Does A Messy Purse Result in Messy Finances

Does it take you forever to find something in your purse? Does your shoulder ache from all the stuff you carry in your purse every day? Do you have to pull everything out of your purse to find something? If this sounds like you, you are not alone.  I recently just organized my purse which reduces the time it takes for me to find something and I no longer have to pull everything out of my purse to find an item. It never occurred to me to organize my purse even though I organize everything else, my home, my car, my office, etc.

The way you organize your purse is an indication of how you manage your finances. If your purse is organized neatly it shows that you organize your money and your finances as well as your life.

If you keep all of your receipts in your book along with your checkbook but don’t balance your checkbook on a regular basis you risk the chance of having an overdrawn account.

If you keep everything in your purse including receipts from 2 years ago indicates that you are not organized with your money, your finances or your life.  Carrying a designer purse may show that you value image and appearance but usually doesn’t provide a lot features to help you keep your purse organized.

If you never have cash or never have enough cash that is a red flag that you need to adjust your spending habits quickly to prevent a financial crisis such as filing for bankruptcy or foreclosure or getting a judgment or tax lien.

If you have purse money in your purse but never know how much or have your money balled up or crinkled up you probably don’t know how much you spend either.  This is a warning that you need to create a budget.  If you don’t manage the money you have now when you have the ability to earn more you will not be able to manage it which can result in financial problems. Here are 10 ways to organize your purse:

1. Sort your purse as you would sort your bills and financial paperwork
2. Leave unnecessary items out of your purse such as: mail, water bottles, receipts, multiple credit cards, shoes, hats, gloves, hair products, trash, snacks, umbrella, etc.
3. Keep smaller items in a separate bag that you can carry or leave in the trunk of your car.
4. If you have children keep their snacks, toys, etc. in a separate bag.
5. Clean and organize your purse at least once a week.
6. Leave your checkbook, credit cards and debit card at home unless you know you are going to use it. You can keep one credit in your wallet for emergencies.
7. Organization is a trait that carries over into all aspects of your life. If you have a messy purse you probably have a messy home or messy room in your home or a messy car or work area. 
8. Keeping your purse organized is a tedious task but it can help you to organize other areas of your life such as: keeping your house clean, organizing your finances, organizing your time, etc.
9. If you can’t manage your purse you can’t manage your finances which make it difficult for you to achieve financial success.

Remember a messy purse equals messy finances so don’t be messy.

Financial Lessons from Dick and Jane

                                                                 

Millions of people enjoy watching movies. Over 20 million consumers pay the largest cable providers to watch cable.  I don’t watch television shows but love watching movies. I love watching the movie “Fun with Dick and Jane” starring Jim Carrey and Tea Leoni.  This movie shows the determination, sacrifice, humility, courage and perseverance a married couples displays to turn their life around after a citywide economic disaster. Movies impact most of our lives. You can learn some great life lessons from watching movies.  Here are 14 financial lessons you can learn from watching the movie “Fun with Dick and Jane”.

1. Rise to the challenge.  Don’t get depressed or continually focus on the problem. Focus on solutions. You are smart, use your brain and challenge yourself to find ways to get over your hurdle.
2. Don’t complain. Don’t constantly complain about your situation. Complaining doesn’t change your situation, taking action does.
3. Don’t put all your eggs in one basket. In the movie, Dick and Jane put all their money in the company stock which is always a bad choice because you can’t control and don’t know if a company will be a success or failure. Always have a backup plan. Try to have a plan A, B, C and D to prepare for unexpected events such as a job layoff or illness.  Develop what-if scenarios and develop possible solutions for each scenario.
4. Tap your relationships. Due to their good relationship with their nanny, Dick was able to get a job lead.
5. Pay attention. Pay attention to your surroundings. Dick lost his wallet which caused all kinds of problems. Keep items such as your wallet in a safe place and know where it is at all times.
6. Prepare for the unexpected. Life happens. Nothing last forever.  The ones who survive are those who plan for the worst and those who don’t give up. Develop a plan to deal with unexpected events.
7. Scale back your lifestyle.  Let go of your ego and pride. Face reality and scale back your lifestyle. Forget what anyone thinks. You should only be concerned about what you think. Do the best you can until you can do better. If you believe you can do something then do it. Don’t doubt yourself.
8. Use teamwork. Seek help from family, friends, your church, social service organizations, non-profit agencies, etc. that offer help to those who are in need of assistance.
9. Get advice from your social network. Reach out to your social network to get advice about whatever issue you need help with such as: employment, financial resources, financial aid, etc.
10. Be flexible. Don’t focus on getting the same type of job you had.  Expand your search.  Dick waited in line all day for a job. Continue your search. Never give up. If you give up on yourself everyone else will give up on you too.
11. Look for non-traditional jobs. There are several non-traditional jobs such as food service delivery, cooks, drivers, street vendors, babysitters, cashiers, bartenders, etc. that can provide income until you are able to get the job you desire.
12. Learn from others. Their neighbors were not financially ruined because they didn’t put all their eggs in one basket and had financial reserves.  They were able to maintain their lifestyle even though the job market tanked.
13. Stay calm. Dick got excited and emotional during various times in the movie which prevented him from making rational decisions. Don’t make decisions when you are emotional. Wait until you calm down to make decisions.
14. Be supportive. Even though Dick’s ideas sounded outrageous, his wife Jane supported him in all of his crazy efforts to generate income and Dick supported Jane in her efforts to get a job.

Financial Advice From Dads

                                                                  

Today is Father’s Day.  Many fathers across the country will receive new ties, drills, silly hats or socks, stuff they need or stuff they don’t want.  Hopefully you will get your father a gift he really wants similar to the T-Mobile commercial that shows a Dad going to buy a cell phone for himself and signing his baby daughter’s name. 

Dads often don’t get the love or appreciation they deserve.  After all, they are the other half of the chromosome that creates life.  If you haven’t said thanks to your Dad even if you never met your Dad say thank you, he helped create you.  Just think what life would be life without you.

Dad’s alway provide advice to their children, no matter what age. Here are some financial words of wisdom from dads.  

1. Pay with cash.  Dad always paid with cash.  He wasn’t too ashamed to skip buying something because he didn’t have the money.  He only bought want he needed and a few extras every now and then and he turned out fine.
2. Work hard.  Have a strong work ethic which will translate to all aspects of your life.  Your finances are an important aspect of your life and you should take great care to maintain your finances – take time to know how much you owe, how much you earn and how much you spend.  These basic things will help you to develop a plan to get out of debt and plan for retirement.
3. Make sacrifices.  Dads always make sacrifices for their family.  You should too, especially financially.  When making purchases consider the impact on your family. If you are single consider the impact to your future.   Determine if the item is a need or want.  Wants can be bought later.  
4. Save for a rainy day.  Life happens. Unexpected events will occur so why not be prepared.  Create an emergency fund to cover bills for 9-12 months so when something unforeseen happens you have the money to pay for it instead of using your credit card.
5. Plan for the future. Dad thought about the future.  He went to work every day and paid his bills on time.  He didn’t spend money unnecessarily and lived a modest lifestyle.  He saved money and had a retirement account. He lived comfortably during retirement and his family’s needs were met.

Share your financial stories from your dad at contests@hefreemanenterprises.com.  The winner will receive a free autographed copy of my book, How to Get Out of Debt: Get an “A” Credit Rating for Free. Entries must be received by July 24, 2013.

 

15 Ways to Celebrate Financial Literacy Month

                                                             

Today employees have a greater need to educate themselves about how to effectively manage their finances because many employers are eliminating retirement plans and offering 401K’s, 457 or 403b as an alternative.   Those who are unemployed or retired also need adequate skills to properly manage their finances and stretch their dollar.  In addition, financial products and services are more complex and perplexing.  April is Financial Literacy Month which stresses the importance of financial literacy.

Without adequate knowledge about basic financial literacy concepts, consumers can make devastating mistakes that can take years to recover from.  Regularly practicing good money management habits eliminate the needs for dependency on credit cards, payday loans or title loans and cash advances.

The financial stability of families is directly linked to economic growth in America. The economy is stronger when more Americans have jobs, increases in income and an accumulation of wealth.

Financially strong families tend to have better money management skills and are more willing to make major purchases that help advance our economy.  Financially successful people save more and are more able to get approval for credit cards and loans.

The average American believes all they need to do is go to work everyday and pay their bills on time.  However, being a responsible consumer requires much more.  Consumers need to be able to make informed decisions about how to earn, spend and grow their money.

This is where the importance of financial literacy plays a key role.  The lack of financial literacy education and effective money management skills result in mounds of debt, low credit scores, denial for approval of credit and loans, increased foreclosures and bankruptcies.  These factors ultimately slow economic growth.

Financial literacy increases the awareness of the benefits and risks of consumer credit and the consequences of poor money management skills.  Financial literacy benefits include:  accumulating wealth, planning for retirement, planning for children’s college education, starting a business, ability to make large purchases, maintain good credit and achieve financial goals. Financially literate consumers help the banking industry by purchasing products and services which results in stable banks, better customer service, lower fees, and increases in money available for lending.

The primary benefit of financial literacy is providing an improved standard of living for students, individuals and families.   Financial literacy helps individuals and families accumulate wealth and live a financially stable life.  Families are also able to pass knowledge on to their children and future generations.

This month make at least one change to your spending habits to help pay down debt, create a savings account or start planning for your retirement.  Make a promise to yourself and your family that starting in April you will do at least one of the following to improve your financial life. 

1. Create a budget or spending plan and track spending daily, weekly or monthly.
2. Verify financial statements each month.
3. Pay bills on time or before the due date.
4. Get current on any late bills by negotiating with creditors or setup payment plans.
5. Don't buy something if you don't have the cash to pay for it.
6. Avoid using risky options such as payday loans, cash advance or title loans.
7. Use credit cards for emergencies only.
8. Get overdraft protection to reduce bounced check fees and find banks with little to no monthly fees.
9. Order a copy of your credit report and dispute any errors.
10. Pay off at least one credit card this year.
11. Create an emergency fund to cover bills and monthly expenses for 9-12 months.
12. Reduce monthly spending by 30-50%.
13. Buy more of items you need instead of items you want.
14. Plan for your future by performing estate planning.
15. Avoid filing for bankruptcy.