economics, we know certain mental errors, from confirmation bias to the Dunning-Kruger effect, can cause us to make choices that are not in our best interest. However, many proposed solutions focus on the futile task of changing the way we think. Don’t panic! Think long term! Ignore the noise!

Instead, studies show that the actions we take with money are what ultimately shape our feelings about money. Here are some financial actions that can improve your financial state of mind – and even your overall well-being. 

To continue reading, please go to the original article here:

https://rootofall.substack.com/p/mood-follows-action

The Relationship Between Money and Marriage

The Relationship Between Money and Marriage

Jacob Schroeder  Oct 12, 2021

I love scotch; she hates it.

There are many things my wife and I don't agree on, but money isn't one of them. We are intentional spenders, buying only what mutually aligns with our needs or values. For instance, disinterested in paying for the trappings of an ostentatious wedding, we tied the knot at New York's City Hall; our reception was watching our first son play at a public playground in the East Village on a warm fall afternoon.

We've been happily together for 16 years, which makes me wonder: Does love make the financial side of marriage work, or is it the other way around?

The most important decision you'll ever make

Warren Buffett's financial wealth is only rivaled by his wealth of wisdom. Rarely does a day pass without someone in the finance industry quoting the Oracle of Omaha on social media. Heck, Warren Buffett's influence is so great, people have essentially made careers out of quoting him.

Yet, with all of his knowledge on investing and business, he says the most important decision a person can make has nothing to do with investing and business. At the 2009 Berkshire Hathaway annual meeting, he said:

“Marry the right person. I’m serious about that. It will make more difference in your life. It will change your aspirations, all kinds of things.”

You don't make it to Buffett's level of stature with a track record of being wrong often, and researchers seem to agree with him on this point. Studies show that marrying the right person can significantly improve our health, career success and wealth.

Marriage will change you in many ways. By definition, marriage -- joining two into one -- is disruptive. Often, for the better. It is about pursuing new things while sacrificing others. A major contributor to that disruption though is money.

Although we've long moved on from the ancient practice of marrying for the sake of status, money is an irrevocable part of marriage, at times, for better, and at times, for worse. Here is what research has uncovered about the relationship between money and marriage.

The relationship between money and marriage

Married people are wealthier than single people.

A 2005 study tracking people in their 20s, 30s and 40s found that married people experienced a 77% increase in wealth over single people. In fact, married individuals in the study saw their wealth rise 16% for each year of marriage. This makes sense considering married couples can combine incomes and share expenses.

However, it may not tell the whole story. You can't expect to tie the knot and just start watching the money roll right in. More affluent people are more likelier to get married in the first place. A report by the American Enterprise Institute details the wide gap in marriage rates by income. About a quarter of “poor” adults aged 18 to 55 are currently married, compared to 56% of middle- and upper-class adults.

Wealthier couples are happier.

A study published in the Journal of Happiness Studies suggests that married individuals are generally happier than the unmarried.

What about happiness among married couples?

To continue reading, please go to the original article here:

https://rootofall.substack.com/p/the-relationship-between-money-and-marriage

One Thing to Remember About Improving Your Financial Habits

One Thing to Remember About Improving Your Financial Habits

 Jacob Schroeder   Nov 23, 2021

Tired hands, young and old; tired hands to assemble each plastic piece and screw every tiny screw; tired hands to pull levers and activate conveyor belts; tired hands to pack cardboard boxes and stack containers on steel ships; tired hands to navigate the weathered steering wheel of a semi-truck; tired hands to deliver it to my doorstep; all of which is jumpstarted by a performative gesture as a consumer with a well-rested index finger on a digital button.

It is the cycle of a normal holiday shopping season. The only way to break it is to individually not participate.

Often, what is most effective in changing our habits for the better isn't a stroke of good luck but a nice, serious crisis. But whether or not it does greatly depends on single decisions, which are what make up our virtues. Habits and virtues, after all, can't be turned on and off; they take practice.

As we near the end of year two of COVID, perhaps the pandemic hasn't changed our financial behaviors as much as we first thought.

I have never shopped on Black Friday. I just would rather feel as if my head has been stomped on because of too much wine during Thanksgiving dinner than actually have my head stomped on for a flat screen TV. Though I certainly don't look down upon those who do.

Except this year, it may be an opportunity to recommit to the financial habits we adopted at the peak of the pandemic. Because it also is a decision to make for the better, and you never want to let a Black Friday go to waste.

Barack Obama's reward for winning the 2008 presidential election was responsibility over the worst economic crisis since the Great Depression. At the time, his chief of staff, Rahm Emanuel, said, "You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things that you think you could not do before."

To view a crisis as an opportunity is a tenet rooted ancient philosophy, as echoed by Roman emperor and Stoic philosopher Marcus Aurelius: "Just as nature takes every obstacle, every impediment, and works around it...so, too, a rational being can turn each setback into raw material and use it to achieve its goal."

To continue reading, please go to the original article here:

https://rootofall.substack.com/p/one-thing-to-remember-about-improving-your-financial-habits

7 Nice Ways to Tell Your Spendy Friends You're Staying on Budget

7 Nice Ways to Tell Your Spendy Friends You're Staying on Budget

By Mikey Rox

Unless you're invited to hang out at a friend's house, social invitations typically require spending money — going to the movies, grabbing a bite to eat, hitting an amusement park.

Ignoring an invite or saying that you're busy can get you off the hook, but friends might get suspicious if you pull the same excuse over and over. (See also: Is Peer Pressure Keeping You Poor?)

You don't have to justify your reasons for not spending. But if you don't want friends or relatives to get the wrong idea or think that you're avoiding them, a simple explanation goes a long way. Whether you're on a financial fast or have other plans for your money, there are friendly ways to tell someone you don't want to spend money.

1. I'm Saving Up for the Holidays

It doesn't matter if you're buying gifts for family or taking a vacation, planning for the holiday season is a good reason (and good excuse) to scale back on spending. And since many people feel the pinch during the holidays, those in your social circle will likely understand your reasoning, and won't give you a hard time for turning down pricey invitations.

2. I'm Trying to Stick to My Budget

Saying, "I'm on a budget" is one way to say you're broke without actually uttering the word. But even when you have extra money, budgeting can prevent overspending.

If you receive an invitation to join friends at a restaurant, or if you're invited to a network marketing sales party, be honest and let the host know that extra spending isn't in the budget right now. This doesn't necessarily suggest that you don't have money, but that you're careful with how you spend your pennies. Your willpower might rub off on others.

3. I Have New Responsibilities

Social invitations can go beyond dinner and a movie, and your friends might plan a vacation together or suggest a shopping trip in the city. A responsible adult counts the cost before any large purchase.

And if you have new responsibilities or financial obligations (such as you've started a family or recently purchased a home), now may not be the best time to spend money on an expensive adventure.

If you're the first one in your group to have children or buy a house, you might need to kindly remind your friends how these changes impact personal finances. And remember: specifics count here. So if you feel comfortable, feel free to go into detail about said new responsibilities.

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