Get a New Attitude

Yahoo! Finance listed 20 ways to save money this week. This is a great collection of tips that everyone should adopt, even if you are flush with funds. Money should not be wasted, when there is so much good it can do either for yourself or those around you.

But if thinking about your personal finances gives you heartburn or makes you a little uncomfortable, you may have to work on your relationship with your money. Rather than ignoring, repressing, or pretending, here are a few ideas of how you can relate to your finances a little more positively:

• Accept that life is not fair. You do not and will never have unlimited financial wealth. But that's okay since we know excess money will not make you happier.

• Instead focus on how to best play with your limited pile of of money. Do not focus on making your pile of money bigger. We spend hours generating cash, then blow it in seconds on things we don't need. Focus on how to best use your existing pile.

• Get your pencil and paper out (or your laptop) and write down an estimate of your extra "play" money -- money left over at then end of the month after the bills are paid. Then plan and control how to best use this play money and pick one or two goals. Like a kid with birthday money -- do you spend it now on a toy or save it for something bigger?

• When thinking of the best use of your money, consider two things: relationships and happiness in the long run. Investing in a grill means you can invite your friends over, and will add more meaning to your life, while wasting it on expensive junk food at the gas station because you need a pick-me-up will make you feel worse later.

• If you don't have any extra funds left over after the bills are paid, a detailed, written budget is even more critical. You need to evaluate areas that are a lower priority in order to cut them out. I will write a post soon on why you need to set up a plan for your money, and how to easily create this plan.

• You also need to challenge yourself to see “how low can you go”. Every time you are about to spend any money, ask yourself if the item is a “need” or a “want”. If it is not absolutely necessary, consider an alternative -- borrow, garage sales, do without, etc. Challenge yourself to be creative.

• Set aside cash in an envelope or in a separate savings account for infrequent expenses you normally forget throughout the year. Even if it's a small amount, it will add comfort to know its there so you are not depressed when the annual insurance bill comes in the mail.

• Remember to recognize and appreciate the non-cash wealth you have. The wealth you enjoy while millions are denied: a roof, food, limbs, eyes, medicine, safety, freedom, life.

Once you accept you have limited funds, take a second look at how you really want to best spend your pile of money, understand your spending habits after your compare what you spent to what you planned, and appreciate all that you have right now, you might find that money is a good thing.

Your gut will tell you when that happens.