Memo 7: Simplify as a way to peace

As I reflect on Mahatma Gandhi’s quote and my mantra over the past several years, “live simply, so that others can simply live,” I appreciate the gift that living simply has become. I have a heart of gratitude for all that is, and I have become more aware of the great need that exists in our world. Living simply has enabled me to move more freely into life. For example, I literally walk out of the house with very few things in hand, most frequently just my house key and sweater. I keep my home and possessions organized in a manner that enables me to be free from clutter. I open my mail, purge what I don’t need; pay as I can, and keep good records so I know where I stand. I am lucky as my nature is organized and this in and of itself is a useful trait. Every women’s magazine has article after article, tip after tip on how to organize.  Simplifying includes organizing, minimizing and reducing stuff. Simple living is doing less laundry because you reuse a towel, using less shampoo because you let your hair go a few days between washing, buying less food because you create things out of what’s in the cupboard and fridge. Simple living is not wasting, it is reusing, recycling and reclaiming your life. Simple living is driving less and walking more and finding that you get your exercise in the process. Simple living is awareness and removal to the clutter of the mind, the car, the backpack, the home, the shelves, the drawers, and the excess weight both literally and figuratively that weigh us down. Less is more and simplicity creates abundance in ways beyond what I can describe in words. I will add to Mahatma Gandhi’s quote, "'Live simply so that others can simply live,' and find your life more abundant and peaceful."

Memo 6: Transparency to Transformation

I have always said that what I can distinguish, and or name, I can begin to change. In the context of this conversation on financial awareness, I truly believe that as you become more transparent to your financial situation be it good, bad or status quo, you can begin to transform in to something more, less, better, and or remain aware of your status quo.  As I put energy into transparency in all areas of my life, I am able to transform areas into something different, in this case, financial freedom. In essence, what I am trying to articulate is look at your situation, be transparent to yourself regarding your debt, your spending, your frugality, your hoarding, and or your disinterest in financial information, wherever you are in your financial being. Notice it, be transparent and write it down, name it e.g. indebtedness, poverty, over spending, hoarding, austerity, as you distinguish it in that moment you can begin to transform it.  I myself realized that I am becoming so caught up to the idea and practice of austerity; I am being transparent to an austerity addiction. Naming this addiction to austerity and being transparent to what is, gives me the power to choose to be more generous to others and myself today. What can you name and do today to transform your financial being into financial well being? 

Memo 5: Keeping a log of expenses

One key technique used in financial coaching is to help clients establish a log of expenses and budget. This is easy to talk about and hard to do. Most people will be able to quickly develop the basics expenses: house/rent payments, car payments and utilities, maybe even food. The more obscure expenses such as charitable gifts, lunch monies, clothing, haircuts, education and insurance for car and home are not often registered on a budget. In addition, there are periodic expenses that are not typical to a month, however part of annual cost of living e.g., DMV, tax preparation fees, medical, dental, etc. As a way to begin to track monthly costs, I have suggested keeping a daily log of where you money goes.  It is in principal simple, however, as a day goes on, we may forget and then we lose track of the little incidentals. At the end of the day it usually not the big stuff that eats up our monthly income, it is the nickel and dimes which in 2013 is equivalent to the ten and twenty dollars that causes financial struggles.  What did you spend today? Now write it down and track it for the month. 

Memo 4: Stay the course

On life’s journey, including financial well being, one must stay the course. It is important to acknowledge incremental successes. One recent one shared by my client was that they are eating home more often.  While other parts of their expense reduction have been more difficult to maintain, they are, in fact, eating at home more often. In all matters, focus on the positive; continue to stay the course on working towards the plan, in this case reducing expense in incremental ways.

Memo 3: Conserving is fun.

In keeping with my plan to reduce and reuse, I just turned off lights in my home, including; the front porch light, my husband leaves the house while still dark, bathroom, kitchen, bedroom and night-lights. Amazing how many lights one turns on in the course of a morning. These little steps lead to bigger steps in all ways and especially in learning to conserve. For me it has become a game that is fun and energizing. Each day I seek ways to conserve, including drinking all the water in my glass or watering the plants versus dumping into sink. I will let you know when my utility bill comes what the savings are from this minimal effort. What can you do today to conserve?

Memo 2: Ugh, you must open your bills and statements.

Financial coaching involves helping people reach goals including such areas as reducing debt, buying a new car/home or paying for children’s education. One of the first and most difficult steps is to open the bills and statements. Avoiding review of bills/statements and discussing your financial situation with your partner/spouse can be difficult, even painful, however, it must be done.   This is true for all of us, even those who don’t struggle to pay bills. We  avoid opening statements as none of us like to see our financial condition changing due to poor market performance or worse over spending, interest and late fees. In moving towards financial wellbeing, one must have starting point and knowing and accepting where you are is the beginning of improving the situation. Start today, open, review and make one payment, and mail it too. 

Memo 1: Recycle, Reuse and Reduce

Recycle, Reuse and Reduce, a mantra I use in financial coaching. As I begin to do volunteer financial coaching, I am finding that it is fun and the whole family can participate. Our current 5 ideas for this week are the basics: take shorter showers, reduce TP use, unplug things not in use, turn off lights and run the cupboards/fridge bare to ensure you are not wasting food. With one family we are one day in and so far so far so good.  In the process of coaching, Joe and I are following in the recycle, reuse and reduce and finding pure energy and fun in the process. What are your ideas for recycle, reuse and reduce? Please share ideas.