3 Questions to Check Your Financial Balance
June 20, 2012
Once upon a time, I loved the idea of scrimping and pinching to as much of my salary as I could. Given the success I had had in paying off more than $15,000 in debt on a $30,000 a year salary, I had proven the formula worked. And it did. For the first time in many years, I had money in the bank, and knew where all my hard-earned money went. It impacted my outlook on life, and my perception of my place in it. It’s empowering to know that you are financially equipped for disaster of at least some magnitude, able to travel, spend money on dining and entertainment without worrying about the bill, and most importantly free to make career moves that being in debt doesn’t allow. It was a coping mechanism of sorts, too. My love of making money made going to a job I didn’t necessarily enjoy every day, made that unhappiness a little easier to swallow.
Of course, there was a down side to all this extremism. I had the money, but didn’t want to spend it most of the time, opting instead to watch it grow and grow. That’s bad, you ask? Well, yes, when it gets to the point of obsessing over a cup of coffee, turning down plans with friends in order to save money, and putting myself in harm’s way, by for example, not visiting the doctor or dentist, or even buying new running shoes when I needed them (for explanation’s sake, marathon runners actually do wear down their shoes, and you risk injury, when you’re logging major miles on flimsy soles).
There’s a fine line, I learned between saving and hoarding. The remedy? Balance.
Though I’m a vinyasa flow yoga teacher, balance is an ironic and constant struggle in my life. If I spend too much time teaching yoga, I haven’t done enough cardio. Too much cardio and my yoga game is off. I constantly have to remind myself that balance is all about the good and bad, you bust your hump, you take time off. You spend, you save. On the occasions when the formula works, it’s a beautiful thing. Here are 3 ways to check your own financial balance.
1. Do you right your wrongs? We all have areas of splurge and temptation, but when it’s something you truly love, it’s worth spoiling yourself…IF you’re willing to “make it up on the back end.” Is summer vacation your current budget buster? Don’t ruin the precious moments of relaxation with budget woes; buy the nice glass of wine, get your kid a souvenier without obsessing over the overpriced surf shop, and enjoy yourself. But know that when you’re back home, it’s time course correct. Stop the shopping, stick to your grocery list and coupons, and extend the time between that hair appointment. Before you know it, you’ll make up for the carefree spending on vacation, and you won’t obsess over the expenses you slashed because you know it’s only temporary. That’s balance.
2. Do you invest more than you spend? I frequently hear people say they can’t afford to invest or save for retirement. For some, it probably is true. I’ve lived on a small salary, and know first hand what it’s like to live paycheck to paycheck. I also know that when you start being mindful over spending, new ways to save reveal themselves–even if it’s as small as $10. You have a choice and it’s about balance. Do you want instant gratification now by spending, or saving and investing it for security later?
3. Do you focus on paycheck alone? The media has been focusing on retirement quite a bit lately, due to the fact that social security reserves are quickly depleting, and that more seniors are staying in the workforce. If you’re a person who dreams of retiring at age 40, the picture probably does seem bleak, but there’s an interesting caveat to why retirees aren’t “opting out.” According to the 2012 Schwab Moneywise study, 76% of older workers surveyed said they still work not because of need, but want. They describe their feelings at the start of the workday with these terms”"respected,” “loyal,” “valued,” “happy” and “energized.” The reasons have little to or nothing to do with money:
They like their jobs, they like co-workers, and they’re simply not willing to hang up the towel. If you can’t say the same about your job, ask why. If the answer is that you’re in it only for the money, think about these extended retirees. In the grand scheme of things, taking a job for less money now, but more enjoyment and willingness to do it later on, may offer far more value in the long run.
Once upon a time, I loved the idea of scrimping and pinching to as much of my salary as I could. Given the success I had had in paying off more than $15,000 in debt on a $30,000 a year salary, I had proven the formula worked. And it did. For the first time in many years, I had money in the bank, and knew where all my hard-earned money went. It impacted my outlook on life, and my perception of my place in it. It’s empowering to know that you are financially equipped for disaster of at least some magnitude, able to travel, spend money on dining and entertainment without worrying about the bill, and most importantly free to make career moves that being in debt doesn’t allow. It was a coping mechanism of sorts, too. My love of making money made going to a job I didn’t necessarily enjoy every day, made that unhappiness a little easier to swallow.
Of course, there was a down side to all this extremism. I had the money, but didn’t want to spend it most of the time, opting instead to watch it grow and grow. That’s bad, you ask? Well, yes, when it gets to the point of obsessing over a cup of coffee, turning down plans with friends in order to save money, and putting myself in harm’s way, by for example, not visiting the doctor or dentist, or even buying new running shoes when I needed them (for explanation’s sake, marathon runners actually do wear down their shoes, and you risk injury, when you’re logging major miles on flimsy soles).
There’s a fine line, I learned between saving and hoarding. The remedy? Balance.
Though I’m a vinyasa flow yoga teacher, balance is an ironic and constant struggle in my life. If I spend too much time teaching yoga, I haven’t done enough cardio. Too much cardio and my yoga game is off. I constantly have to remind myself that balance is all about the good and bad, you bust your hump, you take time off. You spend, you save. On the occasions when the formula works, it’s a beautiful thing. Here are 3 ways to check your own financial balance.
1. Do you right your wrongs? We all have areas of splurge and temptation, but when it’s something you truly love, it’s worth spoiling yourself…IF you’re willing to “make it up on the back end.” Is summer vacation your current budget buster? Don’t ruin the precious moments of relaxation with budget woes; buy the nice glass of wine, get your kid a souvenier without obsessing over the overpriced surf shop, and enjoy yourself. But know that when you’re back home, it’s time course correct. Stop the shopping, stick to your grocery list and coupons, and extend the time between that hair appointment. Before you know it, you’ll make up for the carefree spending on vacation, and you won’t obsess over the expenses you slashed because you know it’s only temporary. That’s balance.
2. Do you invest more than you spend? I frequently hear people say they can’t afford to invest or save for retirement. For some, it probably is true. I’ve lived on a small salary, and know first hand what it’s like to live paycheck to paycheck. I also know that when you start being mindful over spending, new ways to save reveal themselves–even if it’s as small as $10. You have a choice and it’s about balance. Do you want instant gratification now by spending, or saving and investing it for security later?
3. Do you focus on paycheck alone? The media has been focusing on retirement quite a bit lately, due to the fact that social security reserves are quickly depleting, and that more seniors are staying in the workforce. If you’re a person who dreams of retiring at age 40, the picture probably does seem bleak, but there’s an interesting caveat to why retirees aren’t “opting out.” According to the 2012 Schwab Moneywise study, 76% of older workers surveyed said they still work not because of need, but want. They describe their feelings at the start of the workday with these terms”"respected,” “loyal,” “valued,” “happy” and “energized.” The reasons have little to or nothing to do with money:
They like their jobs, they like co-workers, and they’re simply not willing to hang up the towel. If you can’t say the same about your job, ask why. If the answer is that you’re in it only for the money, think about these extended retirees. In the grand scheme of things, taking a job for less money now, but more enjoyment and willingness to do it later on, may offer far more value in the long run.
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