Eighth of Eight Great Money Habits

This is the last in the series of eight articles I've been writing on the eight great money habits I encourage in my students and my clients.

Today's thought is "Constant Vigilance."

Okay, I'll confess. That wasn't going to be the final thought, but since the next installment in the Harry Potter film franchise is due out soon, quotes from the books have been on my mind. "Constant Vigilance" is the catchphrase for one of the quirkier characters in the story. He is convinced that evil lurks behind every door, and in every corner and that it is out to get everyone, especially him. Of course, he's right, but then that is the point of the character -- to cast light on the assumptions we make in the course of our day to day lives.

Am I, then, advocating obsessive monitoring of financial standings and extreme levels of worry? Absolutely not! In all honesty, today's theme was going to be "Tidy up your finances and keep track of them painlessly." Somehow, though, that just seems so much less interesting than the theme I selected. So, instead, let's just come up with an analogy or two.

I know that in the course of one of the newsletters, I confessed to hating housework. Not all aspects of housework -- I actually like washing pots and pans, doing laundry, and sweeping. Each, though, represents something with immediate payback and instant gratification. Tidying up, on the other hand, is like making your bed -- why bother when it'll just get messy again within a few hours? I also have the misfortune of being married to someone whose mother was truly OCD when it came to housework (and I do mean every aspect of housework). As a result, he redefines sloppy. When you are trained that what you do simply doesn't matter, and someone else will invariably clean up and find satisfaction in that work, it's inevitable that you will have bad habits.

So, add a slob to someone who thinks tidying up is a total pain and dreads doing it, and you have a house that is constantly messy. Thank the gods neither of us is a hoarder or suffers from clinical cluttering (which, by the way, is easily helped with hypnosis and is not something bad), or we'd be drowning.

On the other hand, I have had to, many times, come to grips with the sense of foreboding that accompanies the need to tidy up. I have to push away the feeling of being overwhelmed and make myself get through the task. How many of us have this approach to our money? How many of us panic and tremble when bills or tax notices come in the mail? How many of us will let that envelope sit, unopened, rather than deal with the pain?

It doesn't have to be that painful. Remember, I have said over and over again that you are in control. You have the choice to deal with issues or not deal with them. You can make choices that give you the opportunity to simply breathe easier. You just have to allow yourself the chance to do so.

I've detailed, in a previous newsletter, how to create a monthly budget, and how to use that monthly budget to build an annual forecast. Here's how to turn that tool that took so many hours of work into a stress relieving device. It's done by using "actuals" as we call them in the financial analysis world.

Step 1: As you earn income each month, enter it into that month's spot on your forecast/budget spreadsheet. Remember, this is a section on your spreadsheet, summing to a total for income. So, if you've predicted that you'll earn $123.00 this month for dog walking, and you have now earned $144.00 because you got an extra gig, enter that new number. Or, if you predicted that you would earn $544.00 for lawn mowing, and it rained almost the entire month, so you only earned $34.50, enter that number.

Step 2: As each bill arrives, open it. Record the exact amount owed in the spreadsheet, in the appropriate spot.

Step 3: Even if that bill is not due, write the check, and set up the payment. Put the stamp on the envelope and in pencil, write a date three days before it is due on the bottom right corner of the envelope. Put this in the bills to be mailed sorter. If, instead, you pay bills using an online utility from your bank, set up the payment to be mailed by your bank three days before it is due.

Step 4: Every day, check your bills to be mailed sorter. Does anything have today's date? If so, put it in the mail.

The logic behind this is quite simply that it is easier to do one thing than ten.

Step 5: Once or twice a month, sit down and look at your spreadsheet. Has your income met your expectations? If not, do you need to change the forecast for the better or worse? Repeat this process with your forecast of expenses. If, like me, you do not use the level payment option from your gas or electric provider, did your forecast match your result? Remember that electric tends to be higher in summer, and gas in winter. Perhaps you need to add a seasonally adjusted number. Same with your credit cards -- did you stay within your limits this month, or did extra things pop up? Feel free to tweak numbers, and to see what happens. This is your forecasting and tracking tool, and only you will see it. The more accurate it is, and the more closely it reflects your real life, the more meaningful the tool will be.

Remember, only you have the power to change your thoughts, habits and actions. And also remember, that with money, it takes lots of little changes to have a huge impact.

Finally, remember to check on your credit reports. It is my understanding that each of the major credit reporting bureaus will provide one free report annually to you. Don't check with each of them every month unless you suspect fraud. There are two simple reasons for this: first, it costs too much money to justify the behavior, and second, it goes on your record as a mark against you. I can't say that I approve or understand the second one, but I do know that it is true.

I hope that this series has been helpful to you, and am willing to repeat it in the future, if so requested. In the meantime, let me know what other series you'd like me to explore: eliminating procrastination, reducing clutter, improving exam study habits, or others. Also remember that no matter what change you want to make in your life, the power is and always will be in your hands. Allow yourself the luxury of choosing your best life.

Allow yourself to be patient and to be true to yourself. Remember to take at least five minutes every day to simply be by yourself and breathe. Allow yourself to indulge in a moment of thought, reflection and planning when the mood strikes. It's your money, your choice. Allow yourself to simply succeed on your own terms, to live in peace, abundance, and joy. One day, one decision at a time, remaining aware of your choices and your feelings. You CAN get there.

And, as always, if you need help, I'm available. It's what I do, and it's what I love to do.

Sharon.

Hypnotherapy can help you to think healthier, happier, and more successful thoughts while adding the power of relaxation to your life. As you go through your day, you feel better and perform better.

Contact us to learn more about how hypnotherapy can you propel you toward a healthier, happier lifestyle.

Hypnosis or Hypnotherapy, in any form, does not diagnose, treat or cure mental or emotional problems, and is not a substitute for other professional help.