Merry Christmas . . . Yeah, I have the receipt. Why?

Nothing says Merry Christmas, and I love you, like pre-packaged food from a major national restaurant chain. I know, because I've just been to the mall, and guys are lined up buying this stuff.

I bet there are going to be lots of happy gals come Christmas morning when they get these special gifts.

Can you feel the anticipation? I can. I envision packages of beef jerky, barbecue wings, and assorted processed meats and cheeses being opened and shared with excited family members—a holiday tradition for many, I'm sure.

This is a tough time of year for most guys. Most of us are not shoppers. I know you find this hard to believe, but it's true. I know we have no problem buying stuff for ourselves. And many of us can spend hours at Bass Pro Shops or the guy's end of the mall--Sears (electronics, hardware and tool department). But that's different.

It's not that we don't care about giving the perfect gift--we do. It's just that the pressure of getting the "right" gift wrong is so great. This makes us afraid--very, very afraid.

Giving us a list doesn't help much. If we buy from the list it isn't a surprise, or that "something special" just for you. If it's too practical--like paying down a credit card bill, a month of cable TV, car wash package, oil change, or other cool stuff, it doesn't count. Plus, guys think generic, women think name brand. Even the color of the box can make a difference—Tiffany's versus Kay's. Same stuff, different reaction. Go figure?

Take something as simple as hand cream. We look at your list. Hand cream jumps off the page. We think, "How difficult can this be? They sell it by the gallon at Sam's."

Being the sensitive guy, tempered by experience,  we know instinctively that nothing from Sam's will work. So we decide to go to Bath and Body Works and get something special. Bad move.

As soon as we enter the store we are overpowered by the sights, sounds, and smells of creams and soap! Who knew there were so many kinds of skin cream--dry, oily, old, young, young wanting to be old, old wanting to be young, sensitive skin, non-perfumed, hypo-allergenic, rejuvenating and undecided. And this stuff is made of all kinds of crazy stuff--fruits, veggies, salts, dirt, grass, rocks, grains, and things I can't pronounce.

All the pictures around the store are of absolutely perfect people--goddesses. We know immediately that we are in the right place. That's why there's a line of guys 20 deep trying to buy this stuff.

Now, no good  deed goes unpunished. Each store has a very nice good-looking young lady at the entrance of the store herding guys to a common point in front of a display of the current "gotta have" gift.

To be honest, we're a pathetic lot. Just, a group of guys with sticky notes in hand blankly staring at a wall of multi-colored tubes, jars, containers, and pump dispensers of, well, hand cream, trying to do the right thing.

Hand cream is all the same to us. We know we could have bought it at Sam's, but this is a special occasion. We need to get it right. We also know that as good a deal the two gallon pack of hand cream is, life as we know it would cease about noon on the 25th if we had bought the year's supply of the stuff.


So we do what every guy does in a situation like this. Our brains stop working. We either buy everything the pretty girls tells us to buy or, our heads explode, and we run away. Either way we survive to fight, or shop, another day.

Here's the problem. Our brains are only good for two things. Keeping us alive and passing on the genes.  Shopping is not a high priority. We know if we screw this up--as we have in the past--our emotional lives will be in jeopardy, and passing on the genes will likely be a non-starter.

Emotional pain--getting it wrong--hurts about 5 times more than the feel-good emotions of getting it right. Therefore, we are more concerned about getting it wrong than getting it right--even when we know we got it wrong, but not very wrong.

The danger of going for the gusto and getting it very wrong is greater than playing it safe and getting it only a little right--or wrong, depending on your point of view.


So this holiday, please take pity on the poor guy standing in line buying packaged meats, gift cards, snuggies, oil changes and car wash packages. It's not that we don't care. We just aren't wired to do much better.

Merry Christmas!  I am off to the Mall.  By the way, save your receipts because it's all going back--just like last year.  See you in line!  Wave if you see me.

Money Makes Me Crazy--Ted

Why Outies Go Into Sales (And Why Innies Should)

Guest Blogger: Rich Virgilio, CFO Apexx Behavioral Soultions Group, developer of the "Money Temperament Profile"

First let’s define “Outie” as a person who prefers to spend time and energy interacting with the outer world, engaging others, and is unhesitatingly capable of carrying a whole conversation alone.  An “Innie” is defined as a person who prefers to be introspective, spending time and energy internalizing matters, engaging few or one (or no) people at a time, and are those who often rehearse what they are going to say in their head before saying it out loud, regardless of the importance or triviality of the conversation.  Note that these are preferences of behavior and not some kind of unchangeable characteristic.

 Outies seem, at first glance, to be naturals at sales.  They are outgoing, gregarious, and effective at making contacts, bringing in prospects, and letting the world know about their product.  Conversely, Innies generally tend to undersell themselves.  But the common wisdom of sales training is that the key thing in sales is “closing the sale”--making the deal, collecting the check.  If that’s true, Innies probably have the advantage, because although it is about “selling yourself,” the sales person can’t forget that it’s “selling the product” that brings in revenue. 

Consider, for example, an Outie sales person with an Outie customer.  The salesperson’s poor listening predilection and constant talking may get in the way of closing the deal.  An Innie customer hardly has a chance with an Outie salesperson.  The Innie customer’s point of view will likely be overlooked (steamrolled?) and he or she will be subject to the Outie salesperson’s overkill approach. 

Now consider these situations with a salesperson who’s an Innie.  Outie customers will sell themselves, no sweat.  They will talk themselves into the product and only need some well-timed encouragement and someone to listen to them.  Easy enough.  On the other hand, Innie customers will relate to the Innie salesperson and will appreciate not being pressured; those customers can respond to the reflective moments as a chance to come to their own conclusions.  What’s important is a keen sense of timing and support from the salesperson, not the overwhelming (to an Innie), bold push to the close. 

It takes Outies to advertise something, letting the world know it exists and can be bought.  But Innies may very well be better suited to swoop in for the kill. 

A simple tool to help you determine if you’re an Innie or an Outie can be found at www.myapexx.com/assessments.

Derived from a portion of the book Type Talk by Dr. Otto Kroeger and Dr. Janet Thuesen.

Who Gives A Luxury Car At Christmas?

What am I missing?

Who are these 30 something couples I see on TV who give luxury cars as gifts? They certainly don't hang out in the places I go to.

Why does the guy always need a shave? Is this sexy and a mark of sophistication and affluence? Or just poor hygiene? If I go a day without shaving I look like I need a job and a drink.

Where do these people live? It can't be in the South. It's always cold and snowy where they park the car. And it's invariably the nice light white stuff. Not the heavy, grey slush I had to shovel as a kid.

Where do they buy the ribbon? I'm a bit of a ribbon expert. My wife is a quilter. I've been dragged to so many quilt and fabric shops; I've lost count. So, I can tell you from experience, "wrap a car" ribbon doesn't exist. If you don't believe me, ask any fabric Sherpa queued up in the special seats patiently waiting for their wives. They know.  

Ask yourself, have you ever met a family as attractive as these people? A team of Hollywood plastic surgeons couldn't build a family that looks as good.

I guess these folks are doing something right--brilliant, lucky, married well, a trust fund, could be anything. They're just not the folks I know. Wait, aren't these people the 1%? Aren't they, well, bad? If that's the case, why put them in a commercial?  

Oh yeah, and what's the guy in the commercial supposed to do when his wife buys him a car, and he got her was a vacuum--a very nice one--and a matched set of Black & Decker power tools? Now that would be awkward.

We draw names at my house and set a spending limit. I believe the limit is less than the price of a car--even a used one. Am I missing something?

For most families, the opportunity cost of a luxury car is a college education, a secure retirement, or a year's wages. However, that doesn't matter. Our subconscious feeling brain wants to be just like them. And the car "guys" know it.

Money Makes Me Crazy--Ted
. 

Hunting and Gathering at The Mall

I was going to write something erudite and pithy on how we have progressed as a species. Something about the socio-economics and behavioral roots of our shopping patterns. And how our culture has achieved unprecedented ascendency.

Why bother? I believe this says it all.

Homo Shopian

The Evolution of Black Friday

Black Friday 2011

Black Friday 35,000 BC

Grab your elbow pads, mouth guard and pepper spray--only a few shopping days left until Christmas. Your primitive feeling brain loves it . . .

Money Makes Me Crazy -- Ted

The Spending Season Is Here

Black Friday

It’s here! Can you feel it? Are you ready?

We are in the spending season. It started a few weeks before Halloween and won’t end until sometime after the Super Bowl. That’s almost four months of guilt induced, credit card loading, and savings account depleting spending.

This is as American as apple-pie which, by the way, is on sale -- with a coupon, order now for free shipping, open a store card and save 15%, second one half price, earn bonus points, and when you sign up for “pie of the month” receive a $10.00 gas card and a 50% discount on a cruise.

 Wow, is this a great country or what?

Truth is, humans are better spenders than savers. It’s in our biology, our beliefs, and our culture.

Money Makes Me Crazy--Ted

The Money Formula (No Math . . . Promise)

Does money make you crazy? It should, because you are human and humans aren't very good with money. It's the way we're built. We'd much rather focus on staying alive and passing on our genes than following a budget or reading a credit card disclaimer.

Whether you like it or not, money is important. You have to know something about it. In fact, today everyone is "self-employed." This means you are ultimately accountable and responsible for our own money success. No presure . . .

Like it or not, you have to know about money. You are the boss and that's what bosses do. So what should you do?

I think we (the financial services' industry) make this money "thing" way too complicated. Sure the products and services can be pretty complex--just read a mutual fund or variable annuity prospectus. In fact, if you let yourself get bogged down with all the features and benefits of the financial stuff your head will explode.

Here's what I recommend you do--because exploding brains are not a good thing--focus on the "why" and not the "what." Get out of the product mode and focus on the outcome. What do you value most in life? Why is money critical to what you value most?  What is important about money to you?


These are tough questions. Let me give you a formula to help--this looks more intimidating than it really is.

V(V) = (T + M + RoR) / B

"Big V" represents your most important life values. These are often intangible. The key is, if the values are not supported or accomplished, you will suffer emotional pain. A "Big V" value can be anything that is important to you--from opening a clinic for sick kids to having your ashes spread at the 50 yard line of your favorite football team. It doesn't matter, as long as it's an important life value to you.

"Little (v)" represents your tangible goals. This is the stuff you want to own--cars, house, vacations, and so on. Think of these as life-style things, and often consumable. Don't confuse "Big V" values with "little v" values. They are different. When it comes time to stroke the check for the sick kids you'll know if you got it right.

There are only four things you have to worry about to accomplish your "Big V" and "little v" values. They are time (T), money (M), rate of return (RoR), and behavior (B). That's it. Simple isn't it?

Time (T) is an important variable. The more time you have the better. Time gives you leverage because you can let your money compound--a very good thing. Unfortunately, you probably don't have as much time as you think. Once time is squandered you can never get it back.

Money (M) is also important. Yes, you need money to make money. However, I bet you have more money than you think and the ability to earn more if you choose. Money is a life-style choice--which you have a great deal of control over.

Rate of Reture (RoR) is the money you make on your money--interest, capital gains, appreciation and so forth. Here's the catch, you have no control over the rate of return. That is determined by the market for the stuff you own or lend. All you can do is decide how much to invest and where--the market does the rest. Ironically, the common wisdom seems to be that rate of return is easy to control. All you need is the right product, service, features and benefits--wrong. Billions have been lost chasing performance and the next "sure thing."

Behavior (B) is the most critical variable to achieving what you value most in life. Do you know your money temperament--how you think and feel about money? You should. Do you know how you process information and learn--your money knowledge? This is also important. Remember, money is always emotional. You make money choices first with your feeling-emotional brain, then maybe your rational brain kicks in. Hope, fear, greed, and overconfidence are just a few of the things you wrestle with every day spending your money--and you usually don't even know it. Understanding and managing your behavior is the tough part of money success.

Money is always about behavior.

Money makes me crazy--Ted

         

How to Spend and Save In Today's Economy

Crazy money, stupid money.

Have you ever run into a grocery store to pick up milk and bread and end up spending a small fortune on stuff you didn’t need? Do you spend more with credit cards than you do with cash? Have you ever ridden along with a friend who wanted to buy something at a mall or big box store and buy something even though you promised yourself you would not? Do you make good money but have little to show for it? Are you still promising yourself to save more and start a retirement plan?

Welcome to the human race. Saving money is hard work and humans are not hardwired to work well with money. That’s why money makes you crazy.

Surprise—you are not very good with money.

Three things make it difficult, if not impossible, for you save. They are your biology, your beliefs, and your culture (BBC). Together they conspire to empty your checking account and prevent you from saving.

Here’s the problem. Your brain evolved over time to keep you alive and pass on your genes. Everything else is a distraction. This simply means that the behavior that kept your ancestors alive might kill you at the mall.

You have an emotional feeling brain and a rational thinking brain. Your feeling brain is on autopilot. You don’t have to remember to breath or tell your heart to beat. The feeling brain is reactive, emotional, quick, and likes to spend. Why? Because it feels so good when you spend money. In fact, about 99% of your buying decisions are made by your feeling brain —without your knowledge or “approval.”  

Your thinking brain is rational, single tasked, specialized, slow, and easily over powered by the feeling brain. You like stories more than numbers. You can rationalize any buying decision. Your memory is not as good as you think. And you aren’t very good at predictions. You thought you were in control.

So, it’s easy to spend money now on stuff that makes you feel good. Delayed gratification (saving) isn’t very exciting or sexy and doesn’t make you feel the same way. Therefore, you have to work at saving.

It’s all about you and your money.

Your money belief system also influences your spending and saving. What you believe about money—good or bad—was set in your brain by the time you were about ten years old. Great . . .

Do you have “money issues” today that make it difficult for you to save? It’s probably because something happened when you were a kid that makes you feel and act the way you do with money today. What was that even? What kind of relationship did your family have with money?

If you spend a great deal more than you save—significant debt, lots of stuff, and compulsive spending--you might need some help. Get some.

Regardless, you need to identify and deal with your money beliefs. They help define your relationship with your money. 

The rules have changed.

Face it, you live in a consumption culture. Americans not only like to spend money, we are expected to spend money. Our economy thrives on people like you who spend. In moderation this is a good thing.

Here’s the good news, you have more spending choices than any time in recorded history. You can now shop and spend 24/7. Most people live a short drive from millions of square feet of shopping experience. Add in the internet and you have some serious spending opportunities. The bad news, lots of choices and easy access to shopping make it very difficult to save.

To make things worse, the rules of money have changes. And no one had the courtesy to tell you. Here’s the problem. What worked with money just a few years ago does not work today—think real estate and working at the same job for 30 years.

How’s that “get a good education, so you can get a good job, so you can retire with a nice pension” program working out for you? Today’s economy is fast moving, global, and knowledge based. Your financial future is as good as the last customer you saw, the last budget you worked with, and the last technology you used. Today, everyone is self-employed. You might receive a paycheck, but you are self-employed.

Congratulations, you are now the boss. You are responsible and accountable for your economic success. It doesn’t matter what you do or where you work—you are in command.

As the owner of “You Inc.” you need a plan. Planning is a thinking brain activity. Assuming you are serious about your money, you have to engage your thinking brain. You have to put something on paper that addresses your spending and gets you saving some money.

I know you don’t like to make money plans—few people do. It’s the same for diets and exercise, but I digress. If everyone had a money plan, and actually followed it, life would be easier for everyone. You’d have less stress now and some real options later in life—better options than what color vest you want to wear while working at your local big box store.

Don’t be depressed. There is a solution. You can save money. You can control your spending. You can have a sound financial future.

You need a system—the “Money Behavior System.” It has five simple parts. If you use it, you will actually control your spending and save some money in the process..  

1.    Your money values.

First, what is important about money to you? What are the most important things in life to you? What gets you up in the morning to go to work? What do you value most?

I call these your “Money Values.” For most people their critical money values are long term, emotional, and will cause anxiety if they are not achieved. It doesn’t matter what they are as long as they are important to you. Is it a quality of life, a legacy, to give back, or something else you think is important?

If you are married or have a partner, I bet you have different money values. That’s okay. I’d expect them to be a bit different. The important thing is to decide what the critical money values are and commitment to them.

In most cases, it is going to take time and money to achieve your critical money values. I call this saving and investing for the future. This is not a new concept—although some people behave as if it were.

For most people this means that you have to give up something today in order to have what is most important to you in the future. If this were easy, everyone would have enough in savings. However, if your money values are truly important to you, this is not that difficult.

2.    Your money temperament.

How do your money values look? Will they get you up in the morning for the next few years? Now pull out your checkbook statement and your calendar. Let’s see if your money temperament (how you think and feel about money) supports your money values.

Be honest, does the way you currently spend your time, and money support your money values? It doesn’t matter to me how you spend your money, but I’ve found that when I look at a checkbook I can figure out what a person is passionate about. And it might not be their money values.

It’s important not to judge; however, if your checkbook says cars, electronics, clothes, music, eating out, and other stuff you might have a problem. Something will have to give. In most cases, it will be your future critical values. Sorry.

Are you a spender or saver money temperament? When you walk into the mall does everyone know your name? Do you have a kitchen that you’ve never used? Do the wheels and sound system on your car cost more than the car?

It’s okay to be a spender--many people are. You just need a money strategy to keep your spending under control.

3.    Your money knowledge.

You need to know one more thing about yourself before you develop your money strategy. You need to know what you know about money--your money knowledge.

What do you know about money? Where do you get your money information? Is that information accurate, timely, unbiased, and suited to you? Do you know the difference between a bond and a stock? Do you read and understand your bank statement? How about all the legal disclaimers about money you get in the mail? Do you really know as much as you think you do?

In our society we assume that people know about money. I know from experience that this is not true. We don’t spend a lot of time teaching personal finance in our schools.

Regardless, you will be held accountable for your spending decisions. Remember, a dollar spent today is a dollar that is not available for something in the future. And you might need the money.

Unfortunately, there isn’t much of a “do-over” with money. Once money is spent it’s gone. So you have to choose carefully—the key word is “you.” Think through your important spending decisions. Ask questions. Consider the impact on your money values. What will happen if you do not spend the money and save it? It’s always up to you.

4.    Your money strategy.

We’re almost done. By now you know something about your money values, money temperament and money knowledge. The next step is formulating your money strategy.

Your money strategy is in simple general terms how you plan to achieve your money values. Think of this as the 10,000 foot view of your saving plan. It needs to be a general timeline and plan of action—no details yet.

Your strategy should be in your own words (make it fit on a 3X5 card). It is a statement of the grand design for your life. You must be very clear and focused on what you want to accomplish. What does success look and feel like? What must you overcome in order to be successful? Remember, the only constant is change. You must be flexible and open to change--life happens.

5.    Your money action

The last step is money action. This is where the rubber meets the road. Now is the time to research and select your money products and services. This is detailed stuff. If you aren’t wired to deal with money details—delegate. Find a pro (someone with a license) to help you.

If you truly want to achieve your most critical money values you have to start--now. Don’t wait. This is too important. Your biggest road block is you. Don’t procrastinate. Every day you wait costs you money. This is money you will never get back.

Finally, having a sound saving and investing plan is all about managing your behavior. Picking and managing financial stuff has little to do with your ultimate money success. The person trying to sell you a financial product might not tell you this. However, it’s true. Don’t fall into the trap of chasing performance or last year’s fad—real estate, dotcoms, tech stocks, beanie babies, gold or silver plated coins, or anything sold by an infomercial as an investment.

By the way, lottery tickets are not investments, and they are a horrible saving plan. Spend the buck on a candy bar. At least it tastes good.

Financial success is between the ears. It’s all about you. If you want something bad enough you’ll find a way to save. So I ask you, what’s important about money to you?

Now I get it.

To wrap this all up . . .

·         You are human.

·         Humans aren’t wired to work well with money.

o   It’s our biology

o   It’s our money beliefs

o   It’s our culture

·         Use the “Money Behavior System”

o   Know your money values

o   Know your money temperament

o   Know your money knowledge

o   Have a money strategy based on behavior not products

o   Put your money action plan in motion and monitor your progress

Saving money is only as difficult as you make it—but you need to do it. The alternatives are ugly.

First know yourself—your money behavior. Then select your products. Good luck.

Money Makes Us Crazy!

"Money Makes Me Crazy!" is now available for the Kindle. If you liked the article, you'll love the book.

Ground Hog Day and Bike Envy

Where is Spring? Ground Hog Day is today and much of the country is suffering through the worst winter weather in decades. Thousands of people are stranded in airports, cars, and who knows where. Snow is piled so high in Boston that they have run out of places to put the new snow. However, there is some good news. Punxsutawney Phil did not see his shadow, and I just received my first cycling catalog. So, winter is officially over--at least in my mind.

Thumbing through catalogs and ads for bike stuff is a favorite winter pastime for me. You see, I'm a triathlete--although old and slow. My feeling brain loves the spring gear catalogs. It thinks I'm still twenty something. More importantly, my feeling brain really believes the new stuff will make me go faster. When I look at a picture of a race or some new bike, I "see" myself in the photo. My feeling brain loves this stuff. Unfortunately, I'm way past my physical prime. All the new "go fast" gear in the world will not help me swim, bike, or run much faster than I already do. In fact, the best I can hope for is to maintain my fitness and not get hurt. (I could always lose a few pounds, but that would make sense, and it's not much fun). My thinking brain "knows" this but my feeling brain is in denial.

Here's my spending problem. My feeling brain has a severe case of bike envy. My thinking brain has lost control. I’ve visited at least a dozen web sites and drooled over a pile of catalogs looking at new bikes. I've built at least four dream machines in my mind (I get faster each time) and one beauty on the web. Price is no object in my mental quest for speed.

My rational thinking brain keeps telling me that this is all absurd. My current bike isn't that old. It works fine--it's me that is falling apart. Plus, who in their right mind spends more on a bike then they spent on their first new car?

My emotional feeling brain will have none of this. A shinny new bike will define me as a triathlete. All the cool kids will want to ride with me. I will feel good. I will look good. I don't want a new bike--I NEED a new bike.

So what is your "bike?" Is it a car, a house, cloths, a boat, or something else you can't live without? We are alike when it comes to spending. Our feeling brain is in command of most of your spending decisions. Sometimes we have to step back, take a deep breath, and let our thinking brain do its work. It helps to make a list, define the need, and take some time before spending.

I'm happy to say that I'm still winning all my races in my mind--while riding my old bike. I'm okay with that--for now.

Now, breath deep, and step away from the cash register. It will be okay. Money Makes Me Crazy!

Another Year of Resolutions

It’s January. It’s cold. I live in the South. My backyard looks like a bobsled run. My dogs refuse to go outside because they can’t figure out how ice works (why should they be any different than the humans that live around here—think Atlanta on ice). However, all is not lost. I have a new LCD television with access to over 150 channels, a good heater and a remote that can take me to all kinds of exciting and interesting places. Life could be worse.

As I complete my third cycle through the channels (winter exercise) it hits me. January is supposed to be a time of reflection and renewal. For some reason, our culture has determined that it’s important to examine all our behaviors—even the ones that were perfectly okay in December—every January. I guess this is a throwback to some ritualistic cleansing our ancestors performed in a snow cave trying to make the sun to come back (remember, they did not have cable). I don’t know. However, based on my unique ability to analyze human behavior while simultaneously flipping channels, reading the paper, and texting I’ve discovered something interesting. We aren’t very good with money. We are also over weight, out of shape, and need a new car. Oh, by the way, did you know that a “Shamwow” can suck just about anything out of a carpet?

Since I’m so good with the remote, I’ve had the opportunity to observe countless talking heads and “designated experts” explain the virtues of New Years resolutions. I don’t know why, but it appears that we are only allowed to examine and reset our goals in January—go figure. From what I’ve seen and heard on television—you know it has to be true—if we miss this window of opportunity we are domed to slide back into our old and pathetic rut. And that means eleven more months of being broke, overweight, out of shape, and riding around in a bad car. No one wants to do that.

I’ve been working with people and money for years. This is what I’ve learned--money makes·me crazy! I have too many choices. I am·inundated with too much information. And my life is moving at warp speed. I bet I’m just like you. So in deference to Stephen Covey here are my Seven Habits of Highly Unsuccessful Spenders:

     1. I can do it just watch me. We are overconfident that we can control our spending. We think we can control our behavior—this time. We accept the teaser credit card application because we think we won’t use it. We buy “six-months-same-as-cash” because we know we’ll have everything paid off in time. Bad things—life—only happens to the other guy.

     2. I know I’m right and I can prove it. We rationalize and confirm our spending decisions. No one likes to be wrong and loss/failure emotionally hurts—a lot. We ask “experts” we agree with to confirm our spending choices. We discount anyone who disagrees with us. Over time, we can rationalize just about any spending decision.

     3. I’m smart. We think the skills and abilities that have made us successful in one area will carry over to our spending decisions. I know a number of very smart and successful professionals who thought they could run a restaurant. They could not—regardless how good their mom’s recipe for pizza. We tend to confuse luck with being smart. Admit it, some of our buying choices worked because we were at the right place at the right time. Brains had nothing to do with it.

     4. This time is different. We want to believe that a bad spending choice in the past won’t happen again. It can and it may. We aren’t very good with figuring out risk and probability. If we were everyone would own life insurance and not more than 10% of their company’s stock. Remember, the group can be wrong—dot coms, housing, and so forth.

     5. It’s an investment. We as individuals have no control over the market price or rate of return of anything. We can ask a price for our Beanie Babies, gold plated coins, and collector’s edition presidential plates but the market will determine what they are·worth. Just because the guy on television says it’s a great investment does not make it so.

     6. I have enough time to get my spending under control. We never have as much time as we think. Compounding is our friend—if we use it. We seldom get a “do over” with our money.

     7. I don’t have enough money. If we are really honest with ourselves, we have money. We simply don’t like to make the hard choices about our spending. Instant gratification is great. Our feeling brain loves it. However, we have to choose. Which is more important; the car that costs more than my first house or·being able to retire in the future?

Now, put down the remote and back away from the television. Spending money is hard work. Take time now and ask yourself; what is most important in life to you? What will it cost to get it? If I keep spending the way I have been, will I get it? Don’t worry, you can do this kind of planning any time of the year. Money Makes Me Crazy!