Note: For the first couple of weeks I’m posting Sara’s (Single Mom’s Ask Sara) journey through the Balance Up program. I will be including some additional posts during this time too and then later in January you will see a little more topical structure with my posts. Enjoy!
Money…Days 4, 5, and 6.
Spreadsheet free days! Yep, these are my kind of money lessons!
In days 4 and 5 we learn about what we think about our lives in relation to money…and what we should think. We all know,
Attitude is everything
But we don’t always realize those forces that are negatively impacting our attitudes. For example, do you feel like you are lacking? Do you feel that society is passing you by? Do the Joneses have a lot more than you do? Maybe you are just watching too many commercials. Something as simple as pitching the ad magazines and turning off the TV can make a major difference in your perceptions.
Bryan reminds us there is a difference between being broke, and being poor. I have long said that poverty is a mindset, and has little to do with your cash flow. Lesson 4 addresses the very reasons why.
In Lesson 5 Bryan addresses the emotional side of getting your finances in order, and reminds us that there is no shame in getting your dollars in line and making great plans for your life going forward. Here, Bryan echos the profound observation of Robert Kiyosaki, author of Rich Dad, Poor Dad:
You were never taught to manage money
Think about it. You probably had English class (your native tongue) your entire school life, but never had a money management class, beyond figuring out what kind of career you needed to pay the monthly bills. How in the heck are you going to know how to plan your life and work your money to support that plan?
Ready for Day 6? Me too!
Day 6: Cost in Hours
“Change Your Thinking”
We all know how much our purchases cost. After all, everything has a big fat price tag on it. But is that price tag telling us the whole story? Bryan says “no”.
In just 7 minutes of video instruction Bryan brings our purchases into some quick perspective.
Bryan asks,
“How much is a $1000 couch?” (Careful, it’s a trick question…)
Answer: $1532.95.
What?
Yes…the COST TO YOU is $1532.95.
Why?
With taxes, the actual sale price of the couch is $1070.00. But those are just sales taxes.
You also have all those lovely taxes that are taken out of your check. You know, FICA, State, Federal, Local, etc. So for you to have $1070.00 to spend you have to have earned $1532.95. Yikes.
If you earn $15/hr it will take you 102 hours, or 2 1/2 weeks to buy the couch…if you pay cash. You had better really like that couch!
That $30,000 minivan? Well…let’s just say it’s A LOT more hours. That $10 birthday gift for your child’s classmate? At $15/hr you worked just over a full hour to pay for that, and you probably don’t even know the kid!
I do think in these terms, and I get a bit frustrated when I think about the number of hours I spend working to pay for things. When you think about the hours you slave at a desk, a store, a construction site, etc., it makes you think twice about whether or not you really need the item you’re looking at!
-Sara
Interested in learning more about Balance Up? 32 online lessons taken over a 42 day period for only $29.99.
Let’s hear your comments…1) Where you ever taught about money? 2) What can change your mind about money? 3) What do you think about the concept of the $1000 couch?
Related Articles – (Note from Bryan – Along with some of my articles below I also included some articles from folks who I read on a regular basis…enjoy!)
Financial Growth – Morning Coach
Are You Truly Living the Life You Want? – My Financial Life Coach
The Major Obsticle to Financial Success – Brian Tracy
How to Stay Motivated – Denis Waitley
How Much Does a $1000 Couch cost? – My Financial Life Coach
Bryan Cooper
My Financial Life Coach, LLC
Delaware, Ohio
My Financial Life Coach is a provider of financial education, coaching, web-based training,
and seminars for individuals, businesses, and non-profits.
Balance Up – 42 Days to Maximize, Energize, and Organize Your Life
My Financial Life Coach, LLC 
Great post – I agree, we often dont think of what it actually COSTS to acquire something!
I’m in the process of writing a book on goal setting and achievement myself – would appreciate you having a look and giving me any feedback… If you’d be kind enough to fill in the questionnaire there’ll be a free copy of the book for you when it’s published!
Have a look here: smartgoalsetting.co
All the best for achieving your goals in 2012!!!!