Posts

Giving Yourself Permission to Spend

vacation.jpgBigg success is life on your own terms. The five elements of bigg success are money, time, growth, work and play. Today we want to focus on money.

Some people struggle to save money in the first place because they love to spend it. Other people have no trouble saving it, but they get uncomfortable spending it.

___

___

___

georgeI grew up with one of each. I’ve never seen research on this, but I bet that happens fairly often. Mom was a saver and Dad was a spender. I learned from both of them.

___

___

marylynn
So I know the answer to this, George, but share with everyone which one you are.

___

___

georgeI think I’m both so I face this internal battle – there are times when I swing to the savings side; there are times when I lean toward spending. The challenge for me is not letting it get out of balance when I shift one way or the other.

___

___

marylynnBoth of us tend to spend on small ticket items. We’re not bigg ticket buyers so we can completely relate to one of our readers, Paul.

___

Bigg question

Paul sent us an e-mail about his dilemma. He’s a regular saver, but he has trouble spending it – especially on bigg ticket items. For example, he could comfortably take a vacation but he’s not sure if he should pull the money out of savings. He wants our advice.

Bigg solution

Reading between the lines, it sounds like Paul wants to spend the money but he’s afraid he’ll need it for something else. Here’s the bigg solution:

Set up a separate account dedicated to the next bigg purchase you want to make. Set aside a portion of what you save in this account.

Right now, you’re implicitly saving for these things, Paul. By planning for your purchase and explicitly saving for it (i.e. by stashing money for it in a dedicated account), you’ll feel comfortable buying it once you’ve accumulated enough money.

Since you’ve been saving all along, Paul, consider taking a portion of the money you have in your general savings account and seeding this account with that money. You may feel you have enough to take that vacation now. If that’s the case, go for it! Then use this separate account for your next bigg ticket item.

Live (a little) in the moment

It’s important for all of us to save for our future. It’s also important to live a little in the moment and enjoy life along the way. Otherwise, we risk forgetting why we’re doing what we’re doing.

So Paul’s going to save for a vacation. If you can’t afford that right now, plan for a weekend away. If that’s going to stretch your budget too much, plan for a nice dinner out this month. Maybe even that’s too much … plan for a nice meal at home. Make it an event. Every day … every hour … every moment is precious. Don’t fall into the trap of living too much for the future. Strike a healthy balance between now and then. That’s living bigg!

How do you save for bigg ticket items?

Share that with us by commenting below, calling us at 888.455.BIGG (2444) or e-mailing us at bigginfo@biggsuccess.com.

___

Get the tips and tools you need to be a BIGG success.
Subscribe to the Bigg Success Weekly – it’s FREE!

___

Please join us next time when we discuss getting your employees to take a step toward personal leadership. Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00401-052509.mp3

Related posts

The Deal of Your Lifetime

Savers Spenders and Investors

(Image in today's post from vranarc)

The Deal of Your Lifetime

sale We have an idea for your personal finances. Now if you’re one of our regulars, we may surprise you a little with what we’re about to say …

Go out and spend some money!

___

___

Markets go through cycles. Sometimes it’s a seller’s market. But right now, we’re in a buyer’s market for almost everything!

Now, before you take our advice and rush out the door on a quest for that perfect item, consider these four questions:

  • Do you feel relatively secure in your job or your business?
  • Are you debt-free except for your low-cost mortgage on which you’re current?
  • Are you funding your long-term obligations (e.g. the kids’ college, your retirement)?
  • Do you have a nice stash of cash set aside for emergencies?

If you clear those four hurdles, you’re good to go … to go get the deal of your lifetime.

Spend, baby, spend!

It’s good for the economy, but even more important, it’s good for you. Because we’re seeing deals right now that we will probably never see again in our lifetimes.

Like the car dealer who is offering a two-for-one sale – buy a car and he’ll throw in a second car of equal or lesser value for free! That’s right … free! Did you ever think you’d see anything like that?

Many contractors are starving for work. It’s a great time to remodel your home – get those improvements done you’ve been putting off, add that room, remodel that bathroom or kitchen.

While we normally don’t suggest building a new home, for financial reasons as well as the emotional strain it can put on a relationship, it’s a fantastic time to think about having that dream house built.

And let’s not leave out businesses. Vendors in so many product lines just want some business. It’s a great time to expand or upgrade your business.

The paradox

Here’s the irony in our current situation – spenders are faced with great deals, but they often can’t clear the hurdles above. So they can’t spend!

Many savers have seen the value of their investments fall back ten years. So perhaps the lesson – live a little now, too! It will go against your grain to go out and shop. But look at it this way – you’re saving money because, by doing it now, when suppliers across the board need the money – you’ll get the deal of your lifetime! 

___

Get the tips and tools you need to be a BIGG success.
Subscribe to the Bigg Success Weekly – it’s FREE!

___

Thanks so much for reading our post today. Join us next time when we diss on Plan B. Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00346-030909.mp3

Related posts

Savers Spenders and Investors

What’s Hot in 2009: Fun Trends

(Image in today's post by djayo)

When A Saver and a Spender Become a Couple

opposites_attractWe’re told that opposites attract. We also hear that money is one of the most frequent things couples argue about.

In a lot of relationships, there’s a saver and a spender. Or maybe both people are spenders, but they spend differently. One likes to buy bigg ticket items infrequently while the other spends a little bit of money on daily extravagances.

___

___

___

marylynn We’re both pretty frugal, but I have to admit I do like my gadgets. We were at a conference recently and there was a microphone I just had to have! And of course, I do like my clothes.

___

___

georgeAnd I like to go out for dinner more often than Mary-Lynn. Do you suppose that has anything to do with the fact that I’m the one who usually cooks dinner?

___

How to come to an agreement on the family finances

We’ve found a good way to reach an agreement, on how your household saves and spends money, is to hold a summit! Heads of state do it; why shouldn’t you?

This summit has a three-fold purpose:

#1 – Values
You each need to fully understand where the other person is coming from. What’s important to him or her? By knowing each other’s values when it comes to money, you’ll be more flexible in your own financial decisions.

For example, a saver may value being debt-free. A spender may think it’s important to “live a little” now. Both positions can easily be defended. If you understand why it’s so important to your spouse, you’ll be more willing to accommodate his or her desires. You’ll find that you’re more flexible in looking for solutions.

#2 – Goals
Now that you have a good grasp of your respective values, you can discuss mutual goals. Only now you can both work to help each other get what’s important. So the spender will try to find ways to reduce debt. And the saver will see that buying a toy once in a while makes the spender more committed to saving. It’s win – win!

#3 – Strategies

You can’t stop now. With your goals in mind, develop specific strategies. For example, you may each set aside a certain amount from each of your paychecks for debt reduction and that certain toy. You’re working together to get more than you could get working alone!

___

Get the tips and tools you need to be a BIGG success.
Subscribe to the Bigg Success Weekly – it’s FREE!

___

Next time, we’ll talk about the energy crisis … only it has nothing to do with oil. Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Related posts

63 Moves to Stop Living from Paycheck to Paycheck

You Can Be Debt Free with These 5 Steps

Getting Aggressively Passive: Creating A Passive Income That Sets You Free

6 Easy Steps To Financial Freedom

(Image by foobean01)

Help – My Spouse Spends Too Much!

 
man_holding_money

Bigg Challenge
We received an e-mail from Diane, one of our newsletter subscribers. Diane says her husband has a passion for electronics and their credit card debt just keeps rising. She wants to know how to confront him and get their family finances back in order.

Bigg Advice – 4 tips to stop the bleeding without getting bloody

#1 – Plan for a conversation, not a confrontation.
You want to solve the problem, not have an argument. So use the word “we” frequently and “you” infrequently. Now that may be tough when you’re not the spender. If it’s easier, talk about the “situation”, so you remove yourself, too.

#2 – Make it an event.
Gather up any needed information and go out for cup of coffee or a very inexpensive dinner. This signals that you’re not planning on arguing, so your husband’s defenses will be lower. Find a place that’s private and doesn’t have a lot of background noise, so you can hear each other.

#3 – Agree to this rule, “Pay today or say no way.”
Repeat this rule out loud to each other, over and over again. This is where you have to start. Stop the future bleeding today so you can focus on the problems from the past tomorrow.

Saying it is one easy, doing it is hard. If your situation is really extreme, put yourselves on a cash allowance and agree what expenses that covers. If it’s less extreme, you can use debit cards that draw on separate accounts – one for you, one for your husband.

#4 – Create a fun account.
Set aside an agreed percentage of your incomes into this account. IF, and only IF,   you’re able to pay all of your other bills in full, THEN you get to spend this fun money.

So if you’ve met your goals, your husband gets bonus money for the gadgets he wants. By the way, you’ll get bonus money, too. This is how you get his “buy-in” and keep him from going into withdrawal, which is crucial because you can’t do it alone.

Don’t think you have to be debt-free to trigger any bonus money. You just have to see a reasonable level of progress. Sometimes a small investment in rewards pays bigg dividends.

For example, you may agree that when you’ve reduced your debt by 25 percent, you’ll draw down 10 percent of your fun account.

As you get your financial house in order, check out our article on the five piggy banks. This will help you keep it in order.

Thanks, Diane for sharing your bigg challenge. We wish you bigg success!

Do you have a bigg solution for Diane? Share it with a comment.
Are you facing a bigg challenge? We’d love to help!
E-mail us at bigginfo@biggsuccess.com.

We don’t know who originally came up with our bigg quote today, but we sure like it!

“Between work and family, I’m really not spending
enough quality time with my money.”

So give yourself time to get to know your money so it can get to work for you!

Next time, since it’s leap year, we’ll look at leaping from place to place. You can see the world while you work! Until then, here’s to your bigg success!

Subscribe to the Bigg Success feed

Subscribe to The Bigg Success Show in iTunes 

Related posts

More Bigg Challenges/Solutions

More Debt Reduction

More Financial Freedom 

(Image by greggoconnell, CC 2.0)

Pages

How to Reach an Agreement with Your Spouse on the Family Finances

By Bigg Success Staff
06-25-08

Bigg Success with Money

couple

Opposites attract. Unfortunately that can create some problems when it comes to the family’s finances.

Money is one of the biggest sources of disagreement between spouses. It’s often the case that one spouse is a “saver”, while the other is a “spender”.

If you’re the saver …

You may feel like you’re beating your head against the wall. Your spouse doesn’t seem to understand that you’re trying to save for the future. So, just when you think you’re getting a little ahead, your spouse goes out and spends the money. Now you’re back to little, or no, money in the bank!

If you’re the spender …
You may want to “live a little”. Your spouse doesn’t seem to understand that you can’t put off all the fun. You can’t worry about every single dollar you spend. Life’s too short to not live it. Your spouse just wants to save money for when you’ll be too old to enjoy it. You want to live now!

So how do you come to an agreement on the family’s finances?

By having a conversation with your spouse.

Values
Talk about your respective values. To one of you, being debt free may be important. Perhaps you don’t like to use credit cards at all. Or perhaps it’s important to one spouse to buy certain things. It may be as simple as eating lunch out every day.

Understand what’s important to each of you individually before you try to proceed collectively. Something may be very important to your spouse and not important at all to you. That’s okay. You don’t have to agree with each other. You just need to understand to each other.

Goals
Now that you understand each other, you can proceed to your mutual goals. Certain items should be somewhat sacrosanct. An example would be funding your retirement. If you would like to have the option of not working at some point, you have to set money aside while you are working.

As you establish your goals, keep each other’s values in mind. Instead of trying to find ways to pay for what’s important to you, look for ways to get what’s important to your spouse. Ask him or her to do the same thing for you. This role reversal will make the conversation more productive because you’re not fighting for what you want; you’re fighting for what your spouse wants.

Strategies
With your goals established, you know what you need to do. Now you just have to do it. Sounds easy, doesn’t it?

It’s not!

This is the hard part because it’s involves the daily decisions that make or break the budget.

There are a number of strategies you may employ. You may each take an allowance for all of your incidental expenses. You may set a limit and agree to call each other before spending that amount. You may maintain a joint account or separate accounts. You may even do both.

Find what works for you and your spouse through trial and error. Then go for your goals. As you see your accounts grow and grow, following your plan will get easier and easier!

Hear today's lesson and laugh on The Bigg Success Show. 

Subscribe to the Bigg Success feed.

Related posts

Help – My Spouse Spends Too Much!

63 Moves to Stop Living from Paycheck to Paycheck

Getting Aggressively Passive: Creating A Passive Income That Sets You Free

How To Get Rich

6 Easy Steps To Financial Freedom

(Image by npiggy2)