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| Mexicala Art Work from My Collection, For Arts Sake. |
In the slow transition here in Connecticut from Winter to Spring I took some time off from writing to work on paying down some of my debt. Unfortunately, one of the challenges was paying over $2000 for almost 70% of the repairs needed to the front end of my Volkswagen, due primarily from the heavy wear and tear over the winter months here in New England. The roads still look like they have been through a war.
But like any battle, you either are defeated or you regroup, assess the damage, and carry on. Thus, I wanted to take this opportunity to tell you about www.dailyworth.com. The website developed in part by a very talented journalist and money management writer MP Dunleavey, has a very good following after a few good years of getting to the point on how women should manage their money and choices. I used to read her articles at MSN Money when I was going through much tougher financial times.
A recent article by Molly Triffin on dailyworth, "Beware These 9 Common Overspending Triggers," touches on things we should avoid in our quest to remain financially responsible, see if you can identify:
1. You're in a Bad Mood, advice Shut it down, do not use retail therapy to make yourself feel better; try another outlet. She suggests a jog, yoga, listening to music, talk to a friend, write.
2. You're on Vacation, I suggest not to rely on your credit card to pay your trip expenses. Always set a budget. I like to assess how much I will spend for breakfast, lunch and dinner. I also usually try to stay at a hotel that includes breakfast. On my most recent trip to New York, I did just that. I saved over $500 a night (we stayed 2 nights) by staying in Brooklyn at a hotel that had parking (some in the rear and some down the street from the hotel at a garage for $12) as compared to if we had stayed in Manhattan. As I expected the hotel was more kid friendly than the hotels in Manhattan advertise to be. Rooms in Manhattan are much smaller. With two rambunctious boys, I need as much space as I can get.
Triffin referencing psychologist Maggie Baker advises, "budget an extra 10 percent than you would normally spend at home and also consider an all-expense paid trip to protect yourself from a bad financial decision." I have found that when traveling to the Caribbean that an all-inclusive package is a welcomed idea. Not only do you not have to worry about lugging your wallet around as you venture to the beach, or the spa or to a game of tennis, but you can dine on many different options without counting your pennies. In the United States, however, I have yet to see an all-inclusive offering that is financially worthwhile.
3. An Amazing Sale, raise your hand if you have never been guilty of succumbing to this trigger. Not too many raised hands, right? While the article suggests you focus on what you are spending vs. what you are saving. I challenge you to go a step further and try each and every time you go to that big box discount retailer go through every item in your cart and start off by putting back at least one item. I almost guarantee you that you will give up more than one item that you thought you just had to have that day.
Better yet, why not just avoid the sale. Macy's has a "sale" weekly. If they advertise deals weekly, is it a sale or a gimmick; in reality those are the real prices because the retail sales industry is not making the revenue it really wants, thus everything always has to be on "sale." I can almost guarantee that if you go to a retail clothing store when you need something, it will be on sale. Now I cannot say the same about a store like Home Depot; there you have to catch the deals in the off season.
4. You are Bored, suggestion, see 1, but also consider meeting a friend for coffee, get started on a new project. Perhaps you are in the same or similar boat as I am, there are many chores that can be done around the house; remember that light bulb that still needs changing, or the new batteries that can go in the smoke detectors or how about those windows you swore last month you were going to clean. Boredom went out the window with childhood.
5. You are out with Friends, Establish that you will get separate checks up front instead of later on where anxiety and bad decisionmaking can kick in.
6. You Have to Buy a Wedding Gift, this probably rings true also regarding birthday gifts, family reunions and holiday gifts. She suggests you tap into your creative side.
7. You are on a Diet, interestingly, Triffin shares "we each have a set of willpower every day, and the more of it you extend-whether by forcing yourself to go to the gym at 6:30am or turning down the cheese plate at a networking event-the less of it you'll have left to resist other temptations, such as impulse buys." That's interesting, I never thought about it like that. Shut it down: by doing a low-key activity that is gratifying to recharge and reboot your willpower.
8. Your Best Friend's Birthday is Coming Up, suggestion don't go overboard. Shut it down: Triffin citing Baker says, "would your friend truly want you to spend so much that you'd jeopardize your own financial situation in the process?"
9. A Loved One Asks to Borrow Money, Interestingly that brings me back to my inaugural blog, "A Friend in Need is a Friend Indeed." While Triffin addresses a chronic borrowing problem by suggesting shutting it down by 1) lending what you can without destroying your own finances and 2) cutting the person off the lending tap-equating the chronic borrower to a dependent alcoholic. She also suggests 1) weaning yourself off of lending and 2) help your friend by enlisting the help of professional services.
Interestingly, in the Greater Hartford area there are a number of counseling resources. At the recent "In the Company of Women" YWCA's 19th Annual Luncheon, I met Denise Smith, Program Coordinator for Connecticut Association for Human Services (CAHS). Her organization offers Financial Education courses. CT Money School (CMS) is the first statewide financial education initiative in Connecticut providing free financial education for adults and seniors. In addition to workshops, CAHS offers a free one-on-one Financial Coaching program. Check CAHS out at ctmoney.org.
Also, Community Renewal Team (CRT) offers information and assistance with Credit Reports and Rebuilding as well as Household Budgeting and Money Management. At a recent housing fair at City Hall, I learned that Neighborhood Housing Services of New Britain, Inc. is currently offering training sessions on Budgeting Tips, How Saving Money Saves Your Home, Maintaining Good Credit, Insurance, Recordkeeping, "DIY" to Improve and Maintain Your Home, Meeting Neighbors, and Getting Involved in Your Community. The next session is May 22nd at 5:30pm, 223 Broad Street, New Britain. Their website is www.nhsnb.org. They also offer foreclosure prevention services.
What are your triggers? Identify them and you then can make a plan how to seek out alternatives that make for a happier, healthier, financially responsible you.
