Self Improvement with Better Money Handling

Disclaimer This report is for information purposes only, and is not intended as professional financial advice for your own situation. For detailed financial advice on your circumstances, you should consult a qualified professional in accordance with state or country laws. © 2007 All Rights Reserved.

Sadly, most schools for children do not teach basic money handling skills beyond arithmetic. So until state or national requirements start to force educators to teach youth how to at least manage basic money matters, most people become adults without any understanding of how to look after their money. Consequently, many adults, especially in the US and UK, get into serious debt problems as they borrow and spend far more than they can afford. Everyone at least needs to know how to deal with checking and savings accounts, credit cards, installment loans, mortgage loans and basic investments, so that is where this report comes in, for educational purposes only, to help teach fundamental money handling. Knowing how to handle your money well can make a massive difference to your future, particularly your wealth and happiness, and even your relationships.

10 Steps to Better Money Handling

Step 1 - Be Clear on Your Current Financial Situation

First, accept where you are in relation to your financial circumstances and knowledge about money. In other words, if you have a lot of debt and pay your bills with certified checks bought from the gas station because you’ve been unable to handle a checking account successfully, and had it closed out due to too many bounced checks, then that is the reality of where you are now. Period. No matter where you are, accept it, either good or bad – because it is neither. It just is, and it is your starting point. Too many people criticize themselves over mistakes from the past. However, while you do need to take responsibility for those mistakes, you can overcome life’s money-handling challenges by slowly and steadily learning from your mistakes and learning better money management skills, as well as self restraint. Note that with money, you do not need to have any certain amount to be better at managing the funds. In other words, a person with millions of dollars may not be any better off with handling money than a person with thousands of dollars. This means you do not need any special degree or level of education, any certain amount of money. Everyone is teachable with any amount of money. Also, the same principles apply to managing a $2000 a month budget as to a $2 million a month budget.

Step 2 – Trust Yourself to Handle Your Money Better

Next you need to trust that you will find better ways to handle your money. You can call this a belief in One, as in Biblical, or something greater than yourself, or even a combination like one method discussed in a new motion picture and hard cover book, “Secret” by Rhonda Byrne about the law of attraction. Basically this step means you know help is available and that you will be open and available to search for it. This also means that once you run across information in this area of focus, you will also study it and learn from it, and put the information to use. Step 2 is one giant step towards a positive money handling future.

Step 3 – Research For Your Money Handling Project

Now you take an action step where you commit yourself to change, and set about doing it: dig in to websites, financial magazines, banking brochures, etc. Put step 2 into action here and follow through. Too many people say they want to change, yet when it comes down to it, they are lazy and end up doing the ‘same old thing’ to stay in their comfort zone. Get real, bad financial control is no long term comfort zone. It is a road to poverty and hell. It must not be for you. Well, forget about this zone and push past your fears and laziness, if indeed you feel that you have been like that. Grab a 3-ring binder just for this, your very own money handling self improvement project, and take notes as you go about some determined research. Start by listing places to research and review all the info you find. Talk openly with your partner if you have one, this is critical if joint finances are involved. Use colored markers, pencil and erasers, graph paper, stickers and anything that helps you organize the information for your benefit. Do not worry how it looks to someone else. This is your self improvement project. Enjoy it and grow from it. You are building a better future. Remember, building wealth is simply about earning more money than you spend every month.

Step 4 - Do Not Bad History Repeat Itself With Your Finances

There is a famous saying, “History repeats itself. ” So next, after going through Step 3 and learning about better money handling techniques and strategies, like only having one credit card, or even better just a debit card for convenience, take a fearless and moral inventory, inside look at your past money handling to see how you did. Then in your 3-ring binder, list your strengths and weaknesses. Repeating strengths can be fine, but to avoid repeating mistakes, dig in to your helpful money handling resources and learn how to put your money to use better. Start by listing strengths like: - I shop sales and buy in bulk when I can - I always pay my bills first when I get paid - I only have one credit card Then list weaknesses and past errors, for example: - I let my check account balance slide a few months and overdrew my account, not knowing how much money was in there. - Likewise, a similar thing happened to my credit cards: the balances got too high, over the limits, and now there are extra fees for that. - I impulse buy and feel I deserve what I want – when I want it, at least most of the time. Again, remember that this project notebook is for your eyes only. So be truthful to yourself and write out anything that has tripped you up in the past – and present – with money. There is no shame in admitting errors; in fact, it is a great strength to admit mistakes and you are rewarded by learning from them. Pretending they never happened is self delusion.

Step 5 – Admit Past Errors and Vow to Put Them Right From Now On

The next step is simple. You just admit where you messed up in the past, accepting your responsibility in the part and make a commitment to be more responsible from here on out. Again, note there is no shame here. You are trying to improve yourself and did the best you could earlier. So you are just moving on to better yourself. Even qualified accountants get into financial troubles at home and make mistakes. Some people find it helpful during this step to confide their mistakes in a friend or other person, maybe a mentor, partner or financial advisor. That way the other person can help keep you accountable in a way. So do whatever works best for you here.

Step 6 – Pinpoint Shortcomings and Correct Them From Your New Knowledge

Next briefly take a look at your money-handling shortcomings or weaknesses that led to your past mistakes. So, look at the reasons for the mistakes rather than the mistakes themselves. Focus more on the feelings or incidents surrounding them. Write them out along with new ways to handle them today and in the future, armed with your new financial resources and knowledge. For example, write out any money-spending triggers, and ways to avoid them or deal with them better in the future. For example, say you stop at the same donut shop on your way to work but need to scale back on spending. So your new changed ‘habit’ will be to buy one package of low-cost donuts (or something much healthier!!) at the grocery store and take one to work regularly in a plastic bag to save money.

Step 7 – Make Amends to Those Who Suffered From Past Financial Negligence on Your Part

While you are making good on new money handling habits, make sure to make amends with any debts and persons owed in your past that you can without harming yourself. In other words, if you were into gambling big time in Vegas, don’t race back there to pay for a candy bar that you neglected to pay for three years ago. That could trigger gambling again. However, do pay the babysitter you never paid because you gambled all her money away while you were out. I am sure you get the idea, even if those two examples are way off mark for you personally.

Step 8 – Become a Ruthless Budget Manager

You cannot be good at money handling if you do not work to a budget. That means becoming your own budget manager. It is essential to set a home budget and then manage it. That means reviewing the budget regularly. Be ruthless about cutting out surplus expenditure, clearing debts first, and saving each and every month. Once you start to live well within your means your life changes for the better. Your wealth builds over the years, and you can relax and spend more later, without borrowing.

Step 9 - Continue With Your Money Handling Improvement

Even as you learn new money management, like setting up a savings account, you may make errors, such as making too many withdrawals, thus adding large fees to your account. Make amends: talk to your banker to let him or her know you are learning and see if the fees can be waived, learn with the rules are and try again to succeed. Build this into your monthly budget review. Be honest with yourself, and train yourself not to make such mistakes again. It really is worthwhile.

Step 10 - Going Beyond Money Handling

You can use these steps in other areas of your life too, to help with other problems or just to improve yourself. And why not try to help others who may also need help like this? If someone reaches out to you when they see what you are doing and achieving with your finances, offer to advise them as a friend, and explain how you have gone about your better money handling project.

Other Money Handling Tips

To help kick off your self improvement plan to handle your money better, here are some additional tips.

a) Make and take lists to stores when you go shopping, and focus only on items that are on your list.

b) When you ‘want’ something, write it down on a list. Wait for 12 months. And if you still ‘want’ the item, plan on how to get it at the best cost; i.e. shop online at eBay for cheaper deals, shop at wholesale stores in your area, etc. Then plan, save and buy. No impulse buying now!

c) Do not shop for groceries when you are hungry.

d) Always check for coupons: with grocery shopping, eating at local restaurants, for clothing discounts, etc. Call stores in advance to see where they place coupons.

e) Stop eating out so much. Cook and eat at home, invite friends over and take turn making meals

f) Team up to shop with a buddy and share bulk package costs and items.

g) Your mood can affect your shopping, so if you are depressed or in a bad mood, reschedule your outing and go when you are feeling better.

h) If stocks sound like scary investments and they make you worry too much every day, do not invest in them. Choose something you are relaxed and happy with, even if it is not quoted as having a higher ROI (return on your investment). Being happy and proud of $5,000 in a Money Market account that 100% guarantees to not ever let your funds decrease, only increase, is better than being miserable, depressed and anxious over $10,000 in stocks that could fall at any moment, causing you to spend thousands elsewhere in the meantime to soothe your nerves.

i) If you have difficulty communicating with your banker, ask for someone else there to talk to you. Everyone is different. And some people ‘walk the talk’ better than others.