Does Busy Mean Successful?

What is it about being busy that gives us a sense of being successful?

Does busy mean productive? Does busy mean financially successful? Or does busy simply mean busy? The verb busy means to keep occupied. Always going, running, and moving, starting projects and not finishing them, working on a task that creates more tasks, attending this party or that event, serving on a board or community panel. A body in motion, all the time.

How many times have you felt or said “I’m too busy,” most likely for something you really wanted or needed, like a weekend holiday or a week-long vacation? We easily sacrifice our health, mood, finances and overall enjoyment of our lives, especially to help others.

But the question is, how can we get off the hamster wheel without hurting our work production, our family obligations, or community commitments? How do we work and live in the moment but still manage a healthy life and successful career? Do we cancel Christmas? Lower our expectations of ourselves, our standards?

Quite the opposite. We raise them.

As a successful banker and single mother of two I stayed very busy for many years.. gym in a.m., work all day in a high volume sales environment, ball games or practice most nights, cooking and taxi driving along the way. I was busy, tired, and quite frankly burned out. I lost my balance.  That’s when I decided to reset and raise my standards.

4 tips to improve work-life balance without sacrificing production. 

1. Take a vacation every 6 months.

   For me, I take one with my children and one with my friends. I realized I needed both family time and friendship time. These vacations are memories we still talk about today. It’s what most of us work hard for. I call it my diversified portfolio of memories. When I look back on my life these are the moments I treasure. These nuggets of experiences help me appreciate my career, knowing it helped me facilitate these escapes.

2.  Create systems.

   One of the best things I did as a small business owner from day one was to create reoccurring systems for each task required in my business. Delegation and automation have changed the way we do business. I’m a big believer in processes, they work and they can be trusted to help us save time and energy. They get rid of busy work! Hmmm.

3. Workout when you want to.

   For years I forced myself to get to the gym at 6 am. I’m a night owl, night owls resent 5:30 wake up calls, especially to work out. Year after year I believed if I got it over with I was more likely to do it. I was wrong. I started working out in the afternoon and spending my mornings calm, enjoying breakfast with my children, reading the paper and beginning my day the way I wanted. Slowly. It was a great decision. I keep a workout routine and I don’t end every night dreading the thought of having to wake up at the crack of dawn rushing to the gym anymore.

4. Meditate.

   It takes practice but once you start you will crave it. You’ll crave the peace it brings you throughout the day. There are countless studies that show the benefits of meditating. It’s not just for yoga experts and rockstars. It’s for all of us.  Quieting our minds allows brain space for us to be more creative, healthier, and able to handle the stress of life more efficiently.

We are busy in our life but the goal is to be in control of our busy lives. Simple and small habits create the best and worst parts of us. In all areas of our lives.

I challenge you to raise your standards and take control of the “I’m too busy” syndrome. Maybe it doesn’t serve you well anymore.

Are “catty women” more successful?

We all know them, some of us might be them. They seem to always land on top with an I’m better than you attitude, but are they? Maybe not…

After reading Give and Take by Adam Grant, Ph.D.  and learning how the research shows caring people are just as, if not more, successful than aggressive folks I thought there may be a lesson here for us ladies to think about.

Catty is a slang term I’m using to describe a woman who is typically threatened by other women, especially women who are smart, hardworking and/or attractive. As a defensive mechanism, she becomes rude and/or unapproachable. Think Devil wears Prada as an extreme.

A woman who must feel like she is better than all the other women in order to calm her own inner insecurities. This is usually achieved by beating down other co-workers in a subtle yet effective way or isolating themselves.

There is a certain competitive component to this woman who screams you will not beat me. I have worked too hard! So back off!

But is this productive for the long-term growth of women in the workplace, women financially, or even women’s happiness in the workplace? Interestingly, Gallop studies show that women prefer male bosses. Why? What can we do about it?

Here are a couple of examples to think about…

You work in a field dominated by men. In business meetings, your boss seems to take her frustrations out on you more than anyone. She calls you out more frequently and you constantly feel she is competitive with you. In turn, you try to keep quiet and not be your best in order to make her feel better.

or on the flip side…

Your co-worker discloses she is having trouble getting new clients. She goes over her current efforts and you notice things she could be doing better.

Do you share your thoughts, giving her an opportunity to possibly outshine you or keep your thoughts to yourself knowing you will get top sales agent for this quarter? In addition, you now know her weaknesses. Do you use that against her to increase your production?

It seems like common sense that these scenarios are not productive yet they are common between women.

Why do we do this and how can we improve? 

Women are afraid to show other women our need for help. We isolate ourselves. Men don’t tend to do that. They go play golf, they go have a drink after work, they play sports together every Sunday. They may not always like each other but they support each other.

Collaboration is where we need to start. We need to hang out more with those smarter, younger, older and wiser women. Leaning in, reaching up and reaching down. We have so much to learn from one another, it’s time to open those doors.

We decide very quickly if we like another women. We call it intuition, but is it? Sometimes we base our judgments on clothes, tone of voice, marital status and rate of attractiveness. Taking more time to get to know each other and seeing the value of each other would help us get past that.

One of my closest friends was not friendly at first. I could have taken it a few different ways. I chose to not think too much into it and I am thankful.  As women, we are protective of ourselves, especially around other women. We fear they could take what we have worked hard for and in some circumstances they can.

However, in most, we can all grow together. So when we first meet someone, they may be protecting themselves with a standoffish attitude, if we give them a little more time they could become our greatest employee, friend or co-worker.

Giving to other women makes us stronger individually and as a whole. 

Let’s look for opportunities to mentor, teach or simply support women in our own industry or others. Earlier this year I was asked to mentor a college student. It was my first time mentoring another adult. She was a very smart, attractive and confident senior.

I wondered what in the world can I teach her? She already has it all. However, I had plenty of wisdom to share once I sat down and thought about it. Books to read, interviewing skills, conversations about negotiating and support in general.

I shared my mistakes and vulnerabilities in business and how I tried and still try to learn from them. It was a great experience and a relationship that we both treasure.

We can work harder to pay attention to how we treat other women in our workspace and our personal space.

If your catty, you know who you are! Start with one person and work your way out to even more. We will all benefit in the long run, especially our daughters!

For more information on Financial Success for Women visit http://www.HarborVestAdvisors.com

Do I Self Sabotage?

 

Most behavioral professionals would say self-sabotage is creating problems that interfere with one’s long-term goals.

Overspending, overeating, destroying relationships and even procrastination can be sabotaging behaviors if done habitually. Are you getting in your own way?

Many of us don’t even realize we are doing it. Typically, when we are engaging in self-sabotaging behavior part of our personality is in conflict with another part of our personality. One side of us wants one thing. The other side wants something different.

We talk about this in my practice when putting together goals and more importantly budgets. Most clients are expecting me to slash eating out from their budget or advise them to get rid of the travel budget for a few years. But I know that simply won’t work. We have to take baby steps if we want the plan to work. Otherwise, six months later they will come in with even more credit card debt and an extra layer of guilt.

In reality, we are probably all guilty of the behavior to some extent. However, it can get out of hand in many areas. One can repeatedly get involved in toxic relationships having a fear of intimacy or overeat to protect themselves from anyone liking them. In my business, I meet with people who say they want to save but won’t spend less than they earn.

What I am finding is many times it goes back to their financial blueprint. “My father always made sure I had the best of everything,” or “I’ve struggled my whole life and I just wanted to splurge” or “shopping is my therapy.”

Behaviorist say it could be the familiarity of failure, a need for control, simply bad habits or a need for excitement among other things.

So what can we do about it? How can we keep our behavior in line with our goals?

5 tips to stop self-sabotaging.

• Watch yourself, and then ask yourself why you responded in that way. What was driving it? Was it fear, spite, control, power, a feeling of insecurity? We all have feelings around money that we may not be aware of. Fear of loss, fear of success, fear of poverty…it goes on and on. The first step is to understand your financial blueprint and how it may be playing into your sabotaging behavior.
• Decide what success means to you. In my world, my client’s incomes do not always define success. Success means different things to different people. Understand what it means to you and set your goals around the process of achieving those successes not just a dollar amount. Remember, the joy of the accomplishment comes from the sacrifices made to achieve it. We love our children not only because they are our children but because we raised them. It’s our investment of time, resources and self-sacrifices that create unconditional love.
• Progress, not perfection. A friend said this to me while going over my goals and I never forgot it. Perfectionism is often a culprit of self-sabotage. “If it’s not perfect, then what’s the point.” I can only save $300 a month, I’m 50, I’ll never retire with that so what’s the point. See where I am going? It doesn’t have to be perfect. Just do the best you can. You will make progress.
• See the needs of others. Typically self-sabotage hurts others not just ourselves. We could be wasting money that should be going into a college fund or emergency savings or even our retirement savings. Those choices have consequences for others and we need to be aware.
• Forgive yourself and move forward. Start recognizing when you are behaving against your goals and make changes one at a time. Today is always the best day to start.

I trust you to take care of it.

April, the month where flowers begin to bloom and “open up.” It’s an appropriate time to open a discussion about a financial concern I hear often from women.  

“My husband doesn’t want to talk about it.”   Sound familiar? 

Many women today are in charge of the household finances and feel alone. It’s not that they are, most of their spouses would be quick to help if money was needed for a particular expense. That’s not the issue. It’s the day to day financial questions, opinions and strategies that overwhelm many of us when trying to make good financial decisions. Making them on your own can be frustrating. 

So why is this feeling so common? 

In large part discussing your financial windfalls or shortfalls is a private matter and for some women, we look to our husband to second our opinions about the decisions we will be making. Things like “how much can we afford to save for Joey’s college?” or “we will need a new dryer soon, how should I pay for it? Sometimes it’s more difficult issues like “we can’t afford that right now” or “I’m not sure how to pay this bill.” 

These questions can lead to heated disagreements or worse. 

Hearing “I trust you to take care of it honey” can unknowingly create anxiety, frustration and a feeling of being overwhelmed. Not to mention, feeling like your nagging or bugging him. 

So what can you do? 

Different strategies work with different families so try a few of these. 

1. Schedule a monthly financial meeting. This can be a great time to discuss all the things you’re thinking about throughout the month in an hour. It’s less overwhelming for the other spouse but keeps you both in the loop of decisions. 

2. Change your approach. Sometimes we might just blurt out the issue because we feel emotional but it can put the other party on the immediate defensive. Try to start the conversation off by asking if it’s a good time to talk and if it’s not, ask when might be a good time. 

3. Let go of the past. Bringing up past financial mistakes is like talking about an ex-girlfriend. Never good. It starts off seeming like no big deal but five minutes later it’s a blaming game. I’m sure your spouse remembers losing money. Let it go. 

4. Hire a professional. Often times having a financial planner helps keep things in focus and because you’re including a third-party the emotion is kept at bay.  

Financial stress in a marriage can be devastating. It pays to take an approach that works for your family and to create a financial culture that helps your prosperity grow.

Feel free to add ideas that have worked for you. 

Name(required)

Email(required)

Website

Comment(required)

What would you like to discuss in the future?

Submit

Δ

How did I spend all that money?

In the financial planning business, we see a lot of movement in regards to money. We pay attention to the stories our friends and coworkers tell us. We witness goals being achieved through consistency and hard work and others making choices that we know will hurt them financially in the long run.

Sometimes after a life transition like divorce or loss of a spouse, we can get a little crazy on the “giving.” We want to feel good again and giving is a great way to accomplish that, at least temporarily.

But what happens when the giving is too much, driven by only emotion and could harm us in the long run?

I’ll pick on myself as an example. After my divorce, like many people I was sad so what did I do? I had a $30,000 pool installed in my back yard of course.

I wanted to distract the kids, encourage them to have more fun and stay at home. Wasn’t our home already fun? In reality, I thought I wasn’t enough and needed to bring in the big guns….you know, the pool company.

Don’t get me wrong, we enjoyed the pool for many years but it was a major unplanned purchase and looking back now it was a purchase made while I was emotional. Hindsight is 20/20.

When listening to other’s stories I hear commonalities between my purchase and others who have been through transitions.

One woman told me she bought both her children brand new cars and paid cash after losing her husband. “It felt good to provide such a nice gift, they are in their 20’s and could use the help,” she said. However three years later she regretted spending $70,000 of her inheritance on a depreciating asset. “I wish I had thought it through more carefully. I need those funds for my retirement.”

Seeing the big picture can be difficult when you are emotional.

Another woman shared her story about being awarded 50% of her husband’s retirement account, rather than roll it over into an IRA for herself, she put it in her checking account. Within 24 months the money was gone. “It’s easier than you think to go through the money,” she explained.

This is one of the reasons I became a financial planner. It’s my job to be the sounding board and let my clients discuss what they want to do with their money and why.

The why is key.

Then take it one important step further and make sure it is in your best interest. Many times the purchases are in line with what we can afford to give and it doesn’t affect us long-term but sometimes we might need to pull back, wait a few months and then revisit the idea.

Always remembering the goal is to get back on track and to move forward without feeling guilty about taking care of guess who?

You.

Feel free to share your experiences about spending emotionally after a transition so that others can learn from you.

Is downsizing my house a good decision?

After losing a spouse or ending a marriage a common question I hear is, should I downsize? Many of us are tied not only financially but also emotionally to our family home, making the decision to downsize can be overwhelming.

Keeping our children in the same home can often provide a sense of calmness and security that we need during a transition.

We may feel an obligation to have room for grown children to have a place to come home to when they experience life changes. But is staying in the home best for us?

Often the answer is, it depends. Sometimes after working through a budget, we find that keeping the family home makes sense but often times it’s not so easy.

Let’s consider the numbers: The average single-family home built in 2013 was nearly 2,600 square feet. You may not think that’s all too big until you look back at history. In 1950, the average home size was less than 1,000 square feet—and families were bigger back then. By those standards, today’s homeowners are living large. Maybe downsizing makes sense.

Moving into a smaller space might mean your family has to gather around one TV at night instead of spreading out across three or four different rooms (Gasp!).

It just might be what you need to spend more quality time together. Especially after the family dynamics have changed.

My grandparents raised 5 children in a 1600 sq foot home and we never thought anything of it. They lived there 30 years with no debt after paying off the mortgage at age 50.

They were able to travel and enjoy life because they were not paying a giant mortgage. Many of their friends had large homes but were not able to experience life as my grandparents did. It’s something to think about.

I remember my grandmother bragging that she could go to the grocery store and buy whatever she wanted! When you have been through a depression you appreciate those lifestyle perks.

Think about what you can do with the cash you will save not only on a lower payment but lower taxes, insurance, and maintenance. This might free up resources for you to travel, save for college and retirement and reduce debt.

It doesn’t have to be drastic to make a difference. If you still have small children at home think about downsizing in the same neighborhood. That way they keep all of the same friends (and so do you!). That way you save money but keep some of the same rituals.

Sometimes moving gives you a fresh start, a way to build your new life on your own terms and this can prove healing once you get through the stress of deciding and then moving.

Downsizing might not make sense in every situation, but it’s worth a look if saving money and simplifying life appeal to you. Sit down with your financial advisor and a trusted Realtor and discuss your options. Downsizing may improve your bottom line and your enjoyment of life.

Share your downsizing stories.

What to do when you lose your spouse.

When you lose your spouse you may be overwhelmed with uncertainty, grief, and fear. You will be low on energy both physically and mentally and may feel like no one understands.

In addition, you will need to make important decisions regarding the funeral service as well as critical issues like settling his estate and collecting death benefits.  One way to make things a little easier is to have a list of items that need to be dealt with over the next days, months and years.

You need not be in a rush for many of the decisions. However, knowing what decisions need to be made, organizing your finances and finding answers to your questions will give you a sense of well being and control.

Below is a list of ten things you will need to do to get things in order. These are a few important items, there are many more.

During the Funeral or Memorial time, you’ll be busy selecting a funeral home, discussing cost that are within your budget, making service arrangements and notifying friends and family of the loss. Make sure and order at least 15 copies of the death certificate from the health department or funeral director. You will need these later.

Friends and family members will be around during this time, so utilize them. Let them help you where they can. Delegate things like purchasing thank you cards, gathering information regarding the obituary requirements, preparing food, organizing child care and keeping track of all the acts of kindness that will be happening all around you.

Once the funeral is over and the crowds are gone, the sadness may be heavier than expected. The everyday things you normally do like eating breakfast, doing chores and going to bed will feel overwhelming. Dealing with paperwork, accountants and finances will be the last thing on your mind. It’s okay.

There is typically no need to rush. But having decisions made and not lingering does reduce stress and will give you a sense of control.

Begin to organize your documents. You may now be responsible for paying bills you did not have to pay before or were even aware of.

Gather bank statements, credit cards, employer information, tax returns, investments accounts, and insurance documents. You may want to keep everything in a 3 ring binder with labels. Again, being organized will reduce stress and give you control.

Meet with your professionals and collect your benefits.

• You’ll want to meet with an estate attorney who will guide you through your will and the probate process.
• Schedule an appointment to meet with your accountant to discuss any tax concerns or strategies before you make any financial decisions.
• Meet with your financial planner. You will need to discuss your spouse’s IRA rollovers, how to allocate your insurance payouts and create a new budget with all of your assets, liabilities and a new cash flow analysis.
• You’ll likely need to contact the Human Resource department where your late spouse was employed to discuss benefits you may be eligible to receive. Discuss your options regarding the pension payout or IRA rollover and ask about receiving medical insurance through COBRA.
• Contact your life insurance company to discuss your benefits and payout options. Find out if there were any additional policies you were not aware of or may have forgotten about. Make sure your auto and home insurance companies are aware of your loss and update your beneficiaries.
• If eligible, file a benefits claim through social security for survivor benefits and Veteran’s benefits.

Take care of Yourself. Many women say they don’t feel like eating, much less socializing, exercising or pampering themselves. So start small. Remember, “progress not perfection.”

Yoga is a client favorite, as is walking. This is also a good way to meet people and to keep friendships strong. As a financial planner when working with women who are experiencing transitions, we budget for some extra pampering like nail salons and massages.

Just remember, you are not alone. There are many women going through similar losses and grief. It’s true, no one understands exactly how you feel but try and embrace the help from others, even if they don’t fully understand.

What are some things you have learned after the loss of your spouse and can recommend for others to think about?

 

 

 

Budgeting for Divorce

Once you decide separation from your spouse is imminent, you’ll need to prepare a new budget for your household. Typically, a couple moves from supporting one household to supporting two.

Budgeting may not have been an issue when cash flows were adequate during your marriage, but you may find it imperative during and after divorce.

Many women find themselves with an elephant of responsibility to carry. Although your financial planner may help you set up a plan, you are the driver in your financial success. 

When building budgets with my clients, (and even for myself in the beginning) the two most common errors are underestimating the variable cost and omitting irregular expenses like annual and quarterly bills.  

Let’s go through the bones of building a simple budget.

Budgets can be detailed or general. When I first started using a budget I categorized every last item. However, after a while, I began to combine certain items together to make record keeping and analyzation quicker. It’s up to you. 

 

First, go through your sources of income.

Salary, alimony, child support, rental income, social security, and investment income are a good start. Don’t forget about bonuses, freelance work, or non-taxable income. 

When you think about these items be realistic regarding the amounts and how long the income will last. 

If you are making a budget using a temporary order for alimony, keep in mind the order could change.

For example, is your alimony temporary, rehabilitative, permanent, reimbursement, or a combination.  Modifiable or Non-Modifiable? Knowing these terms gives you a better understanding of your settlement and a timeline to work with for your budget. 

When I meet with clients we look ahead five years, ten years, and to retirement to see the cash flow projections for income streams so we can plan accordingly.

Second, analyze and track these categories. 

Savings: I put this category first because you want to continue to save money. You may need to rebuild your emergency fund, start contributing to an IRA or be responsible for your children’s education.

Home: Mortgage or Rent, regime fees, maintenance, property taxes, insurance (if not included in your mortgage payment) and all utilities.

Food: Eating out and grocery store.

Transportation: Loans, gas, taxes, maintenance, cabs, subways.

Medical: Doctor visits, glasses/contacts, Dentist or Orthodontist and prescriptions.

Insurance: Auto, home, contents, medical, disability and long term care.

Child Expenses: Tuition, fees, uniforms, school lunches, field trips, camps, music lessons, babysitters/childcare, sports, and allowance.

Entertainment: Movies, activities, vacations, electronics, and books.

Personal Care: Clothes, haircuts, nail salon, skin care, gym membership.

Taxes: Quarterly payments, regular withholdings, and property taxes(if not already counted).

Business and Professional Expenses: Accountant, Financial Planner, Counselor, and Attorney.

Misc: Charity, pet care, holiday and birthday gifts, caring for family members.

I advise my clients to discuss their options regarding taxes with their accountant prior to signing an agreement. Ask questions and make sure you understand the following:

Which spouse should/will deduct the children as dependents? Can you split the deductions up and what is the best way? Who will take the child care credits? Who will deduct the children’s medical expenses? Can you file head of Household and is there an advantage? 

Starting your budget today is the fastest and most efficient way to have control over your money and relieve financial stress. Remember, you are not alone in this transition.

What are some of your tried and true methods for keeping a budget? 

5 strategies for re-entering the workplace after divorce or loss of a spouse.

Stepping back into the workplace after losing a loved one or going through a divorce is challenging to say the least.

Even if you have the benefit of having an advanced degree, you may need to take refresher classes or start in a lower position than you expect.

For me, I needed to go back and take all of my security licenses again and learn how technology changed the world of finance.

Many women have to cut expenses significantly and move into smaller homes. This can be emotional on you and the family, especially if children are still at home.

1. Build your support group. Having at least one person you can discuss your transition with who won’t judge you when things get tough is imperative.

You will need to discuss finances, emotions and create strategies. Picking the right people for these discussions is important and having different people for different forms of support is key.

Start building your team. For me, I called an old client who I had not spoken to in years and asked him to lunch. He is a veteran in fee-only investment advising and I knew he would give me sound advice for starting my firm. Now, he’s a mentor.

I also depended on a small circle of friends and a few professionals. My point is, don’t expect one person to carry you through everything. It takes a team. Try to keep balance in the relationships too by offering help on things that are important to them.

2. Be patient. This transition is going to take time until it is part of your life. Each day, month and year will bring new challenges and new milestones. Rome wasn’t built in a day and your new life will take time to flower.

You may feel like your taking one step forward and two steps back and that’s okay. You’re making progress.

Keep a journal. Start today. Write down your intentions and actions you will take to achieve them. Along the way, journal what is happening in your life. Six months later, read back through your journal. You will see setbacks, but you will also see success and that will give you motivation.

3. Start planting seeds. Go back to your roots, look at the skills you have and start reaching out to old co-workers, college friends, and vendors that you currently use. Let people know you are coming back into the workforce.

If you don’t have work experience, call on friends and vendors who your family does business with, they are a great resource we often forget.

Use social media like Facebook and LinkedIn to re-connect. You have value inside you, tap into it. What are you good at or enjoy? Build from there.

4. Set a budget for education. Many of my clients required training to re-enter the workforce. Budget for college classes, refresher courses, and reading. Do your research and set aside enough money for educational expenses.

Think about asking for educational funds as part of your divorce settlement. If you have an inheritance, before you invest make sure and budget for education cost if you need additional income.

5. Get busy. It’s going to be tough, I won’t sugar coat it, so just feel it. Know that the feelings are normal. Keep pushing. You will make it. This is where your support team comes in.

If you are in a situation where money is getting tighter and tighter don’t wait for the perfect position.

Just being in the workforce will give you energy and confidence. It will sharpen your interviewing skills and help you decide what you want to do. You can always change your mind and continue to look for other positions with your current employer or with another company.

You’re changing your daily habits and that is an important part of the transition process.  

Start your own company. More and more woman are becoming self-employed. I think it’s great. It’s the path I chose because I didn’t want to go back to corporate.

Make sure you have the resources and are resourceful.

Being self-employed adds a new layer of complexity and risk. You may need retirement benefits, health benefits and vacation time. Especially, if you are still caring for children. However, if you plan properly this may be an excellent option.

Where does all my money go?

Do you know where “all” your money goes every year? 

First things first, the infamous budget. Yes, you’ve heard of it. We all hate building them, but let’s face it, a budget is the foundation of every solid financial plan. It’s a non-negotiable.  It’s the brick house that the big bad wolf just can’t blow down.

When working with clients, the very first action (after our consultation) we take is creating a realistic budget. Not an “it’s pretty close” budget, a real living and breathing budget.

I always compare having a budget to counting calories. Yuck.

However, counting calories works, and so does keeping a budget. The little things sneak up on you just like the cookie here, the chips there…

I don’t have time to create a budget.

Yes, it’s time-consuming at first, so just get over it. We have all heard “control your money or it will control you.” It’s true. 

Hire someone to help if you’re too busy at work. I get it. 15 years ago before I was a planner I hired a planner to help me stay accountable. I simply worked too many hours and as a single mother had little time at night to create a budget. I figured out a way to get help.

There are many free options I will mention later if you are willing to give up some weekend time. Eventually, it will save you money to have a budget.

What is the point of a budget? 

Keeping more cash for yourself, of course! 

This is your hard-earned cash, respect it and know where it is going every month, eventually, you will figure out how you can keep more for yourself. Once you do it for a few months it becomes easier and faster. I promise. It won’t be long until your proud of your budgeting skills.

You’ll soon brag, “I paid cash” or “I budgeted for it.”

Sometimes, you will use it as a defensive strategy, “I’m sorry, I didn’t budget for that item” or “No thank you, it’s just not in my budget this year.”

Before you know it, you will be a bit of a budget snob, and that’s good.

This goes for all levels of incomes and net worth. It’s all relative. I have clients who make six figures on a budget and clients who work part-time. The goal is to keep more for yourself. We all want to do that, right? Single, married, divorced or widowed, it doesn’t matter. It is universal.

If you have read The Millionaire Next Store, you’ll know that a common trait of millionaires is they keep a budget. That’s right!

I need help. 

No problem. Let technology help you. Today, we have it easy. There are many different ways to create simple and interactive budgets. The days of hours and hours creating an excel spreadsheet are gone(I remember those days!Ugg).

   If you honestly have no time, your financial planner probably has budget software and will help you get started. Go to sites like Mint.com for free applications. I started with Excel, moved to Google spreadsheets and then progressed to an interactive(where the transactions are categorized automatically) budget. It’s even connected to my iPhone.

Set up alerts. If you have access to budget software, set up alerts. Things like “low cash balance” and “budget category exceeded” help you stay on track.

5 things that create a good budget system.

• Automatic. The easier it is, the more likely you will stick with it.
• Set limits for categories that are variable, like groceries, gas, eating out and entertainment. If shopping is your weakness set a limit for yourself and add the alert feature to warn you when you are close to going over.
• Monitor monthly. Every two weeks is even better, especially at first.
• Don’t cheat. Your only cheating yourself when you overlook expenses.
• Create some accountability. Use a financial planner, a good friend or a family member to discuss what you’re doing. Think “progress not perfection” you will have minor challenges but you are creating a habit, so just keep going.

Remember when your parents used to nag you…over and over they would say “clean your room!” We didn’t want to clean our room, but we did want the nagging to stop right? So we cleaned our room. Creating a self-nagging system reminds us what our goals are and keeps us accountable to ourself.

Start today. No, not in January, not next Monday. Start today. Know what you are spending and track it. Don’t forget about quarterly and annual bills that are sure to sneak up on you. You can do it.