CREATE THE LIFE YOU WANT TO LIVE

We all want to succeed.  It doesn’t matter if we are playing or working, we want to be a success.  Even in our finances we want to be successful.  I don’t know anyone that wants to pile up debt, but I have learned that having a attitude that supports the end goal will help me be successful.  For many years I accepted that debt was just a matter of life.  The truth was that I created debt  because my attitude supported all the financial decisions I made:  

New car (I want it or I need it)....don’t know many people that truly need a new car.  We might need a different car but do I need a new one that loses it’s value as soon as I drive off the car lot?  Nope.

Bigger House (I might want the bigger house, but considering I grew up in a 900 sq ft home that was everything I needed it’s hard to say I have to buy a 3000 sq ft home just to live.

New clothes, shoes, bedding, etc.:  most of my purchases since I became an adult were because I wanted them not because I had to have them.

So how do we change our attitude to stop creating debt, save money and find happiness with what we already have?  In my case, it is by making it a priority.  I don’t go shopping as often, don’t visit the websites or look at the brochures or catalogs.  I’ve found that I don’t miss it.  I love the zero balance on my credit card.  I love paying extra on my mortgage.  I love putting money in my savings account.  I really love having cash when I really need something.

Habits.....we all have them.  Some of our habits are bad and some are good.  I did not grow up with the habit of making my bed everyday, but once I had my own home that became a habit.  In reality it only takes a couple of minutes to make it each morning. 

Over the past few months I have found that I have habits when it comes to spending and saving.  Without a list at the grocery I will pick up a lot of the same items (needed or not).  If I go out shopping for a gift, there are certain stores where I will spend more money. 

Many of our habits come from our childhood, being with other people and some we create all on our own.  I have found that the only way to break a bad habit is to first identify that the habit is occurring, then look for a solution to avoid the situation or change the circumstance.  

For me one big bad habit was dropping in at T J Maxx just to see what has come in this week.  I can find something in every department that I want but don’t need.  I love to go to T J Maxx to purchase gifts for friends.  So to avoid buying more than the gift, I take the amount of cash I will spend on my gift with me.  No credit card or debit card.  This way I only spend the money I have with me.

At the grocery store I make my list.....I don’t look at what’s on sale because if I need it then it would be on my list.  This eliminates duplicates and buying too much of a good thing.  I really don’t save money if I buy too much of something perishable and don’t use it all.

My granddaughter said something to me last weekend that addressed my habits.  I had bought her a large kick ball.  She looked up and said “Nana, you don’t have to buy me things all the time”.  She’s right, we can have a great time playing with whatever we already have in the playroom.  I love my grandkids but they don’t need more toys, they just need to spend time with me.

I don’t need more things, I just need to be comfortable.  One of my greatest joys in this journey has been getting rid of the stuff in my house.  It’s great to open a closet and find it organized.  My garage has the things in that I need but it’s no longer a storage unit.

Savings is another habit that I haven’t always made a priority.  Now it is automatic and it feels great having a small amount taken out of each pay check.  My account is growing slow and steady.  I find that now that this is my habit I look for ways to help the account grow.

Time is money.  I’ve heard this most of my life.  I recently looked it up and found that it is a quote from Benjamin Franklin.  Lately I’ve very little time to devote to anything but my work.  I’ve found that the quote is true.  

When we are busy and distracted.  Time is money.  In my word as a salaried employee working more does not pay me more.  However, not devoting enough time to preparation does cost me money.

Here’s some examples:  

Not preparing a grocery list results in buying items I don’t really need, forgetting items that I need which results in returning to the store.  Let’s not mention I didn’t have time to review the store sales and coupons.

Not looking at my bills and realizing that I have forgotten to pay the electric bill by the due date which results in a small penalty.  

Working so late that I can’t even think about cooking, so I’m picking up take out.  

Not taking the time to review my budget and picking up things that I could wait to purchase.  Leaving little cash until my next check.  Which means I didn’t move more into savings like I budgeted.

I could go on and on.....the result is the same.  Saving money, being responsible and spending money according to our budgeted plan does require our time and attention.  Just like everything else in our lives we have to pay attention and focus on the goal.  

In many aspects of our life we seek out the advice of others.  Sometimes we get good advice and sometimes not so much.  We ask for help with family, relationships, jobs, etc.  Most of us don’t ask for advice with finances.  Why is that?

I personally didn’t share my financial situation with others because I wasn’t proud of having credit card debt.  I’ve always hated the debt and believed it would take a lifetime to pay it off.  I didn’t share it with my family or friends.

Over the years there have been many financial celebrities that have offered great advice to the masses.   I’ve watched there shows and even attended a few seminars.  In addition there are numerous financial advisers available in my hometown.  Many offer expert advice on finances, investing and retirement preparation.  However, I never sought them out.

Consumer credit counseling  is another source for getting good financial advice and conquering your debt.  Again, I know I avoided this option because I was making my payments.  Why should I go share all my information with someone for them to tell me I had a lot of debt.  I was way too proud.

A few years ago as a Human Resources Director I was approached by a successful financial advisor in my community that wanted to work with the executives and upper management in my company.  He wanted to be paid $1000 to meet with the new executives and upper management to give them advice since many were just starting their career.  At this time I asked if he would be interested in assisting our staff employees that seemed to be having a hard time handling their finances and really needed financial counseling.  He advised that he really wasn’t interested in providing that type of service.  I remember being offended by this and not pursuing his services as a benefit for my company.  I was later out voted when he met with the CEO and convinced him that this was a great benefit.  The feedback from the few that have accepted this offer has been mostly negative.  They feel that this advisor really just wants them to buy his products and invest money with him.

Shorty after this experience I was approached by a woman that retired as a Consumer Credit Counselor and had training as a personal financial advisor.  She was so excited to work with our staff and offer her services.  She is an option that we currently offer as part of the companies Employee Assistance Program.  She gives sound advise without judging those that come to her.  She wants to see everyone she works with succeed.

What’s really funny is I never sought her advise for myself.  I just continued to plug along paying off some of my credit card debt but then using the cards again adding more debt.  Then one day looking at my multiple credit card balances and realizing this has to stop.  My financial advisor was Mary Hunt (Debt Proof Living) that offers a website and newsletter that I subscribed to over a decade ago.  I read her materials and shared them with my friends and co-workers.  I even used her materials in classes that I offered to employees.  I made changes in my spending, buying, etc. but never really made the move to stop the debt.  Until last fall.

Mary Hunt wrote about a new way of getting loans and she found several companies that offered these loans to consolidate credit card debt and pay it off in 3 to 5 years.  She offered this information in her newsletter last year.  Not the usual move it all to another credit card but an actual loan.  I choose PAYOFF as the lender and am extremely pleased with this choice.  

When I made this decision I knew I had to layout all my personal information and prepare for possible rejection.  That’s another reason that I think we avoid getting advise on our finances.  No one likes to be told “No, we can’t help you.” or “Wow, you sure have a lot of debt.”   It feels like failure and it feels like we’re being judged.

My process did not feel that way at all.  Even though I have never met Mary Hunt, she is the best example I can give to anyone of what a true financial advisor should be.  She actually shares her own financial failures and how she herself conquered a huge amount of credit card debt.  She never judges and always gives practical advise that anyone can follow.  She encourages everyone to save money 10%, give 10% to others and live on 80% of your income.  

She turned her financial failure into a financial success with her website, newsletter, speaking engagements and books.  So when you look for a financial advisor look for someone that truly wants to help you.  Not someone that is just looking to make money.  There should be encouragement and feedback that helps you improve your finances.  They should be able to look at your income and debt with a professional eye.  Then give you sound advise on how to make improvements.  They should rejoice in each of your successes (no matter how small) as you start repairing your finances and eliminating debt.  And they should stick with you through the entire process.  Not stopping once you’ve taken a loan or made an investment.  

I personally am thankful that I found Mary Hunt’s website and that she lead me to PAYOFF.  PAYOFF has offered personal encouragement from the moment I clicked onto the website and filled out the form.  I received telephone calls that asked great questions, offered encouragement and kept me up to date on the loan process.   In addition they continue with encouraging e-mails and notes after the loan finished.   Their website offers articles and advise that helps you navigate through paying off the loan and learning to live without depending on credit to live.  So I personally have two financial advisors (Mary Hunt and PAYOFF).  

This week I saw a news report about the use of plastic (credit and debit).  They reported that americans love the convenience of using plastic.  We don’t have to worry about caring cash.  We just swipe our card................

The same day I read and article about all the companies and charges behind the use of cards.  There is a fee paid for each swipe of the card, a fee paid to the company that issued the card, a fee to the company that handles the transaction of the card, a fee paid to the bank that is associated with the card,  a fee paid to the business that accepted the card, the list goes on and on.  This doesn’t include interest paid if it’s a credit card purchase that isn’t paid off immediately.

That got me to thinking what is the real cost of the items we purchase each day.  If the retail establishments and restaurants didn’t pay all these fees what would the real cost of items be?  If consumers didn’t pay all this interest for credit and instead saved money and paid cash, how different would our lives be? 

I don’t have to think too far back to remember this.  As a child for me, there weren’t credit cards.  We bought what we could afford and that was our life.  My Mom provided a home, auto, nice clothes, along with eating out and adventures.  We didn’t go on lavish vacations but we went to the lake almost every weekend in the summer, to the movies, theme parks, etc.  I had a great childhood.  We weren’t rich but we weren’t poor.  Christmas was always wonderful and it was all done without credit cards.

What has credit cards really done for me?  In the past I worried about the debt, I struggled sometimes to get all the payments in along with the daily expenses of raising my family.  I bought things I didn’t need and I really can’t remember the credit card being the salvation to a real emergency.  We want to think that’s what they are for but really in the end we use them for things mostly.

Today I went to purchase a small gift for my daughter’s birthday.  I went to TJMaxx because I just love the things they have that are unusual and you don’t find 50 of them in the store.  I bought a few nice things at a great price, and I didn’t spend a lot of money.  She loved them.  It felt great to buy without worrying about putting it on credit.  I had the cash.  That feeling is great.

Just like millions of people who get paid every other week, there are two months a year that I receive three pay checks instead of two.  I’ve often wondered why I never seemed to have extra money that month.  After the last few months of taking a hard look at my finances,  I know the answer to that question....I always spent more than I made, especially with credit cards.  So that extra check was usually just a way to pull myself back from the edge.

This next month I will receive three checks.  My goal is to save that extra check.  I am closer to making that a reality than I have been in decades.  It feels great not using credit cards, looking for ways to enjoy my time and money.

Today was a great example of how I made a significant change in how I approach a situation.  A close friend of mine lost her Mother this past weekend. I would normally take food to the funeral home by purchasing vast amounts of food from a restaurant and ordering a large plant in a pot or basket.  I like to give a living plant which always come at a premium price.  So instead of purchasing food from a restaurant that would cost $100+, I cooked.  I made a lovely dinner for the family and really enjoyed doing it.  I also went to the nursery and purchased a large clay pot and plants.  Then I proceeded to repot the plants, dress it up with a pretty bow, and make a personalized card on my computer.  I delivered all of this to the funeral home in time for the family to have lunch.

It felt great.  It was a personal touch for someone I really cared about and it came from my heart.  I had no worries about the money I spent (something that I had felt in past similar situations).

I know there will be times that I have to spend the extra because time or circumstances don’t allow for the personal touch, but I will be prepared because I will have savings in the bank and no credit card debt.  I say this with more confidence everyday.

I learn a little more about how to save money, pay off credit card debt and make changes in my old way of doing things each and everyday.  It gets easier with each deposit into savings, dropping my coins and dollars bills into my savings box at home and each payment to PAYOFF on my old credit card debt.

I really don’t like to do my weekly shopping.  I think that’s why I have found so many duplicate items in my pantry and closets.  Without a list it’s easy to buy duplicates, not buy the items you need and ultimately spend more than you should.  

The past couple of months I’ve taken a better look at what I am buying and why.  One of the first things I noticed is how small items have gotten over the years.  I couldn’t find a 1 pound package of bacon anywhere.  All the packages are 12 oz.  That’s a clever way of charging more for less.  After making this discovery I started noticing the sizes of all packaging.  Almost everything I purchase is a different size from “back in the day”.  This tells me that as consumers it’s easy to miss the changes and spend more of our hard earned money.

In addition everything comes: individual serving, precooked, easy to serve, etc. All this means is that it costs more.  If you calculate the true cost of the prepared lunch packages (crackers, cheese, turkey, small dessert).  This isn’t a bargain.  Does it really save us that much time and is it worth the expense?

I don’t think so.  It doesn’t take much time to open a package of turkey, cheese, crackers and brownies.  Then put them in baggies for our lunch.  It may have taken a few minutes but I saved money.  I also had exactly what I wanted in the lunch, not what came in the package.

Coupons......Are you really saving when you use the coupons that come with the Sunday paper?  Yes, if it is items that you normally purchase.  No if it is something that you purchased just because you had a coupon.  When using coupons are you looking for a similar item and comparing the price? Or are you just buying the item that goes with the coupon?

If you do use coupons for items that you use regularly then you have truly saved some money.  So to really make those savings mean something, when you get home review your receipt, take the coupon savings amount and put it into a savings account.  This is a great way to get into the SAVINGS habit.

At the end of every shopping trip take a look at your receipts and make sure that you were charged correctly.  Save the receipts for items that may need to be returned (gifts, items that could become defective, etc.).  Return anything that you realize that you shouldn’t have purchased.  I seem to do this a lot lately.  I try to control impulse buys but if I don’t, then I return the item for a refund.  

How do I do that?  Old habits die hard.  Over this past Memorial Day Weeknd, I had the pleasure of cleaning out my refrigerator.  I threw away many food items that had expired.  Several hadn't ever been open.  I didn't just throw away spoiled food, I threw away money.

A recent organizing of a drawer fround lots of greeting cards that I never used.  I didn't throw the cards away, I donated them to goodwill but again I gave away money.

I find that when I shop I need to use a list or I will just buy what looks good.  Recetly while in a local dollar type store I picked up and put back cute plastic cups that I thought my grandkids would like.  I ultimately decided that we didn't need the cups. 

I also have a wish list of items that I would like to have but will not pay full price for unless it is an emergency (such as a new washer).  I continue to use my old washer and hope to use it until it dies, but I know that when it does die, I will need one immediately.  So my wish list contains actual sales ads that I have saved of the models I would consider.  This way I know what the prices should be before I go shopping.  Hopefully this will help me be more accountable and a better consumer of the purchase. 

In the past when I went shopping I bought what I wanted and threw the receipts into my bag.  I didn't give them a second look.  To really be accountable for my purchases I have developed a budget on excel where I record my budget for the month and then my acutal purchases and expenditures.  This is an eye opener.  

We can really spend a lot more money than we intend just from small things here and there.  Example:  I love to read and I love my kindle.  I have a list of authors that I want to read all of their books.  I recently made a review of the last six months of kindle e-book purchaes.  Those .99, 1.99, 2.99 and 3.99 e-books added up to a lot of money.  I don't want to stop reading and I still love certain authors.  To make myself more accountable I now review the local library for any author's release prior to purchasing an e-book.  I have saved a bundle of money just by doing this:  I have found the new releases in e-book form, paperback and hardback in our local library.

I also found every magazine that I ever subscribed to and hoped to subscribe on the libraries website.  I can read these on my kindle at my leisure.  Our libruary also takes requests for e-book, paperback and hardback purchaes.  When I haven't found the book I wanted  I have requested that they purchase the book and most of the requests I have made were purchased by our library.   

This reminds me that to be a good accountable consumer that I need to know the facts before any purchase.  I have to be prepared and educated on that facts.  I find myself sharing my financial successes and failures with my friends and families now that I am making an effort to change my habits. 

Saving for a rainy day.  I always thought that a savings account was a dream and other people had them, not me.  I always had a place for every cent that I made, either a bill or a needed purchase.  So how do I shift my thinking from spending everything I make to saving.

As I am learning how to off debt, stop using credit cards and make better purchasing decisions, savings has to be a conscious decision.  I have to focus on savings if I want to save money. 

My shift to a focus on savings started with finding a savings account that isn't tied to my checking account and isn't at my main bank.  This way it's not so easy to move money from savings into checking and spending it.  I checked around for a savings account that pays a decent return on my money, that provided internet access and had an ATM or two in my area

After setting up the account I then set up a specific amount to be deducted from my pay check each pay period to be automatically deposited into the savings account.  I have found if I don't have it, I don't spend it.  I have been doing this for a little over a year.  It was never a large amount of money but it was great when I went on our annual trip to Florida to have cash instead of credit cards to use.  It was also great at Christmas to use cash.

Now as I am trying hard to make changes in my spending habits, I want my savings to grow for larger items.  I made a list of things I know will have to be replaced in the next 5 years (new roof for my home, kitchen appliances, and washer & dryer).  I have an approximate estimate of the cost and am making an effort to add savings to my budget.

I am also looking for other ways to add monies to the savings.  I did an inventory of items in my house and garage for items that could be taken to consignment shops or sold at a yard sale.  All monies made from these sales is added to my savings account.  Remember what you might consider junk could be someone else's treasure.  I have sold clothes, shoes, books, picture frames, bedding, glassware, dishes, etc.  If you have clothes you don't wear, books you don't read and things you don't use, then you have potential savings.

I also receive a substantial refund from the IRS every year and I always find something to spend it on.  Not usually something that I really need but it doesn't take long for all the money to be spent.  So I sat down and took the average refund that I get back from Federal Taxes and calculated how to increase my Federal withholdings so that I could earn more each pay period.  I then increased the amount going into my savings account.  This way the money is received bi-weekly and earns interest in my savings account instead of waiting until the end of the year to apply for my refund.

Another option for savings is when I use cash for my purchases, I save the one dollar and five dollar bills along with all coins.  Once a month I deposit this money into my savings account.  At first I was so tempted to use the cash but if I remove it as soon as I get home then I'm not tempted to spend it.

I have found that saving money is just like spending money.  You'll be surprised at how fast it will add up when you make it a priorty.  Set goals for yourself, when I save X dollars I'll do x. 

You know when you walk outside after a spring rain and everything is so refreshed......that describes my week.  It was a normal week of work, family, home chores but the refreshing part was not worrying about credit card debt.  Not wondering how to juggle and arrange all the payments so that they post on time.  Not wondering when will I ever get this all paid off.

I still have the debt nicely wrapped into a loan that has an end date, but I’m not worrying because my focus is to pay this off, not create anymore debt and finding ways to save money.  There really is a peace in knowing that there is an end to the ongoing cycle of debt.  That’s what credit card debt does to us.....it is a ongoing cycle of debt with no end.  There is always something else to add to it.

I remember when buying the essentials in our lives cost a larger portion of our take home pay than what things cost today.  (Example:  My Mom’s first color television was $450.00 and she made less than $4000 annually)  Yet people bought them without a lot of debt because credit cards weren’t a crutch available to them.  My Mother didn’t have credit cards when I was growing up.  

She was a single Mom in a world that had very few single Moms.  She worked in a factory sewing all day long.  She owned her home, car, tv, etc.  She gave me everything I needed and more.  I was able to have a car at sixteen with her help and my first job.  The cost of the items that she purchased represented a large portion of her take home pay.  She did this all on her own....no child support and no alimony.

I never realized this until I was applying for college and realized that I qualified for a PELL grant due to my Mom’s income being so low.  That was an eye opener for me.  She worked so hard....always worked overtime when offered, mowed her own yard, she had a washer but no dryer.  All our clothes were hung outside during good weather and inside during bad.  She helped take care of her parents and siblings.

The difference in her lifestyle and ours today is that she lived within her means and she did it beautifully.  She always had grace.  We dressed well, had good transportation and our own home.  

I had a great foundation on how to live but I got sucked into the false god of credit cards.  Decades of credit card offers in the mail, on television, in magazines and newspapers.  Always a chance to reduce your interest, earn rewards, get cash back, free merchandise, etc.  Always the opportunity to buy more than you need and even things that if you are honest about....you didn’t really want.

Have you ever felt like you have CREDIT CARD OFFER OVERLOAD?  I don't actually receive many credit card offers in the mail anymore.  I opted out of receiving junk mail at www.directmail.com so this eliminated a large number of the mailed offers.  However it seems that every website offers something free for signing up for their credit card.  I have experienced it at Amazo, Target and many other websites.

In my past I can remember signing up for store credit cards and thinking I'll just use it this time, pay it off and then cancel the card.  I can remember doing this once.  I actually opened an account when I purchased a jungle gym for the discount, paid off the card off and then never used it again.  I didn't actually cancel the card but let it remain dormaint until it was closed from none use. 

All the other times I would use the card again and again.   So what do the credit card companies get from our opening an account with them.  Lots of interest on our debt.  Example:  If I charge $1000.00 dollars on a credit card with 15% interest.  I make my monthly payment of $50 and don't charge anything else.  It will take me 96 months (that's 8 years) to pay this off.  During those 8 years the interest will total $531.00.  $531.00 interest, 8 years and I only spent $1000.00.

I wish I could go back and add up all the interest I have paid in my lifetime on credit cards.  I can't do that because I really don't have all the information.  I'm sure the number is staggering. 

Credit Card companies are no longer allowed on our college campuses recruiting students to sign up for cards because parents and students finally realized that the credit card debt that was piling up was huge.  In many cases the student's didn't have any income but yet were still issued a credit card.  Once the bills started rolling in, the students were left with payments they couldn't make resulting in bad credit histories before they ever ventured out into the job market.

I have never really taken offense to the credit card offers as much as I do now.  I don't want another credit card.  It would be great to save $50, $75, etc. but I know in the end I wouldn't save anything because there will be another offer tomorrow.

The new offers that are coming out from credit card companies are now loans to pay off your credit card.  I would like to think that they really want everyone to get out of credit card debt but there's a part of me that believes they are hoping that we will pay off our credit card debt and then use our cards to create new debt.  Again creating the never ending cycle of debt and interest.

I find that as a consumer I have gotten used to picking up an item I want, putting it my basket and paying for it.  i haven't been engaged in really looking at grocery prices for some time.  This morning I was running late and didn't have time to make my own vegie juice so I stopped and picked one up.  Did I look at the price?  I thought I did until I looked at my receipt once I got to the office.

I paid $3.99 (on sale) for a really small vegie juice.  I could have made this for less than $1.00.  I realized that the simple reality of being a consumer is I must be engaged and know what I buying.  Also, I probably could have made the juice in the time it took me to leave the house, stop at the store and then proceed to the office.

This past weekend I went to look at flowers for my yard.  I can buy hot house flowers for $16.00 to $20.00 a flat.  Or I can put out the seeds (.33 a pack) and wait for them to grow.  It really doesn't take that long to enjoy beautiful flowers from seeds.  So I bought the seeds and worked up the flower beds.

As a consumer we have lots of choices:  Multiple brands, Oraganic vs. Non, ready to use vs. having to prepare it ourselves, sale items, etc.  The list can go on forever.  So the choice is mine, do I take the time to make it myself or is it really worth the time savings.  Most of the time I have to say it really isn't worth the time savings.  Flavor is usually better if I make it at home and it's fresher. 

I may have mentioned this before, my microwave died many months ago and I haven't replaced it.  I found that I can do everything I did with my microwave with not a lot of extra effort.  Melting and warming things was the major reasons I used the microwave.  I can do that in a matter of minutes on my stove.  I've heard the excuse that a microwave uses much less electricity.  My electricity bill hasn't really changed.  So in the end I see no reason to replace it.

So this week as I write down my expenditures I am trying to become a better consumer.  Purchasing better products, using cash and making the purchases count.  Th simple reality is that I have to know what I'm buying, when I need it and how much money i'm spending. 

The more I do this, the more I realize that this is really a better way to live.  I don't have the stress I had when I had looming credit card payments (even though I am making payments to PayOff).  I know when this loan will be paid off and I'm not accumulating more credit card debt. 

I just finished watching "Plastic Paradise:  The Great Pacific Garbage Patch" a documentary on plastics washing up out of our oceans.  This documentary focuses on how our oceans are full of so much junk and most of this junk is plastic.  We have come to rely on plastic for everything in our lives (dishes, tables, chairs, toys, picture frames, bags, computers, car interiors).  The list of plastic items that we use on a daily basis is endless.

We discrad as much plastic as we buy.  The documentary goes into great detail as to the origins of plastic and how it has become the undestructible trash of the world.  Animals die daily from ingesting the plastic as food or from coming intangled in a plastic mess. 

So here's what I learned:  Plastic never goes away.  It may get  broken, crushed, etc., but in the end it is still plastic trash.   So how does this documentary on plasitc fit into my need for financail change. 

Credit Cards are made of plastic and often called "plastic".   Our nation is piling up lots of debt by using plastic credit cards for our purchases.  This plastic debt is a lot like the plastic piles of trash.  How do we get rid of it?  How do we stop using it? 

Credit Card companies do everything they can to make plastic credit cards attractive (pretty pictures, personalization, themes).  Then they add in all the incentives (cash rewards that you can only use a certain retailer, cash rewards that you can use at multiple retailers, cash back to apply to your credit account or put in your bank account, etc.).  After all this then they add the incentives to sign up for their card:  0% interest for x months, 0% interest on balance transfers, etc.  The list goes on and on. 

We have to make a "change" to eliminate plastic in our lives.  I know that I will never eliminate plastic 100% out of my life.  Some things will always be made of plastic.  I know that many of the things that I use will always come in plastic packaging, but I don't have to discard the package.  I can recycle it.  This is a daily focus for many of us with our required recycling programs in our cities. 

I have learned over the past three months that it is just too easy to reach into my wallet and pull out that plastic card.  Even when I think I haven't used the card that much, when I log on at the end of the week to pay off the card, the balance is usally always bigger than I remember.  So starting May 1st my new goal is no more credit card purchases.  I had eliminated the purchases to very little use, but now I will pay cash.  I am continuting to log all my purchases no matter how small.  

Over the past several months I’ve come to understand that to really take control of my life I had to really understand why I do the things that I do.  When I was in school I had to find the best way for me to study and learn the materials.  For me it is writing things down.  I would always write down the highlighted words in a chapter I was studying.  Define those words and then read through my notes again.

Because of this I became a great note taker.  I came quickly write down conversations, facts from presentations, etc.  Being a great note taker is a plus in my career (Human Resources).  Ever tried taking notes while someone is sobbing across from you.  That in itself would be a great start for another blog.

I have also found over the years if I make lists or notes I am more successful at completing tasks, projects, etc.  When in a weight loss program they have you write down everything you eat and sometimes why.  So that is how I am continuing to change my financial habits.  I have a book that I write down everything I spend and why.  No matter how small (.40 in the drink machine....our machine are work has not had a price increase in the 10 years I’ve worked there) or large (mortgage payment).  I am finding that if I know I have to write this down then I sometimes don’t buy it because I really don’t have a good reason for buying the item other than I want it.  

What I want more than anything is to eliminate my debts and pay off my mortgage.  That is becoming much more important than new throw pillows for my couch (there is nothing wrong with my current pillows, I just thought the ones in the store were cute).  I passed on the cute pillows.

After some of my purchases I can look at my list at the end of the day and admit they really weren’t that great.  Like today I went to lunch with a coworker and can honestly say that the lunch was not work the $15.00 plus generous tip.  I would have been just as happy, no I would have been happier with a sandwich or salad from home with a walk in the park.  I know I would have felt much better afterwards.  

I think that spending money and/or using credit cards was/is something that I’ve used to replace/fill an issue that I didn’t want to face or may not have even known existed.  I know that I react to stress differently than most.  I seek to eliminate the stress by doing something that makes me feel good (getting something new, going out to eat with friends, even giving a gift to a loved one or friends).  However, if I don’t have the extra money to do these things in the end it just adds to the stress in my life.

This weekend while shopping at the grocery I made a list of the things I needed for the week and then went shopping.  I did buy a few things not on the list but I’m getting so much better.  I priced the items and even decided to pass on a couple because the prices were just too high this week.  Example oranges were super high this week but grapes were a much better buy.  So I have grapes for the week.

I continue to buy my gas from the supermarket and I saved .40 per gallon this week.  I love these savings.

I also started I want/wish book.  Now instead of getting immediate gratification from a purchase and then maybe suffering remorse later, I now make a picture/cut out a picture and place it in my want/wish book along with the details (retailer, price, etc.).  I am quickly finding that the wish to have the item is most of the time fleeting.  There are a few items in the book that I really want and will pay cash for when I decide to purchase.  In a few cases the item went on sale and I got a great deal.  Others were just a passing wish.  

I also started a list of things I know I’m going to need in the near future (2 to 5 years) such as a new roof on the house (last replaced 15 years ago), new floor covering for 3/4 of my house (15 years old) and new kitchen appliances (last replaced 13 years ago).  I know this list will grow and change but this allows me to save and prepare for these purchases.  It also allows me time to research for the best possible solutions to these purchases:  materials, cost of installation, warranties, style, etc.

Once I took a good look at my credit card financial clutter, I wanted to see what else clutters up my finances.  I don’t have a large number of other outgoing expenses but have all the usual ones:

Mortgage:  I refinanced my house 5 years ago and my interest rate is low.  So my overall mortgage payment is reasonable.  I wouldn’t consider refinancing at this time.  However, once the PAYOFF loan is paid in full I want to start paying extra each month so I can have my house paid in full prior to retirement.

Insurance on the house:  A few months ago I received a renewal notice from my homeowner’s insurance.  I really didn’t look at the amount when I received it because I had  this coverage for 4 years and it had consistently stayed the same.  When it was about 10 days from the due date I logged into my account and was shocked to see that they had doubled my premiums.  When I called to ask why I was surprised to find out it was due to my credit score which really was a good score.  When I asked if they would reconsider I was told no.  I then called an independent agent in town and got new rates that were in line with the previous premiums I had paid for the past 4 years.  When all was said and done I was informed that the company I had been using wanted to get out of the homeowner insurance game but instead of canceling the policies they were doubling the rates.  The other lesson I learned was when I looked at last years policy I found that I didn’t get credit for my security system because they didn’t have a form from the security company verifying the system was in place.  Needless to say I have learned to comb through the entire policy at renewal.

Car Payments:  I purchased a new card a little over a year ago.  At the time I wasn’t planning on financing all of it but I received a rate of 1% so I went ahead and put down a payment with the financing.  I look forward to having this paid off around the same time as my PAYOFF loan for my credit cards.

Car Insurance:  When I changed the homeowner’s insurance policy I also changed the auto coverage.  I received a rate a little lower than I was previously paying.

Cable TV:  Now I am not a cable tv junkie....however, I admit to having way to much cable TV for about 15 years.  The realty of paying for a lot of channels that I never used was the result of my family being chosen to participate in the Neilson Ratings.  At the time there were seven televisions in our home all with cable boxes and suddenly we were logging everything we watched.  At the end of the three month period we found that we watched around 5 channels consistently and didn’t need the big package that we had.  I was shocked.  At the time I traded in our cable boxes for a smaller package and we were extremely happy.  

Five years ago I dropped my cable coverage to basic plus internet (only because this is cheaper than internet only).  Two years ago our cable company was purchased by Time Warner and my rates went up and the small number of channels I had dropped.  So I went down to my cable company and asked them to lower my rate.  Surprisingly they did.  They reduced the bill by $20.00 a month for one year.  This month I received a notice that my bill was going up $25.00 since my one year deal was up.  I called the 800 number and asked how much just the internet service would cost since I now watch almost all of my shows on Netflix ($7.99 a month) or Amazon Prime ($79.00 a year).  The customer service represent advised that she didn’t want me to drop all my cable services but internet.  She put me on hold and came back with the same deal that I had the year before.  This only cost me 15 minutes of my time on the phone.

Telephone:  Three years ago I dropped my land line when my security service switched to using cell towers.  So my cell phone serves everything.  About six months ago I contacted AT&T asking what other plans were available.  I was informed that I paid almost $50.00 a month for the ability to receive a new cell phone at a discounted rate or free (depending on the phone) every two years.  When I calculated the cost of the new iPhone, I found that it was cheaper to pay for the new iPhone than to pay the $50.00 a month for the opportunity to get a new phone every two years.  So I made the switch to a different plan and I couldn’t be happier.  

Electric bill:  My house is 100% electric and I found that by using budget billing which takes your previous years usage and annualizes the payments was much easier to pay than the huge spikes in the winter months.  I have used budget billing for several years now.

Gasoline:  For years I was using local gas stations that pumped the gas for you for 3 cents more a gallon.  Doesn’t sound like much but what I was missing beside the additional 3 cents a gallon was that our local super market gives discounts on their gas for points earned for grocery purchases.  I switched around six months ago to the grocery store gasoline which I do pump myself and I average 40 cents a gallon in savings.  During Christmas the grocery store gave 4 times the points for gift card purchases.  Since I give gift cards to my children and grandchildren I purchased them all at one time.  The next few times I filled up my tank I saved $1.00 per gallon.  It was great filling up my tank for less than $20.00.  My car runs just as well on this gas as the other.  It sure doesn’t hurt me to pump the gas myself.  In addition I’m no longer having to tip the kid that was pumping the gas (I felt guilty when it was 20 degrees and he was pumping my gas).

Tax withholdings from my paycheck:  Every year for as long as I can remember I get a nice refund from the IRS.  It is always great when I get it but when you really think about it I could be keeping that money and putting it into savings earning interest even if it’s only a little amount.  So this week I filled out the forms to change my withholdings so I will bring home more of the money.  The money is set to go directly to my savings account.  

I hate clutter.  I feel smothered when surrounded by actual clutter.  However as I take a hard look at my financial lifestyle and look for ways to make changes, I am finding a lot of clutter.  As with all clutter, you don’t really know what you have in and under all the collected and piled clutter until you start sifting through and reviewing each item.

When I consolidated my credit cards with PAYOFF a few months ago I had clutter when it came to my finances.  When I went shopping, traveled, etc. I had to think through all the clutter to figure out which credit card to use.  To me there is nothing more embarrassing than trying to use my credit or debit card and have it declined.  When you have multiple cards and are using them often it’s hard to keep up with balances.  I remember a vacation many years ago that I called to get my balance on each card, put a small post it on the card with the amount I could spend.  That vacation was not a relaxed and enjoyable time.  It was full of worry of overspending.  When using credit cards the balance can pile up (just like clutter) before you know it.  I can remember many times thinking,,,,did I really spend that much money today?.....

Recently I had a work week that I worked late every night and at the end of the day I came home and dumped my mail on the end of the table, made dinner and collapsed into bed  On the weekend I sat down and went through all the mail that now was just a pile of clutter on my table.  After sifting through a weeks worth of mail (20 items) I found two valuable pieces of mail and the rest was junk.  The junk went into the recycle bin and then I addressed the actual pieces of mail (water and electric bill). 

I recently took that process and applied it to my finances.   How much clutter do I have in my finances? I started with my credit cards.  I know that I have 4 bank credit cards and 3 retail store cards.  I took a good look at my purchases for the past year on each card.  When I think of credit, I think of loans (car, mortgage).  I consider these important purchases and I wouldn’t take either lightly.  However, I’ve become so accustomed to buying with credit cards over the past three decades I no longer thought of it as a credit purchase or a loan that I have to pay back.  It was habit.  It was just payments. 

After looking back on the purchases for the past twelve months on each of my bank cards I was shocked at what was unneeded (junk) purchases and how few were  truly something that would qualify as important enough for a loan.  I wish I could tell you that half, a quarter or even ten percent were important.  I can’t.  I used my cards to live beyond my means for so many meaningless things.  (I don’t drink coffee, but I love hot chocolate, smoothie or a juice,  meals, small retail purchases just because I could use my card, etc.)

My 3 retail store cards revealed an even bigger problem.  Two of the cards send monthly reminders, sales, promotions and incentives.  My Victoria Secret card purchase history was a little shocking to me so I went and took inventory.  Needless to say I don’t need to buy lingerie for years. Many of the items still have the tags on them.  That free pair of undies cost me a lot.   The other card, a large retail clothing store revealed many impulse purchases made because I received a $10.00 off and then proceeded to purchase much more than the $10.00.  Much more than the $10.00, usually $100+.  Then I received bonus cash and spent even more.

New strategy to combat the financial clutter.  I don’t carry my bank or retail credit cards with me.  I keep them safely locked away.  I unsubscribed to the promotional e-mails for the retail stores.  I shred the promotional mailings that I receive upon receipt.  The catalogs (and I get lots of catalogs....an average of 30 a month) are dropped into the recycling bin upon receipt.  I am contacting each of these companies to stop sending me catalogs.  I’ve never ordered from the majority of the catalogs.

To reduce the other junk mail and things that might tempt me to clutter up my finances, I went to the Direct Mail Marketing website and signed up to stop receiving junk mail.  My mail has dropped from 5 to 10 pieces of mail a day to 1 to 2.  Sometimes I don’t receive any mail.

I did the same with my e-mail account.  I unsubscribed to dozens of promotional e-mails.  Instead of almost 100 e-mails a day, I now receive 10 to 20.

It is quite refreshing to eliminate clutter.   I carry cash more often and record each debit purchase right away.  Lately I have found that I pick up an item and realize I don’t need that and I put it back on the shelf.  

Yesterday I took a personality assessment that identifies your FINANCIAL PERSONALITY.   I’m very familiar with personality assessments....I work in Human Resources and use similar assessments for training.  Sometimes when using an assessment the person reads the results and immediately dismisses the information as inaccurate.

What I’ve found is that the majority of the time the assessments are spot on, but the current circumstances and/or environment are causing them to change their true personality.  An example:  I was working with a Computer Technician that was great at his job but had changed employers many times during the past decade.  He kept leaving jobs because he thought he was unhappy with his employer when the real truth was he was unhappy with his profession.  After taking the assessment and working with a career advisor he took his skills and found a career that matched his personality.

So now I have my financial assessment and it is spot on “my personality”.  However, I haven’t been living that financial personality .  So what in my life has caused me to deviate from my financial personality.  By deviation has been accumulating debt by spending more than I earned.  Why?

Just this week I went to spend some of my TJ Maxx cash (left over from my past credit card use).  I had $30.00 to spend.  Now we all know that is just a gimmick to get us to spend more.   I seldom go in with my cash coupons and leave having only spent the promotional cash.  This week I spent more than double the amount.  Afterwards I looked at my purchases and questioned why I bought the other items.  The truth was that the items were nice purchases, but they weren’t something I needed at this time.  On top of that when I went to pay, the sales clerk questioned why I was paying the difference with real cash and not using my TJ Maxx Credit Card.  She asked me “don’t you want to earn more cash”.  So I not only caved to seeing something pretty and buying it even though I didn’t really need it but I could have caved into using credit.  However, when I paid off my credit cards with PAYOFF, I stopped carrying all my credit cards except for one.  This card doesn’t have gimmick cash.  It is a simple credit card.  In my wallet for emergencies.  I struggle with whether that’s even necessary.

So now after taking the financial personality assessment I must take a good look at my environment and circumstances that might be effecting my financial habits.  There’s so many places to look:  home, personal relationships, work, professional relationships, where I shop, when I shop and why.  I want to know why I have deviated from “me”.

Below is my summary of my financial personality “The Architect”.  After reading it the first time I thought this makes me sound OCD.  The truth is it really is me.  I like things in the right place, I love to organize, and I have a hard time with clutter and chaos.  When I can’t control a cluttered environment I find that I can shut down.  This is true when surrounded by piles of stuff or if I’m in a meeting that has lost it’s purpose with everyone deviating to their own agenda,  I start to doodle.  I still listen but I don’t engage.

So please don’t judge me by my closet.  My hangers aren’t color coded (that’s a great idea, but I refuse to spend money on new hangers)  but my clothes are in order (skirts with skirts sorted by color, tops with tops sorted by color and style, dresses with dresses again sorted by style, and color,  slacks with slacks sorted by color, etc....)  I love my closet.  However, for over 20 years my closet was a mess and I hated it.  I lived with someone that took most of the closet for his things (not just clothes but lots of things).  I really hated going into the closet but I made due with the amount of space that I had.  My clothes were shoved into a small space.  Many times I got rid of clothes because I didn’t have enough space.  So I adapted my personality to my environment and circumstance.  I wasn’t happy and it overflowed into many areas of my life.

 I think now I am discovering that my past changes were a deviation from the true me.  You’re welcome to join me on this journey.  Below is a summary of THE ARCHITECT.  Join me next time as I find my way back to me.

As The Architect, blueprints, lists, and organization are your calling cards. There’s a place for everything in your life. Your keys have a bowl. Your shoes have a rack. The hangers in your closet are color coded for the seasons. You’re a problem solver who never quits on projects until they’re done. You’re the one your friends count on for planning fun events and trips. And sure, it would be nice if someone else took the reins once in a while, but you, and everyone else, know they wouldn’t meet your established standards.

Being The Architect your blueprints, lists, and organization transition directly to your finances. You have extensive budgets and make detailed shopping lists. You compete against yourself, and quietly everyone else, to have a flawless financial history. You don’t buy impulsively, can give up-to-the minute reports on the amounts in your accounts, and focus as closely on now as you do on the future. And you make it all look so easy. You’re a paragon of a well-constructed and managed financial life.

Recommendations for The Architect

Letting your hair down once in a while and splurging can be good for your health. It can be fun and help relieve stress.

Try to relax your grip. Watching your finances too closely can cause unneeded stress, especially if you’re helping others. You can suggest good decisions, but they’ll make their own choices.

By being prepared for everything, you may have insurance policies that overlap, or five different savings accounts. Take a minute and go through your finances from a wide view to see if you can simplify and still get the best results.

Not everyone takes their finances as seriously as you’d like, and you can’t make them. If you try, they may resent you and miss your good advice. You can offer, but don’t be surprised if some people need to make their own mistakes.

Your way may be working well for you, but don’t be afraid to try something entirely new or a strategy off the beaten path.

Check out payoff.com for more useful insights about how you can improve your financial life, personalized just for you.

Financial Habits of The Architects

Find financial planning fun

Don’t miss due dates

Can stress too much about the little details of their finances

Know their credit score

Watch their finances closely to catch mistakes

Obtain the best prices, rates, and terms no matter what

Can bully friends and family into their way of thinking