Be more confident: How to Stop Being Broke

How to Stop Being Broke

Does money just slip through your fingers? Do you
feel like you work [1] like a dog, day in, day
out, and yet still have nothing to show for it?
If so, it's probable that you've fallen into a
habit of letting money control you rather than
the other way around. Getting your financial
situation under control is about more than money;
it's also about self-respect and finding balance
in life. To stop being broke, it's important to
realign your priorities and to learn to take
better care of yourself. Here is how.

!! Steps !!

_ Start with you. Being broke all the time is
about you not caring about yourself as much as you could be. If you
don't value yourself, it's extremely hard to value money well. The
choices that you make to spend, save, or borrow money [2] affect your
ability to live within your means or beyond them. Recognizing the
following may help to start setting you back on the track to being
financially stable [3]:

* Money, or the spending of money, does not equate with your
personal value. Money neither defines who you are, nor does money
invest you with power. Real power is personal and comes from
within; using money to feel powerful is a way of seeking external
validation rather than accepting your internal worth.[1] [4]

* Suze Orman says that we "spend more than_ when we feel _less
than_.[2] [5] When we don't feel good about our self worth,
spending in an out-of-control way can be a self-pitying [6]
reaction to not having what richer people around you appear to
have, and it becomes an excuse to avoid looking deeper inside
ourselves to sort out what's really hurting us.

* One major way to disrespect yourself is to buy what you cannot
afford. The spiral that entails involves self-inflicted pain,
inability to find enough money to pay for other things or even to
repay what you've bought, and settling for a lifetime of debt [7]
over a lifetime of enough.

* Another mistake commonly made by people who earn a reasonable
amount of money is to cease to value the bargain. This doesn't
mean visiting the dollar stores; it means learning how to ask for
discounts, for repairs or returns, for savings. Not doing so
because you feel that to do so is "icky" or find that it lacks a
sense of generosity [8] is a form of deluding yourself. We live in
a system that runs on sales and profit, and you deserve to get
those breaks as much as the next person. And for those of you with
a college education, the degree doesn't mean you give up
streetwise common sense!

* For women, remember the big one: A man is not a financial plan. No
matter how charming [9], delightful, and forever he seems, you
need to keep your financial head screwed on firmly and to be
taking good care of your financial needs in savvy, thoughtful
ways. Even if he is generous to the point of recklessness with
your shopping extravaganzas, this is no excuse to give up your
financial autonomy and financial common sense [10]. Sticking to a
budget is neither mean nor miserable, so lead by example.

Dig yourself out by doing what's right not what
feels good or simpler. The intensity of feeling
great after a purchase is fleeting, with the
item soon old. Suze Orman suggests that you ask
yourself three "gatekeeper" questions before
buying things: 1. Is it kind [11] (to
yourself)? Is it necessary? Is it true (for
yourself)?[3] [12] If you're not able to answer
all three of these questions in the
affirmative, then the purchase isn't one you
should be making.

* This includes not indulging the loved ones in your life when you
know better and when you know that yet another hand-out will only
further soften them rather than help them learn the financial
realities.

* Never deplete emergency savings [13] or long-term investments for
whims or people in trouble. You're the one headed for trouble if
you do this. If this seems hard-hearted, consider Suze Orman's
gatekeeper questions again.

Review your purchasingCreate surplus in your life. There are two
simple ways to do this: 1. Lower your consumption; and 2.
Increase your income [14]. For most people, the first option is
the most immediately realistic, although you shouldn't sell
yourself short on aiming for the second option as a longer term
goal. Get yourself started with the following:

* Write [15] down everything you spend. Get a little notebook [16],
and add everything from the daily newspaper to the $300 boots.
This method works straight away: just as writing down what you eat
makes you eat a bit less, writing down what you spend makes you
aware of your expenses, and should eventually lead you to spend
[17] a bit less. Be ready to be shocked if you're used to excusing
your constantly broke state.

* Start minding about small, pointless expenditure. Don't spend
needlessly on those expenses which are not absolutely necessary,
and which you could prevent with the right organization skills and
willpower: the parking [18] ticket you got because you lost track
of time. Cigarettes. The $12 late payment charge just because
you've not organized. The gym subscription you don't use. The
taxi because you were running late and you're perpetually
disorganized.

* Set your budget [19]. Don't set one that is hopelessly
unrealistic. Set aside a lump of monthly income for real debt
reduction (not just paying off interest). Work out your monthly
fixed expenses and include set-asides for annual or predictable
expenses – car services, holidays. Divide what's left by 31 to
see how much you have to spend each day.

* Wise up on your food expenditures. Many people with a reasonable
income have no idea how much they spend on food [20]. You may
think you despise convenience foods, but a long, hard look at your
shopping cart may tell another story. The trick is to buy loose,
buy big and buy late in the day. Keep the fridge well stocked with
ingredients for things that you know you can cook from scratch
when you come home late and don't have much time to whip up a
grand meal. Build up a repertoire of cheap recipes that everyone
loves.

Use your frustrations [21] to change your
attitude on consumer goods. One very good way
to relieve your sense of not having is to stop
reading fashion, home style, and technology
related magazines that make you feel bad unless
you have the latest designer item, gadget, or
20 piece garden setting with huge barbecue. Can
that top-of-the-line camera, step machine, or
latest mobile phone really make you feel
happier when you know that the purchase is just
driving you deeper into debt? No one notices
whether you use expensive shampoo [22] or not,
so long as your hair is clean. On the other
hand, you don't have to flaunt your thriftiness
too much. Keep a healthy balance of knowing
what you want versus what you need.

* Rather than yearn for stuff you don't have, look at what you
already have. If you don't like it, take it to charitable
organizations or put it on eBay [23] if it might sell.

* Recognize brand obsession. Being loyal to a brand that provides a
quality item that endures makes sense. Being loyal to a brand and
buying every new thing they develop does not make sense. A very
small percentage of people notice the brand of clothing you're
wearing. Being emotional [24] about labels will burn a hole in
your pocket; focus on getting value and quality for your money,
and prefer quality over quantity, remembering that many brands are
not the quality that their advertising might suggest.

* Just one\'s enough...Forget about juggling credit cards [25].
It's not big and it's not clever to give yourself a false
sense of financial prudence, when in fact you're sliding deeper
into debt. Instead, play the sniper: pick your cards off, one by
one, and save yourself the unnecessary expenses from having too
many credit cards. The target is to have only one bank account and
one credit card for emergencies. Indeed, if you can whittle down
your credit card to a $500 emergency fund card and rely on cash
transactions (including debit cards) for everything else, you'll
be laughing.
Steer clear of temptation [26] and danger
zones. These include motorway services, 24/7
convenience stores, sales, and even the food
area of cinema [27] foyers. Do not even attempt
to flip through mail order catalogs and risk
spending just a small amount on an item.
Instead, send the catalog straight into the
recycling bag, unopened. If you must walk past
designer chains, walk fast, and do not take so
as much as a second glance.

* Don't become enamored of "money-saving" gimmicks that take
up more time and trouble than they're worth. These include home
sewing and bargain hunters' newsletters. And be cautious of sale
items: a bargain saves even more money if you don't buy it at
all.

* Be prepared. Take snacks [28] and bottles of
tap water everywhere for the children. Have change ready for
parking meters, spare tights in your bag. Never again buy
something because you left your other one at home.

* Spend time with friends making fun from what\'s already in the
cupboard!Aim to have a few no-spend days [29] a month. After a
while, it becomes a game: how can I run my life today without
writing anything down in my little blue book? How ingenious can I
be to make do with the things, food, and resources I already have
at my disposition? See how often you can turn this into a habit.

* Be generous [30] where you can afford to be.
You cannot afford to be Lady Bountiful (for the time being), but
you can gift others with time, with support, with friendship, with
a spare bed for children's friends, with a lift for an elderly
neighbor, and with tomatoes from your garden. Thrift can so easily
morph unpleasantly into meanness, but check and see how generous
you are: you shouldn't be giving more than 10 percent of your
money for generosity.

!! Video !!

!! Tips !!

* When contemplating spending money that is sitting solidly in your
account, as opposed to spending putative money whose miraculous
elasticity is there only to encourage you to pay interest, think
of how money that you actually possess feels completely different
from money you owe. The prospect of splashing it on a pair of
shoes almost identical to two pairs you already possess strangely
seems to pall.

* Begin to behave like someone who is genuinely rich – not like
someone just playing the part. Drive a harder bargain. Become a
tougher customer.

* Take it a day at a time. Start small, set goals, reward yourself
(not with any type of shopping, of course) – enjoy playing the
game.

* Get a jar, and put all of your pennies in it, until it is full.
When it's full, take it to the bank. (Don't take it to one of
those coin counters, as they charge for counting your pennies,
defeating the object of saving).

* Try to buy things with better durability. For instance, that pair
of shoes may cost a little bit more than what you would normally
pay for, but calculate how much longer you will use them and their
lasting power, and you may end up spending less than if you were
to buy cheaper pairs of shoes on a more frequent basis.

!! Warnings !!

* Don't go overboard, or be unrealistic with a budget. If you don't
stick to it (just like a diet) you'll only feel worse.

!! Things You\'ll Need !!

* A piggy bank for savings

* A purse that you only carry the minimum amount in (leave your
cards at home on purpose)

!! Related WikiHows !!

* How to Save Money on Gas [31]

* How to Save Money on Mobile Roaming Charges (for UK Only) [32]

* How to Save Money on Auto Insurance [33]

* How to Find and Shop for Bargains on the Internet [34]

* How to Go Bargain Shopping for Clothes on the Web [35]

!! Sources And Citations !!

* http://www.yurbroke.co.uk [36] – research source

* http://www.denaliservice.com [37] – research source

!! Article Tools !!

* Read on wikiHow

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Friday, 28 January 2011

How to Stop Being Broke

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