Money Musings 💭 even I’m bad with money 🤦♀️
As of yesterday, I’m a year older and supposedly a year wiser but quite often, I don’t act that way. Especially when it comes to my money. I know… what?! 🤯
That’s right. It doesn’t matter if you are the Fiscal Femme or a complete fiscal noob, no one is immune to acting irrationally with money. You can bet on it.
The good news is, that’s okay. We can set up systems to protect ourselves from ourselves. And the two that have served me the best are:
Only keeping as much money as I need in my checking account
Paying myself first
What are we working against? Parkinson’s Law. Parkinson’s Law is the idea that things expand to take up as much space as we allow them. You have a (Zoom) meeting scheduled for an hour. There’s one quick item on the agenda. Doesn’t matter - the meeting will still take an hour. Right? 💯
Your junk drawer fills up, no matter how many times you clean it out. Relatable? 🙋♀️
The same thing happens with your bank account. Your expenses will match whatever is in there. You earn more? You better believe your expenses will arise to the occasion. Many times down to the cent.
But how? One reason - we make subconscious (or conscious) decisions based on what we see available in our bank accounts. We are masters at spending everything we have.
When we make these spending decisions, we don’t take into account future expenses, savings goals or our future income. This gets us into trouble.
Side note: For the entrepreneurs, freelancers and side hustlers, the same exact thing happens in our business accounts.
If you’ve experienced a change in income, like the 30+ million who have filed for unemployment, use Parkinson’s Law to help decrease expenses. Only keep as much as you plan to spend in your checking account.
For those who are tapping into rainy day funds right now, that’s okay. I know it feels counterintuitive to use the savings you’ve been working so hard to build but that’s what it’s here for.
Transfer over what you need per week or per month to your checking account, but no more.
And remember (my friend Stefanie said it best), “Not being able to pay your bills in the midst of a GLOBAL pandemic is not a PERSONAL failing.”
PS If you run your own business or work as a freelancer, I’m excited to share the business model template I use in my business and with my clients. It gives so much clarity as far as mapping everything out and making financial decisions for your personal life and business. I can’t wait to hear what you think.
PPS If you missed the April Money Parties 🎉, do not fret - there will be more coming your way in May. In the meantime, if you want to have your own Money Party, here’s a how-to guide.
MONEY MOVE OF THE WEEK
Toot your own horn. Even while we’re in a pandemic and working from home, it’s important to keep our bosses and managers up to date on our work successes. I’d argue it’s even more important because they can’t see how hard we are working and we are less inclined to chat about our daily happenings when every meeting is on Zoom. This week, make it a point to share a win with your boss (better yet, make it a weekly thing!). 📣
Maybe you hit a milestone on an important project, were able to figure out a win-win solution for the company or really enjoyed helping out in another area of the business. Shoot them an update, schedule a quick call or even update them at the end of another meeting. You deserve credit for the incredible work you are doing!
YOU GOTTA SEE THIS
Socially distanced holidays. Celebrating holidays when we’re social distancing can be a drag. No hugs on Mother’s Day?! No sharing cake on my birthday? But there’s also an opportunity to get creative. What’s the experience we’re after? What are some ways to get that experience in a different way. For Passover, it was sharing the same Haggadah over Zoom. For my birthday, it was lots of R&R and chatting with friends and family (plus a lot of good food). For Mother’s Day, it’s finding ways to connect with Mom remotely. I wish I could give details but she reads this (and I want to keep it a surprise)! If you are looking for social distancing Mother’s Day gift ideas, look no further. Here are a few of our favorite gift guides with everything from digital experiences to pampering gifts.