Are you tired of looking at single digits in your bank account? Irritated that you can’t afford anything with your hard-earned money? Find yourself using credit cards, just to make ends meet? Let’s talk about one of the most valuable tools for this situation. A budget. So how do you make a budget?
The truth is, budgets are hard. We spend hours of our time feeling smart about numbers and spreadsheets. Blah blah blah. Afterwards, not many of us actually end up sticking to the budget. Following a budget can be a lot more about your mentality, and how you think rather than how it is about the numbers and math. Dave Ramsey summarizes this well by saying, “Personal finance is 80% behavior and 20% head knowledge.”
Almost 75% of Americans in a study acknowledged that they did a monthly budget. Approximately 80% of these same people studied reported that they failed to actually stick with their budget. This is not surprising given the information in my previous paragraph. It takes a lot to make a budget, follow it throughout the month, and to make each conscious decision at the store not to buy something (out of budget).
Let’s Budget
Let’s look at some budget numbers:
First, you need to know your bring home monthly income (after taxes, what you actually have to spend).
Monthly Income (to be allotted in budget) = 100% of your total
Here are some recommended budget percentages, that will work for you no matter what your income is. There are plenty of other things that can be budgeting for, but what I have listed are the most critical categories.
Transportation (car maintenance, gas, public transportation) = 5-10%
Food (groceries, this does not include eating out) = 10-15%
Health (doctor appointments, medicine) = 5-10%
Insurance (home, car, health) = 5-15%
Personal Spending (personal improvement, education, hobby) = 5-10%
Entertainment (eating out, movies, dates) = 5-10%
Miscellaneous (things not budgeted for, but randomly needed) = 5-10%
Total = Should always equal 100%
I also like to mention that giving (tithing to church, giving to charity, helping someone to buy food, acts of kindness, etc.) are always wonderful things to learn as well. If you can include this into your budget, that is definitely recommended for anyone’s situation. Giving will teach you to be more selfless, and will allow you to become a better person, in every aspect of life. It’s one tuning fork that can help teach you how to take care of others and form community.
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For clarity, I will provide an example budget below to help you understand this process and what it looks like. Sometimes the numbers aren’t exactly 5 or 10%, and you might have to go in between these numbers. Again, these are recommendations and not what you HAVE to live by. Everyone’s situation is different, and if you have a smaller house, or credit card debt, or car payments, etc. then your budget will likely be much different.
Income (100%)
$3500
Retirement (6.5%)
$230
Savings (10%)
$350
Housing (28%)
$1000
Utilities (8.5%)
$300
Transportation (3.5%)
$120
Food (10%)
$320
Health (5%)
$160
Insurance (6.5%)
$320
Personal Spending (7.5%)
$270
Entertainment (7.5%)
$270
Miscellaneous (5%)
$160
Total (100%)
$3500
Example Budget, no debts included
The Danger of Debt
All across the financial industry, you’ll find a million different arguments about debt. If you follow Dave Ramsey, you’ll see he’s the no-debt guy. If you have read Rich Dad Poor Dad by Robert Kiyosaki, he is all about making money by borrowing OPM (other people’s money).
I’m not going to stand on either side of this debate today, but I will give some sound logic about debt below. Debt can be quite a heavy weight for most people.
Debt can be a tool to allow you to get something quicker than you can with your money/income. We all might want things quicker than we can pay for it.
You will pay a significant amount more for the product when financed. If you get a car loan of $22,999 financed at 5% interest for a term of 72 months, you’ll end up paying close to $28,300 in total over the loan. An extra $5,299 more than it should of cost originally. This is what debt was designed to do.
Debt can be used quickly for bad. If you have a spending problem, having credit cards and store cards will quickly allow you to rack up debt. In the amounts higher than you can even imagine. And the credit card companies will gladly keep lending you money. Because they know they’ve got you.
Airline miles and cash back points for credit card spending is useful, although they are used as a game for marketing. They know these reward offers will entice people into opening the credit card, then bank (funny pun) on you going into debt with them. This eventually results in paying them back more than the rewards they will ever give you.
Interest rates on most credit cards is between 18-25% even with good credit. These companies don’t play, and they want your money. Never let your credit card bill be past due, to avoid hefty interest.
Saving up your own cash instead of spending on a credit card can feel more rewarding. You not only practice patience, but you give yourself a reason to work so hard for something and experience delayed gratitude… a term that most of our society doesn’t comprehend now-a-days.
Having one form of debt will make you feel like other forms of debt are acceptable. Example: Having a car payment will eventually make you think that having a credit card is a smart idea too, because you can afford the payments for that also, right?
Just because you can afford the payments, doesn’t mean that you can actually afford the risk of interest and the totality of the loan down the road. Sometimes this logic is hurtful, and don’t let yourself justify it.
If you are buying something on credit (TV, clothes, etc.) there is a good chance that it’s something that you don’t actually need. Avoid impulse spending and buying things that you can’t afford.
Creating a budget is incredibly difficult when you have debt and credit card payments. It’s hard to track multiple purchases throughout multiple banks and app interfaces. Debt can quickly put you overbudget without even realizing it.
That concludes your morning read for the day. Hopefully, this has given you insight towards how to better keep track of your money like a pro. Please share this blog with all of those people you know who struggle with money!
Imagine a life where you connect with people, rather than things. What if your daydreams were about future experiences, instead of buying a new car? All around us companies are aggressively marketing their products down our throats. These commercials claim that their product is THE ONE to make your life better. Will also make your marriage better. Make you happier than you are now. It’s a joke.
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At what point did you allow these corporations to rule over your mind and decision making processes? I’m not blaming you – as we all have allowed this to happen as a society. Money invites opportunity, and corporations with extreme amounts of money are able to influence society in many possibly destructive ways. However, it is time that you stand up. Time to find a better and healthier life for yourself. Time to say no to things, and say yes to people and experiences.
Financial Minimalism is about getting rid of the things that will not truly connect you to this world. It’s about having less equals more. It’s seeking out a life with less stress that will allow you to become a new version of yourself. Not having to worry about paying a credit card company this month for that stupid television you bought (and didn’t need). Eating better food at home that costs less and is healthier for you. Not stressing about how you are going to make ends meet this month with bills. We’ve all been there. Money is an ultimate stressor for us all.
Financial Minimalism is about getting rid of the things that will not truly connect you to this world.
So now that you’re ready, let’s explain the basics!
1. Minimalism Mindset
What does it mean to practice minimalism? Beyond always wanting more things in your life, it’s honestly not that strange of a concept. It’s a belief that you can choose to adapt your life into. In modern day society, we all want too much as it is. The line between needs and wants has become grey, to say the least. In privileged countries like the U.S., we are constantly craving luxury wants that other countries simply don’t even have the opportunities to have. In the United States, you can spend $300 (or more) on a fancy steak dinner if you want to celebrate an occasion. Meanwhile, more impoverished areas of the world are just craving any form of food to survive.
Maslow’s Hierarchy of Needs, Abraham Maslow
If you haven’t heard of it, Maslow’s Hierarchy of Needs, is one of the most famous charts ever made. Abraham Maslow, a psychologist in the United States, wrote books and developed this chart from years of research with the human brain. From his findings, Maslow discovered that you can’t progress up the chart until you fulfill each category, starting from the bottom of the chart.
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To put this into perspective, if you lack food and are starving, there is no way for you to progress into good health or to own property. Another example being if you are not in good health, then you can not enjoy intimacy and family. This chart summarizes some of the most basic needs by their category, and by no means is a guide to living your life. However, most people get to level two or three but combine them in weird combinations and ultimately live an unfulfilled life.
The only real goal for a minimalist mindset is to be happy with having less. Do you really need to buy the newest iPhone every year? Especially if you are financing it? Do you need artwork on every single wall in your house? Will you or other people actually notice and enjoy it? Is shopping at the mall for clothes the best idea if you already struggle with the stress of having too many options every day? Really dig into this thought process and think about it. There’s immense truth in what Maslow discovered.
2. Purge Possessions
Do you find yourself always trying to keep up with the newest fashion every year? Spending endless amounts of money on your Kohl’s card so that you can look nice? Is your entire 2-car garage not even used, because it’s packed to the ceiling with junk that you forgot you even bought? Eventually, it’s time to start getting rid of things. There are only so many things that you can have before you just have absolutely too much. Often times once you find yourself renting a storage unit to store your junk in, you should probably reconsider getting rid of some things…
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Boxing up your old stuff to donate can feel freeing, and can benefit others
Purging possessions through selling things, donating, or giving these things to family or friends can feel freeing. A weight can release around your shoulders. Most of the time we think that buying things will make us happy. You commonly see this called retail therapy, when you shop because you think it makes you feel better. Typically, this applies if you’re struggling with being upset or depressed.
I recently talked to a licensed therapist that I know and she told me that sometimes we try to replace holes in our hearts with things. She said that when we feel sad or depressed, we tend to isolate ourselves from human being and connection. As a response, we try to fill those gaps of missing connection with things instead. What ends up happening, is that our brain almost believes that the gaps have been closed for a short period. More precisely, we get a short burst of dopamine (a neurotransmitter, it plays a role in how we feel pleasure). To the brain and body, it feels like that gaping hole of missing connection has been met, if only for the briefest period of time. Eventually, the pleasure wears off and your body realizes that it’s still aching without the missing connection.
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Purging possessions can feel amazing, like the chains are coming off of your once heavy body. Not to mention, that it can greatly benefit others also. Whether it’s selling things for a good price, or donating to a local charity store. Stop letting yourself form connection and sentimental value to things, and allow yourself to become free from these things that are currently controlling you.
3. No Purchase Necessary
Is the purchase necessary? Are you allowing yourself to walk into a store and drool at all of the possibilities you could buy? Are you buying the 27th shirt that you don’t need because it says something funny? Or, are you buying groceries so that you can actually eat this week?
We like to convince ourselves that needs are actually wants. Especially when our fight-or-flight response has kicked in. This normally can happen due to a “sale“. An example of this being, “They’re advertising that it’s 50% off today, and ONLY today!” Sure, that’s what they want you to think. They want you to feel this fear, and activate your primal instincts, so that you talk yourself into running out to buy that thing on sale immediately. Truly sit back and consider what is actually necessary.
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One way to look at it is that businesses only sell things to make profit. And even though there is a sale, they are still making profit (albeit a smaller amount). It is the job of the business to get you into the store by any means necessary. Marketing can be a vicious animal.
A popular strategy of avoiding unnecessary spending is to wait it out. You see something you wanted (maybe on sale) and make yourself wait a few days, or a week. Come back to it, and see if you still really want that thing. You might find that you could care less about having it now. You wanted to rush to acting impulsive because of some marketing “sale” fear. Put yourself back in the driver seat.
When it comes down to it, we really only need a few things to get through every day. Food, shelter, clothes, and transportation to work. Beyond that, almost everything can become optional or a luxury item. Look within yourself to see what it is that you actually need, and not what it is that you want. Hear me out, I am not telling you that wants are bad, but you need to be responsible with your money and decision making.
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4. Create Connections
As humans, we tend to desperately crave connection with other human beings. You can thank your cavemen and cavewomen ancestors for this. In stone age times, the human brain developed the instincts to stay with a pack of people. These groups of people formed early on what is now known as society. As a pack, your chances of survival are always higher than being by yourself. If you don’t possess the skill of gathering food, then how would you eat? If you don’t possess the skill of crafting, then how would you clothe yourself? If you have never hunted an animal, then would you have what it takes to protect yourself against another human if a war broke out?
Fast forward into our current times and most all of this still applies. Albeit, not nearly as serious on a day-to-day basis. If you think you can go about life as a loner, don’t think that you will get very far. Most likely, you’ll find sadness and depression through isolation. Human beings are made for connection. In connection there are emotions, feelings, purpose, counsel, and so many more complexities to be had. Think of it this way, have you ever loved someone so much that you feel like you would do anything for them? What created that attachment? What makes you so passionate about fending for them, possibly even over your own life? These are complex, natural instincts deep within you. And they serve a purpose. Don’t question them.
Connection, between two human beings can form a powerful bond
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If you haven’t experienced real connection, then you might not understand a lot of what I’m saying. And that’s OK. You aren’t broken, or defective. You aren’t an outcast of society. You have plenty of time to make the decision to get involved with your local community. Not to mention that with the power of smartphones and the internet, you can join groups that share interests just like you within seconds. There is an abundance of ways to seek out connection.
If you have FaceBook, you can find plenty of groups that specify in things you are interested in. If you like hiking, it’s extremely easy to find groups related to that. There, you can find like-minded people who can give you the best ideas of new locations to go hiking.
If you would rather date and find a love interest, I highly recommend Hinge. I met my down to earth, lovely, and beautiful girlfriend from there. And trust me, I haven’t looked back yet. There are plenty of other options, but I can personally attest to the credibility of their app. And to top it all off, their marketing is correct. They are the dating app made to be deleted.
5. Experience Everything
So often today we are staring down with our head buried in a phone screen. Many people are more focused on taking a picture of something for Instagram, than they are to experience it themselves. You are subconsciously more worried about the likes and attention that you could get from social media, that hash tagging takes priority.
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Experiencing something can come with a mixed bag of feelings and emotions. Seeing the sunset over a beautiful ocean can be something of wonder. Especially when you can experience that with a significant other holding your hand tight next to you. Try to describe that, because you can’t, and I won’t even attempt to.
Experiences are much like the previous section about connections. This is because they typically can go hand-in-hand with each other. Making a connection is part one, and experiencing things with this connected partner (friend, family, significant other) is part two. I believe that these phenomena can only be explained by doing them. There aren’t words for the belly-aching laughter that you had with that person last week. Try explaining this scenario and story to someone else, and the other person just won’t understand it the same.
Experience with others. The Grand Canyon
Experiences will always come in all shapes and sizes. Whether it’s going to see an unforgettable place like Yellowstone National Park, or whether it’s having an unforgettable lunch with your significant other. Do not mistake things as a replacement for experiences. There is no comparison.
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6. New Outlook on Life
No longer will you let material possessions control who you are. No longer will you spend money that isn’t necessary, on things that aren’t necessary. From here on out, you will find yourself seeking connection with others. Be it friends, family, or a love interest. Starting today, you can begin to experience things that you never even thought were possible. The new version of you will live in the moment, all of the time. Not some of the time.
People will think that you’re crazy. They’ll ask what happy pills you’ve been on. Oh, and they’ll ask why you haven’t been posting your life on Instagram, like it matters. You will find yourself being able to smile, unburdened by insignificant things, bills, and worries.
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Your life is what you create out of it, so create something amazing with the one opportunity that you are given. You can never cease amazing your own self. You know where you’re headed, and I can’t wait for you to get there. Freedom does exist, and it’s within connection and experiences.
To recap what we learned today:
Minimalism Mindset
Purge Possessions
No Purchase Necessary
Create Connections
Experience Everything
New Outlook on Life
Breathe deeply, and let yourself find peace and purpose
Can you feel it yet? The reasons that financial minimalism could benefit you speak for themselves. I want everyone to seek out a better life, and to find purpose. To do that, I truly believe that things will never be the answer. Forming connections and experiencing every thing that life has to offer will put you on the right track. See you there!
“An object that is at rest, will remain at rest. An object that is moving, will continue moving straight unless acted on by an external force.”
Isaac Newton, The First Law of Motion (Law of Intertia) | Creator of Calculus
I once received a single-digit score on my Calculus II test in college. Dumbfounded that on the paper it said that I had received a 9, I assumed that was scored out of 10 and that I had crushed it. “Wow, I definitely didn’t study that hard. This calculus crap has been kicking my butt… but I’ll take a good score!” Only to then hear the teacher say a few moments later to the class that the scores received are in fact graded out of 100. Thanks Newton. <Insert slow clap.mp3>
Unfortunately, we have bad days (and bad events) happen to us all of the time. Fortunately, on the other hand, we have good days (and amazing things) happen to us all of the time. Did you notice how I phrased both sentences with the exact same structure? You should have. The reality is: for there to be good, there has to be bad. Good can not always happen, the same where bad can not always strike. I consider this the pendulum of life, it swings left to right depending on various circumstances every single day.
An important thing that you should begin to practice immediately is perspective. Changing your perspective can decide your mood, behavior, and your overall response to any situation that life may throw at you. It’s easy to get stuck in the rut of, “Why me? What did I do wrong this time…?”. Trust me, I know. I’ve struggled with being an overly grumpy pessimistic fellow for years now. That’s also an important reason that has empowered me to want to create this website, and write this blog you’re reading. Sure, I could continue to sit around whining about why something didn’t go my way, how I wish I had more fortunate circumstances, blah blah blah. But why? When I can positively make an impact describing my life experiences. Through this, I may enlighten others to things that they may not understand, or need help with.
I reached out and got a therapist, after seeing the benefit this had on many loved ones close to me. I never thought in a million years that I would talk my problems out with another person (that isn’t my girlfriend). I’m too manly, and I’m stubborn enough to figure out all of my $!@* by myself. Interestingly enough, after submitting myself to therapy and trying to change and grow, the benefits are tremendous. I couldn’t of possibly have figured out what was going on with me by myself. I didn’t have the capacity to, and I needed help. And that’s OK.
I’m telling you this because if you don’t have it in you to go research and learn about perspective, maybe a therapist is right for you. Maybe a church group is enough support and help for you to become more positive. Possibly you’re struggling with some mental illness and may need to consult with a doctor or psychiatrist ASAP. The pendulum will continue to swing from good, to bad, and you’ll miss every part of the good if you continue to focus on the bad. As your doctor, I am sorry to tell you that your pendulum may be broken.
But, it’s never too late to get help. Also, you deserve it.
Your fingers play the piano keys with excellent fervor. You’ve practiced these notes and chords hundreds of times. For some reason, you still feel inadequate. “Why doesn’t this song sound passionate when I play?”
You have a live performance to play in just a few hours. Time is passing faster than you hoped for, and you begin to pound the keys harder. And harder. And sloppier. Doubt and frustration is creeping in. You begin to feel yourself coming apart at the seams.
You close your eyes and allow yourself finally to take a deep breath. There’s a long pause that allows you to slow down and think. You hear a voice say, “Believing is the pinnacle of becoming. If you believe it, you shall become it.”
This man’s name was Ludwig van Beethoven. He lost hearing and became deaf over time. A tragedy standing in his way, he couldn’t hear the notes and beautiful sounds that he once could. The beautiful piano pieces he wrote changed the way music was understood in his day and age. Even though every obstacle was laid out in front of him, he played on.
It’s a popular belief that to be wealthy you must not spend any of your hard-earned money. Since you aren’t spending this money, you’re able to stockpile it back into a savings or retirement account. Sure, this is accurate, and a great way to live if you can manage to find a healthy balance. The problem comes when you obsess over not spending money so much that you allow yourself to generate a poor mindset.
Refusing to pay for things that can greatly benefit or change your life may one day be the crux of your downfall.
-No Place Like Gone
The wonders of sitting down with a therapist and talking through past trauma, stress, and anxiety are excellent. The magic of hiring someone to cut the grass instead of you doing it yourself every single time, so that you can finally allow yourself to have a day off. Hiring a family-friend as a babysitter for just two days a month so that you can connect again with your loved one, tremendous. The benefits of bringing on a part-time or contract employee for your business when there’s always too much for you to overwhelmingly handle, you may never know.
Having a poor mindset isn’t about actually being poor, contrary to popular belief. Having a poor mindset is more about how you poorly perceive money and what it can do for you. Saving money, good. Investing money, great. Deciding to do everything yourself because it saves you from ever having to spend money, poor mindset. There is value to be found from paying for another person’s service, or product. There’s no way for you to realize that if you continue to believe in this poor mindset.
Of course, there can be boundaries of what you pay for. That is ultimately up to you to decide, because there’s no strict guideline. The joy of life is about how you live it, and growing into a rich mindset is up to you to choose it. Although I can give great recommendations, as I did in a previous paragraph. Allow yourself and any family member or significant other to sit down and create a list of things that could provide value to you. I encourage you to seek out what services or products your money can buy you. Flip the thought process, into a rich mindset.
When you finally decided to hire that babysitter, you reconnected with your significant lover in what feels like years, every since your two year old was born it’s been hectic. You were able to have a fancy dinner, see a funny movie, and enjoy the most intimate of nights. All of this because you paid for a babysitter one single day.
Through a paid therapist, you were able to realize that there is a bright side on the other end of all of this baggage that you’ve been carrying around. You’ve allowed yourself to have a depressive mood and behavior for such a long time. This allowed you to become lazy, gain weight, and continuously decide to not care about yourself. Now that’s over, and you’re back in the driver seat of your wellbeing.
With a hard-working go getter on your team, your business has saw a significant bump in revenue this month. Instead of making your usual business income, you were able to almost double that amount. This money enables you to pay that new wonderful employee, take a raise in pay for yourself, oh and also most importantly allowed you to have more time off to be with your children.
Can you feel it yet? The power of possibility, and what could happen if you find new ways to pay for value? No longer do you need to feel like every penny must be saved, so that you can become wealthy. Poor mindset. Now you can decide to look for the potential of how much VALUE can be created if you chose to spend those precious pennies. Rich mindset.
One of the most famous paintings of all time, The Mona Lisa, took the famous creator 16 entire years to finish painting it. Throughout his life as a revered painter, he actually only finished a total of 20 paintings. It is said that one benefactor was once willing to bankrupt Leonardo da Vinci, because his procrastination was causing him to take too long with his artwork.
It’s easy to get distracted in life, with notifications incessantly buzzing on your smart phone every single minute of the day. There is always somewhere to turn your attention to, but only if you are willing to allow it. Turn the devices off, allow yourself clear your head. Silence is underrated, and there’s a reason all of those hippie types swear by meditation and yoga. Create the mental space that you need, which can allow you to regain clarity. All of this can help you feel back in control, and to allow creative thoughts to run free across the landscape (painting pun intended).
A lot of people view success as a race and better yet, almost everyone has this unhealthy perspective that you have to be the best at whatever it is that you do. If you like to fish? Of course, here’s the biggest boat for you, sir. What about if you want to start a travel and food blog? It only makes since to book your flight to Paris tomorrow for the most exquisite travel and romantic dining excursion, madam. When we always expect the best, we look over the little things that can create a wonderful journey.
The cold hard truth is that it’s OK to not get the best boat, or the nicest travel, or the most gourmet of all of the French soups in the world. There’s excitement whether you go on a large journey, or a small journey. Success exists in every aspect of life, and it can be defined differently depending on the observer. Comparing your success to other peoples’ success is unnecessarily painful. Allowing yourself to take baby steps into a new direction, and to open yourself up to success and failure matters.
Tomorrow, lay out your wants, goals, dreams, and passions. I don’t care whether it’s on a sophisticated handheld device with an Apple logo, or on the back of a napkin. The goals and dreams you make do not care if they are backed up on the cloud. Make your desires apparent to yourself, and only then may you be able to devise a plan and begin to follow it.
Surround yourself with likeminded people, especially if they have success with whatever it is that you are wanting to do. If you want to travel the US in an RV, find a Facebook group dedicated to that. There you can learn the in’s and out’s of how this process works, and what it might cost. Most importantly you can learn how you, yourself, can make it to that goal. Success breeds more success.
You wake up from an intense nightmare, dripping in sweat. Only to realize that you failed opening your first business. You believe it to be a premonition, that it will come true if you even attempt to chase after this dream. Shake out of it. Drop this false narrative. Allow yourself to dream, and to set up the path that you need to walk. Failing is only part of any process. You can not be the best, or expect to know what you’re doing every time that you first try something new.
“I have missed more than 9,000 shots in my career. I have lost almost 300 games. On 26 occasions I have been entrusted to take the game-winning shot, and I missed. I have failed over and over and over again in my life. And that is why I succeed.”
Michael Jordan, retired NBA player
Even Michael Jordan, who was inducted into the Basketball Hall of Fame in 2009, is considered to be the best basketball player of all time by many people. He has went on to create a brand of shoe sneakers that have grossed billions of dollars, but still has racked up his fair share of failures. Not only does he claim the quote above, where he mentions “failures” all throughout his career, but he also could not make the varsity basketball team in high school. Now who’s laughing.
There’s two very important lessons that I hope you walk away with after reading this blog today. Those who anxiously wait, or procrastinate, will never learn what the fruits of their labor could produce. The other important lesson is that there is no set pace, or timeline that you must become successful or accomplish something. Just like Leonardo da Vinci, he lived a life slowly painting stroke by stroke, mastering his craft to inevitably become one of the world’s most renowned painters of all time.
Sell everything! The house, the kids, the wife, the dog, it’s all for sale! I bet that there’s someone out there reading this and you were totally fine, but then screamed “OH MY GOD” when I said the sell the dog part. But the rest was OK. That’s brutal. Alright, fine, Fido gets to stay.
Having “sales” should be the eighth wonder of the world. They’re magical – magical enough to trick the majority of people into buying way more than they ever knew that they wanted. “Sale” was coined as a marketing term to entice customers to come into the somewhat relentless doors of a retail establishment. A company would lower their prices on a specific product, sometimes called a “door buster”, just to simply get you inside the door of the business. They knew that once you entered the store for that product, you’d look around at other things. This easily creates an environment where you would be expected to spend more money, and thus, the business can profit more heavily.
Very quickly though, the term “sale” has turned into a marketing strategy used by high-grossing companies around the world. I challenge you to walk into a Kohl’s and find a time when they don’t claim to have a “sale” on half of the store at any given time. Oh, and on top of that they are nice enough to hand you Monopoly money as you walk out of the store. This money is redeemable on your next visit, and it’s called “Kohl’s Cash“. Listen, I have nothing against Kohl’s (or any store that I speak about in this blog today), I’m just pointing out their clearly deceptive marketing strategies to show you how companies will inevitably invade your wallet. Another brilliant choice Kohl’s has made is to use digital signs near the majority of their merchandise. This allows them to update or change a “sale” price any day of the week, however they’d like to.
Kohl’s digital sign that allows for a different “sale” any day of the weekKohl’s cash A.K.A. Monopoly money to be redeemed on your next visit. Must pass go!
Another genius strategy that I actually like is what stores like TJ Maxx and Ross do. Again, highly deceptive, but I’m impressed with whatever psychology or marketing majors they hired to figure this technique out!
They very clearly list an inflated price of the product you’re holding on the sales tag, and stamp their lower price right below it to make you feel better! As a customer, I bet you do feel better when you’re getting a deal. You’ll probably even buy more when there’s a sale on these already discounted prices. Trust me, they’ve done the research and know this. Now, I’ll admit that TJ Maxx and Ross both have pretty fair and cheap prices on decent quality clothes and décor; but, this is still a mind game that they are playing to trick you into buying their product. And clearly, they’ve won. “Hi ma’am, would you be interested in signing up for our awesome TJX rewards credit card today to save 10% on your purchase?” Ha. Ha. If you know, you know.
TJ Maxx marketing strategy (comparable to who’s product?)
Ross sales tag, $50 instead of comparable $94 (that probably doesn’t exist)
One of the most deviant of all of the sales tactics is the credit card. This can be extremely dangerous territory. For those of you who know Dave Ramsey, prepare for his burning rage to jump out of the sales counter if you consider opening one of these! Many companies offer a percentage off of every transaction when you shop at their store using their credit card. It’s very smart, because they can take a small reduction in their profit margin to keep you coming back and in essence make more money by turning you into a repeat offender… oops, I mean customer. You heard me, they are making an even larger profit even when you feel like you’re getting some exclusive discount to be a “store credit card rewards member.” They know that eventually they’ll get you with credit card interest, or you’ll buy more during your visits because you get 5% off every purchase! Often, a majority of companies will offer an even better bonus the day that you open your brand new store card with them. This will result in something like 10% off for that purchase (and guess what? Even then, they’re still making profit).
BOGO is probably the most famous of all sales tactics known to the human race. It comes in many forms these days – buy one get one free, buy two get one free, and so-on and so-forth. You are encouraged to buy one product, because you feel like you are receiving more value for your money (one product purchase resulting in receiving a second product). These sales aren’t always as deceptive, and can sometimes be decent to save some money. Other times, the individual product is already marked up in a way where even when your BOGO, the price of the one product is inflated enough to cover the potential costs of two products (maybe at a lower profit margin than the business typically would want). However, believe you me that they will find a way to profit, no matter how good you feel when you get “free” stuff after your purchases!
I hope you like me reminding you that companies are still making profit off of you at every turn. That’s how they’re a successful business. Businesses need to make profit to continue to grow, expand, source products, and pay employees. No matter how many marketing techniques like sales, price tag deception, credit card points back, magic, voodoo, or brain washing – the company is still winning from your purchases! Not all sales tactics are bad but they are all money-making business strategies. Next time you go out, do the math, shop comparable items at other retailers, and decide if this is the best time to purchase – shop smart!
Frankly, money is considered to be the root of all evil. Anyone who has a lot of money is capable of taking over the world – and ultimate destruction. This must be right. Or at least this is the perception of many. Without proper education and habit forming, money can leave your pockets faster than it’s created. How can you differentiate money as a useful tool, or a curse? Or will you get lost in the ever-flowing pursuit of money?
If you weren’t aware, we had a world-shattering pandemic break out in the unsuspecting year of 2020. Because of this, I looked around to many people losing their jobs, their income, and thus their livelihoods. Over the course of the last year, I have made it my mission to educate myself with every bit of financial knowledge I can uncover. Why you may ask? So that I can share this knowledge to as many people that are willing to listen to an insane person such as myself. Let me give you a quick run down of money and its infinite possibilities.
One of the golden rules of money is that you have to be intentional when utilizing it. The reality is that the moment most of us receive a paycheck, we have the urges to run out and spend it. We get this overwhelming dopamine rush from newly found money in our pocket – and instantly forget that bills and responsibilities are a thing. “I’ll pay those later,” you think as you quickly run out to the mall to grab the new Apple AirPod Pros (not a sponsor, although I will for some free earbuds) that just came out. I know we all work hard for our money, and you’re allowed to buy whatever you want. But let’s be real; you’ve already got wired earbuds and another cheap Bluetooth set of earbuds. Why do you need a third pair of audio listening devices?! You don’t. They’re just brand new – and heavily marketed to you in every way that you can possibly consume media. Blame the corporations. Marketing slammed in your face the entire day, until you can’t stop thinking about them. Oh, and every cool kid has them and you have to fit in.
Now, I know you think I’m just a grumpy old man sitting behind his computer complaining that you shouldn’t be spending your hard-earned money. Well no, not completely true. I’m only 25, and only considered old by the TikTok generation of kids. I’m arguing that you need to understand money. You’re working hard at your job for a paycheck, that you then want to turn around and put into the pockets of already-rich corporate jackpots. You need to educate yourself in the ways of money, so that you can start paying yourself back. Life Hack Logic here, ready to educate and inform – nice to meet you!
Next time you go to make a purchase on a consumer item (that you probably don’t need) consider something else. Why not put that $100 back into your savings account for the next time that you might have an emergency? Check your bank account – I bet you have monthly subscriptions that you don’t really use on a consistent basis. We all do, admit it that you can’t possibly keep up with Netflix, Disney, Hulu, and Amazon Prime all at once. Cancel a few of them – add this money together and now you have a nice contribution to your 401k or retirement account. Instead of handing your hard-earned paycheck away to greedy corporations, meet with an investing professional and educate yourself on the stock market, retirement, and finances. You work extremely hard for your money, so it’s finally time to pay yourself back! You deserve to have money on the side in the case of an emergency. You ought to be able to retire when you get into your elderly years. Also PSA, if you’re one of those people who thinks “Oh, I won’t make it to retirement age anyway… why invest?” Well, I’d ask you to make some healthier life decisions, and go read my other blog “Let’s Compound Some Interest (ASAP)” found here:
You’d be surprised how much money you can end up with when you put your money to work and let the immense power of compound interest takes effect. Right now, the banks and credit card companies are earning consistent income from your interest payments every month. Why not flip the script and let yourself use this money in the terms of the stock market, or 401k? The future can be determined by what’s in your pocket.
It’s 2am again, and I’m deep in thought about why it’s so hard for people to take back their grocery cart to the cart return area. Today, they left the cart right there in a parking space, less than 30 feet from the return. Grocery carts don’t need to park… they need to be used to shop. Wait, what if the wind begins to blow and the cart turns into the Buggy of Doom and rampages through the parking lot, destroying car doors along the way? Helloooooo, snap out of it… it’s 2 am, and this is what I’m thinking about?
Anxiety affects all people (read: everyone!) in different ways, but it is also true that certain people are more likely to lead an anxious lifestyle. In the bookRedefining Anxiety by John Delony, he describes anxiety as your mind’s alarm clock that will alert you when something is going wrong. The problem is that we as a society have decided that anxiety is bad. A problem, a disease, a nuisance; take another pill for your anxiety… why won’t you? If you’re struggling with anxiety on a daily basis, I strongly urge you to keep reading below. Also, to check out Dr. Delony’s book as he goes in depth with real world expertise on the subject of anxiety.
The problem is that we as a society have decided that anxiety is bad.
Without getting super scientific, anxiety was originally designed as an alarm. Once this bell sounds, your brain tends to flip over into survival mode to combat the “threat”. In the old ages, anxiety would spark up if you saw a bear across the field that you are hunting for food in. Once this happens, your brain would enter fight or flight mode. Are you going to stay and fight this vicious predator? Or are you going to run, in any direction that doesn’t involve bears?
Anxiety isn’t a plague to be avoided at all costs. You aren’t a martian from another land not named planet Earth because you experience it. Let’s be real; in the current day society that we live in, there’s more than enough reasons for any individual person to be overly anxious at any point in a given day. When is the last time that you have just sat back, turned off all electronics, and just went with the natural flow of life? There are constant buzzers going off all day; a deadline at work, the baby screaming half of the night, social media notifications, Coronavirus vaccine updates, and the looming economic inflation. The only thing you’re missing are notifications from this blog to let you know every time a new post goes live. Kidding. But not really.
In the span of one day your brain scans millions of data points and then has to process all of this new information.
In the span of one day your brain scans millions of data points and then has to process all of this new information. This leads to a busy consciousness producing thoughts the entire day long, firing thousands of times a second with no break. A break-neck speed that is impossible to maintain for anyone. Today, breathe, relax, and embrace your anxiety as it may be sounding the alarm bell that you desperately need to listen to.
It’s mid-November and you probably just heard me drive by you jamming a sick electronic mix of “Just hear those sleigh bells jingling, ring-ting tingling too”. Yeah, I’m that guy. It’s November and I’ve gotten all of my Christmas shopping done a month before the big day. We already have Christmas lights up on the house. We’re ready for capitalism’s biggest holiday.
There’s a sale everywhere you look. Target, Amazon, Wal-Mart, book stores, doctor’s offices, etc. Wait – what…? A doctor’s office has a sale? Yes, I literally got a phone call the other day from the chiropractor saying they were running Black Friday sales. The best part is, I’ve never been to the chiropractor in my life – but surely I need to act now to take advantage of this sale! Right?
It’s just that time of year, Christmas is right around the corner and companies are racing to push their sales down your throat. Ruthlessly worshipping the gods of capitalism. Companies simply have no chill (winter pun intended). But there’s hope – let’s discuss some ways that you can suit up to avoid the financial frostbite this winter.
1. Make a Christmas Shopping List AND Budget
If you’re an impulsive shopper like me, then it’s nice to meet you. We should go on a shopping spree sometime! Kidding aside, it’s very easy to overspend on gifts for the loved ones in your life. Significant others, kids, in-laws, pets, friends, extended family, work colleagues, the mailman; the list never ends.
So here’s what to do – sit down today and write down everyone’s name that you would like to get a Christmas present for this year. Whether it’s on iPhone notes, a physical piece of paper, or in an Excel sheet – pick your poison, the flavor doesn’t matter. Next to their name, write down an estimated budget for the gift you want to get them. Don’t worry; assigning a present value to this person doesn’t make you a terrible human being. The last column you should leave open is a space for the gift idea that you’d like to buy for them. The beauty of this system that I’ve outlined, is that you now have a game plan for each person, the budget, and potential gift ideas for them. It’s also OK if you don’t know what to buy them. Just look for things while shopping in stores, or online shopping within the price range you set.
2. Black Friday Can Be the Worst Time to Shop
Sure, it’s true that you can get great deals on plenty of consumer products during Black Friday. Almost everything can be marked down during this time. The problem with this is when you are seeking one or two presents it’s impossible to avoid the other hundred sales going on simultaneously. Sure, maybe it’s worth buying a big ticket item like a television during Black Friday because of the immense savings you can get. Although, you better have the willpower to avoid all of the other unnecessary sales in your face.
Refer back to your shopping list and budget above as a great reference manual to help you with this process. If you do end up Black Friday shopping, remember the purchases must be within the budget you wrote down for each person. Just because there’s a sale, does not mean that you MUST buy this product. Companies will try to force you into thinking this, but don’t give in. Your money, your decision.
3. Get Crafty!
Use your skills in woodworking, painting, writing, origami; I know that you’re talented in some way. Find a way to utilize your talent, or your everyday skills to make gifts for those in your life. This is a wonderful way to save money. A common example here is to DIY those pre-made gift baskets that have chocolate, coffee, or beauty supplies sold for ridiculous mark ups. These are typically priced higher than you could make the basket bundle yourself, with just a little bit of effort.
Huge pro tip: Go to your local dollar store. There’s a lot of these. Dollar Tree, Family Dollar, Dollar General, Five Below, etc. My personal favorite is Dollar Tree, as each item in the store is $1.
For a pre-made hot chocolate and snack basket you saw in Wal-Mart for $20, you could make it at Dollar Tree for less than $10.There’s tons of DIY and Dollar Tree crafts videos on YouTube that can help you get creative
Gift basket DIY trip to Dollar Tree:
Coffee mug – $1
Hot chocolate/instant coffee packs – $1
Hershey Chocolate Bar – $1
Twix Bar – $1
Crackers – $1
Gift basket – $1
Confetti to fill in the gift basket – $1
Ribbon to wrap around gift basket – $1
Grand total: $8 (even with tax, we’re well under $10)
4. Re-Gift Something
Chances are that you probably have something lying around the house that would make a great gift for someone on your list. It could be from a recent birthday party of yours left unopened in the box. It could be a gift card given to you last Christmas that you never used. It could be an awesome home decor piece that you’re ready to get rid of. You could even take something you currently own and modify it into something new!
Re-gifting is always an easy, cheap way to pass on an item you don’t need. The great thing is, they don’t have to know that you re-gifted if you never tell them. They will never know the difference! If you have any creativity (and we all do) you can easily put together a great re-giftable surprise that will light up someone’s day on Christmas!
5. Do a Gift Exchange (a.k.a. Secret Santa)
Many families and work groups have adopted the concept of a gift exchange. This is a great concept, that can also create a fun and interactive Christmas day ritual for years to come.
How Secret Santa Works:
Get a group of people together
Each person writes their name down on a slip of paper
Throw all of the names into a box
At random, each person draws a slip of paper out of the box and keeps it as long as it isn’t your own name
Set a maximum gift value. Gifts can’t exceed $25, for example.
Buy a gift for your participant under the assigned amount (you don’t have to buy for anyone else in the group!)
Exchange gifts on designated gift day
Each participant tries to guess their Secret Santa (who purchased the gift for them)
Holiday cheer for all! Ho-ho-ho!
This simplifies buying 10 different individual presents for potentially $250, down to one present for $25. Another great benefit is that this entire gift-giving process can be done together on Christmas as a large group. Each person can go around giving each other their specified present, and at the end of the game each person has an incredibly unique gift. “Wow, thanks Sheri! I love my toilet paper, I haven’t been able to find this since the pandemic broke out!” There’s also room for having a round afterwards to barter gifts with each other, after you know what everyone has if you want to. We know your eye is on that bathroom golf putting set.
6. Negotiate With Easy-Goers
Do you have that one family member who you absolutely dread buying a present for? Maybe they already have everything, or they don’t like gifts, or tell you not to buy them something every year. Talk to them, and negotiate the fact that you won’t buy them something if they don’t buy for you. If they’re cool with that, BOOM, cross them off the list!
In my experience, I have plenty of family that are fine with not buying the adults presents. Typically the kids are the focus for Christmas, and they get the biggest piles of joy. As an adult, most of us probably have what we need. Talk it over with some of your friends and family, and let the kids be the focus this year so that everyone can save money!
BONUS: Honorable Mentions
Shop secondhand – thrift stores rule!
Credit card points – cash back for purchases
Reward apps (Ibotta, Fetch, RetailMeNot)
Use coupons/discount apps (Rakuten, Groupon, Honey)
Group gifting – combine your money with other people to spend less overall on a present for someone else
These are just a few creative ways to avoid the financial frostbite this winter – I’d love to hear yours. Remember – don’t go in debt this year trying to show someone how much you love them – sometimes just saying so is enough. Merry Christmas and Happy Holidays to all!
No Place Like Gone 