Ms Spent Money

I read one more financial book and vaguely scanned another, so I thought I'd document that experience.

The Ms. Spent Money Guide - I am not joking about the title. This book had some really good, general advice, like Gail's book that I mentioned before, but in less detail.

The guide emphasized the difference between "conscious" and "unconscious" spending - basically, "conscious" spending means minimizing the money you spend on things you enjoy less, to free up money for what you enjoy more.

I found the visualizing exercises at the beginning of each section a little hokey. Some people might benefit from creating an image of what their money flow looks like, "using the analogy of a waterfall", but I skimmed over those parts. The sections of the book, divided into the areas where you spend money, are based partially on Maslow's Hierarchy of Needs - you spend more money on food, shelter, etc. at the bottom of the pyramid than vacations and toys and extras at the top.

The most useful item I got out of the book was the advice that splurging on something expensive, but well-made, would be more satisfying and a better buy in the end, over scrimping on multiple items that are less useful and that you don't like as much.


Surprise! You're Wealthy - Every Woman's Guide to Financial Independence - I started reading this book but found the info either didn't apply to me, or I had already read it elsewhere. The entire second chapter is about running your own business, the third about high-powered, managerial jobs, and the fifth about insurance settlements, inheritances, and lottery winnings.

I only vaguely aspire to start my own business on the sole basis of claiming home office supplies on my tax returns, management is really far removed from my current career plan at the moment, and I don't anticipate inheritances or lottery winnings to stumble onto my front porch any time soon. The appendices of the book did have some useful info and worksheets, such as how to calculate your net worth and how to select a financial advisor.

Gail is my hero

After copious episodes of one of me and the fiance's favourite shows, Til Debt Do Us Part, a week or two ago I finally headed over to the public library, all bright-eyed and ready to learn how to save even more money than I already do.

First, I read most of Personal Finance for Dummies (4th edition, our library isn`t rich). Despite being for 'dummies', it wasn't an easy read at all. It's a really intense, compressed, large overall amount of information, and full of ideas that I'd never considered before. Like that if I don't invest in ventures earning interest higher than the rate of inflation, my hard-earned money will be worth less in the future than it is now. Economics really freak me out. Also, it served as a reminder that I'll eventually have to worry about income tax, having to do with money earned on investments, and otherwise. For the past decade, tax returns have been a breeze since the post-secondary credits tend to wipe out anything you might owe, and then some. But it won't always be so.

However, the real wake-up call came from one of the two books I took out by Gail Vaz-Oxlade. Gail is the host of Til Debt Do Us Part, and I am a big fan of hers. The book I'm talking about is A Woman of Independent Means: A Womans Guide to Full Financial Security (sadly out of print). A simple quiz at the beginning of Chapter 3 classifies me as a miser, which was unsettling, though not all that surprising. Gail says:

Remember, it's not money that makes you rich. It is what you choose to do with your money that will determine the richness of your life.

It's pretty simplistic, but these words hit me hard, given my present situation. Gail says that misers fear running out of money, have no confidence in their ability to make more, and the way they deal with it is to not spend any. She could have been taking notes from my head.

So I went out and bought a laptop. Okay, the laptop had been coming from quite some time. My old hard drive sounded like it was going to crap out any day now, and I think the fiance was going to kill me if I didn't either a) buy a laptop or b) stop talking about buying a laptop. But I happened to read that chapter right before I went out, so I like to think they were connected somehow.

I still have a couple other finance books to read, but the gist I'm getting is that I need to set some goals beyond hoarding everything I earn.

Money (Pink Floyd)

I find myself attracted to watching the wide variety of TV shows about people that have debt problems. They have been popping up a lot faster than that money tree I planted. I am simultaneously fascinated and disgusted by the people on these shows. How can they possibly buy so much crap, and not feel bad, or if they do feel bad, not stop the madness? Aren't their lives fulfilling enough without the excess material possessions?

Money, get away
Get a good job with good pay and you're okay
Money, it's a gas
Grab that cash with both hands and make a stash
New car, caviar, four star daydream
Think I'll buy me a football team

Granted, some of them are caught in bad cycles. They might, for example, go into debt for student loans, and then don't make enough money at their current employment to pay back the loans back and live comfortably.

Money, get back
I'm all right jack keep your hands off of my stack
Money, it's a hit
Don't give me that do goody good bullshit
I'm in the high-fidelity first class traveling set
And I think I need a lear jet

Part of my frustration with these shows is that I find it very fulfilling to save money and not be in debt. This is perhaps a nicer way of saying that I'm frugal. I take comfort in knowing that I could afford to not work for a little while, or take a big vacation wherever I want, and that I don't have to worry about making a large purchase if I feel it's valid. I tend to say that I'm savings towards the vague goal of a house, but really, I'm just saving.

I could write a book on saving money, but I struggle with a few facts.

1. Isn't it kind of wrong to sell books to people that have problems with over-spending?

   Step 1: Quit buying so much stuff. Oh, except this book, buy this book first, then quit buying so much stuff.

2. The items that you could save money on by giving up (car, cell, starbucks, flat panel tv) might be the very staples of your life
   
   
3. Once you turn on the part of your brain that tells you not to spend, it can be hard to turn back on.

Money, it's a crime
Share it fairly but don't take a slice of my pie
Money, so they say
Is the root of all evil today
But if you ask for a raise its no surprise that they're
Giving none away