Cash-flow reform project: Getting started

[mizarchivist]

OK. So, who doesn't worry about bills? I'd say nobody. I've always been a bit up-tight about dealing with the monthly financial obligations. I admit that my first act upon winning the lottery (that I don't play) would be to pay off all debt. Start fresh. Then go on vacation.
debsquared  loaned a book to me a week or so ago on coming to grips with this universal issue. I'm writing stuff down to help with my reading comprehension and all that.
My initial reaction to this book is derision and irritation. She spends a large number of words reassuring me. I don't want it. Just give me the suggestions on how to implement your ideas. Clearly I'll need to re-figure out how to skim to make up for this choice of style.
Part of my impatience is that I've already started to do some of the stuff she suggested w/out prompting.

1. I have a savings account. I don't add to it every week at this point, but they exist. They weren't so established a year+ ago.
2."The Change Game"-  I have a change jar with change in it. Keeffe's suggestion is to put all change generated over the course of the day. The proceeds of this "dream box" depends on what you want, but it could be anything from a fancy vacation to a book. Or whatever. Keefe's goal is to get the reader to see diverting the change to the dream box as something to cause positive energy: saving a little bit every day towards something you want.  Uh, ok. I want lots of things, but on that range, perhaps my goal will be a Wii.

Changing your attitude. That seems to be the thrust of the first chapter. Change your goals to not focus on bills, which will never really go away. "like the dishes or laundry. You just deal with it every day/week/month." She says we tend to focus a lot of energy and anxiety on bills rather than coming up with creative ways to meet the goals we really want: going on vacation, higher education, house, car- whatever it is. Uh, ok? I can see that. If nothing else: don't see work as the thing you go to so you can pay bills. Go to work so you can meet your goals.
"Do I have a choice?" - Keeffe spends several pages on the topic of choices. We feel unempowered by our financial situation, so she says find ways to turn that around. We may have to do a task, bu the way we go about it and what drives us to do it can be what we control. Discover what matters to you. Choose what you do based on the values you prize. Act according to your choices.
"Pay yourself first"- Despite all that we have to pay off every week, it's still your paycheck. Pay yourself, even if its a token amount. $3/day will turn into 1000/year. That 1K is then yours. It's another way to change your motivation. Rethink the impulse purchases: do you really want that $4 latte, or would you rather put that $4 towards a new motorcycle/computer/knee high boots? Or whatever it is.

So, that's where I am after 49 pages. I admit to not loving this, but I see many of her points.

Comments

[drwex]

As you may recall I share your attitude toward finances and bills. I'll be interested to read more of what you think re this book and how you proceed with this project.

[mizarchivist]

Thanks, and of course I'd not forgotten our ant-like similarities.
Goals- I want to:
1. find strategies that q_e and I can agree upon and act on that aren't all just my ideas
2. trade off overwhelmed for empowerment ==> from tread water to actual progress.

[drwex]

Are there specific progress goals you've picked out yet?

[mizarchivist]

No

[weegoddess.livejournal.com]

Go you for tackling this. I'd be interested in hearing more about your reactions to the book's advice. (I haven't read that specific book, but I did read many books about finance management when I was a young professional.)

[mizarchivist]

I loathe self help books, so this is quite a thing for me to be trying it out.

[supercheesegirl.livejournal.com]

Change your goals to not focus on bills, which will never really go away.

True. But if your goal is to pay off credit card debt, then that monthly bill amount WILL go away once you've paid it off. And if it's a high interest debt, then you're saving money by paying it off sooner than later.

But I can see both sides of this, too. I've been having issues the past two years since I bought a car and took on an almost $300 monthly bill I never had before. That's a big chunk of my budget. And because I never had a car payment before, it's been harder for me to recognize it as a permanent bill fixture like rent or heat. I was really focused for a while on trying to pay it off early to make it go away. My financial planner gave me a talking-to about that. As you said, it's better in this case to just pay the monthly rate and spend my spare cash on the goals I really want.

Do you have an ING savings account? They have the best interest rates. I can send you an invite if you don't have one.

[mizarchivist]

One of the things this author seems to be assuming is that I'm using my credit card for lots of day-to-day stuff. Which I'm not. But I do have 10 years of accumulated debt and random bills, often generated by car repair or the dentist (tough as to which is more expensive sometimes).
Anyway, her thing is to not use credit cards, essentially pay for things with cash (or cash equiv/debit)- and build up multiple savings accounts, including one for those emergencies that cause major turmoil. I need to post again on today's reading comprehension, as I've been cruising through this puppy.
LOVE the icon.

[supercheesegirl.livejournal.com]

I don't use my credit cards for daily stuff either--online purchases, car repair, dentist, etc. And plane tickets, which is just about a daily expense these days, but we won't get into that.

Sounds like a basic principle of the book is to stop spending money you don't have. Isn't it funny that something that seems so simple can be this big revolutionary idea?

Yay Anya!