As I talk to people about money, I realize again that many people have money issues – excess money baggage – that plays out when making money decisions.

What are some of those issues? Many people believe that money is bad and people with money are bad too. There’s our collective love and hate of money.

Feelings of inadequacy at not having enough money. The consuming guilt some feel at having enough or too much money. Then there’s the fear of losing the money we have. Or the fear of never having enough. These ambivalent thoughts, coupled with feelings of unworthiness, are at the base of many things monetary.

And yet … there is also the driving motivation to achieve financial security or freedom -  to achieve what we largely dislike and disrespect. There’s the defensiveness felt as we begin to earn more than we need for basic survival. And the need to justify having more than just enough. The unspoken assumption seems to be that poor people somehow go to a higher heaven than wealthy people at the end of their lives.

How does one reconcile such conflicting emotions and move forward to plant a healthy money mindset to grow a weed-free money garden? It begins with understanding how our brain functions, and how we can reprogram it to work in harmony with our current beliefs.

My friend and associate, Katherine Reschke, is showcasing groundbreaking research on brain development and how we can use this information to change our mindsets. If you want to start changing your money mindset, click on Katherine’s recent teleseminar and give it a listen. You’ll find new ways of thinking about your current thinking.

Identity theft is big business. It’s a growing industry. Take these 7 steps to ensure your financial identity and personal safety.

1. Buy a shredder. Use it every time you handle your personal papers. Open your mail near the shredder. Shred every page that has your name and/or address on it. Advertisers are clever – look inside the bills and catalog inserts for the printed personal info. Shred the identifying parts and recycle the rest. This is good for you and for the environment.
2. Protect yourself from identity theft by never unwittingly giving out any personal information over the phone. Do not tell callers or phone solicitors the 3-digit security code on the back of your credit or debit card. Remember, the credit card companies will not call you to verify that number. They have it in their files. Only scammers posing as security personnel do this. Do not fall prey to their scheme. Don’t be intimidated by these callers either. Don’t debate or discuss. Hang up!
3. Do not automatically provide identifying information when requested to do so. Don’t share your phone number, address, or other data without thinking about it. Why do they want or need it? Do not assume there is a valid reason to provide the information. Remember also that the people in your general vicinity – in line behind you – will hear your response.
4. You can protect yourself from possible identity theft by not leaving bill payments in outside mailboxes with the red flag up. Your checks have personal information on them including your account number and the bank routing numbers that can be misused. Drop outgoing mail off at the post office, or hand it to a postman.
5. Are you still using checks to pay bills? It’s so old school. Time to enter the 21st century. Pay as many bills as possible online. Exercise caution and use common sense. Go to the vendor’s website and find out how to pay online. Most vendors let you pay online for free. Or check with your bank; see what it charges to pay all your bills from the bank’s website. Online payment is convenient, inexpensive, and safer than paying by check. Additionally, you don’t risk a late payment that may decrease your credit score.
6. Leave your credit cards, and other identifying information like your social security card at home in a secure place. This helps you in two ways. First, it minimizes your risk of losing or having the cards stolen. Second, you are less likely to make impulse purchases if you don’t have your credit or debit cards with you.
7. Explain the concept of confidential information to your elementary and high school children. Discuss ways to keep household information private, especially if your kids use the computer. Give your children permission not to answer every question an adult asks. If the question feels intrusive, your kids should be coached to say they are not allowed to provide personal or family information to non-family members. You may need to role play this with them. Pose as a neighbor and ask your child questions you’ve instructed her not to answer. Help her avoid unwittingly providing family information.

What precautions do you use to protect your family’s identity and safety? Please share your tips with us. I look forward to hearing from you. Thanks!

Warmly,
Judith

The first rule of money management is to manage the money you have now.

It means you need to know how much money you have to work with monthly. I’m not talking gross figures here. We’re interested in your net income – the after-tax amount that you bring home if you receive a paycheck.

If you’re self-employed I’m talking about your average monthly income after expected business expenses.

Step two is listing your expenses. Yuck. Yep. Write it down. You aren’t guessing. It’s September. You’re serious.

What do you owe? How much have you agreed to pay out monthly? Let’s do a self-audit. Open all the old mail piling up on the corner of your desk. It’s time. Remember to shred all papers with your name and address on them except the most current bills. Look at them. Really look at the balance. Are you surprised? Now you know your account balances, which is always better than not knowing. Now you’re in control.

Let’s say you bring home $10,000. It’s a nice round number. It doesn’t  matter how large or small the net number is. This analysis is about how you are going to work with what you have. And later we’ll focus on how you’ll make more new money.

Let’s say your bills – rent or mortgage, car payment, credit cards, household expenses  – total $6,500. That’s before you itemize your monthly living expenses like food, clothing, transportation, and lunches. List your living expenses now. What’s the total? Are there any other expenses not included in these two expense categories? If so, add them to your list. Let’s say the total comes to $2,400/month. Therefore your total monthly expenses are $8.900. Wow!

Subtracting your expenses from your net income, your balance is $1,100. Congratulations! You have positive cash flowing in at the end of the month.

You have choices. How much will you save? How much will you put in an Investment fund? What other plans or dreams do you have for your money and your life? Now is the time to effectively manage the money you have. Stay focused on where you want to go.

How realistic is this example? What obstacles have you encountered as you manage your money? What tips have you learned? I’d love to hear about your experiences. Add a comment and let me know what you’re thinking. Thanks!

Warmly,
Judith