4 Reasons why it is so hard to manage your money today and
what to do about it.
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Have you ever noticed how personal money management has a
feel of dieting to it? Not only is there the challenge of
knowing what method will work for you, but more
significantly, what method will bring a long-term,
sustainable, satisfying lifestyle change for you.

Like diets, you would think that with all the abundance of
available information, from books, online resources, print
articles, radio and TV specials to experts, specialized
services, classes and counselors, it would be a no-brainer
to effectively lose weight and manage our personal
finances. So what gives? Why is it so hard to manage money?
Could it be related to the current pace of our lives?

Think about the following modern obstacles and consider how
they may apply in your life:

1. Choice Overload

"Would you like boiled ham, honey ham, or Italian ham?
American cheese, Swiss cheese or Provolone? Rye, wheat, or
white bread? Should you pay off your debt or put more money
in savings? Buy a no load or load mutual fund? Which mutual
fund? Will this cell phone service offer better reception
in buildings than the other service"?

Believe it or not, there actually was a time when choices
were limited to things like ham and cheese, black or white
shoe laces, white tennis shoes, silver or black frames for
glasses, vanilla, chocolate or Neapolitan ice cream, paying
with cash or check, one long distance carrier, and 30 year
mortgages.

Where in your life right now do you have the simplicity of
2 choices?

Even though these many options are designed to make you
happier, this ongoing daily accumulation of the most
mundane choices eventually causes such overwhelm there is
no energy left for the more important financial decisions.
Have you ever been so overwhelmed you just picked anything
to get the decision over with? And if so, what did this
decision cost you in terms of money, disappointment,
frustration or time?

2. Lifestyle Overload

Can you think of the last time you had an evening, or
weekend when you had nothing to do? If you are like many,
your life is probably filled with family, work, community,
chauffeuring the kids, doing load after load of laundry,
catching up on emails, watching your son's soccer game,
grabbing fast food or take out food to bring home,
preparing for your daughters trip to college, going to the
gym, shopping for groceries, clothes, electronics, or
stopping for quick cash at the ATM. And, it's very likely
you were on the phone during much of this activity.

So just when do you squeeze in the time to manually or
electronically pay bills, research major financial
decisions, compare prices, record and evaluate your
spending, prioritize your financial needs, or take time to
discuss financial matters with your spouse and family? Many
times the expensive late fees, and bounced check fees are
not about lack of money or money skills, but instead, due
to lack of time to pay the bills, deposit the paychecks, or
get financially organized.

3. Media Overload

Would your 12 year old really care as much about shopping
at Abercrombies, or wanting Victoria Secrets garments, if
she wasn't reading teen magazines and wanting to dress like
singer Vanessa Carlton? Would you still have bought that
Dell computer if you weren't told 100 times you "gotta have
a Dell computer?".

It's hard to maintain a simple, manageable life when there
is a daily bombardment from TV sitcoms, commercials,
celebrities, movies, computer games, websites, and
magazines influencing spending in every facet of our lives.
To feel trendy, we notice how to dress, style our hair,
feed our pets, furnish our homes, travel, play as well as
how to invest our money.

Even the gym is no longer neutral territory. Once you
caught up with the latest fashion magazine on your
30-minute treadmill workout, you realize you're thinking
you just have to have that new kind of lipstick or latest
cut of jeans, or you will be hopelessly old fashioned.

The cost of this media overload can be financial as well as
emotional.

Even if you are able to "keep up with the Jones", are you
able to keep up with the payments? Notice how much energy
goes into putting on the brakes for your children and/or
yourself every time you are in the mall or computer store
and see the exact model of something viewed earlier on your
TV or computer and suddenly you just have to have it. After
all, how can you pass up that tempting convenient, fabulous
product for yourself, child, home, vehicle or pet? Yet, if
you weren't aware of this product, you probably would not
even feel like you were "missing out" if you didn't have
it. Also, your monthly budget would not be disrupted by
this unplanned expense.

4. Basic Necessities Overload

Basic living necessities are no longer basic. Can you
imagine the days (okay, your parents and grandparents can)
when you didn't have cell phones, basic cable, Internet
connections, computer maintenance, software upgrades,
paying to stay connected to most of your family and friends
because they lived in the same town or at least same state?
Now, can you imagine even functioning in your job or family
life without many of the above services? And how much are
all those "basic necessities" adding to the other fixed
costs in your monthly spending plan?

When you wonder why you can't seem to get ahead or make
ends meet, often the problem is the increased volume of
fixed expenses. Managing your money effectively may mean
choosing to cut back on more of the discretionary spending
to keep the expenses from spilling over on to the credit
cards.

Now What?

So how does all the above-mentioned overload create
obstacles to money management?

More time and energy continues to seep out as you agonize
over choices, hectic schedules, and unsatisfied wants
instead of spreading over to important financial decisions,
productive planning and implementation of a workable
spending plan.

Getting back to the original diet analogy mentioned in the
beginning, there is no lack of information and help for
getting out of debt and creating a spending plan. 

What could be lacking is the time or energy to evaluate
the plethora of information and determine what system
would work best for your particular situation and
then get started.

And the solution? You probably really know inside what is
best for you, so below are a few suggestions to help you
get started.

1. Stop and Regroup

After 9/11, everyone had a wakeup call regarding their true
priorities. Review your priority list again or create one.
If one of the top priorities is family and friends or more
personal balance, the true value is being present and
connected, not what you do, buy or have.

Which activities, responsibilities, decisions and stuff can
you let go of or pass on to someone else, to free up more
time to manage your money on a regular basis?

2. Pick and Save

Many money management systems already exist. Don't try to
re-create the wheel or research and compare the choices to
death. Choose one and start. After all these years of
companies and authors refining their products, most systems
will work just fine. Worrying about the best or easiest
system or the least expensive one at this point is more
about procrastination. Recognize that, move on and pick one
system.

3. Manual or Electronic?

If you are still more comfortable with the traditional pen
and paper, start there. Or, you may be like many who refuse
to get on their computer at home after spending 8-10 hours
staring at their screen at work. There are hundreds of
books on the topic. To simplify your decision, go with a
workbook that already has monthly forms set up. The better
books will help you get organized, simplify the money
management process and save you thousands of dollars in the
long run. Find a workbook that helps you manage your
periodic expenses, monthly bills and track where the daily
money is going.

You can also create your own forms on a spreadsheet. Use
the workbooks and various websites as guidelines for
setting up your forms. The main point is to get started and
take the time to keep motivated and stay with it.

The same is true for software programs. Pick one, study it,
get started and again, stay with it. The drawback for some
folks is the pile up of pieces of paper and receipts,
statements and records waiting to be entered when you
finally turn on the computer.

4. Simplify and Streamline

Have a weekly family "board meeting" with your children
and/or spouse. Get input on ways to streamline events in
the household. Discuss financial issues so more decisions
are made ahead of time, rather than impulsively in a store.
Create space and time for staying current on a regular
basis with managing your money.

Reduce your number of accounts. Eliminate paying bills by
check. Instead, arrange for automatic withdrawal from your
bank for monthly bills, pay bills on line, or automatically
charge monthly bills to your credit card if you are
building up the miles. Remember to pay off the credit card
bill in full or close to it.

Again, there are numerous systems for online bill paying.
Find a comprehensive money management system that offers
online bill paying, one place to keep all your financial
account records and balances, a way to effortlessly record
all cashless transactions, and to immediately see how much
money is left in each of your spending. No matter what the
cost of any system you use, by really using it, it will
ultimately save you at least ten times more than you ever
paid for it.

Take a moment to step back, look at your life, and make
decisions that are proactive and rational instead of
reactive and emotional.

Remember, the cost of financial peace of mind can be
priceless.