This song rings in my head as I am writing this post…
Recently, I was coaching my team about how to overcome the objection, “I don’t have enough money.” It reminded me that in my years of helping people manage the risks of everyday life, how little people understood about money.
Specifically, how money creates power, independence and security.
My first observation is personal. With the development of debit cards, we have become a society that mindlessly swipes. When we do this, we really don’t know how much money we are spending on things like coffee, fast food and snacks on the run. I recently reviewed my spending for the year. I realized that when they put the Starbucks right by my house, I was going everyday. At the cost of $5 per day – 5 x 365 = $1825. However, many of those days I had at least one of my kids with me. Now we were up to $10. I am guessing I probably spend $2400 per year on drinks…. OMG. That pays off a credit card.
When I started talking to some of my team members, they looked at their spending and realized they were mindless spending on things that were really adding up – small things purchased everyday – and at the end of the week how little money they had left.
Now, as a team we are not going without the things we love, just going about it differently -like making our own coffee, eating home more often, and no impulse purchases. The minimum one of us found was $2400.
Now you are wondering, how does this create power, independence and security?
*It allows us to save for things and not have to borrow the money in crisis.
- We can shop for the best bargain
- Having money in savings means our family is in a better position to cover things like illness, loss of job etc.
- When we prepare for the future, we are creating a life of independence instead of always asking for help – either from banks, family of friends
- We demonstrate to our children what fiscal responsibility looks like
- We become better educated in how credit and interest works so that we are a smarter consumer
Look at your budget. What are you mindlessly swiping your card for?
Creating a buzz……¯`•.¸¸.ஐ