Thursday, February 28, 2013
The Review Is In :: Pocket Your Dollars, 5 Attitude Changes
Carrie Rocha, creator of PocketYourDollars.com, engages readers in Pocket Your Dollars to help change attitudes regarding financial stewardship. She shares ways to help pay down debt, avoid financial stress, and allow earners to keep more of what they make. Unlike many of the step-by-step financial programs available, Carrie’s plan begins with attitude adjustment which leads to behavior modification.
Throughout the first half of Pocket Your Dollars, Carries suggest there are five attitudes holding us back from succeeding in our financial fitness: 1.If I only had more money, 2.I deserve a treat, 3.It won’t happen to me, 4.I’ll fake it ‘til I make it and 5. I can’t afford it.
Carrie suggests, “Personal responsibility is the core issue. When we believe that our financial problems are caused solely by a lack of money, we refuse to acknowledge our current situation as something we’ve brought about. We deny the fact that the power for changing our future lies within us. And if we continue to deny this fact, change will never come.
One of Carrie’s biggest contentions to keeping your dollars stems from the idea of treats as being the leaky toilets in finances. Every time we treat ourselves to something because we feel we deserve it – the chai tea, the quick lunch, the new shoes – we are giving our hard earned dollars away. Carrie suggests we replace the notion of I deserve a treat with the idea I work too hard for my money. By creating a larger than ourselves goal, we can create our own financial frame and stick to it.
In addition to creating our own financial framework, we need to be aware of our monetary priorities. Carrie outlines them as bills, financial leaks, goals, and waste. By writing down and prioritizing our entire spending, it allows us to get a better picture of our stewardship as well as our leaky toilets. Carrie writes “Quantify it monetarily and then prioritize to stay out of debt.”
Consumerism drives our attitudes. Everywhere we turn, there are things to purchase and ways to increase our spending. We buy new dishes because we like the pattern or new clothes, not because the old ones are worn out but because it’s a new season. However, these items are not long term assets. “Consumption is not a goal of the affluent,” Carrie states. She suggests we change what we don’t like to what we do like about our current situation. We might not have the newest car, but we do have a car which runs good and gets us to work.
In addition to being financially thrifty, we must ensure we do not become misery along the way. “The I-can’t-afford-it attitude harbors guilt or shame when spending money. Addressing this underlying shame is important to relieving lifetime financial stress.” Carrie offers a way to overcome this shame through her happy and relationship tests.
In the second half of Pocket Your Dollars, Carrie addresses the skills needed to overcome our attitudes. She offers up her ideas in how to change your self-talk through idea supplementation; how to stand up to pressure via self-control, will power and distress tolerance techniques; how to stay in for the long haul using motivation; as well as, how to create a spending plan by acknowledging your predictable monthly and non-monthly expenses and your unpredictable emergencies.
When it comes to paying off your debt, Carrie encourages the use of the debt snowball method in which the bill with the lowest amount is paid off first, regardless of interest. By using this approach, it helps to boost our egos and offers us a positive win in debt management.
If you are currently working through your debt and looking at a better way to impact your financial goals, Pocket Your Dollars will give you a great start at changing your attitudes to change your behavior. Carrie offers plenty of great references on her website to help begin your journey to become debt-free.