trying to chill

We know that having a lot of money gives you a solid sense of security, and with that you can reach a consistent high chill factor level. I want to go over a few key tips to help reduce money-related stress.

• 1.) Keep a record of your finances. This sounds like a gimme but it’s absolutely key. If you know exactly how much you’re making and exactly how much you’re spending on a monthly basis you can keep a near-perfect balance of your available spending. It’s also a good way to determine how much you can put into savings or investments on a regular basis. I highly recommend using Microsoft Excel (part of Microsoft Office Suite) or download the free Open Office Suite which has a nearly identical software package. Create a spreadsheet with a month by month log of your income/expenses. Being specific is key here. To use mine as an example, the first column consists of my regular bills (mortgage, electricity, phone/net, credit card, etc). Below that I have income and an area for unspecified finances (job income, interest, additional income, additional expenses). You can use “notes” to comment individual non-regular changes. Below those are the totals rows (total spent, total made, total left). Use the following columns marked by month to enter all the numbers, and you’ll have a very solid grasp of your finances.

• 2.) Don’t let any expenses go unchecked. What is this extra charge on my phone bill? Why was I charged more this month? Go over your bills and note any differences or additional expenses. Go over your credit card statements line by line. Do not let anyone take any money from you that’s unwarranted. Research any unknown charges and be sure to dispute them if they weren’t authorized. Even small things make a difference. Got a cell phone? Keep track of your minutes. Most carriers will let you change your rate/plan to something higher on the spot and let you avoid those ridiculous per-minute charges when you go over your total plan minutes. Better to pay an additional $10 or $20 and lower your plan the following month than to pay $100 for going over your allotted usage. If they don’t let you do this, ask for their supervisor, their manager—anyone—until someone takes care of you. Which brings me to the next thing.

• 3.) Don’t settle if you have a choice when dealing with anybody taking your money. Always haggle. Complain if you have to. Don’t ever be scared or intimidated. Why? Because there’s always somebody else out there willing to do better than them. They know this. They don’t want to lose your business. I know it seems silly to say this, but complaining makes all the difference. I’m not telling you to be an asshole, but you’re capable of saving a lot more money when you fight to keep it. Whether it’s your cell phone carrier, credit card company, or even your doctor. Don’t ever settle if you don’t have to, it’s YOUR money. You CAN get those late charges taken off your bill, you CAN haggle with your doctor or dentist, you CAN prevent silly charges from your phone carrier, you CAN avoid unauthorized reoccurring charges. In the end, this will make you confident and it will save you money, which might I remind you, helps you with your chill factor.

• 4.) Always do the math. This pertains to the previous tips. You always want to have a grasp of what you’re spending and what you’re making. Don’t know what your APR is? Find out. Don’t know what “APR” even means? Google is there, use it. Not everyone can avoid credit card debt, and surely most can’t stay away from mortgage debt, so do not just look at your bill and pay the minimum or monthly required amount—you want to understand what every number means and where it’s derived from. It’s important to know how much money you’re spending on interest and taxes, for example. Do you want to put that extra $1000 into your savings or will it benefit you more to pay into your debt so you’re spending less on interest? Knowing these numbers will help. This brings us to the next and last tip for now.

• 5.) Be mindful of the future. This is a pretty broad one but it’s important. Be mindful both when you’re spending and when you’re earning. Key thing is to be able to plan ahead and be ready for anything. A lot of people got screwed toying with the real estate and stock market in the last few years, but you know what, being mindful no matter what and using suggestions like these can determine whether you’re still okay or whether you’ve got debt so unmanageable that you’re foreclosing and filing for bankruptcy. Those things definitely will bring your chill factor to near 0%, and we don’t want that.

Contrary to the lottery fantasy, you don’t have to be rich to be able to be confident and comfortable with your financials. Feel free to comment if you have any additional suggestions.