Daily Intent

Santa Barbara, CA
As I mentioned last week, I believe it our democratic duty to manage our own finances and well being.  This in turn will compound out into the governmental sphere, ultimately impacting our American budget deficit.   Before we set out on this fearless journey of saving our savings, we must reflect with others and draw up a path that will offer the best chance of success.  Last week, you, the reader, wrote in with philosophies, experiences, emotions, tools, and creative ways in which to save money.  Below is part one of two in our communal savings reflection.  May it inspire your creative thought and bolden your pocketbook.

We begin with philosophies surrounding saving money.
Seth Streeter, co-founder of Mission Wealth Management keyed in on a need for “renewed perspective”:  “People typically either seek pleasure or avoid pain in their lives.  Thus, budgeting (and adhering to the budget) needs to be associated with the pleasure of getting what they want (i.e. a new car, less debt or financial freedom) or to avoiding what they don’t want (inability to buy things they want, feelings of financial stress/restriction or bankruptcy).

Human behavior is quite simple, we do what we WANT (if emotionally driven) or NEED (if intellectually driven) to do.  Thus, when a person’s wants and needs are aligned with the fruits of a budgeting exercise and adherence, it will get done.”

My favorite sister, Nicole Harding, focuses her attention and philosophies around the tangible dollar.  Feeling it and valuing it.  “We get so used to using plastic and not seeing the actual cash go out”…that it becomes harmful to our saving efforts.

A couple others focused in on the positive emotion that comes along with saving.
An associate of mine at Bank of America, Scott Lindberg, states, “It sure feels good when you have a visual representation of your net worth growing and your debt shrinking.  It’s really cool to see how your finances change over a long period of time… It’s motivating when you actually meet your budget goals and you can see the results in your graph.”

My client HC feels accomplished - “I really feel I have accomplished something- rather than just getting the discount.”

So if we believe the underlying philosophies and desire the feelings described by Scott and HC, wouldn’t it be helpful to have some tools in which to get there?

Daniel Howard, an employee of a cloud computing company in Santa Barbara, called Rightscale, believes in Mint.com as the tool of choice:  “I use Mint.com to manage my finances and budget.  It is free, secure and gives great insight into one’s allocation of funds.  It takes 10 minutes to sign up and reduces the amount of time needed to effectively manage spending by at least two fold.”

Scott Dinsmore, managing partner of Cumbre Capital Partners, agrees and adds to Daniel’s remarks:  “Mint.com is a sweet way to budget. Really fun. Good old fashioned piggy bank is a blast too. We used to do this when I lived in Sevilla. We never spent change and always paid with bills and then put all the moneda in a tin Heinneken can Mime…”

Given the tracking tools, it is only fitting to end with fun ideas and ways to be consistent about saving when out on the town.
HC gives us a couple of great ideas: “My fav is shopping on Tuesday @ Lazy Acres- (with a list of course!)  Tuesday is discount day for seniors - 10% off.  (you must ask your cashier for your discount)

I then take the 10% and ‘bank’ it, some for the future and some for ‘fun’.  Since I take the ’saved’ money and bank it, I really feel I have accomplished something, rather than just getting the discount. I take that amount and bank it some for the future and some for fun.  Granted it may take awhile to save enough to go out, but when I do it is a real treat. The money spent is not out of a tight budget and I, thus, have no guilt for doing it!

So, I get a triple reward –
1. on the day of the savings.
2. when I got out for dinner, or drinks or small trip
3. and then in the future when I have $$ for something else (like the electric bill - LOL)

Here is a tiny one for everyone- when I went finally went online to start paying bills I started saving the money I would have paid for stamps.  Anytime I change a habit to save money I take the saving and bank it.  Now that’s a high I can live with!”

Erin Pearson, Campaign Manager of Team in Training in Santa Barbara, adds a nice tip for coffee goers.

“I work from home, I like getting a coffee or a tea every single day at a coffee shop because i like GOING to the coffee shop itself. After reprimanding myself about this for years, trying not to and then failing, I realized something important: I like it.

1. I buy tea, or plain coffee to keep it under 2 bucks or just at two bucks.
2. Buy a gift card and reload it monthly to be at the amount of that drink.
3. Try to make it a business meeting so I can write off as much as possible.

I’m pretty good at this now, so I don’t even need to load up a gift card anymore. Over time, I just have a new habit of not overspending here.”

Thank you to all the contributors.  More of their stories and yours next week.
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PLAN
Catalyst for Thought - MINDS Lunches.  Coming up in March and April.  Gillian Christie, founder of Christie Communications and Wayne Rosing, early participant in creation of Google and now founder of Las Cumbres Observatories.  Register at www.CatalystSB.org to ensure you receive the registration emails.
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LEARN
Buzzword: Eighthed
“A slang term used to describe when one trader undercuts or outbids another’s ask or bid by one-eighth of a dollar. This term carries a derogatory connotation, as it implies an attempt to steal a trade by a small change in price.

The term is no longer used in the equity markets, as stocks are no longer quoted to an eighth of a dollar. A trader may use the term in the context of ‘being eighthed’ or claiming that someone topped or cut them ‘by an eighth.’”  -Investopedia.com

  Six Points to Ponder:

   1. Confused Markets.  The Markets spiked and plummeted throughout the week.  We’re left with an ulcer and our money right where it began. - The Dow is down only 6pts, to 10,321. The S&P 500 up 2, 1102.  And the Nasdaq up slightly, 2234.  Oil is flat, $78/bbl.
   2. Greeks Go Marching.  Strikes are halting everything in Athens as discontent mounts over the government’s austerity measures.  The government is proposing painful cutbacks.
   3. Undulating Housing Market.  Last week housing stats were happy, now they are grim for builders.  New-Home Sales fell 11.2% in January. Bernanke stated this week rates affecting customers will remain low for some time.  
   4. Toyota Makes Recalls Fashionable.  Nissan, Suzuki and Daihatsu begin recalls this Friday.  These business owners are evidently lonely and in need of some media attention.
   5. Intel’s Intelligence Investment. They’ll be starting a $2bn investment fund.  They are teaming up with venture-capital firms to invest solely in US Companies. This will be one long-term aid to lower unemployment.
   6. Curdling Curling.   No longer is curling left to the random Canadian channel.  It has come to your main broadcasting stations.  Who wants to trade curling pins?  Isn’t there anything else on? 

Positives:

    *  Whether Intel is starting the fund for political reasons in hopes of overcoming the many cases brought against them of late, or out of belief they must stimulate the American economy in order to succeed, it is going to be a nice benefit to many small businesses across the nation.  Begin editing your business plans now.
    * The USA leads the Olympic medal count after taking its first gold ever in the Nordic Combined today, 30 to 26 over the Germans.

 Negatives:

   * Those applying for unemployment services this past week were up much higher than expected, leading many to worry about our nation’s progress in solving the unemployment dilemma.  It is the government’s main focus at the moment as demonstrated through a new bill passed, $15Bn more toward job creation.
    * Pertaining to the Greeks, this is a very difficult issue.  The Greek government has no choice but to lower their deficits.  They are on a crash course otherwise, which could disrupt the European Union first and the markets abroad quickly thereafter.  There is great pressure on their shoulders.  The Greek workers are the ones that lose out though.  They lose jobs.  They have a right to be angry.  But might they be able to take a different perspective?
    * Is it that difficult to make a dependable car?  The urgency of new makes and models offering the latest gadgets, are surely a part of this dismal puzzle.  Other interesting car news: GM unable to sell part of its line to a Chinese interest, decided to stop production of the Hallmark of American Gas Guzzlers, the Hummer.
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GET INVOLVED
Local:

Muhammed Yunus, Nobel Peace Prize 2006
Where: Fred Kavli Theatre, Thousand Oaks Civic Arts
When: Friday, February 26th, 4pm.
Cost: $20 + extra charges = $36.
Why:  Hear from the man that made microfinance famous and has given millions of women in the developing world opportunities never before imaginable.  If you don’t know anything about microfinance, there is no better person from which to learn.
How: Go on ticketmaster.com and buy a ticket.
For other fun ideas, go to www.lovemikana.com

Live and Be Well,

Jeff Bochsler