The Savvy Life

Guest Post By Miha Mlakar

 

As Melissa wrote in one of her recent post Strive for Financial Leftovers, the golden rule of finance is to spend less than you make. That sounds simple enough, so how come it presents such a big problem to so many people?

To solve any of your problems you first need to identify it. Once you get that right, that's already half a solution, get it wrong, however, and all your efforts will only be making it worse. When it comes to personal finance, most people get it wrong.

You're looking at your bank account at the end of the month and you realize you went way over your budget. What do you think your problem is? Spending too much? And the solution? To spend less?

That's not strictly speaking wrong, but it is misleading. It's not spending too much in general that's your problem, it's spending too much on particular things - things you don't even necessarily need or enjoy - and it's not knowing what those things are. 

If you spend hundreds of dollars on clothes that you only wear once or twice, you shouldn't try to save on food and if half of the food you buy ends up being thrown away, you shouldn't try to save by not going out with your friends as often. That would be like an alcoholic trying to solve his problem by drinking less orange juice. Stupid, right, but most of us do it, in one way or another. When we decide we want to save, we do it without really thinking about our spending habits and without any planning.

To some extent, that's understandable. To get a better insight into our spending habits we would need to track every dollar we spend which would take a lot of our energy and time. Since time is money it's actually perfectly reasonable not to do it. Or at least it use to be.

Pen and paper are a thing of the past. With mobile phones and apps becoming ever smarter and easier to use, finance tracking has become super easy and quick, something anyone can and should do. If you want to to take control of your spending, start by doing a search in the App Store. Whether you own an iPhone, Android phone or any other device, you will find finance tracking apps for it.

So, how do they work? There's some diferences among them, but the basic concept is pretty much the same. After sign up you set up your budgets. Apart from general daily, weekly or monthly budgets, you can also set up specific budgets for your tags, like clothes, food, coffee, or anything you want. After you’re done with that, all you have to do is to keep on adding your expenses as you go which is super quick and easy. Just enter the price, tap the right tag for your purchase and save. All your data is then automatically organized and visualized in beautiful graphs so you can literally see where your money is going, plan your spending and make better informed decisions in the future. 

If you don't know which one to choose, I can recommend you the one I'm using myself. It's called Toshl Finance, a well designed, easy to use, but very powerful little app that’s available for virtually any type of phone there is. It's free to download and use, but it does offer some additional features for a reasonable monthly fee. Apart from the price tag and a great overall quality, what makes it stand out is this cute little monsters that follow you along and actually manage to turn personal finance into something fun. However, there are many good alternatives. It's worth trying out a few and finding the one that suits your needs best.

 

 

By Todra Payne

 

Alternative health and wellness therapies are often viewed the same as organic food - reserved for those with higher amounts of expendable cash. But in all honesty, I’ll tell you, I’ve never had a “money to burn” lifestyle, but I’ve almost always found ways to include wellness therapies (a massage, an acupuncture treatment) into my budget. As someone who values my health and my looks, I am determined to set my priorities. Physical health, mental relaxation and spiritual renewal are non-negotiables in my life. Because I’m not rolling in cash, I’ve had to be, let’s say, “creative” in how I incorporate these. But with a little extra work, I’ve always been able to keep balanced and healthy. Here are a few tips to help you do the same.

 

Do an Internet search of various wellness therapies. I’ve looked into everything from Reiki  to colonics to understand how each is designed to assist the body, mind and spirit. I also seek out videos on YouTube to learn what to expect from a session/class. If I’m seeking calmness and relaxation, a gentle aromatherapy massage will help me unwind from the week’s stress. If my mind feels muddled and unfocused, a Kundalini yoga session is in order. Understanding what you need is the first step to finding it.

 

Obviously, the Internet is a great place to start your search for a Reflexologist or Meditation Coach, but don’t rule out other great sources, like your city’s free newspapers, health food stores and community boards. In my city, there are four free community newspapers that list cultural events, neighborhood happenings and small business offers. Many times these papers list special deals from alternative health practitioners, like a first session free code. Or a discount if you sign up for a certain number of sessions. Health food stores often have their own newspapers or email newsletter that feature sales from local natural health experts. I’ve even taken free wellness workshops at my local health food store. These give you the opportunity to try something first hand before making a larger financial commitment.

 

Call community centers, public libraries and massage schools to inquire about wellness programs/discounted sessions. Where I live (and in many cities), community centers offer acupuncture and yoga sessions priced on a sliding scale based on your income. In most cases, it’s on a trust system, too. There aren’t mounds of paperwork and embarrassing questions to answer about your household income. I’ve been able to say, “I can afford $12 for this class,” and that’s been good enough. Massage schools often offer one hour massages from $5-$25 (depending on the city and how fancy the school is) by senior level students who need to put in hours towards graduation. Don’t forget to tip. If you go this route, pop by the school first to look at the set up. Some schools have private massage rooms, while others put 15 massage tables to a room and work with males and females in one communal setting. It’s important to find a place that fits your comfort level.

 

This may not work with small, single person practices (say at a chiropractor’s office), but at studios where there are multiple classes or wellness sessions, it’s not farfetched. Down the street from my home, a very posh yoga center offers “pay what you can” classes taught by their newer yoga teachers. A regular class at this studio cost somewhere around $25 each. You can take a class with a new instructor for $5. Not bad. Even if a business doesn’t have a discount system in place, they will often offer a “first class for free” courtesy, especially if they’re offering something exotic or new to your area.

These programs can be wonderful for sampling all sorts of wellness programs. Recently I bought 20 pilates or yoga classes at a very nice local gym for $50, thanks to Living Social. These classes would normally cost $15 each. That’s a savings of $250. Not bad. I recently saw a colonics center offer a $35 session through Living Social. Colonics at full price run $75 - $150.

 

It’s becoming more common for health insurance providers to offer a limited number of alternative health sessions under their regular policies. Some plans allow for pregnancy massages, others for chiropractor visits. The cost may be completely covered or require a small co-pay. So, read the fine print on your insurance policy. You never know.

 

The most important (and difficult) part of any health program is starting. But without worrying about price, you can have more confidence that it’s not out of your range. Give wellness therapies a try. I’m sure you’ll love them as much as I do.

 

If there’s someone you know who’d love to try a yoga session, or find a meditation coach, here’s a great gift you can give to get them started.