Jean Chatzky
According to research conducted in late 2002 by RoperASW, although 88 percent of Americans have enough money to make their rent or mortgage payments every month and nearly as many have enough money to buy the things they need, only 44 percent can afford to pay off their credit cards each month, and only 52 percent say they´d have enough saved to weather a financial hardship.
Jean Chatzky
I come to the world of money believing that if I have been able to learn to manage my money successfully – and I have – then anyone who is willing to put a little effort into it should be able to accomplish this too.
Jean Chatzky
You can have a do-over starting today. But you have to get over the feeling that it’s too late.
Jean Chatzky
Everyone needs some financial independence, and often, that comes in the form of your own bank account. I’m a huge fan of what’s often referred to as the three-pot system: Yours, Mine and Ours. A joint account and two separate checking accounts.
Jean Chatzky
But the thing is, [debt] is worse than obesity, because this is a problem that you can hide. It´s a problem that you can deny that you have. You can have a big fat lifestyle, and you can pretend you´re making a lot of money because you can just finance it and pretend that you´re going to pay for it tomorrow. So who needs this diet? Anybody who is not saving anything, anybody who is living paycheck to paycheck, anybody who is fighting with their spouse about money, and anybody who wants a better financial future tomorrow.
Jean Chatzky
I’ve come to understand that there are really only five things you need to do – consistently and habitually – in order to live comfortably: 1. You need to earn a decent living. 2. You need to spend less than you make. 3. You need to save, then invest. 4. You need to protect the financial world you’ve built for yourself. 5. And finally, you need to give back in a way that is meaningful to you.
Jean Chatzky
By actually doing something over and over again, like reducing your spending in an effort to save, you’ll gain a feeling of accomplishment — even power. That’s why it’s so important to do just what will help you conquer what’s getting you down when you find yourself feeling frustrated and overwhelmed by something. When you’re feeling fat, for instance, you should hit the StairMaster instead of the refrigerator. And when you’re feeling poor, you should sit down with a pad of paper and figure out just how much your new habits are saving you. Saving two dollars a day by walking to work rather than taking the bus may not sound like much, but it adds up to more than $500 a year. Once you write it down, focus on how the accomplishment makes you feel. Concentrating on the change will make you feel energized. Think of it as insurance for how you’ll behave tomorrow.
Jean Chatzky
Assess the Problem: First, you have to figure out if your excessive buying is weighing on your life, and to what extent. Until you realize you´re spending $150 a month on birthday gifts for the parties your children attend, it´s tough to alter that behavior. A personal cash-flow statement should do the trick. How much do you have coming in every month? How much is going out, and where is it going? Are the minimum payments on your credit cards keeping you from saving? A good rule of thumb is that you should save 10 percent (including what you put into retirement accounts) of what you earn. Start with 3% to 5% and work your way up.
Jean Chatzky
Teach yourself to compare down, not up. It makes complete sense that you´ll be disappointed if you´re constantly comparing your wardrobe to that of your boss (who earns twice as much as you do) or your colleague (whose spouse created the latest reality-TV smash). Instead, if you need to compare at all — and most of us do— try to do it in a way in which you come out feeling good.
Jean Chatzky
There are people who are addicted to shopping, and then there are people who just spend more than they make. More and more people every year fall into the latter category. According to a Roper survey, fewer Americans in 2004 than in the two previous years said they planned to cut back when it comes to buying luxuries, high-tech items, eating out in restaurants or buying items for their homes. Unfortunately, if you´re spending more than you make, you´re digging deeper and deeper into debt.
Jean Chatzky
The other key to staying ahead of the game is saving. You need a savings stash to keep you from sliding back into debt. Think about it: You´re moving along, putting aside your $10 a day, paying down your credit cards, making terrific progress. Then your dog gets a nasty double ear infection. Between trips to the vet and strangely pricey medications, this ends up costing you close to $200. Where is that money going to come from?
Jean Chatzky
When you get married, you become one. Money is a key area that helps bring unity. When you handle your money together, you are agreeing on your hopes, dreams and goals…
Jean Chatzky
A major reason that we give in to our materialistic urges is that we´re creatures of habit. It might take some thought and effort, but habits can be broken. So, if you find it difficult to walk past your favorite store without going in, try crossing to the other side of the street. If you can´t resist buying something every time the Williams-Sonoma catalog arrives in the mail, have yourself removed from the mailing list.
Jean Chatzky
I live in a suburb of New York, and a haircut costs a third of the amount that it costs to get my hair cut in the city
Jean Chatzky
Having a shared pot of money can cause a lot of unnecessary strife and haggling over expenses.
Jean Chatzky
You need to ask, ‘What can I afford to feel the way I want to feel?
Jean Chatzky
You’re not going to stop spending overnight, nor will you suddenly find it easy to open your credit card bills and pop a check in the mail. To put these habits behind you, you have to delve into your past and find out how and why your feelings of shame were formed in the first place.
Jean Chatzky
It might be worth traveling to a suburb to get your hair done…
Jean Chatzky
Buy a really good flat iron instead. You can’t spend $30 on a flatiron and expect professional quality, so spend $150 and know you’re getting a tool that lasts a long time…
Jean Chatzky
When you get on a roller coaster of blowout, they add up very quickly.
Jean Chatzky
Your stylist is probably on a budget too, and they understand.
Jean Chatzky
The ten commanmdments of financial happiness:
1 Get (pretty) organized
2. Pay bills as they come in rather than all at once.
3. Keep tabs on your cash
4. Save at least 5 % of your household income.
5. Protect your family (and yourself).
6. Minimize credit card debt.
7. Do unto others.
8. Spend sensibly.
9. Start working towards your goals.
10. Communicate.
Jean Chatzky