When we buy it’s not really because of the “thing” we’re buying.  A shoe is a really an expression of desired leadership in style and a car is an expression of achievement of freedom.  Next time you’re buying something that you don’t think you need, ask yourself “when I wear or have this item, what does it truly give me?”. Now If I have this respect, freedom, or fun, what do I truly have?   It’ll be something that when satisfied will TRULY make you happy.

I love doing value exercises with my clients because we see why they tick.  What truly motivates them based on their values and what life will truly make them happy.  The material items are bought only to reward yourself when and only when you achieve the actual value in a cash flow neutral way.

Do you notice that when we buy expensive clothes – we really are trying to get a sense of  leadership or respect or achievement.  Think of what you’ll really have when you have those fierce prada’s.  Is it a sense of leadership for being a trendy momma?  Respect from your peers? The perception of achievement from make the kind of living that would allow such booties?

And paying for expensive trips abroad?  We are really looking for freedom or fun aren’t we?  Think of what value of yours gets satisfied when you go to Bora Bora and do shooters and make out with the locals.

We spend lots of money on expensive holidays because we love our families or friends.  Because we get joy from spoiling and being a great mom or family member.  That can be had for free, right?

The key here is that we can satisfy these values in a different way in a free way. For a value of leadership instead of spending on expensive clothes or cars we can become active in local politics or be part of a community board of directors.  For a value of freedom we can have stay-cations where we don’t set schedules and just enjoy the time off.  For Family or Fun we can have BBQs or movie nights with friends.  We can satisfy the same values without over spending and satisfying the route of the financial discretion.

When you understand your values you’ll understand a) why you spend and b) how to satisfy that value in a more positive and cash flow neutral way!

Have a great week,

Dave

Cash is very important to me! As everyone knows I like to treasure it and use it for my day to day spending.  When I was a kid I’d play banker and roll my Grandfather’s coins while I watched cartoons.  I ALWAYS pick up pennies when I come across them. And I go to great steps to save and make more of it.  I even transfer extra cash into a high interest savings account as soon as it hits my account.  Crazy?  Many people say I am but I know that being bonkers for my bling provides me with a great life.

I sometimes catch myself and laugh about all the eccentric things I do to save money.  Here is a list that shows that I’m crazy for my money.

2. Any parking tickets that I get I always fight.  I’ll do everything I can to get out of paying parking tickets.  I even have a meter broken sign in my car for those lucky days when I find one.  By putting it in my window I avoid tickets and save on parking!  Win win.

3. I watch my clock like a hawk when I know I have two hours free somewhere.  Last week I lost my ticket when I pulled out my cell phone and instead of just paying the full charge, because I didn’t have a ticket, I walked back the entire route and found my ticket!  It would have been $8 without my ticket.  That’s a movie ticket on cheap night.

5. To save on ATM fees I will walk a mile.  I would leave friends in line at a bar and run two or three blocks to hit up my bank to save the fees.  At $3 a pop that is totally worth it.  I’ll also use Liquor Stores or Grocery Stores that give cash back to get my cash fee free.  There is a grocery store around the corner from me that has a Starbucks and gives cash back.  I get my money for the week with my morning coffee and save a trip.  What is better than that?