I used to think that perfectionism could only be a positive trait. After all, it comes with a drive to achieve many things, and to do so with a high level of excellence. When it comes to academics or athletics, perfectionism can set you apart from the crowd; in the workplace, perfectionism impresses the boss and earns promotions.

But, as with any mostly-good trait, there are downsides to perfectionism — all of which stem from the reality that, in an imperfect world, it’s impossible to achieve (and therefore crazy to expect) absolute perfection in any area of life.

In academics, athletics, and careers, perfectionism can lead to self-created stress and burnout or procrastination and immobilization, not to mention what it can do to personal and professional relationships. The same dangers of perfectionism apply to the way we handle personal finances and other assets, as well.

Taking responsibility of your finances and seeking “perfection” is a noble mindset, but it can also lead to wasted money, lost earnings, and lost value. Here’s how.

#1: Throwing Out the Budget Because You Can’t Follow It With Diet-Like Rigidness

Perfectionists tend to be all-or-nothing kind of people. If we do something, we want to do it right. We have to do it right. There’s no in-between. So, when we fail to stick to our perhaps-too-unrealistic budget, we can be tempted to think we’re incapable of budgeting, period. Not allowing a little room for mistakes or spontaneity or miscalculations in your budget is setting yourself up for failure (the same goes for dieting!).

Instead, try to focus on areas where you’ve improved. Adjust your budget categories gradually from where you are to where you want to be, and find a budgeting buddy that can help you stay objective.

#2: Holding Off on Investing Because You’re Not Sure You’ll Be Good at It

The ironic thing about perfectionism is that, while it can be highly motivating, it can also immobilize you. Because we believe we won’t be able to do something perfectly, we don’t try at all.

This is especially devastating with investing, because time is, literally, money. Thanks to compound interest, the earlier you invest, the more passive income you’ll have years from now — regardless of how “perfectly” you did it.

Many of us are clueless about investing, but there are plenty of tools and resources (including humans) that make it very easy to learn just enough to get started. Like many other areas of finance, you’ll learn and improve along the way.

David’s Note: If you can’t decide how to invest, then just start investing in low cost index funds. It’s really the best choice for pretty much everybody, but it’s also a safe choice because you are paying lower fees and only making a bet that the economy will continual expand through time.

#3: Never Purchasing Any Home Because It’s Not Your “Dream Home”

While the value may not grow as exponentially as a long-term investment, a home can be an incredibly good way to force you to build wealth through making mortgage payments. The longer you live in a home, the more your equity grows. This isn’t to say that some homes aren’t wise investments, but with perfectionism, even a good house might not make the cut because it’s not your dream house.

Don’t let this tendency rob you of the value of investing, the joys of home ownership, and maybe even the opportunity to increase a home’s market value and turn a profit when it comes time to sell.

#4: Fixing What Isn’t Broken and Doing Projects Over and Over Again

This one hits home for me. I have a perfectionist’s eye when it comes to fixing and renovating my home, and it could easily lead to spending more on home improvement and DIY projects. Thankfully, this perfectionism clashes with my equally-strong sense of frugality, or I would have spent way more than I have.

It’s fine to want to fix things and make them look nice, but the quest for perfection can be costly. I’m learning to look for ways to improve on what’s there instead of throwing it out and starting over. It’s taking some time but I’m chalking up my failures to DIY “perfectly” as learning opportunities that only my eyes will criticize, and I’m keeping my eagerness to be “perfectly” done with everything within the constraints of a reasonable monthly home-improvement budget.

How about you? Does perfectionism cost you, financially or otherwise?

7 comment(s)

The post Is Your Perfectionism a Financial Liability? first appeared on MoneyNing.

A popular trend in the health community is cleansing – setting aside a week to 30-days dedicated to reigning in bad eating habits, losing weight, finding energy, or maybe just feeling better. Cleanses can help people reach short-term health goals faster, change their eating habits, and find new motivation to turn short-term discipline into a long-term lifestyle.

Imagine what could be done if more people applied this concept to purging out the bad things “feeding” their finances – a financial cleanse, if you will. Setting aside time to focus on money habits can make a huge impact on short-term financial health and provide just the motivation to kick bad habits, get your finances in order, and keep them that way. Here are a few tips you might want to try if you’re considering taking a summer financial cleanse.

1. Clean out your financial refrigerator: identify and eliminate spending temptations.

One of the first steps people take when starting a cleanse is to get all the junk or off-limit foods out of their refrigerator and cupboards. By removing these immediate temptations, you’re showing you mean business and intend to stay on track. This same concept can be applied to your finances – specifically, things you have ready access to that tempt you to spend wastefully, compulsively, or out of boredom (just like a refrigerator full of junk food).

For me, one of the greatest spending temptations is getting emails with coupon codes from my favorite stores. Just when you find something you ‘need’ to use one of them on, they send you another coupon. Hitting unsubscribe, unfollowing, or even turning off your social media can help you purge these sources of temptation.

2. Keep a food diary: record everything you spend.

Just as someone who goes on a cleanse might record everything they eat during the day to keep themselves accountable and reveal things that are sabotaging their goals, recording everything you spend can offer the same accountability and insight into your unconscious financial habits.

Using cash is one of the best ways to do this, but if you use a credit card for the points and rewards, you can still track your spending with an app, spreadsheet, and other tools. The idea is to get a better idea of where your money is going. You might be surprised to find that you’re spending way more than you realized in a specific category.

3. Cut the calories or carbs: focus on one category you need to correct.

Cleanses are often focused on cutting or reducing calories and food sources. For instance, during a Whole 30 cleanse, participants cut out grains, dairy, added sugars, and other processed foods. With the insight gained from recording all of your spending, a financial cleanse can be further enhanced by cutting back one of the categories you’re splurging on a little too much. This might be entertainment, eating out, or buying lotto tickets and snacks every time you hit a fuel station, or something entirely different.

By focusing on correcting one aspect of your finances, it’s easier to gain a sense of accomplishment, which builds confidence to tackle other categories, as well.

4. Separate your needs from your wants.

Once you’ve identified some of the problem categories, it’s time to look back at the essentials. During a health cleanse, this might mean ensuring you’re getting the essential amounts of protein, vegetables, or fiber in your diet before you “spend” on empty calories and treats. For a financial cleanse, this means looking at the category we all dread: bills.

Getting familiar with how much of your income is allocated for essential spending, compared to discretionary spending, can help you identify areas to work on in order to create a bigger gap between the two. The bigger that gap, the more you can start saving and planning for the future.

It might seem like a stretch to apply the concept of a health cleanse to your finances, but try these tips and see if they help you cut unnecessary consumerism and spending, energize your budget, and motivate you to pursue a healthier financial lifestyle.

2 comment(s)

The post 4 Tips for Going on a Financial Cleanse first appeared on MoneyNing.

The cost of even a small repair makes car insurance nice to have. When we start adding in the medical expenses that can go with a car accident, insurance becomes downright necessary. In many states, insurance is even a legal requirement before you can drive your car out on the road.

But a wide variety of options are available when it comes to insurance—there are actually seven different types of car insurance you can choose from—and it can be difficult to decide just what type of auto insurance is the best choice for you, your vehicle and your budget. Here is a list of the seven types and what you need to know about each one.

1. Liability Insurance

When your state requires that you carry some sort of insurance for your car, they’re usually looking for liability insurance. In the event that you are in a car accident and the police decide it is your fault, liability insurance covers the cost of repairing any property damaged in the crash (such as cars or buildings), as well as the medical bills from resulting injuries. Most states have a minimum requirement for liability insurance coverage that you absolutely must have.

However, it usually makes sense to go beyond that minimum requirement if you can afford the payment. That’s because you are personally responsible for any claims that exceed your coverage’s upper limit. In the event that you are in an accident, you don’t want to run the risk of having to pay a significant amount of money out of your own pocket. How much liability insurance you need depends on whether you have a lot of assets to protect, as it is more important to have higher levels of coverage just in case of a catastrophe.

2. Collision Insurance

The biggest problem with carrying only liability insurance is that if there is an accident, you may wind up without the money to repair your own vehicle. A collision insurance policy makes it so that someone else — your insurer — will pay for the repairs to your car. If your car is totaled in an accident, a collision insurance policy will pay out the value of your car. While the payout won’t cover for a brand new vehicle, the sum will equal approximately what the car was worth before the accident.

Collision insurance isn’t a must-have, as far as insurance goes. If your car is older, it may not be worth paying for insurance, especially if you can work on saving up enough to replace the car if necessary. If you have a good-sized emergency fund, you may be safe without collision insurance. If you’ve chosen a more expensive car or your car is relatively new, however, collision insurance can help you sleep much better at night.

3. Comprehensive Insurance

Liability and collision insurance policies exclusively cover car accidents. If something else happens to your car — weather damage, theft, an animal collision — you won’t be able to get your insurance company to address the problem. With a comprehensive insurance policy, however, your insurer will handle just about any situation that comes up.

A comprehensive insurance policy is one of those things that are nice to have. However, coverage can be pricey and may not be worthwhile if your car would be relatively easy for you to replace, if you had to. Note though that you can bring down the price of this policy if your vehicle has an anti-theft and tracking devices installed.

4. Uninsured Motorist Protection

Just because the law requires everyone to have insurance doesn’t actually mean that’s the way things work out. Even if a driver has a liability insurance policy, most states have relatively low minimums that may not cover all of the expenses that can go along with an accident. One of the worst things that can happen is that you get stuck with the bills in an accident that wasn’t even your fault.

The decision to get a policy that covers damage by an uninsured motorist isn’t as clear cut as other policies. In theory, even if a driver doesn’t have enough insurance to cover damages during an accident, he will still have an obligation to cover the costs out of pocket. It’s only when the person at fault doesn’t have any money that there can be problems.

5. Medical / Personal-Injury Protection

The costs associated with treating injuries after a car accident can be astronomical. In order to cover those costs, medical and personal-injury protection is available. No matter who is at fault, such protection will cover your medical bills along with those of your passengers.

If you have a good health insurance plan, however, it’s far less likely that medical and personal-injury protection will be useful to you. And considering how much more a general health insurance policy covers, it should be your first choice.

6. No-Fault Insurance

So far, no-fault insurance is available in twelve states. This option covers injuries and property damage, no matter who is ultimately responsible for a given accident. The decision to choose no-fault insurance really depends on what other insurance options are available to you and at what price. Some no-fault policies can be expensive, making it more cost-effective to choose other options, especially if your car is inexpensive to replace.

7. Gap Insurance

If you are still making car payments, gap insurance may be a good choice. It’s meant for drivers who still owe money on their cars and need to pay off the vehicle if it is totaled in an accident. It’s generally a good choice if you owe more on your car than you could easily pay off on short notice.

Gap insurance is especially worthwhile if you owe more on the car than you could get for it if you sold it today, since many insurance policies will only cover the value of the car, rather than the cost to replace it. Some lenders may require you to have gap insurance or something similar until you pay off the vehicle, so you may already have it whether you know it or not.

33 comment(s)

The post 7 Types of Car Insurance: Which Ones Do You Really Need? first appeared on MoneyNing.

As a woman, you definitely understand what I mean when I say that beauty doesn’t come cheap. From makeup to manicures to haircuts, maintaining your appearance can really put a dent in your budget.

In a 2013 report, it was found that a woman will spend approximately $15,000 on beauty products in her lifetime. That’s a staggering number considering beauty products and services aren’t something we necessarily need to survive (although I might disagree).

Even so, beauty is fun! Plus, it’s hard not to splurge on it every now and then. If you’re on a tight budget, here are five beauty tips to help you stay beautiful without breaking the bank.

1. Try It at Home

While I wouldn’t recommend trying to give yourself a haircut (although there are plenty of YouTube video tutorials available), there are plenty of other beauty regimens you can do yourself right from your own home.

For example, instead of spending $20 to $40 on a manicure, you can purchase salon quality products for a fraction of the price and do it yourself.

Additionally, you can make a spa night out of it with your girlfriends. Try out some DIY facial mask recipes, or give each other hair treatments. These are things you can do right from the comfort of your own home — and you won’t have to worry about how much to tip.

2. Find a Cosmetology School

Professional stylists, with years of experience, can cost an arm and a leg. But looking for someone who’s less experienced can save you a bit of money. If you don’t mind being a guinea-pig-of-sorts, seek out a cosmetology school.

Many schools are often looking for models to learn on, and in exchange offer services at discounted prices. These students are trained, and often have a supervisor looking over their shoulder, so there’s nothing to worry about.

3. Use a Groupon

Maybe you have a salon or spa that you love and go to religiously, but if you’re on a tight budget, you may have to try out a few other places. Give Groupon a try. They have lots and lots of discounted beauty services to choose from right in your neighborhood.

You may even find one you really like, and that costs less than your regular salon. Just remember to tip accordingly to the regular value, not the Groupon price.

4. Stick to the Drugstore

If you’ve ever walked into a pricey beauty boutique like Sephora, or down the beauty aisle at a department store, you know that these places can be a huge trap for your wallet. It’s hard to walk away without spending less than $50. When you’re on a tight budget, stick to the drugstore instead.

You can find really great quality beauty products for a fraction of the price. Keep in mind, many high-end and low-end beauty brands are owned by the same company, so at the end of it day it’s the same beauty masterminds formulating these products.

5. Cut Back on Regular Visits

A weekly manicure or a monthly haircut may work for your routine but not necessarily for your budget. Honestly, you really don’t need to go so often. Cut back on your visits and space them out accordingly, so you can go less but still keep your look fresh.

If you really do need a trim or color in between visits, go to a cheaper salon to get it done, or try to touch up your color by own using a drugstore box that matches your hair color.

Beauty isn’t cheap but that doesn’t mean you have to spend a chunk of your paycheck on it. Use these tips and be more conscious about what you really need and what beauty areas you should splurge on. This will help you save a pretty penny, while looking pretty too.

How do you save money on beauty products, salon visits, and other routines? What’s another tip you use when you have a tight budget?

5 comment(s)

The post 5 Beauty Tips When You're on a Tight Budget first appeared on MoneyNing.

Getting an annual raise or a promotion that comes with a higher salary is a great feeling. It makes you feel appreciated for what you do, and, if your finances were tight, it brings a sigh of relief.

What’s the first thing people tend to think of immediately after a raise? What to do with the extra income, of course, and usually, where to spend that sum. It’s not the immediate reward that’s the biggest problem though. Going out to a nice restaurant, taking the weekend away, or even purchasing an item you’ve had your eyes on for a while (assuming it isn’t a Lamborghini) is nothing to feel guilty about.

It’s when a little extra monthly income turns into an excuse for lifestyle creep (also called lifestyle inflation) that you need to really guard against.

If you were especially hurting before the raise, your mind might turn to what most people would consider needs. But, for most of us, the idea of extra money immediately leads us to think about the things we want. Depending on how long your wish list is and thanks to credit cards, that first take-home pay after a raise may vanish even before the money hits your bank account.

The situation could be even worst if the wish list includes ongoing budget categories and expenses now that they seem more “affordable”: premium-level media packages, subscriptions, memberships, payments for a newer car, the mortgage for a larger house, etc. That’s because not only did you quickly spend the pay raise of that first paycheck, but you committed the extra income forever to an ongoing expense.

No wonder financial analysts says that most of us will never become millionaires.

So what can do we? What if, instead of letting a raise lead to lifestyle inflation, we chose savings inflation?

Look at the habits of truly wealthy people (not just people with fancy stuff bought with debt). Whenever these people experience a windfall, they don’t spend all of it — they sock it away in emergency funds, savings, and investments instead. And they don’t do this because they can’t find anything they like to buy right now. They just consider the things they’ll want in the future — financial security, residual income past retirement, funding their children’s education — more important. It’s forward thinking.

Now for a personal example: my husband got a promotion that came with a significant raise. Immediately, it was tempting to think about which discretionary categories we wanted to expand. Ultimately, we decided to leave these categories the same and let our savings inflate, instead. After all, we have some debt we’ve been working to pay off and some large home-related expenses to save up for (among other things).

Our practice is far from perfect, and the temptation to inflate our spending “just because we can” will always be there. I’m glad we chose savings inflation instead of lifestyle inflation though, because that means we are that much closer to financial independence.

How do you approach an increase in income? Have you ever chosen savings inflation instead of lifestyle inflation?

9 comment(s)

The post Get a Raise Last Year? Choose Savings Inflation and Not Lifestyle Inflation first appeared on MoneyNing.

When we see a great deal, we are inclined to think that we are “saving money.” Some store receipts even help with this illusion by giving you a total of your “savings” at the bottom, so you can see what a savvy shopper you are.

However, in many cases, you might just be overspending when you think you are getting a good deal. Here are 3 ways you could be spending more than you should — even while thinking that great “deal” is “saving” you money:

1. Buying Bulk Items

At first glance, buying in bulk seems like an obvious way to save money. The per-unit cost is often (but not always, so watch out!) lower than the single item price. However, that doesn’t mean that you are actually saving money. My husband is about done with a Ph.D. in experimental psychology, and he tells me that there is an interesting study showing that if you have more, then you consume more, and that packaging makes a difference. The bigger the container, the more you consume.

Buying in bulk has much of the same implication. If you have a large amount of food that you bought in bulk, you are likely to adjust your consumption habits by eating more. The same is true of buying toilet paper or paper towels in bulk. The large amounts of these items can, in some cases, encourage you to use more, since you feel that it is “safe” to use these items liberally.

While you can sometimes save money by buying in bulk, it is important to make sure that you don’t increase your consumption as well.  One way you can do this is to repackage bulk items when you get home, so that they are in smaller containers, encouraging slower consumption. Another area of concern is purchasing items that won’t go bad before you have a chance to use them.

2. Clearance and Sale Items

Sometimes we see that something is on sale. And we feel we need to get it, right now, or miss out. It might not be something that we need — or even want. However, if you are getting something just because it’s on sale, and you’re afraid it won’t be later, you are setting yourself up to overspend. Even if you buy something on clearance, you are spending money. If it’s money you weren’t planning on spending anyway, you aren’t actually saving anything, no matter how good the deal is.

Instead, evaluate the purchase. Is it something you actually plan on getting in the next few weeks? If so, it might be worth it to get the item while it is on sale. But if it’s something that you vaguely think “might be useful to have around”, you might end up spending when you should be staying your hand. The same goes for clearance. I bought a pair of jeans because they were $5. I didn’t like the fit, but bought them anyway because they were just $5. Those jeans are never worn, and I just wasted five perfectly good dollars that could have been spent on something I’d actually use. This is far from saving money.

3. Using a Credit Card

You’ve probably seen posts and articles based on a 2008 study from the Journal of Experimental Psychology showing that those who use plastic are more likely to spend more money than those that use cash. The thinking is that when you swipe your credit card, you aren’t watching the money disappear. You can’t physically see the money leaving your hand. Instead, you are able to look more at what you are purchasing, since using plastic is more abstract. You focus on what you are getting, and don’t worry so much about the cost. Once you stop thinking about the cost, it is easier to overspend. Couple that with the interests associated with carrying a balance when you realize that you have spent more than you can afford, and the problem magnifies itself.

You can help reduce the chance that you will overspend with plastic by keeping track when you get home. Get a receipt, and enter the amount in your personal finance software or a ledger at home. Holding yourself accountable can help you reduce the chances that you will overspend.

12 comment(s)

The post Are You REALLY Saving? 3 Ways You Could Be Overspending first appeared on MoneyNing.

“It’s amazing that parents get angry with their teens and adult children for not using a credit card wisely, but those same parents have invested nothing into helping their child understand anything about personal finance,” says Eva Baker, the founder of the blog TeensGotCents.

Baker is well-versed in the importance of teaching kids about money since she is a teen herself. Her own mother has encouraged her efforts to learn about money, and blog about what she’s learned in order to help more teenagers learn about the importance of developing good money habits as early as possible.

Do you talk to your kids about money? When was the last time you helped them save towards a goal, or talked about the importance of budgeting? Do you model good financial behavior as a family?

What Lessons Do You Teach Your Teens?

As my son approaches his teenage years, I’m thinking more about what I teach him concerning money. We’ve been careful to help him learn how to plan for purchases, save money, and give money to charity. Now, we’re starting to help him learn how to invest, and talking about what makes a good investment.

However, I realize that I haven’t taught my son much about credit so far. He doesn’t have a good handle on debt and credit, and he doesn’t really get what it’s about. This can be dangerous if he grows up and has to figure credit and debt out for himself.

Once, a couple of years ago, we let him borrow against his allowance for something, and we showed him that he would have to pay interest. He made payments each week for a month to repay us, but that lesson was a long time ago, and I’m not sure how effective it was.

“Being purposeful in teaching their children how to handle money and credit wisely is a necessity,” says Baker, of parents. I admit that, so far, there hasn’t been a lot of purpose in the way I’ve taught my son about money, and spending.

So I hope to approach it more consistently going forward. He’s reaching a time in his life when good habits can be developed — and bad habits can be as well.

Be Careful About Adding Financial Responsibility

As you teach your kids and teens to use money, especially credit, it’s important to be careful about adding financial responsibility.

For example; you don’t want to add your child as an authorized user to your credit card and let him or her have unlimited access to your funds. Instead, make sure they understand what’s happening, and that they take responsibility.

Often, this means laying the groundwork ahead of time. Help them progress in steps so they don’t become overwhelmed. Another concern is that they don’t have a good grasp of how money works, and then end up in trouble.

Talk about credit, and show your child how to use it responsibly, paying off the loans as soon as possible. Use your own student loans or car loans as examples. Real world application will allow them learn a lot better.

It’s up to you, as a parent, to teach good financial principles and then help your child put those into action.

Your kids won’t learn how to manage money on their own; if you don’t make it a point to teach your kids, they will likely make poor money decisions. “If a child is terrible with money,” Baker points out, “it’s possible that the parent is a big part of that problem.”

Do you want kids with better money management skills? Start with these four lessons everyone needs to learn and pass on to their own children.

1. Give Every Dollar a Job

Kids need to learn that every dollar needs a purpose early on. You can teach the kids when they get an allowance and birthday money that a portion needs to go to savings, giving, and spending.

2. Say No to Impulse Buying

Saying “no” to kids when they want something in the store is hard, but it’s disastrous if a child gets used to impulsive buying. Instead, help children come up with a savings goal for a particular item. If they are saving $50 for a special toy, then they need to realize that $2 impulse buys on candy or junky toys will ultimately delay their saving goal and make them less happy.

3. Learn How to Comparison Shop

I am still amazed at the many people who don’t comparison shop. Teaching your child how to take the time to do the research will help their money go further. A new iPad might cost $329, but if they shop on eBay or Amazon, they can get a refurbished model for half the price.

Along with comparing prices, teach kids to look up reviews on items. I’ve saved thousands of dollars in my lifetime just by reading reviews of a product before I bought it. It stinks to pay a lot of money for something that doesn’t work like it is advertised. Taking time to search the product beforehand can prevent wasted dollars.

4. Learn How to Bounce Back from Mistakes

Even though you want to equip your child with financial wisdom, there is a good chance they will still make silly money mistakes. That is okay. It’s especially important for kids to make money mistakes now, when only a few dollars are at stake, rather than later when much more money is at risk.

If your child is insistent on buying that low-quality toy or wasting their savings at the arcade, then let them do it. Hopefully, they will learn that spending money in this manner doesn’t make them as happy as they thought it would.

The best way to teach your kids to be financially-wise is to be an example for them. Don’t be afraid to talk to your children about your finances or about money mistakes you made when you were younger too. Your experience is extremely valuable, and not just to you.

What kind of financial habits are you helping your kids and teens develop? How can you prepare them for good money habits as adults?

6 comment(s)

The post Do You Model Good Financial Behaviors For Your Kids? first appeared on MoneyNing.

A while back we introduced the MoneyNing Manifesto for financial success in the New Year. Its purpose is to empower and motivate you to financial success next year.

Another powerful technique we’re introducing to change your money mindset is visualization. 

If you look up visualization online, you’ll find page after page of “self-help” gurus shilling the idea that you can achieve your goals through the simple act of picturing their achievement in your head.

According to them, if you see yourself achieving your goals, you eventually will.

While there is scientific evidence to back this theory, it’s buried beneath countless pages written by Internet marketers. These guys have been touting this method of turning impossible dreams into easy reality for years.

The data, however, is there, and the method does work.

But, this is a financial blog, not a self-help blog… so you know where we’re going with this, right?

Visualization Transforms Thought

Visualization trains you to change your thinking and feelings so that, in turn, you can change your behavior. Sounds simple enough, yes?

Well, it is. And, then again, it isn’t.

This is where most people get everything wrong.

Many people incorrectly believe that they can simply sit and picture themselves earning millions of dollars, then wait until their world is raining green. But making visualization work for you is a practice that takes plenty of time to perfect.

You can’t just pull up images in your head and think, “Oh! Yes! I want that!” Though this is tempting to many people in search of shortcuts, it won’t work. You must take time to learn the right techniques, and to slow down and practice every day.

Your brain is a fascinating organ that executes millions of processes each day. If you want to change your way of thinking through visualization, you must first study the method, then slowly start your practice.

So, what is the “right” way to visualize and train your brain to think differently?

The Right Method for Results

First, find a comfortable, quiet spot where you can focus on what you’re doing (no TV, radios, or people speaking).

Settle into your new spot with some simple brain wave music. Yes, this is admittedly a bit “new age-y,” but fine tuning your thoughts will be easier with this music playing. Theta binaural beats are super brain trainers for visualization. Get yours here:

http://youtu.be/66tq9xji0xA

Second, sit comfortably or lie down. Begin exploring your ideal life — in this case, your ideal money situation. Focus on your breathing and thoughts. If you find your mind wandering, bring yourself back to your focus. It will take consistent practice before you can turn this into something that’s as easy as breathing.

Would you like to develop the ability to fly wherever you want, whenever you want? Do you want to sleep at night knowing you have X dollars in the bank? Would you like an extensive portfolio, or a sizable retirement fund waiting for you?

Start thinking about what life is like with the things you want most.

Don’t just hold these images in your mind; interact with them. Feel them.

What does it feel like to have the things you want?
Does your worry about not having a large enough nest egg disappear?
Are you free to shop as you like?
Are you smiling because your savings is in an account earning more than 1% interest?
What do you see around you?
What do you smell?
Where are you?
Are you out shopping in the mall?  Can you smell the coffee at Caribou as you and your best friend discuss your happiness — now that you’re no longer struggling to save?

Play your ideal situation repeatedly in your head. Allow yourself to get lost in the physical feelings of your “dream” so that your brain can begin to carve a new pathway. This pathway will help it wake to behaviors that will eventually bring you what you want.

Your brain will grow increasingly alert to the things you must do to render your dream into a reality.

Do this every day: work out your brain like you work out your body. Once you’ve aced this technique, you will no longer have to depend on brain wave music or your special locale. You’ll be able to dip into effective visualization at any time or place.

After your brain has been trained, you’ll hopefully start thinking differently about money. You’ll start reconsidering your purchases before making them. If saving money is your goal, savings will become one of your top priorities, and you’ll strongly consider consequences before spending your hard earned dollars on frivolities.

Have you ever tried any visualization techniques — for money or something else? 

10 comment(s)

The post How Simple Money Visualizations Will Help You Change Your Life first appeared on MoneyNing.

Just Google the term “get rich” and you’ll see a ton of results for ways to get ahead as easily as possible. And it’s not just get-rich-quick schemes too. There are now a growing number of legitimate money-making opportunities on and offline.

Still, there’s a gap between the number of people obsessed with getting rich and those who achieve this elusive benchmark. After all, the road to wealth is filled with hurdles — whether circumstantial, mental, or emotional.

Circumstances can be hard to overcome, but I think our biggest problem sits between our ears. You can be in the right place at the right time, with everything going for you, and still not get ahead. If desire and even circumstances aren’t enough, how do you know you’re prepared to get rich?

I think these seven signs can be good indicators:

1. You Can Clearly Define What “Rich” Will Look Like for You.

A common hang-up is the inability to define what rich means for you, personally. Most of us aren’t shooting for Bill Gates-level wealth, yet we haven’t defined what we are aiming for. The more clarity you give to the vague idea of wealth, the more tangible it will become to you, and the more it will drive you to do the work it takes to get there. It will also be much easier to tell when you’ve achieved it.

2. You’re Ready to Get Out of Your Comfort Zone.

The process of getting wealthy is rarely comfortable. Even if you manage to get rich doing something you love, it will require some level of discomfort. This could mean pushing yourself to learn new skills, practicing to perfect your art, dealing with annoying people, or stepping into social circles and settings you’re not used to. If you’re ready for discomfort, you’re not ready to get rich.

3. You’re Ready for Risk­, and Loss.

The greatest achievements are often preceded by the greatest risks, the greatest failures, and the greatest losses. Just read the stories of some of the most successful people on the planet, and you’ll see plenty of proof for this. Gaining financial freedom means taking calculated risks and staying determined despite challenges and initial failure. We’re often most afraid of the unknown and what we can’t control — so take control. Being ready for risk requires spelling out exactly what could go wrong and having a game plan in case it does.

4. You’re Willing to Live Like No One Else.

If you want to get rich, you’re going to have to live as if you’re not. We often envision wealth as the freedom to live lavishly, but the wealthiest people are usually the most frugal with their spending. Saving and wisely investing money rather than spending it is what truly makes — and keeps — people rich.

And it goes beyond spending habits. The wealthiest people read more (and not just novels), watch less than one hour of television each day, and use most of their Internet time for work-related tasks. This isn’t to say that wealthy people don’t enjoy themselves. They just waste less of their time than most of us do.

5. You’re Unafraid of What People Might Think.

Socially, strange things can happen when your income level changes. People might start acting jealous, assume you’ve changed, stereotype you, or find it awkward to relate to you. Wealth will often reveal who your true friends are and can even hurt genuine relationships.

The fear of how wealth will change your social position or others’ perception of you can unconsciously hold you back from pursuing a better financial position. Until you get past this, it will be difficult to whole-heartedly pursue financial freedom.

6. You’re Fed Up With The Status Quo.

Sometimes, we just aren’t ready to do what it takes to get wealthy because we haven’t had it bad enough yet. Despite its problems, the status quo can feel safe and even comforting if it’s all you’ve ever known. When you’re fed up with mediocre finances, it’s a powerful source of motivation to do what it takes to build wealth.

7. You Spend Time Absorbing Positive Thinking.

Negativity and pessimism will throw water on any sparks of motivation to get rich. Do you have friends who complain about their money problems but never do anything about them or always shoot down your ideas? Getting wealthy will require spending a little less time with them and more time with people who will encourage you to pursue your goals.

People that build wealth believe in themselves, believe in the real possibilities of where they can be financially, and surround themselves with people and influences (role models, blogs, books, podcasts) that foster a can-do attitude.

So, how do you measure up? Are you ready to get wealthy, or do you need to start working on one of these areas first?

2 comment(s)

The post 7 Signs You’re Ready to Get Wealthy first appeared on MoneyNing.

Used furniture can be a practical way to add to your home’s decor without breaking the bank. While the phrase may conjure up some idea of a couch found next to a dumpster or an ugly dresser handed down just in time for your first apartment, the fact is that it’s possible to find high quality used furniture that has little more wear and tear on it than the floor model at the brand name furniture store.

But many used furniture sellers know exactly what they have on their hands, leading to prices that are not so far off from what a brand new sofa or dining room table might cost you. That means finding the right deal can take a little work. These 10 tips can make it easier:

1. Plan your purchase.

Shopping for new furniture can include plenty of staring at catalogs, making sure patterns match and all that. Shopping for used furniture is a very different animal. You can, and should, have a general idea of the style and colors you want for your home, but be prepared to be flexible. The more flexible you can afford to be, in terms of how well your furniture needs to match an ideal, the better you can do in finding the right pieces. Make a list ahead of time and determine where you’re willing to be flexible – that list can help you stick to your budget when you see an end table or something else that matches your new purchase better than what’s already in that space.

2. Examine furniture carefully.

One of the biggest problems you can face when purchasing furniture second-hand is determining just why the seller is getting rid of that furniture. If you’re working with a middle-man, such as a consignment shop, it’s still important to take a good look at the piece — check for cracks, signs of repair and anything else that seems out of the ordinary. Purchasing something that has a little more wear and tear on it is not out the question. Instead, a scratch or a patch job can give you an opportunity to negotiate the price downwards.

3. Consider repairs.

Everyone wants furniture they can move in and be done with. But the more work you’re willing to do on “new-to-you” furniture, the more opportunities you have to get a deal. Major repairs may be too much, but small repairs, a fresh coat of paint or some new upholstery can make a deal look much better. You don’t have to do all the work, either: many upholstery shops offer a variety of repair services, as well as a way to turn a comfortable couch with a pattern straight out of the 70s look more modern.

4. Check furniture liquidators.

Furniture liquidators can be a great source of used furniture, especially if you look specifically for hotel liquidators. Some furniture liquidators handle more odds and ends of new furniture or office liquidations, but hotel liquidators will routinely have beds, couches and other furniture that has relatively little wear and tear (some hotels replace their furniture every few years). Liquidators can also be a less expensive way to find matching furniture sets.

5. Talk to furniture repair pros.

While most furniture repair shops don’t make a point of selling furniture, many will have the occasional item available — something they fixed up on the side or something that the owner never came back for. You may also be able to get an idea of whether it’s practical to purchase furniture that’s in need of a little more TLC and bring it into the local repair shop if you frequent those shops.

6. Be wary of classified ads, but consider them.

More often than not, individuals posting their own furniture for sale on Craigslist put a higher dollar value on what they’re selling than any consignment shop, liquidator or other used furniture seller would, due to a hope of recouping at least some of the money spent on it in the first place. However, as long as the seller is willing to negotiate, you can turn a classified ad into a better deal. The same goes for garage sales.

7. Take cash along.

Many used furniture sellers are willing to negotiate on price, especially if you’re willing to offer cash. Using cash can also help you stick to a budget. The exception tends to be consignment shops, which usually already has a set price that they are working with.

8. Look for cleaned furniture.

When you’re dealing with certain types of used furniture, such as mattresses, it’s worthwhile to pay a little extra in order to get a professionally cleaned piece of furniture. That may seem like a tip to spend more on a used mattress, but the long-term cost of owning the mattress can wind up being much less. On the plus side, sellers who handle used mattresses in enough quantities and also provide cleaning services usually have more flexibility to negotiate lower prices.

9. Arrange for transportation in advance.

Only some second-hand furniture sellers provide home delivery at all, let alone for free. The cheapest alternative may be a friend with a truck, but many truck rental facilities offer special deals on pick-up trucks, especially if you don’t need the truck for a full-fledged move. Many companies have rates starting about $20 for one day.

10. Give the process time.

Because you’re dealing with used furniture, it’s difficult to guess what a liquidator may have in stock at any given time — and it’s downright impossible to figure out what a private individual may decide to sell. It may seem that there are absolutely no couches (or whatever type of furniture you’re looking for) in the county, but the more time you allow for the process, the more likely you are to wind up with the right furniture at the right price. That said, when you see something that fits your requirements, act quickly. Make your offer as soon as possible, so it may be gone before you know it.

11 comment(s)

The post 10 Tips to Get the Best Deals on Used Furniture first appeared on MoneyNing.

Money is so often a taboo subject that it can feel difficult to impart financial lessons to our kids – particularly when they’re very little. How do you teach young children and toddlers about money, while also protecting them from your money stresses?

Money management is just like reading (or any other complex skill), in that your kids need to learn age-appropriate little lessons as they take the path to proficiency. You don’t expect your kids to suddenly be able to read without first learning and practicing their ABCs, so you shouldn’t expect them to suddenly understand how to handle money because they reach a certain age. Instead, you need to start early.

Here are four money lessons you can teach your kids so they’ll be on the path to financial literacy — before they’ve even entered elementary school.

1. Budgets are Important

Even kids as young as three can learn basic budgeting, which is a skill they’ll always need. Have your child allocate their money (from allowances, birthday money, etc.) into at least three categories: to spend, to save, and to give.

This will get them used to the idea of not spending every penny they get. It’ll also help them understand that saving money allows them to buy bigger items and that giving money to a charity is (and feels) good.

2. Money Doesn’t Grow on Trees

For small children, it often seems as though grown-ups simply have to go to the bank or the ATM to get more money. They only see you making withdrawals, which they don’t connect with your time at work. When you do take them to the bank, explain that the bank is holding the money you’ve worked for and that you don’t have unlimited money available.

You can make this lesson more concrete by allowing your children to work for money. While many parenting and money experts debate whether allowances should be tied to chores, you can always offer to pay your kids for chores above and beyond what they’re already expected to do.

3. It’s Okay to Make Mistakes

As parents, we often want to shield our kids from disappointment, but that can be a big mistake when it comes to protecting them from the consequences of overspending.

If your child is excited to spend all her cash on funnel cakes and lemonade at the fair — and is later disappointed to realize she now doesn’t have enough money left to play a game or ride a ride, that’s actually a very good lesson about budgeting. It might be tempting to give her more money to play Whack-a-Mole, but it’s better in the long run for her to realize that money is finite and the Bank of Mom and Dad is not there to bail her out of money dilemmas.

4. There’s a Difference Between Wants and Needs

This can be a tough concept for many adults to grasp, let alone small children who feel like they absolutely must have the latest Thomas the Tank Engine toy. You can make this a game you play regularly, by asking your child what they need to live vs. what they want to have. Share your own specific wants, too (like that trip to France you’ve always dreamed of), and talk about what you each can do to someday have the things you want.

With my three-year-old son, I’ve made recognizing wants at the store into a game. I’ll let him look at the toy he’s enthralled by for a little while, and then I tell him it’s time to wave bye-bye to the toy. Although he sometimes has tears in his eyes while waving bye-bye, he knows that he can’t always have the things he wants. (I also model this behavior when I am tempted by things I don’t need – although I do feel a little silly waving bye-bye to iPhones and leather boots in front of my son.)

The Bottom Line

Financial literacy is a long-term process that needs to start very early. Teaching your children money lessons, and letting them feel the consequences of their money decisions, should start as soon as your kids are able to understand what money is.

What have you taught your pre-K kids about money?

6 comment(s)

The post 4 Money Lessons Your Kids Can Learn Before Kindergarten first appeared on MoneyNing.

For those of us who travel infrequently, taking a flight can be a budget minefield. It’s not just the constantly rising price of airline tickets, either.

If you don’t plan ahead the next time you fly to Aunt Sylvia’s for the holidays, you may find that the associated costs of flying — from checked luggage to parking to food — may just put a big hole in your travel budget.

Here are the ways frequent flyers keep their costs low:

1. Travel light.

Airlines charging for checked bags are nothing new anymore, but the extra charges may still come as a nasty surprise to an infrequent flyer. Make sure you know your airline’s checked luggage guidelines, including the weight limit and number of bags you may check for free or for the lowest price. Knowing what to expect ahead of time will allow you to decide what needs to be packed and what can be shipped ahead (or left behind altogether).

There are also ways to reduce (or eliminate) the fees. You can usually get a cheaper rate if you pay for it before you get to the airport, and you may even have a credit card that will reimburse you for checked baggage fees.

Want to learn how to pack lighter? Here are some tips.

2. Park far away from the airport.

The farther away you park, the less you pay for the privilege. Remote lots that are not associated with the airport are going to be a great deal cheaper than the valet parking right next to the terminal.

Research online, as there are websites you can book from that can give you an even better discount. Consider taking public transportation to the airport or hitching a ride from a friend. Uber is also an option. It takes more planning to be able to avoid the daily parking fee, but it’s certainly worth the effort.

3. Don’t eat at the airport.

Food at airports has two strikes against it: the cost is ridiculously high and the food itself is (generally) unhealthy. Since you are a captive audience, it’s very easy to fall into the expensive airport food trap, but a little planning will save you from overpriced airport nachos.

Carry portable and healthy foods with you, like apples, bananas, nuts, granola bars or even sandwiches. Bring an empty bottle to fill from a water fountain post-security, and you have everything you need for a meal. Your wallet will thank you.

4. Double-check the security requirements.

With the rules for what can and cannot go through security changing from time to time, it really pays for the infrequent flyer to find out exactly what will make it through TSA ahead of time.

For instance, after the prohibition on liquids over 3 ounces was instituted, many travelers found themselves having to give up standard size bottles of shampoo, lotion and other products because they were unaware of the new rule. Knowing what can and cannot be in your carry-on will save you money, time and aggravation.

Editor’s Note: International travelers should also be aware that you sometimes have to leave a terminal and go through TSA again when you transfer flights. I flew from Canada to Los Angeles once and had to throw away a bottle of wine I bought at duty free. The reason was that I had a layover in Las Vegas, and they had me get out of a terminal just to go to another. Obviously, I didn’t know that would happen, and I wasn’t planning to drink the whole bottle when the TSA officer wouldn’t allow me to bring a whole bottle of alcohol through security. I threw away a very expensive bottle of wine I bought as a gift, but lesson learned.

5. Bring your own entertainment.

Every airport boasts several newsstands and bookstores, as many people will forget to bring something to occupy themselves. But buying a magazine, newspaper or book (or worse, a DVD) means paying through the nose for something you could have easily brought from home.

Stop by the library a couple of days before the flight and load up on books, magazines, audio books and DVDs for free, and you’ll have a pleasant flight without spending a penny.

6. Let your purchases work for you.

Even if you are only an occasional flyer, a travel rewards credit card can help you to save up for a major trip. Since these cards allow you to accumulate points or miles toward a trip with your everyday spending, they are a good option for the infrequent flyer who dreams of traveling.

As with any credit card, however, travel rewards cards are only as good as your ability to pay them off each month. But if you are able to use these cards responsibly, you can find yourself flying free to your favorite destination.

Planning ahead will help keep associated airport costs low so you have more money to spend on the vacation itself. And isn’t that the whole point of traveling?

1 comment(s)

The post 6 Frugal Travel Tips From Frequent Flyers first appeared on MoneyNing.