#20 - Q&A, Mindless Spending, Solving a Crisis, Retirement Savings, Goal Setting

1. How to cut out mindless spending - if you don't like the results of your mindless spending

  • Is your spending serving you? Truly evaluate, before you start feeling lots of guilt all the time about what you’re doing, take a hard look at what you’re doing

  • If budgeting is an issue, try my budgeting sheet

  • If you need more help that a budgeting sheet, try the envelope method

  • Side note: credit card points will not make you rich, savings will make grow wealth

2. How to solve a financial crisis and learn to communicate better with your spouse

  • Communication is KEY! Why is it hard to communicate —- you guessed it, it’s your thoughts

  • Here are the questions I mentioned:

What do you enjoy spending money on the most? Is there a financial goal that's so important to you that you would spend less on it? This is a good way to set goals together. You both have to believe in what you're doing to make a true behavior change

Tell your partner your most embarrassing financial mistake. By being vulnerable, not only will you and your partner grow closer together, but your partner will also want to share with you

What are some childhood memories you have with your parents discussing money, having problems with money, giving you money, etc? This can open up a long discussion about each of your attitudes towards money. It can also help you determine why you're spending/saving the way you do.

I didn’t mention this one, but it’s also a goodie:

Have a big meeting - ideally this would be stepping into a financial advisor's office together to discuss everything, but it doesnt have to be. Gather up all your asset #s, get your debt numbers, come up with a reasonable about of money that you're spending/saving per year, your income, any money owed to you and a list of short/long term financial goals. The more formal you make this - ie literally showing bank account statements or values from ebanking, the easier it will be for you both to share (seems counter intuitive, but it works)

  • IRS debt is no joke - you do not want them garnishing wages. If you can get IRS debt under $50k, you can be put on an automatic payment plan

  • Evaluate where you want to go - a crisis is an opportunity for you to take a good look at where you are, how you got here and what you need to do to get out

3. How to think about retirement savings

4. How to set goals that will actually help you get somewhere