You're in the mall with your husband or friend and are each given 
$1,000 to spend.  The only restriction... it must be gone within 
one hour.  You can do whatever you like with it!!  Ready – set – 
spend!!! 

If this sounds like something you'd love to do, then do it!!  All 
you need is a note-paper and pen to record the details of the 
items you intend to purchase on your shopping spree.  What?!? 
You don't actually spend the money for this to be a terrific 
experience.  It works best if it's not pre-planned, so one day 
when you find yourself at the mall try it!!  If you are going 
with your husband, you can decide to shop together with $2,000, 
or independently – it's your choice.  The treat is in the 
process. 

How we spend our money is a big factor in our overall financial 
decision making process and these decisions ultimately will 
determine our financial destiny.  So, when there is much 
uncertainty about future savings, there is much to learn from 
our spending habits. 

If you think about the $1,000 shopping spree, there are many ways 
to approach the project:

 * Fun – Yippee – A windfall with no strings attached.

 * Guilt – It really 'should' go to bills, to savings or to 
   something needed, but I'll spend it anyways.

 * Generously – What can I buy for someone else?  Or, whom 
   can I give it to?

 * Overwhelm – There's simply too much choice – I don't know 
   where to start.

 * All-in-one-place – What can I buy with this $1,000?

 * Spread it around – How much can I get with this money?

 * Fear – Am I buying the right things?  Will I have enough?  
   Is this the best price?  Should I put the money somewhere 
   else?

 * Blindly – It's my money I'll spend it on whatever I want.  
   It doesn't matter what, or how much, or if there is anything 
   else to do with the money, or if there will be enough for 
   everything I want.

 * What's everyone else doing? – I'll see what other people are 
   doing with their money first, then decide what to do with mine.

 * Responsibly – What kind of investment can I make to earn more 
   from this windfall?


Even this initial reaction is a key to becoming aware of your 
spending habits:  Is it work?  Is it fun?  Does it seem silly and 
a waste of time?  Before you can really do any kind of financial 
planning you need to know how you approach your spending and 
where your money goes so you can plan for future expenses. 

People naturally have a spending comfort zone.  This is the money 
they spend without really thinking about it.  For some people it 
might be $5, for others it could likely be $1,000 or more.  If 
your personal comfort zone for spending is $20 and so is your 
spouse's, then between the two of you there could be as much as 
$40 per day that is gone without a real conscious awareness that 
you are spending.  For others the comfort level is extended to 
particular areas – such as on kids' activities or on a hobby.  
It almost doesn't matter what the amount is – as long as it's 
an item related to the particular activity or lifestyle area. 

To start to gain control over your day-to-day finances here are 
some suggestions:  First, take yourself on a shopping spree and 
evaluate your approach and your purchases.   When you are 
finished shopping keep your notepaper in your wallet or 
chequebook.  It will be a good representation of some ways you 
would like to be able to spend your money – this can become goals 
that you set and work towards.  Second, begin to actually track 
all the money you spend – yes, ALL the money.  That means even 
the $0.50 on parking and $2.00 on coffee.  If you do this for a 
month and write it down, your totals might surprise you.  Next – 
balance your chequebook.  What?  Why?  Because keeping a running 
tally in your head is not the same as having the control and the 
empowering feeling you get when you really know how much money 
you have, and where, and what your worth is at any given time. 
Even people with more money than average have their books 
balanced.  They might have a bookkeeper doing it for them, but 
they are providing the information and they are in control of 
their money.  Try it – it might seem like a small thing – but 
it's a necessary skill for future financial success.

Any finally, here are some questions you can use when making 
purchases – of any size – even within your spending comfort zone:

1) Why do I really want this now? 

2) Do I have the cash for it today? 

3) How many hours, days, or weeks will I have to work to pay 
   for this? 

4) Is there something I need more?

5) Do I need to get rid of, or change anything before I buy? 

6) What if I don't buy it today?  Can it wait? 

7) What might be the consequences of buying today? 


You are committed to today, or you are committed to tomorrow. 
Either way, your decisions today determines your tomorrow. 
Before making financial decisions ask yourself some questions 
and become aware of your spending patterns so you decide your 
tomorrow. 

Tracy Piercy is a Certified Financial Planner teaches people 
to manage their money using systems that work with you they 
are. Proven success principles are integrated with practical 
financial planning strategies. She has worked in the financial 
industry, in insurance, banking, and as a top producing 
investment advisor with CIBC Wood Gundy, for more than 15 
years. Tracy is the author of Enlightened Wealth, a personal 
money journal http://www.moneyminding.com. You can reach 
Tracy at tracy@moneyminding.com