How to Improve Your Financial Willpower

[iswmle]

I have been almost anal about putting money into savings since my bk last August. When I was married I was such a fool with money, no wonder I had to file upon my divorce! I literally had to learn how to manage finances when I split with my ex. It was a drastic lifestyle change for me. Now I look back at the person I was 5 years ago and am shocked that was even me. Sometimes I feel like such a scrooge, because I honestly feel a sense of accomplishment when I go through my savings statement and see how much it has grown. But learning to manage money has been a hard lesson learned!!

Ironically enough, soon after my BK I actually got a job at a BANK working in the credit card dept! Don't ask me how I managed that one. Since getting my job I am even MORE aware and on my guard when it comes to credit cards. I talk to too many people in debt up to their eyeballs to want to ever be in their same position again.

[tobee43]

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LOL Toby. Well you know Excel so also use the graph feature. Most male executives don't understand numbers but show them a picture and the low one in RED vs the big one in Green works everytime. Should work on hubbys too. 'Hub

well...you don't know yet...but next he'll be asking me for a power point presentation.......LOL!!!!!!!! really!

[AngelinaCatHub]

we did exactly the same thing.....

and my other half whom never had anything do to with our finances has asked me...which i did to make an excel sheet to show him the budget...where what goes....by putting it in "black and white" he's able to see where our money is going. i don't need the "paper" since i can even blance both check books in my head...but that's because there's no longer much to "balance"..

LOL Toby. Well you know Excel so also use the graph feature. Most male executives don't understand numbers but show them a picture and the low one in RED vs the big one in Green works everytime. Should work on hubbys too. 'Hub

[tobee43]

We changed everything by going cash. We now use the dave ramsey envelope system. When the cash is gone, it's gone. So I'm careful not to waste it. We plan every penny for the month before it comes in. It's on a spread sheet. So if we go over, it's easy to point to the reason why. I do not want that reason to be me.

We also moved our savings account to a bank that isn't the same as our checking. When it was at the same bank I could too easily log on and transfer the money into my checking to cover my Archivers purchase.

we did exactly the same thing.....

and my other half whom never had anything do to with our finances has asked me...which i did to make an excel sheet to show him the budget...where what goes....by putting it in "black and white" he's able to see where our money is going. i don't need the "paper" since i can even blance both check books in my head...but that's because there's no longer much to "balance"..

[lovemybugs10]

We changed everything by going cash. We now use the dave ramsey envelope system. When the cash is gone, it's gone. So I'm careful not to waste it. We plan every penny for the month before it comes in. It's on a spread sheet. So if we go over, it's easy to point to the reason why. I do not want that reason to be me.

We also moved our savings account to a bank that isn't the same as our checking. When it was at the same bank I could too easily log on and transfer the money into my checking to cover my Archivers purchase.

[tobee43]

maybe huxley was a time traveler!! LOL!!!!

[tobee43]

I definitely believe this. I think this statement is the key:



Damn right we've been shocked into having less mortgage debt, less auto loan debt, and more savings. With 15 million people unemployed, another 12 million underemployed, >1.5 million bankruptcies and >3.8 million foreclosures in 2010, we have had no other choice. I wonder how much of the debt reduction mentioned here is due to BK and FC?

yes, and they conveniently left out how many are due to the BK and FC.....not surprising at all is it??

i really really wonder what the actual truth is....i suppose we will never know... and that's what is scary..)....as i asked before...pass the soma...brave new world is now here!

[researchnerd]

I definitely believe this. I think this statement is the key:

After years of overspending and failing to save, it seems Americans have been shocked into getting it right.

Damn right we've been shocked into having less mortgage debt, less auto loan debt, and more savings. With 15 million people unemployed, another 12 million underemployed, >1.5 million bankruptcies and >3.8 million foreclosures in 2010, we have had no other choice. I wonder how much of the debt reduction mentioned here is due to BK and FC?

[tobee43]

anyone know where to get a HIGH interest savings account?????????

[tobee43]

this is fairly interesting..... and i wonder how true????????


Americans Now Have Less Debt and More Savings than in 2008

February 16, 2011

A new report from the Federal Reserve Bank of New York shows Americans now have less debt than in previous years and are taking steps toward adding to their savings. According to the report, Americans now have less mortgage, auto loan and credit card debt than in 2008 when consumer debt peaked. Even better is that they’ve saved a significant amount since the crisis.
Eliminating Debt and Saving More a Consumer Priority

The report revealed that Americans have 7 percent less mortgage debt, 12 percent less auto loan debt and 15 percent less credit card debt than they did in the summer of 2008. Also, loan payments were at the lowest level in a decade.

Americans have been working hard to ensure they don’t crash and burn as they did after the financial crisis when everyone saw the repercussions of borrowing and spending more than they could afford.

Now, consumers are making an effort to pay back who they owe and place money in their savings accounts before buying new items. In fact, the Consumer Department found Americans are saving at nearly triple the rate they did between 2007 and 2009, having placed 5.3 percent of their money in their savings in December.
How to Stay on the Savings and Debt Relief Track

After years of overspending and failing to save, it seems Americans have been shocked into getting it right. If you want to stay on the savings and debt relief track, here are some ways to get this done:

* Create your budget: First, create a budget that will help you organize the money you have coming in and going out.
* Open a savings account: If you don’t already have one, it’s good to open a high-interest savings account that will allow your money to grow as it sits in the bank.
* Consider waiting over borrowing: If there’s something you want to buy, instead of purchasing it on your credit card or taking out a short-term loan, consider waiting until you save enough of your own money to purchase it. This way, you don’t have to waste money on the interest you’ll owe as you repay.
* Pay debts before buying new items: Also, consider paying debts before buying new items in cash or taking on new debts. If you need help eliminating bad debt and creating a good credit utilization ratio, employ the help of debt settlement or credit counseling.

Eliminating debt and avoiding unnecessary spending could help add more to your savings accounts. So consider the options above to help keep you on the track to financial freedom.

[tobee43]

Good article tobee43! I especially like #2. Use your behavior to change your attitude. One thing I've been reminding my teenager recently is "By your actions, you are known." In other words, you can have the best intentions to do something, and you can have great plans to do it, but until you actually step up and do it, it doesn't become real. Don't get me wrong -- intention is a powerful thing. But what you actually DO is what's real, what impacts the world, and what's noticed and remembered by other people. And once you do it, it's easier to keep doing it.

With that in mind, DH and I have recognized that in order to improve our finances, we had to change behaviors that got us into trouble before. We were hit really hard by his job loss, but if we'd made smarter choices before then, we wouldn't have been impacted as drastically. So now, spending has gone from sometimes-impulsive to a conscious decision that we weigh against the experience of BK and foreclosure. We are doing longterm financial planning now, and have a savings plan in place that we contribute to each month. We still go out to eat, but it's an occasional treat instead of what happens by default when we don't feel like cooking dinner -- and even then, we tend to go out for breakfast or lunch instead of dinner and skip the $$ cocktails.

We're just doing little things, and we've had a few back-steps, but it does add up -- and that feels so good that we're starting to look for other ways to save. We've built a small emergency fund in just three months, and now we're saving towards buying a second car (with CASH) after letting mine go in the BK. And we're now two weeks ahead on the rent instead of panicking on the last day of every month. Ahhhhh.

it's truly amazing when one things about our behaviors and what little changes can in fact, result in BIG positive results it really works.

we are now making "regular" savings deposits monthly...just for the psychological reasons...(since we know the bank is really not the best place for money). it just helps to see it there in black and white. we feel like we have accomplished something...maybe not much...but something!

nice news on being two weeks ahead with the rent!

[researchnerd]

Good article tobee43! I especially like #2. Use your behavior to change your attitude. One thing I've been reminding my teenager recently is "By your actions, you are known." In other words, you can have the best intentions to do something, and you can have great plans to do it, but until you actually step up and do it, it doesn't become real. Don't get me wrong -- intention is a powerful thing. But what you actually DO is what's real, what impacts the world, and what's noticed and remembered by other people. And once you do it, it's easier to keep doing it.

With that in mind, DH and I have recognized that in order to improve our finances, we had to change behaviors that got us into trouble before. We were hit really hard by his job loss, but if we'd made smarter choices before then, we wouldn't have been impacted as drastically. So now, spending has gone from sometimes-impulsive to a conscious decision that we weigh against the experience of BK and foreclosure. We are doing longterm financial planning now, and have a savings plan in place that we contribute to each month. We still go out to eat, but it's an occasional treat instead of what happens by default when we don't feel like cooking dinner -- and even then, we tend to go out for breakfast or lunch instead of dinner and skip the $$ cocktails.

We're just doing little things, and we've had a few back-steps, but it does add up -- and that feels so good that we're starting to look for other ways to save. We've built a small emergency fund in just three months, and now we're saving towards buying a second car (with CASH) after letting mine go in the BK. And we're now two weeks ahead on the rent instead of panicking on the last day of every month. Ahhhhh.

[tobee43]

it's always good to find ways to save!!! i'm really hoping after the first of the year we will be able to save more!

[tobee43]

thanks t43...i really enjoyed this.

can you just PLEASE pass the cat!!!

[oregonpilot]

thanks t43...i really enjoyed this.