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December 28, 2012 / Dale Melchin

Greater Financial Control Part I

Would you like to have more money?  Wouldn’t we all?  I know I would.  I’m not trying to build a brand around financial advice like Dave Ramsey.  I’m simply trying to help people live more full and more effective lives.
All financial experts would say that you do this two ways in some combination.  You increase your topline (revenue or income) and you reduce your expenses, (bottom line focus.)

Now many of us are chronic overspenders.  We allow ourselves to be marketed to and we don’t give much thought to controlling our money.  This is baseline.  We cannot hope that our topline focus is going to fix our problems if we don’t control our spending.  If we increase our topline, but don’t regulate our expenses, that’s going to cause problems over the long haul b/c spend can outstrip revenue.
The key to greater financial control is to change our habits.  In every spending situation there is a cue, a routine and a reward.  The cue and the reward is going to depend upon who you are and how you are, and frankly so is the routine.

Here is an example.  Going to Starbucks.  What is the cue?  Seeing Starbucks  What is the routine? Getting the Starbucks.what is the reward? Caffination or great tastes.  The solution?  Change the routine.

In other words brew coffee before you go to work, take it with you, drink it as you pass Starbucks and experience caffination.

You can apply this all the way down your budgeting sheet until you free that cash back up.  This can be used for going to sports bars, eating out, etc.

Take enough food with you to work so that way you can eat your own food when you get the urge.

In fact this tactical method can be used across the board not just in budgeting but across the other seven areas of life.
The key is discipline and behavior when it comes to expenses.

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