How to step out of the shop-spend-consume cycle

This night help to get out of the Pay Day Circle of Life...

Jan 21, 2020 / Lucía González Schuett

 It doesn’t require a total overhaul of your life, but following a few simple steps can help you start consuming less, says Lucía González Schuett.

This post is part of TED’s “How to Be a Better Human” series, each of which contains a piece of helpful advice from people in the TED community; browse through all the posts here.

A few years ago, Lucía González Schuett embarked on a “personal rollercoaster journey,” as she puts it in a TEDxHHL Talk. And it all started when she looked at something that most of us have: a junk drawer.

She was disturbed by what she found — most of the things there were broken, incomplete or imperfect, but she had felt compelled to hold onto them. She questioned every item, asking questions like: “Do I really need this? Does it add value? Is it worth the space that it takes up or the care it requires?”

And she made a radical decision: She vowed to go for a year without buying anything except for food.

Around the same time, she was going through a professional transition. She’d made a career in fast fashion, where her salary was partly based on commission — the more she could get people to spend, the more she earned. One of her responsibilities was to rotate the store’s contents so the merchandise would appear new to shoppers and they’d discover something they overlooked on a previous trip.

In 2018, González Schuett left the industry to go to business school and she chose to make it her no-buying year (which she discusses in a TEDxHECParis talk). Her experiences caused her to rethink consumption — on a personal and a societal level — and become aware of the invasive, ongoing pressures to acquire new stuff.

“The app I use to measure my performance when I go jogging is trying to tell me when it’s time for me to throw away the sneakers I’m wearing and buy a new pair,” says González Schuett, who is currently based in London. “The pillow I sleep on I recently found out has an expiration date.” She adds, “We collectively need to pause for a moment and wonder: Are we losing — or at least outsourcing — our very basic common sense to decide our needs by ourselves when it comes to consumption?”

It’s not realistic or feasible for most people to swear off shopping as she once did, and González Schuett gets that. She says, “It is possible for us to rethink our day-to-day behavior towards consumption, exercise the ability to appreciate things again, and eliminate that link between easy access and taking things for granted.”

She urges people to engage in what she calls a “scary yet extremely insightful exercise”: “getting over the want and becoming honest about the need.” In other words, she invites us to take an honest look at the things we want and we need and question whether we actually do.

There are many good reasons to regain control of your consumption. González Schuett suggests, “Maybe it’s for the environment, for the sustainability of future generations, for your personal finances, or for the sake of your peace of mind.”

To help you take back control, González Schuett shares these tips:

Let yourself run out of something before you re-buy or re-order. “Spend some time without it; in other words, try to miss it,” says González Schuett. “Because there’s so much to be learned from missing things. Plus, you’ll exponentially increase your short-term happiness once you get it again.”

Keep an item in your online shopping cart for a few days — or weeks — before buying it. You’ll reduce your chance of regretting an impulsive purchase when you find something better later, or realize you don’t actually need it at all.

Instead of immediately replacing something that’s broken, try fixing it first. It’s not always cheaper to buy something new, and you can support a local business or repair cafe by visiting them. You can also teach yourself some new skills. In her no-buying year, González Schuett learned to sew on replacement buttons, and she even watched a YouTube video to figure out how to repair her washing machine.

When you do buy, consider second-hand. By purchasing something that’s pre-owned, you’ll keep from adding to the sum total of things in circulation — since the thing you’ll buy is already out in the world — and you’ll also save money. When it comes to furniture, she points out that for people who live in cities, “we’re all moving around so frequently that second-hand items are more often than not hardly ever been used.”

Choose quality over quantity, especially when it comes to fashion. Try to pick things that are made to last, and when you are done, consider selling, donating or swapping them, instead of throwing them away.

Share what you have, and find others who will. Rather than buying a tool or gadget for a one-off project, “knock on your neighbor’s door when you need a screwdriver,” recommends González Schuett. And while you’re there, let them know what you have to lend, whether it’s a bike pump, snow blower or sewing machine. These relationships can benefit both of you. She says, “What a burden for both of you to each own both things and how enriching to go back to knowing your neighbors.”

Shift your mindset about stuff. As González Schuett puts it, “Consider yourself a custodian of things, rather than an owner.” When you think about it, you’ll realize that there are ways to enjoy things without owing them — take the library, for example.

https://www.youtube.com/watch?v=HGQg_nVPEq8#action=share

She adds, “Ultimately, we know it isn’t the junk in our drawers that is going to make us happy but having the resources, the space and the time to dedicate to the things that truly matter.”

https://www.youtube.com/watch?v=HGQg_nVPEq8#action=share

"The Great and Spacious Building"

Elder L. Tom Perry of the Quorum of the Twelve Apostles warned that preoccupation with material possessions is a behavior typical of those people in the great and spacious building: 

“The current cries we hear coming from the great and spacious building tempt us to compete for ownership in the things of this world. 

We think we need a larger home, with a three-car garage and a recreational vehicle parked next to it. 

We long for designer clothes, extra TV sets (all with [DVDs]), the latest model computers, and the newest car. 

Often these items are purchased with borrowed money without giving any thought to providing for our future needs. 

The result of all this instant gratification is overloaded bankruptcy courts and families that are far too preoccupied with their financial burdens” 

(in Conference Report, Oct. 1995, 45; or Ensign, Nov. 1995, 35).

Institute Book of Mormon Student Manual
Chapter 3: 1 Nephi 6-11 (spaced out)

Toxic Dreams You May Have Fallen For

Lauren Greenfield—photographer, documentarian and author of the new book Generation Wealth—talks about the pitfall so many of us just can't seem to avoid.

By Susan Welsh

Lauren Greenfield has spent 25 years exploring what one of her subjects calls the "toxic dream": the pursuit of wealth, everlasting youth and, sometimes, fame. She's recorded images and stories of all sorts of people around the world, from a 60-year-old California paralegal who spent her way into homelessness, to celebrities and wannabe celebrities (like Kacey Jordan, the prostitute whose business enjoyed a boost after she spent a drug-fuelled 36 hours with Charlie Sheen). As the book’s editor, and as an old friend of Lauren's, I jumped at the chance to speak to her about why, even if we're not building a 90,000-square-foot house in Orlando like the subjects of her documentary The Queen of Versailles, we still might have fallen into the trap of wanting more than we can afford. 

SW: You've documented hundreds of subjects: the German-born hedge fund wizard who's wanted by the FBI for fraud; strippers in Las Vegas; rap artists in Atlanta; Russian socialites. Why?

LG: I've often looked at the extremes as a way to shed light on the mainstream. Even though everybody says, "Money doesn't buy you happiness," I don't think that that's the principle by which people live. If you talk to kids and ask them what they want to be when they grow up, they say, "Rich and famous," but being rich and famous is not a job.
SW: How has what we want out of life changed in the past quarter century since you started out?

LG: We've gone from a culture that valued social mobility through hard work and education to a culture that values bling and celebrity. Now, it doesn't matter how you get the money, as long as you have it. Actually, it almost doesn't matter if you have it as long as you look like you have it.

SW: Still, a lot of people would say, "I'm not like that. I'm happy with what I have." Are there more subtle ways that we're all participating in this competition?

LG: We're living in this fantasy where we're comparing ourselves to celebrities, as if their lifestyles are normal. We watch more and more TV, and research shows that the more TV you watch, the wealthier you think other people are compared to yourself. And marketing is so clever. There's something for everybody. This minimalist trend in home décor allows educated, cultured, middle-class people to kind of justify their own materialism. Having less and giving things away is a goal, but what we see in a magazine like Dwell not only is very expensive to achieve but also requires a huge amount of maintenance, which for people with jobs and kids is not that easy. It's another way to sort of fetishize our environment. Design has made it so that the house we live in is not just a safe place to raise our family, which it was in the old days, but it's actually this...fashion statement. It's like a designer dress. It's really another side of the same coin. 
SW: Do you fall into that trap?

LG: I stopped at Target the other day to do an errand, and almost unconsciously I picked up a cart, and before 10 minutes had passed, I had 10 items in my cart. At the self-serve checkout, an item came up as $52. My son said, "What is that?" And I said, "Oh, it's face cream." He said, "Put that back." I didn't argue with him because he was right. I was falling for some anti-aging face cream that I had not planned on purchasing. It's hard not to be influenced by these pressures in your daily life—whether you're actually buying or just admiring, or whether they're making you feel inadequate just by their existence.

SW: What have you taken away from all these stories?

LG: I still go into a store and want those things and still even buy them. But I do feel that if we spend a little time trying to understand the forces we often act upon unconsciously, it allows us a little power at least to choose: Do I want to give in to this or not?
Lauren Greenfield is an acclaimed documentary photographer and filmmaker. She is the author of Generation Wealth and other works about consumerism and young people. 

Read more: http://www.oprah.com/money/lauren-greenfield-toxic-dream-you-may-not-realize-youve-fallen-for#ixzz4hPM1h1zI

Keys to Thriving Financially as a Single Mom

Emmy Johnson, the author shares what it takes to achieve wealth and thrive.

There are three critical components to thriving financially as a single mom, all of which you can control:

1. Use the time + money + energy equation to create abundance in every part of your life.

2. Create a lifestyle that you can afford now (not when you were married, or where you hope to be in a few years. Now.), including a savings plan for emergencies and retirement.

3. Focus on earning.

This is a recipe for wealth that affects all areas of life, and nearly every decision you will make. All three elements — earning, budget, and resources spent — are all intimately intertwined. To understand how, let’s look at the last one.

Focus on earning

When you’re going through a life change, whether divorce, death of a loved one, new baby, job change, relocation, in the likely event that money, time and/or human resources are reduced, the natural impulse is to tighten up and hunker down. Frugality is a wonderful, powerful thing—one I urge you to cultivate and maintain throughout your life, even when you have money coming out your ears. Frugality has nothing to do with how much you earn or spend, and everything to do about being conscientious about your resources—money and otherwise—and managing them with a sense of gratitude and abundance to make your life and the world around you better.

Frugality, however, can be a slippery slope to a scarcity mentality. Scarcity mentality is the belief that all your resources—money, jobs, love—are limited and must be hoarded. Here’s a classic example: Your husband announces he’s having an affair, and leaves within a week. He earns more than half the household income, all of which he takes with him when he moves out of the house he shared with you and your two kids, and into the apartment of his mistress. You, understandably, panic. Your bills are beyond what you can afford on your own. The payment on your house is huge. Your name is on the mortgage, which puts your credit at risk.

You quickly go through the monthly expenses and start slashing like mad. That is exactly what you should do! Gym membership that you never use, canceled! Tell the kids that this time you will indeed enforce the household rule that the thermostat will not go above 66 degrees in the winter, commit to doing your own nails and cancel the Christmas trip to the Bahamas.

Is this you?

I’m loving this story, and it is exactly what you should be doing (though, 68 degrees maybe?).

However, let’s look at the math. Aside from the vacation, those cut-backs add up to a couple hundred dollars per month. That is not going to make a significant difference in your ability to afford what was a two-income household, much less afford a large mortgage that was financed with two salaries.

A common mistake is when people panic—and moms are especially prone to this—they focus on how much they can save each month. Savings and frugal living are passions of mine, and comes with all kids of residual benefits aside from immediate cost savings. In fact, I argue you should NOT clip coupons. Clipping coupons requires hours per month with very little return on investment of that time. Instead, the absolute best, proven way to get ahead financially in the short- and long-term, build wealth, take control of your time, and have the freedom to create a life for yourself and your kids is to focus on earning.

Let’s say that in addition to slashing the fat from your budget, renegotiate your phone plan and commit to a few Crockpot dinners in lieu of take-out each month, that newly single mom also commits to a plan to earn more money. The residual benefits are astronomic.

In the example above, if the mom after receiving the “Peace Out” bomb from her kids’ dad, committed her lunch hour and Saturday afternoons to freshening up her resume, working her network like crazy, applying for new positions and / or strategizing with her boss about her career goals. Within a few months it is very reasonable she could increase her income by five-figures—income very much needed immediately, and have residual financial and professional benefits for the rest of her life. Plus, by focusing not on the Sunday Clipper, but on big goals and investing in her own worth, she actually gains very real control over a chaotic situation.

Many women find that single motherhood is a fantastic motivator for driving them to risk going for their professional goals—and earning a lot of money along the way. Christina Brown, 28, launched LoveBrownSugar.com, a lifestyle blog for women of color, as a hobby project while she earned about $50,000 per year working in public relations in New York City. When she became pregnant, and a single mom, Christina jumped fulltime into her entrepreneurial endeavor. “I had to kick it into high gear when found out I was having a baby, and was a big motivator to earn to take care of her.” Motherhood drove Christina to increase her blog’s adverting rates, double down on strategy, and button up her processes. Within three years, LoveBrownSugar.com went from $0 to $100,000 in revenue, while Christina works from home and spends lots of time with her daughter, who often models toddler fashion on her mom’s web sites.

Money, of course, isn’t just about surviving, paying bills, securing a future and enjoying nice things. Building a great career you love, modeling that passion and success for your children, is incredibly satisfying — especially when you accomplish it in the face of what you believed was impossible.

Adapted from THE KICKASS SINGLE MOM by Emma Johnson with the permission of TarcherPerigee, an imprint of Penguin Random House. Copyright © 2017   by Emma Johnson.

Read more: http://www.oprah.com/money/emmy-johnson-3-keys-to-thriving-financially-as-a-single-mom#ixzz4wLYFU954

Hard Times... and Prospering By Degrees

Thoughts after participating in the Durban Stake Marrieds fireside Jan 2019 - Sister Bray (Durban Temple Construction Site Missionary)

You are free to choose financial ‘liberty’ or you will suffer ‘captivity.’   

Your finances and resource management are your personal stewardships. Take them seriously.

“You don’t want to live poor and die rich, nor do you want to live rich and retire poor.” T Hollis

Learn from the Spirit.  Learn from others.  Keep learning.  Be patient.  Read.  Listen.  Watch.  Ask. 

You can Buy Now and Cry Later J - L – 
Or you can Cry Now and Buy Later L - J.  

O be wise, what can I say more? Jacob 6:12

Every Price has a Prize, every Prize a Price.  

Every Cost has a Benefit, and every Benefit a Cost.

Learn to pay the Price in a PLAN - think, be disciplined in and for the Financial Prizes you want.

Pray about your finances.

Be grateful for your income.

Learn to be content with what you have at the moment. “… be content with your wages.” Luke 3:14

Paul said “…I have learned, in whatsoever state I am, therewith to be content.”  Phillipians 4:11

Use a budget – every month – include provision for annual, and inevitable ‘surprise’ expenses.

Save for Christmas and birthdays all year – give gifts you can afford.

Give some gifts that cost no money, or little money – your presence, time, talents, wisdom.

Ask someone who is sensible about money to help you if/when you need help.

Ask other people anyway – they might have ideas you never thought of.  

Listen.  Let the Spirit confirm what 'fits' for you, now - all along the way.

Each person needs money to purchase and account for, and pocket-money they don’t account for.

Each adult an equal amount, each child an amount appropriate to their age. 

Have financial discussions with your spouse and children.  

Require children to 'earn' some of their pocket money - chores, entrepreneurial ventures.  

Notice.  Ask around!

Let the holy Spirit guide...

Pay your tithing.  Malachi 3:10  (Every month, or week, if you are paid weekly.)  

Pay off all your debts as soon as you possibly can.  (Find out how.)  

Get debt counselling if necessary.

“No debt” – ever again – for food, commuting, clothing, garden and household furniture and goods.

Save 10% of your income for your old age/retirement – ideally from the day you earn your first Rand.

Always review… and legitimately - reduce expenditure, and increase your income, as you are able.

Be patient with your needs, wants, begging, bullying, pleas and demands; and those of others.

Be not swayed by bragging, mocking, shaming, temptation, advertising, or personalities.

Learn how to, and then live well, on an absence of expense.

Do something every day to improve yourself and where you live right now. 

Keep yourself, your space/home, possessions and vehicle orderly, clean, neat, and attractive.

Pray.  Think.  Spend a share of your labour on cleaning, mending, putting in order and beautifying.

Spend no money on 'things' when you do not have money budgeted and saved to spend.

Grow some of your own food.  
Prepare a patch in your yard, or a pot or two on your windowsill. or veranda 
Walk around your neighbourhood.
See how and what grows in your area.
See who grows successfully.
Ask your gardening neighbours who are doing well with their crops.  
Yes, the seeds, and water may cost more than buying... 
Ask for a few seeds.  Most will share three or five or more.
Start small - like with spinach, maybe beans and tomatoes.  
Gardening is therapeutic.  It will help you "be still."  Psalm 46:10 
"You are nearer God's heart in a garden than any place else on earth." - Dorothy Frances Gurney
He will comfort you, talk to you, and teach you as you work in your garden.
Teach your children how to work with the soil. 
If you ever have to live on what you can cultivate yourself, you will know how to.

Ask yourself "How did they do it  20/50/100 years ago?"
Is it wise to do as they did, for now?

Learn, read, find out the truths about finance – “prospering by degrees” has principles and laws.

Find and consult regularly with several virtual and people financial mentors. 

(Join the library.  Research on the internet.)

Read the Liahona/Ensign, New Era and Friend magazines - on line.  Frequently there are useful ideas.

Research in Gospel Library for articles, talks, devotionals on debt and financial management.

Govern your wants – until you have “sufficient for your needs, and thereafter - enough to share.”

Work towards this prosperity formula (It might prove to be useful) -

Learn to live on 60% of your income:

10% tithing

10% old-age/retirement saving

10% legitimate family and/or charity sharing (beware of enabling others to be dependent/reckless)

10% short term saving before purchasing specific large budget items

Learn to say “We will when we can afford it.  We can’t afford this now.  We will save for it.”

Learn to say “No.” to yourself and others.  “I would if I could… I am not able to.”

Never shop when you are hungry or tired.  

Shop consciously, with a rational and realistic list.

If you are compulsive or addicted to shopping/spending, get help.  

Live within your means.

Pay ‘cash’ for more and more (if you use cards or accounts, pay them off, in full, every month.)

Cut up your cards, close your accounts - if you can’t pay them off, in full, every month, without fail.

Get good "marks" in your work or studies so you qualify for training, scholarships or bursaries.   

Apply for learnerships and PEF. (Perpetual Education Fund)

Only owe money for affordable education, affordable housing, and affordable transport.

Move closer to work, or work closer to home whenever possible.
Remember - each move you make costs money.  Consider the costs ... now, and over time.

Holiday from home.  Take day trips you can afford.  Borrow or rent a movie.  Play games together.

Walk around the block, in a park or at the beach.  
Have an ice cream cone rather than a meal out.
If you can't afford an ice-cream cone, don't suggest it.  

(More can come later as you can afford more – paid with interest you earn on your investments.)

Many things don’t cost money or cost little money – learn to notice them and enjoy them. 

If you don’t have money, don’t spend money.  

Take a packed lunch.  

Eat more economical meals – at home.

Consider wise second hand purchases – buy more used ‘things’ – car, furniture, clothes, household goods.

Don’t compare yourself to others – you have no idea what’s behind their outward appearance.

Focus on learning how, and making your money work for you.

“Eat out” less.  “Go out” less.  “Take away/Entertain in/picnic” more often than “sit down/go out.”

Resist sales.  If you don’t need it (for now), it is not a bargain.

Build up your food, clothing, fuel and other “storage” gradually – build up to one year’s supply.

Save one month’s income, then save another, until you have about eight months’ emergency saving.

If you have two incomes, work towards living on one.  Save as much of the other income as possible.

Check – a second full-time income may not be worth the expense, time and talent lost in the home.

Consider the cost of travel, child-care, housekeeper, gardening, clothes, wear and tear, fast-foods, appeals, temptation, time.

Perhaps part time or self-employment will yield better time at home and net disposable income.

Save money in separate accounts in the name of each person/partner.

(If you are married Ante Nuptial Contract and one leaves//dies, the other has money to use while arrangements are made.)

Learn to do more home-making and comfortable-living things yourself – be more self-reliant.

This is also an opportunity to learn and teach children valuable life-lessons.

Saved money by ‘doing it yourself’ is money that does not have to be taxed, and can be saved.

Save coins and notes.  “A penny saved is a penny earned.”  Bank them.

Ask your wise friends, family and associates for the best places to save your money.

Joseph’s dream – the time of ‘plenty’ is the time to save/store for the inevitable times of ‘scarcity.’

 “Render unto Caesar the things that are Caesar’s and unto God the things that are God’s.” Romans 13:1

“Pay the debt thou hast contracted… release thyself from bondage.”  D&C 19:35

“…the borrower is servant to the lender.” Proverbs 22:7

“Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the LORD of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it.” Malachi 3:10
“Prove all things, hold fast to that which is good.” 1 Thessalonians 5:1

 “Have not I commanded thee? Be strong and of a good courage; be not afraid, neither be thou dismayed: for the LORD thy God is with thee whithersoever thou goest.” Joshua 1:9

“Take heed unto yourselves, lest ye forget the covenant of the LORD your God, which he made with you, and make you a graven image, or the likeness of any thing, which the LORD thy God hath forbidden thee.” Deuteronomy 4:23

“Now therefore fear the LORD, and serve him in sincerity and in truth: and put away the gods which your fathers served on the other side of the flood, and in Egypt; and serve ye the LORD.” Joshua 24:14

“…if ye are prepared ye shall not fear.” D&C 38:30

Listen to the still small voice, let the Holy Spirit guide you, learn to say “Thy will, not mine, be done.”

Laws are irrevocably decreed in heaven upon which all blessings are predicated.  D&C 130:10

“Use it up, wear it out, make it do, do without.” Pioneer maxim quoted by Boyd K Packer“

“It is a rule .. . in all the world that interest is to be paid on borrowed money. … 
Interest never sleeps nor sickens nor dies; it never goes to the hospital; 
it works on Sundays and holidays; it never takes a vacation; it never visits nor travels . . . 
it has no love, no sympathy; it is as hard and soulless as a granite cliff. 
Once in debt, interest is your companion every minute of the day and night; 
you cannot shun it or slip away from it; you cannot dismiss it; 
it yields neither to entreaties, demands nor orders; 
and whenever you get in its way or cross its course or fail to meet its demands, it crushes you.”  
― J. Reuben Clark Jr. General Conference 1938

 “Those who understand interest earn it, those who don’t, pay it.” Albert Einstein

“We buy things we don't need with money we don't have to impress people we don't like.”

“You must gain control over your money or the lack of it will forever control you.” 

“Winning at money is 80 percent behavior and 20 percent head knowledge.

  What to do isn’t the problem; doing it is.  

  Most of us know what to do, but we just don’t do it.

  If I can control the guy in the mirror, I can be skinny and rich.”  - Dave Ramsey

"Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought [shillings] and six [pence], result misery." Charles Dickens – author of “David Copperfield”

Dickens's vivid description could easily be applied to the dangers of payday loans today.

“This pleasant grandfather, …was a horny-skinned, two-legged, money-getting species of spider who spun webs to catch unwary flies… until they were entrapped. The name of this old pagan's god was Compound Interest."  Charles Dickens, author of “Bleak House” (Make Compound Interest work FOR you!)

Most great fortunes are built slowly. They are based on the principle of compound interest, what Albert Einstein called, "The greatest power in the universe." - Brian Tracy

 “My father’s father died when he was 11 and his mother when he was 17.  He was able to inherit an old valve radio from his parents.  I inherited R3000 from my mother when she died (I was in my forties) and R300,000 from my father when he died (I was in my fifties.)  Our children will inherit a lot more from us when we die (We are in our seventies.)”  - Victoria Payne

You can ‘eat’ your money, ‘live’ in it, ‘drive’ in it, ‘wear’ it, ‘travel’ it, 'squander' it, ‘share’ it.  

Few can do all of these.

“Correlate, Reduce, Simplify.”  

“Reduce, Re-use, Recycle, Refuse.”
Compost your compostable kitchen waste.

There are useful books and on-line resources to learn sound money principles, debt and saving.

Ask wise ones around you for names of books and sites they recommend. Most are glad to share.

God bless you as you “increase in wisdom and stature, in favour with God and man.” Luke 2:52

God bless you as you resist being “lifted up in pride… and (wearing) costly apparel.”  4 Nephi 1:24,25

God bless you to “Awake… put on thy strength…” Isaiah 52:1

God bless you as you “prosper by degrees.” Mosiah 21:16

“But before ye seek for riches, seek ye for the kingdom of God.

And after ye have obtained a hope in Christ ye shall obtain riches, if ye seek them;

and ye will seek them for the intent to do good—to clothe the naked, and to feed the hungry,

and to liberate the captive, and administer relief to the sick and the afflicted.” Jacob 2:18,19

Become a Better Spender in 20 Minutes or Less

Amanda Steinberg, founder of DailyWorth and author of

Worth It: Your Life, Your Money, Your Terms, - overcome overspending.

By Amanda Steinberg

Spending can be joyful when it's done intentionally, but you need a strategy for the moments when you're operating on autopilot. Being a money manager means going to Target prepared! I'm not talking about austerity. I'm not against spending, or the thrill of buying. I just want you to explore your habits in more depth. When you spend with intention, I hope you'll buy less and save more.

Let's have some fun, shall we? I have a challenge for you.

This experiment isn't designed to reactivate your money story. When you hit those rough patches—and you will—observe, breathe, and keep going. Don't indulge the drama. By the end of the exercise, you will have a very good idea of where all that money goes and how to make mindful changes to your spending.

Ready to play? 

Challenge: What Did You Buy in the Past Three Days?

From memory first, think about where you've been the last three days. Did you drive anywhere or take the train? Were you at work, with kids, friends, or family? Did you eat at home or at a restaurant?

Write down what you bought and how much it cost (exclude fixed expenses like bills). Don't get lost in the rabbit hole of analysis. Include food, groceries, transportation, a pack of gum, emergency mascara, new sunglasses because you left yours on the train, iTunes or Amazon purchases.

Now, log in to your accounts and see how close you are to what you wrote down from memory. What have you learned about how much you spend and why?

It's enlightening to see where your money goes. When you write down what you spend, you start to see how often you spend on impulse. Who are you as a spender? That's what we're investigating. It's a key exercise that gives you deeper insights into your own habits and mind-set around spending.

Remember, Money Smart Ones don't judge. 

They just observe. 

Humans have known for thousands of years that material gain does not create happiness. 

Austerity doesn't, either. 

Padded savings accounts? Ecstasy. I swear. 

Get Your Finances Back on Track

  By Michelle Singletary

 Financial columnist Michelle Singletary maps out a financial rescue plan for Make Me a Ten! makeover candidate, Tisa McGhee, a single mother of two who has lost her job and watched her debts pile up. Here's what you can do if you're in a similar position.

In the Short Term

1. Stick to a budget. I started by giving Tisa a blank financial worksheet to fill out. By looking at the full financial picture, I saw some expenses she could cut. First, she's paying $220 a month for cell phones for herself and her daughters. She should stick with the cheapest plan—no downloading ring tones, surfing the Internet, or texting for the girls. Second, she has to cut back on restaurant meals, one of the most common ways people waste money. Third, she needs to spend less on transportation. Ideally, 6 to 15 percent of your net income should go to transportation costs (including your car payment, gas, and insurance); Tisa is spending more than 18 percent. I also advised her to make a list of top priorities and, every time she's tempted to buy something, pull out that list and look at it.

2. Stay on top of the mortgage. Part of Tisa's trouble is her adjustable-rate mortgage. When housing prices were rising, a homeowner could refinance when interest rates went up. But once home prices began to fall, that was no longer an option for many borrowers. While Tisa's interest rate was rising, the value of her home was dropping—from $302,000 to about $230,000 by last November, according to an estimate by Zillow.com. Thanks to her emergency fund, she was able to keep up with the higher mortgage payments until August 2008. But then she stopped paying, and the lender began foreclosure proceedings. She eventually sought help through the Obama administration's Making Home Affordable program (MakingHomeAffordable.gov), which allows strapped borrowers to refinance or modify their mortgages. Tisa's lender offered to lower her monthly payment from $3,180 to $1,747; she began making the new payments last July but stopped because her lender never sent her the proper paperwork. I suggested Tisa turn to NeighborWorks America (NW.org), a nonprofit that helps consumers avoid foreclosure, and the agency intervened. If you are having trouble paying your mortgage, you can also contact a free counselor approved by the U.S. Department of Housing and Urban Development (find one through HopeNow.com).

3. Stop making extra debt payments (for while she is unemployed…) Tisa has been trying to dig herself out of debt by paying more than the minimum on her credit cards. Normally that would be smart. But because she is unemployed, I advised her to preserve as much cash as possible, making basic expenses—food, housing, utilities, and transportation—her highest priority.

4. Get financial counseling. Tisa needs to work one-on-one with a credit counselor. Counselors with the National Foundation for Credit Counseling can provide free or lowcost debt help. To find a counselor, go to DebtAdvice.org. Look for accredited counselors who have independent certification and training in budgeting, consumer credit, and debt management.

In the Long Term

1. Stop using shopping as therapy. Emotional spending causes a lot of people to end up in serious debt. Seventy-nine percent of women go on spending sprees to cheer themselves up, according to a 2009 study released by the University of Hertfordshire, in England. Forty percent of the women surveyed named "depression" as a reason to go shopping.

2. Save to buy a used car. Tisa, who has spent almost $30,000 over the past six years on two leased cars, needs to eke out some money to pay cash for a used car when her current lease is up. Yes, you can lease a car for less each month than it would cost you to buy the same vehicle, but at the end of that lease, you have no car. In the long term, buying a car and keeping it for years saves more money.

3. Aggressively pay down debt. After Tisa starts working full-time again, she needs to follow what I call the Debt Dash Plan: List your debts, starting with the smallest. Take all the extra money you can find in your budget and apply it to that debt, and make only the minimum payments on your other debts. When you pay off the first debt, move on to the one with the next lowest balance, and so on. This strategy works because people get an emotional boost from eliminating one of their debts quickly, which motivates them to stick to their debt repayment plan.

4. Pay down student loans. Once Tisa is back on her feet financially, she must start paying off her student loans, because the interest is killing her. An income-based repayment plan for her federal loans will cap her monthly payment at an affordable amount based on income and family size. (For information about this plan, go to Ibrinfo.org) Her lender will determine her eligibility and how much she must pay each month. (But, in exchange for lower monthly payments, she may end up paying more interest than under a standard ten-year repayment plan.)

5. Build the consulting business. Tisa has already started her business, Mc3 Consulting Inc., which teaches nonprofits how to improve their services and internal operations. "Mc3 Consulting is the seed I am planting for my girls," she says. "I want them to see their mother be successful and show them that we can turn this situation around. I want them to learn from my mistakes." Tisa has a good business plan and great contacts, but until she has enough contracts to cover all her expenses and debt, she needs to pursue and stay in a full-time job. She should continue to seek advice, especially to steer clear of tax problems. One place to start is score (Score.org), a nonprofit association of working and retired executives and business owners who donate their time to advising entrepreneurs. Tisa has been financially solid before, and she can do it again. She needs to set a budget, get rid of her debts, and keep spending in check. Recognizing her issues is a big part of the battle. "A combination of factors led me to where I am today," she said, "but I can't regret those things. They're helping me become the woman I hope to be someday."

Michelle Singletary is the author of The Power to Prosper: 21 Days to Financial Freedom. For more information visit MichelleSingletary.com

15 Ways to Save More Money Each Month

Every time you put one of these tips into practice, it’s crucial to put away what you’ve saved.

In a matter of months, you could have a nice little rainy day fund set aside.

O - By Trae Bodge  Jul 15, 2018 (South Africanised and edited for clarity by Judy Bray)

Turn Old Bills Into Savings

It’s a relief when you finally pay off a loan or a long-running credit card bill, right? Rather than spending that money, Stefanie O'Connell, millennial money expert and author of The Broke and Beautiful Life, suggested turning those funds into savings. “If you just made the last R300 monthly payment on your loan, start sending that R300 per month to your savings account,” she says. “You can use this strategy with smaller things too, like the magazine subscription you just cancelled.

Unsubscribe

Are you paying for things, like gym memberships or smartphone apps that you don’t use? Justin Howell, a saving and investing advisor, suggests cleaning house.  “Find your subscriptions and eliminate the ones you can do without.  This could potentially save you some big bucks this year.”

Negotiate

With monthly subscriptions, memberships or other ongoing commitments, like software or apps you pay for every month, that you want to keep, Bobbi Rebell CFP® and host of the Financial Grownup podcast suggest that there may be an opportunity to negotiate a better rate. “[If] companies know you like the service and if all it takes is the right price to lure you back, that is worth the effort for them,” she says. She also suggests letting the subscription lapse, if you can, as the company may offer you some great deals to woo you back.

Bargaining

You may look for coupons and cashback opportunities as you shop, but have you tried negotiating? Michael Wheeler, who teaches a negotiations course for Harvard Business School’s digital learning initiative, says that you can sometimes score a lower price by doing so. “Start by asking for a discount in plain, clear language," he says. If you get a no, be persistent, and ask again in a friendly tone. You might be (happily) surprised at the result.  (Ask for a pensioner’s discount where applicable, a cash discount, etc)

Price Tracking

Your favourite store is known for its great prices, but that doesn’t mean you’re getting the lowest price every time you check out. Exercising a little patience can ensure that you’re getting the best deal your usual store has to offer. David Mercer founder of SME Pals, a blog dedicated to helping people turn their business ideas into profitable startups, suggests using a price tracker.   “Stores have many thousands of sellers behind the scenes who change their prices all the time as they compete with each other,” he says. “Combine coupons, when available, to squeeze the very lowest prices out of where you shop on a regular basis.”

Get Price Alerts

Gabriella Santaniello, founder of A-Line Partners, an independent retail research firm says “If the price of my desired item decreases in price, they send a price alert email.  Now that many designers have become smarter, this trick applies just as much to apparel as it does to household goods.” If you have other favorite retailers, Santaniello also recommends signing up for their email lists, joining rewards programs, and downloading its app for discounts and exclusive bonuses.

Earn While You Shop

Liz Eischen of the Kitchen Table Finances blog, has saved a bundle using rewards for shopping with retailers like (in South Africa - Pick ‘n Pay, Clicks, Dischem etc) “This has helped me save money by being more mindful of what I am purchasing,” Eischen says. “I take a few minutes before shopping to explore the current offers and identify items I can earn cash back on. These savings go directly into my savings account.”

Brown Bag Lunch

You can save a couple thousand Rands a year by bringing your lunch to work.  “The average deli meat and cheese sandwich, a bag of chips, a cookie, and iced tea costs around R…. a day. That is close to R……….. a year! By making a nearly identical lunch at home, you will spend much less.” She also says that planning your weekly menu around what’s on sale at the grocery store could save you at least 35 percent off your bill. Remember to join your store's loyalty program, and use coupons.

Enjoy the Convenience

Store pickup and grocery delivery may seem like a luxury, but it can actually save you money and precious time. “By having the groceries come to you or by picking them up at the store, you avoid the impulse purchases that can easily add 20 percent or more to your grocery bill,” says Kimberly Foss, CFP®, and bestselling author of Wealthy by Design: A 5-Step Plan for Financial Security. “In addition to the money you’ll save, the time you gain may be the biggest savings of all.”

Compare Your Prescriptions

Avoid overpaying for your prescriptions. Joe Sanginiti, CEO of FamilyWize, a prescription savings program, suggests opting for generic drugs over brand name. “Generics are equally effective and cost much less,” he says. “According to the FDA, the average cost of a generic drug is 80-85 percent lower than its brand name counterpart.” He also suggests shopping around, as prices may vary between pharmacies.

Bottle Your Own Water

If you’ve fallen into the habit of buying bottled water, you know it can add up. Instead of buying water, small business owner, Zaida Khaze, carries filtered water in her favorite stainless steel water bottles. “I estimate saving lots of (Rands) per month because I use filtered water versus bottled water bought in cases of 24,” she said. “The savings is even higher if I buy water at any event, where the price is much higher.” (Our tap water is drinkable.  Fill your empty water bottles for later use.)

Eat In

Eating out regularly is very expensive. Stan Smith, CEO of SaveDaily, a private label platform that enables ‘everyday saving’ to all, suggests starting out by trying to eat out at least one fewer time per week or month – or quarter. “Depending on how much you eat out, this can add up to many Rands per period in savings,” he says. “Do that for just a while and you have that much more in your pocket – or in your savings account.” Smith recommends that when you do go out, skip the alcoholic beverages.  Limit yourself to one drink if you typically order more.  (Order tap water, ice and lemon – huge savings.  And your body will thank you for sparing it the sugary drink.)

Declutter

As you’re doing your spring cleaning, gather all your lightly used household items and sell them to make some extra cash that you can send to your savings account. “It has never been easier to sell your surplus stuff.  It can be a simple and quick way to turn that rug you no longer need or those end tables that no longer match your décor into extra savings,” says Foss.  (We have gumtree or local library or community notice board)

Get Fit

Access your fitness content from DVDs, YouTube, or low-cost apps instead of paying for that pricey gym membership. Don't want to give up all those machines and great classes? Showering at the gym is kind of a pain, but it can be a money-saver. “If you're a dedicated fitness junkie, take your clothes for the day with you, get ready for work at the gym, and head straight to the office from there," says Tara Falcone, CFP®. "Doing so a four to five days per week can reduce your water/sewer and electricity costs.”

Avoid Fees

You can pay heavily for using the wrong ATM! ATM and other banking fees can really add up, depending on what bank you belong to. “You can avoid paying outrageous ATM fees by always using your own bank’s ATM or, even better, some online banks allow you to use any ATM in the world for free," says Alexandra Horigan, money expert for an online bank. "This is particularly great for frequent travelers who never know where they’ll be taking cash out next.” Horigan also recommends switching to a bank that doesn’t make money from “failure fees,” which result from overdrafts or paying your credit card bill late.

Added to the above list - by Judy Bray (072-341-2396 – judy@saintgroup.com) :

Use It Up, Wear It Out, Make It Do, Do Without

As much as you can, live by this.  Use up make-up.  Wear out clothes.  Make your furniture, car, linen, crockery, curtains do some more months/years.  Eat one less candy bar or cold-drink per week/month, and then less another.  Do without whatever you can do without spending money on.

Live Well - On An Absence Of Expense

Do your own housework.  Clean your own car.  Do your own gardening.  Buy second-hand.  Get plants from your friends who are thinning their garden.  Exchange baby-sitting.  Take care of your own children.  Make your own popcorn.  Watch a movie at home.  Mend and dye your clothes.  Paint your own walls and windows.  Have a “StayAtHome and DayTrips” holiday instead of staying at a hotel or bed and breakfast.  Have you tried camping?  

Correlate, Reduce, Simplify

Require as many things in your home as possible to do double or triple duty.  Take your own shopping bags.  Instead of a special spoon rest, use a side plate.  Stretch your mind.

Join the Library

Instead of buying books, courses, magazines, movies and music, borrow from the local library. Learn from the best in the world.  Borrow books and magazines from your friends and neighbours.  Return what you borrow – in the same, or better, condition than you received it.

Do Your Own And Your Family’s Hair/Nails/Makeup/Flowers

Learn – go to the (barber) with them and watch… Learn from a book/video.  Get basic equipment.  Simplify your hairstyle.  Learn to do your own hair/nails etc.  Learn to cut your children’s hair.  Trade with an amateur friend or neighbour who is talented.

Shop Efficiently

Use a shopping list.  Never shop when you are hungry, afraid, frustrated, angry, or sad or in a hurry.  Shop intelligently - less frequently (unless you are hand-carrying your shopping home.)

Think Twice – Or More

Do I need this?... Who says I really need this?...  Is this an investment that will yield income/ savings, or will it soon be gone?  How many (pairs of shoes) do I need?  How many (sets of linen) do I really need?  Will this matter in 2 or 5 years’ time?  Am I spending money I don’t have, to impress… who? people I don’t even know?!  Am I bluffed by advertising?   Is my income by working really benefitting our family?  What if I stayed home, therefore paid less tax and travel; cared for our home, clothes, garden and children, wore less expensive “work” clothes, made our own meals, tutored our children, and saved money by “doing-it ourselves,”?  A penny saved is a penny earning me interest…  Can I work part-time to “have a foot in the door” “in case…” and earn a little extra too?  In that way I’ll be more flexible time too.  How can we live on one income, even if we have two?  What if I (he/she) get sick, disabled or die?  

   

Here’s The Tricky Part…

“You don’t want to live poor to die rich… but - you also don’t want to live rich and retire poor.”  Manage your money, or your money will sly-ly manage you – Good Servant, Bad Master.

Personal finances are your sacred stewardship.  “O be wise.  What can I say more?”  (Jacob 6:12)