How Much Should You Spend On…?
One of the most frequent questions I get asked is, “How much should I be spending on… dining out, groceries, clothes, entertainment, etc.”
We, as humans, like easy answers and the Internet is filled with pie charts stating how much you should be spending on various categories from housing to entertainment.
However, if everyone abided by those pie charts, very few people would be living in places such as the San Francisco Bay Area (where I recently moved from) or Manhattan because it takes too much “pie” to live there.
Do You Need a Holding Account?
Intermittent expenses can catch you by surprise and create a vicious roller coaster of accumulating debt, paying it off and then building it back up again.
The Perils of Retroactive Living
Retroactive living is falling into the trap of continuously paying for last month’s (or last year’s) experience long after it happened. It is the typical way most people use their credit cards.
The Family CFO is Not the Bad Guy
Sadly, it’s unfortunately common for the person managing the family’s money to become The Bad Guy, The Money Police, The Buzz Killer - and that’s not fair! It’s not fair especially given that their ultimate goal is to take care of the family and they’re getting chastised for it.
Your Tax Refund & The 50/50 Rule
Were you lucky enough to receive a tax refund?
If so, before you start planning on how you’re going to spend it, can I ask a personal question? Do you suffer from Goldfish Syndrome?
Let me explain…
The Pause Habit
A friend tells me about a book and before she finishes the description, I’ve already whipped out my phone and bought it. When it arrives, it goes on the pile of unread books that I acquired in the same manner.
This is a common scenario clients have used to describe their spending.
The ease of 1-Click technology, along with how very busy we are, primes us for a habit of making a purchase without really thinking through whether or not we really want or need that item.
Credit Cards - The Art of Getting Out of Debt
You have credit card debt that’s stressing you out. Whether an unexpected expense or past negative spending habits triggered the debt, it’s understandable to want to throw every spare penny to pay it off. But, that’s rarely the right strategy.
Without a Spending Plan you can easily find yourself in a negative cycle of paying your debt down only to see it build up again despite your desire to get off the hamster wheel. This can be incredibly demoralizing.
