Today is the 80th anniversary of the Crash of 1929 on the Stock Market, otherwise known as Black Tuesday. Many have compared our recent economic circumstances to those of 80 years ago, and yet, many would argue that people in 1929 were worse. No matter who is saying what, the truth is many of us are watching our wallets, paying off debts, trying desperatly to raise our credit scores while saving for a child's education or for retirement. Believe it or not, there is a mindful way to manage your finances. Here are a few tips to help:
1. Make a list before you grocery shop. A list will help you remain focused on what you really need and distract you from impulse buys, like an extra bag of candy for halloween or a silly back scratcher loofa.
2. At the grocery store, be aware of what is above and below you. Items tend to be cheaper on the top and bottom shelves. Notice the generic brands. They tend to be cheaper and just as good as name brands.
3. At the mall, go with a purpose. If you are just shopping for winter gloves, just go to the outdoor store, and be mindful of the section you are in. If you find yourself meandering over towards the skis, notice how nice the skis look (and how expensive), then remind yourself of the 10 year old pair you have at home, and of how wonderful it will feel to pay for those new ones in cash, on sale, next year after you have paid down those credit cards. Then go to Target and get $10 pair of gloves. Stay warm.
4. Online shopping can be dangerous. Have you ever noticed the vacant zombie look people have when they are online? It’s hard to be present when online, which makes it so easy to just click and forget about what you have spent. Before you sit down at your computer, place what you can afford to spend in cash next to you. This gives you a physical representation of cost. Then, before making a purchase, count it out, and then mindfully ask yourself: A: Do I need this? and B: Can I afford it? The answers are usually “NO” and “NO”. At that point, write it down on a “wish list” to give to family and friends for your birthday, and congratulate yourself on not being a zombie and taking action by saving some green.
5. Mindfully cook at home. It's cheaper, it can be fun, and your home will naturally be filled with wonderful aromas that will make you and your family feel cozy and comfy. My boyfriend once told me that when he first started dating me, he loved coming over because the smells from my cooking reminded him of the home he grew up in. Who knows what mindfully cooking will remind you of?
6. BUDGET. Make one. If you have never kept track or counted your receipts, try it this month. Notice where your retirement cash is going. For some of you it may be Starbucks; for others of you, it may be going to Gucchi and Dolce and Gabana. Check out Goodwill, Ross, Target, and Walmart. Great looks, for MUCH cheaper. If you find a cute outfit, put it on hold for a day. You can always come back and buy it tomorrow if you are still thinking about it. OR better yet, ask the sales lady to let you know when it goes on sale (Yes, you can really do this). It’s common to get caught up in the excitement of buying something. However, most of the time you will have forgotten about it in less than 24 hours.
These are just a few of many great tips.
Need help managing money? Check out these books for more info:
Make Money, Not Excuses by Jean Chatsky
Money Smart Women By Janet Bodnar (Associated with Kiplinger’s)