Eight Ways to Outsmart the Overspending Impulse in 2012

For many Americans, overspending seems like a birthright. But, warns financial advisor and author Leslie Greenman, sooner or later, those bad spending habits will catch up with you. She explains why we feel compelled to overspend and provides advice for making 2012 the year you tighten your purse strings.

If you fear you’ll be ringing in the New Year with a holiday spending hangover, you’re not alone. In fact, studies show that many Americans will still be paying off their holiday debt months, and possibly years, after gifts have been exchanged. But let’s be honest. If overspending was a problem for us only once a year, most of our bank accounts would be much more robust. Unfortunately, the overspending psyche infects many Americans all year round.

Leslie Greenman says that if you’re prone to turning a blind eye to the reality of your financials then you’ve likely been hijacked by the psychology of overspending. She wants to help you curb your out-of-control spending frenzies in 2012—but first you must understand why you feel the need to splurge in the first place. Many of us have emotional triggers that lead to overspending. Understanding how the need for stress relief or the need to demonstrate your own self-worth can lead to overspending is essential in order to curb the dangerous habit.

“Women especially can have a tendency to take on a what-I-don’t-know-can’t-hurt-me mentality when it comes to spending,” says Greenman, a financial advisor and author of the new book Dating Our Money: A Women’s Guide to Confidence with Money & Men (AuthorHouse, 2011, ISBN: 978-1-4634-1740-6, $14.95). “We convince ourselves it’s okay to overspend because we’re celebrating a promotion or because we’re pleasers by nature and want to buy a great gift for our spouse or best friend’s birthday.

“And in today’s economy, we might carefully avoid the truth about our financials because we don’t want to feel ‘poor.’ After all, we convince ourselves, if I’m out shopping or if I’m buying a new car then I must have plenty of money. Meanwhile, you’re using a credit card to pay for your extended trips to the mall and taking on unnecessary debt to get that new car.”

Greenman encourages women and men alike to make a change in 2012. She says there’s no better time than the beginning of the new year to break your overspending habits.

“Once they’ve conquered overspending, I think most people will be surprised by how much they gain through saving,” says Greenman. “Sure, you may no longer be eating out every Saturday night and you might not be restocking your closet every month with new shoes, but you’ll gain the peace of mind that comes with standing on a strong financial foundation and you’ll be able to achieve big financial goals, such as buying a house, much more quickly.”

Read on for Greenman’s advice on how to better understand the psychology of overspending and what you can do stop it:

Get real about your financials. Sit down with your spouse at least once a month to have a heart-to-heart about your financials. Make sure you both understand what the budget will allow for in spending that month, and more importantly, plan out how you’re going to meet your saving goals.

“Look at how much you can realistically spend,” advises Greenman. “Too often, women think of the financial picture like it’s a black hole. Credit cards are a huge cause of this because they allow us to avoid the reality of debt. We can just whip out our credit card without taking an immediate hit in our bank account. But that has to stop. Now is the time to gain a clear understanding of the family financials. When you do so, you’ll be more inclined to control your spending.”

Establish an “Operation Saving” plan. Once you know what your budget is, start mapping out what expenses you can and can’t cut and set savings goals. Be very specific. If you buy Starbucks every morning, that has to be accounted for in your spending report. If you’ve been sneakily hiding clothing purchases from your spouse, then it’s time to fess up. The specificity will override the “vagueness trap” that allows us to fool ourselves about how much we’re really spending.

“The more specific your plan, the easier it will be for you to hold yourself accountable to it,” notes Greenman. “Set both short-term and long-term goals. For example, do you want to pay off a credit card over the course of three months? Do you want to save up for a special family vacation or set aside a certain amount in your children’s college funds? Having specific goals will encourage everyone to stay on the saving track.”

Don’t let the psychology of the sale get the best of you. If you’re a chronic overspender, sales pose a special temptation. When there’s a great sale, two factors are usually used to justify spending, explains Greenman. First off, we fear that if we don’t take advantage of the sale now we might not be able to get that item later. And secondly, most women love to feel like they’ve gotten a great deal when they’re shopping.

“Even if the on-sale item is still too much for your budget, you convince yourself that it’s okay to splurge a little in this case because the deal being offered is so good,” she says. “But let’s be honest. Going over budget is going over budget. It doesn’t matter what purchase is deepening your debt; just that your debt is increasing. So don’t let the temptation of great sales get the best of your budget. If an item is too much for your personal financial situation, don’t buy it.”

Get an accountability partner. Your accountability partner will be there for you whenever you have the impulse to overspend. If you’re married, your spouse could be your accountability partner and vice versa. If not, maybe your mom has always been a stickler when it comes to the family budget, or maybe you have a friend whose frugalness you’ve always admired.

“Check in with your accountability partner at least once a month,” recommends Greenman. “Knowing you’ll be going over your finances with that person will help you stay on track. And make sure your accountability partner doesn’t mind being on call whenever you want to splurge. Give him or her a call when a sale is tempting you or when you’re having trouble making a financial decision.”

Don’t shop when you’ve got the blues. Studies have shown that we’re inclined to pay more for items when we’re sad. Have you ever been down in the dumps and indulged in a yummy dessert or gone back for seconds of whatever your comfort food of choice might be? Well, the same emotional triggers that lead you to seek comfort through food can lead you to seek comfort through spending if you head to the mall instead of to your favorite restaurant.

“Just like overeating, buying stuff is a popular remedy for making ourselves feel better when we’re down,” says Greenman. “But I think we all know that the happiness we achieve through spending is fleeting. Soon we’re right back to being down in the dumps. My advice: don’t shop when you’re sad. Instead, curl up and watch a good movie or spend some time with a good friend or family member who has a knack for cheering you up.”

Invest in relationships, not in “stuff.” It’s perfectly natural to want to give back to those who give to you. It feels good to treat a friend to lunch or to see your son’s face light up when you agree to buy him the video game he wants. This satisfies the nurturing instinct in women, in particular. And it also helps us assuage the guilt we often feel for the shortage of time we have to spend with our loved ones. What we need to realize is that what other people really want, kids and adults alike, is to spend time with us.

“One of my friends is the ultimate ‘giver,’” says Greenman. “She will treat for dinners, throw lavish parties, and has even given my kids new clothes. The funny thing is, I don’t think she understands that I would be her friend no matter what. It has never been about her ‘giving’ me things. I just genuinely enjoy spending time with her. So the next time you want to win a family member’s or friend’s love through buying something, find a way to spend time with that person instead. Spend a day with your son doing the things he loves to do. Or suggest to a friend that you spend an afternoon catching up over coffee.”

Use cash! Consider this: The average American spends 12 to 18 percent more when they use credit cards versus cash. Buying on credit is a trap to be avoided if at all possible—and the best strategy for defeating temptation is to use cash whenever possible.

“If you use your credit card, whether it’s to pay for the week’s groceries or to put gas in your car, you’ll probably end up paying for your groceries and gas two or three times over in interest payments,” Greenman notes. “Bring only cash with you when you’re shopping, or at the very least, use your debit card or write a check. Reaching for your credit card to pay for something you wouldn’t otherwise be able to afford is no longer an option.”

Remember, small amounts add up to huge consequences. Sometimes you can overspend by missing opportunities to spend less. Do you and your family order sodas when you eat out? Do you buy coffee at a gas station or at Starbucks on the way to work each morning? Do you buy bottled water instead of using a filter to get it from the tap? If so, spend a moment filling out one of the cost calculators available online. The results will be eye-opening!

“The amounts you spend on these items might seem small, but they really add up,” says Greenman. “Let’s take a closer look at soda costs. At a restaurant, soda can cost between $2 and $3. If you’re a family of four, that adds up to almost $10 or more every time you go out to eat. But if you drink water at restaurants instead, you save those $10-plus dollars, and those savings can quickly add up to about $1,000 a year. The same opportunities for saving arise when you cut out the daily Starbucks run. I bring a thermos of tea with me to work every morning. One box of the tea I buy at the grocery store is the same price as just one cup of tea from Starbucks. When you cut out the small expenses that add up, you’ll have a significant chunk of change to put toward the family vacation fund or the new appliance you need.”

“If you don’t know the big picture of your current financial status, then kick off 2012 by getting a clear understanding of it,” says Greenman. “There’s never a bad time to start living more financially responsibly. Sure, you’ll have to make sacrifices, but trust me, those sacrifices will be made up multiple times over through the wonderful things you can achieve through saving and strengthening your financial outlook.”

About the Author:

When Leslie Greenman’s husband unexpectedly passed on at age 35, she suddenly became a single mother of two boys (ages two and four). Leslie learned how quickly life can change. She went into the financial industry to empower women with the knowledge and confidence to take action and be prepared. Through her tough experiences of becoming suddenly single, she realized how easily women can be misinformed and taken advantage of. Dating Our Money offers women the important information they need to confidently make smart choices with money and men.

Leslie is currently a financial advisor, author, and public speaker. She loves to talk to women and girls about managing money and making wise choices but can adapt a speech to meet the needs of any audience. She encourages people to remember that every decision counts! Buying soda at a restaurant could prevent you from saving thousands of dollars over a lifetime.

Through her book, Dating Our Money, Leslie’s goal is to make financial planning fun and relatable for all women.

The Psychology of Holiday Shopping…and 11 Ways to Outsmart the Overspending Impulse

The holidays are here, and in addition to festive time spent with family and friends, for most of us it means a small fortune spent on gifts and other non-necessities. Leslie Greenman explains why we feel so compelled to shop till we drop at Christmas—and how not to do it this year.

Were you tempted by the Black Friday and Cyber Monday sales offers? Were some of the sales so good that you veered off your Christmas list a bit, buying items for yourself in addition to a few other holiday extras? Did you internally justify going over budget because, “Heck, it’s Christmas! I deserve to splurge a little!”? Were you careful to keep a “what I don’t know can’t hurt me” mentality about you and your spouse’s financials, staying in the gray to ward off any guilt that might come with overspending?

If you answered yes, yes, yes and (embarrassed blush) yes, Leslie Greenman says your brain has been hijacked by the psychology of overspending. She wants you to curb these out-of-control holiday spending frenzies—but first you must understand WHY you feel the need to splurge in the first place.

“This is a very difficult time of the year to stick to a budget and the reasons why are numerous and complex,” says Greenman, a financial advisor and author of the new book Dating Our Money: A Women’s Guide to Confidence with Money & Men. “One of the biggest reasons is that women tend to be givers and pleasers by nature. We want to buy great gifts for friends and family members. We want to get the best looking decorations for the house.

“We convince ourselves it’s okay to overspend because Christmas only comes once a year!” she adds. “This is our time to forget the budget and do whatever we can to make those around us happy. So in the name of making the holiday the best one ever, we carefully avoid the truth about our financials. After all, if we don’t know for certain that we’re going way over the family budget, then what’s stopping us from spending a little more on the kids’ presents or buying that new dress for the office party?”

Greenman notes that the nature of holiday spending—the fact that we’re buying for others and not ourselves (in theory anyway)—increases our tendency to overspend.

“Many women think the holidays give us a guilt-free pass to shop ’til we drop,” says Greenman. “We justify it by telling ourselves, ‘Well, I have to get gifts for everyone or they’ll be disappointed!’ While it’s nice to give someone something they want, that good feeling will quickly fade when you see how much your holiday spending affected the family’s finances.”

The good news is that with careful planning you can give everyone on your list a special holiday without having to pay for it for months and months to come. Read on for Greenman’s advice on how to better understand the psychology of overspending and what you can do stop it:

Get real about your financials. Before you step out the door to head off to the next great sale, you need to be honest with yourself. Sit down with your spouse and have a heart-to-heart about your financials. Make sure you both understand what the budget will allow for in holiday spending this year.

“Look at how much you can realistically spend,” advises Greenman. “Make sure your holiday spending will in no way negatively affect your bigger plans. Too often, women think of the financial picture like it’s a black hole. Credit cards are a huge cause of this because they allow us to avoid the reality of debt. We can just whip out our credit card without taking an immediate hit in our bank account. But that has to stop. Now is the time to gain a clear understanding of the family financials. When you do so, you’ll be more inclined to control your spending.”

Don’t let the psychology of the sale get the best of you. Shoppers were out in droves this year on Black Friday in part because they were hammered with promotions on sales that that were just too good to resist. When there’s a great sale, two factors are usually used to justify spending, explains Greenman. First off, we fear that if we don’t take advantage of the sale now we might not be able to get that item later. And secondly, most women love to feel like they’ve gotten a great deal when they’re shopping.

“Even if the on-sale item is still too much for your budget, you convince yourself that it’s ok to splurge a little in this case because the deal being offered is so good,” she says. “But let’s be honest. Going over budget is going over budget. It doesn’t matter what purchase is deepening your debt; just that your debt is increasing. So don’t let holiday sales get the best of your budget. If an item is too much for your personal financial situation, don’t buy it.”

Don’t shop for yourself. According to the National Retail Federation’s 2011 Holiday Consumer Intentions and Actions Survey, the average person will spend $130.43 on themselves while holiday shopping. When you’re making it okay for yourself to do a lot of spending, it can be difficult not to stray off your list and buy a couple of things for yourself.”

“But before you spend, consider some money-saving alternatives,” she suggests. “You could borrow a dress from someone or add an accessory or a great pair of shoes to a dress you already own. In fact, this is actually a good reason to organize your closet. When you can easily see what you have, you can quickly put together a great holiday outfit without spending a dime. ”

Don’t shop when you’ve got the holiday blues. This time of year can bring a lot of joy, but it can also be overwhelming and stressful. What’s more, the holidays are filled with grief triggers—sights, sounds and smells that bring back memories of days past when life was better and loved ones hadn’t yet passed on. Those holiday blues, whether we understand why we’re feeling them or not, can pose a pocketbook problem: studies have shown that we are willing to spend more when we’re sad.

“Avoid shopping when you’re having a down day,” advises Greenman. “Curl up and watch a holiday movie or go do something fun with your kids instead. Save the shopping for a better mood. ”

Invest in relationships, not in “stuff”. It’s perfectly natural to want to give back to those who give to you. It feels good to watch a friend open the gift you’ve given her or to see your son’s face light up when he sees Santa brought him everything on his list. This satisfies the nurturing instinct in women, in particular. And it also helps us assuage the guilt we often feel for the shortage of time we have to spend with our loved ones. What we need to realize is that what other people really want, kids and adults alike, is our presence (not our presents).

“According to a Consumer Reports poll, holiday shoppers will spend approximately 19 hours shopping and 3 hours standing in check-out lines this holiday season,” says Greenman. “Aren’t there much better ways we could be spending our time? Rather than throw down cash to buy the video games your son wants, spend a day with him doing the things he loves to do. Suggest to your best friend an afternoon together meeting for coffee and going to a movie. Or treat your parents to a home-cooked meal and some Christmas carols performed by their grandkids. You can also take this a step further and make it even more gratifying for everyone involved. Suggest to your loved ones that the time you spend together be used to volunteer for a local charity—a great way to enjoy the true spirit of the season!”

Establish an “Operation Holiday” plan. Once you know what your budget is, start mapping out your shopping plan. Make the gift list and then think about where you’ll need to go to purchase each present. The specificity will override the “vagueness trap” that allows us to fool ourselves about how much we’re really spending.

“The more specific your plan, the easier it will be for you to hold yourself accountable to it,” notes Greenman. “Keep your key goals in mind, both short-term and long-term. For example, are you trying to keep each gift under X amount of dollars? Do you want to be finished by a certain time? Do you still need to have enough money left over in the budget to make your monthly donation to the family summer vacation fund? Don’t sacrifice your long-term financial plans to satisfy short-term holiday spending cravings.”

Don’t put off your shopping until the week before Christmas. It is best to start your holiday shopping as many shopping days before Christmas as you can. Procrastinating will only send you into a state of panic that usually ends in overspending.

“As the holiday gets closer and you realize you haven’t even made a dent in your list, you’ll start to get desperate,” explains Greenman. “And when you’re desperate, you won’t have as many misgivings about going over budget in order to get your shopping done. You’ll also have less time to finish your shopping so you’ll think you have to get whatever is available. ‘Shop early and save’ should be your new motto. Another positive to getting all your shopping out of the way early is that it gives you more time to kick back and enjoy all of the fun festivities leading up to the holidays.”

Set a holiday shopping curfew. You don’t have to go tearing through stores, pushing innocent shoppers from your path (or spraying them with pepper spray as one much-publicized shopper did on Black Friday), but setting a time limit on your shopping will help you keep your spending impulses in check and stay on budget.

Remember, it’s the thought that counts. You might find the perfect gift for someone but then reject it because you don’t think the price is significant enough to be an adequate gift. That’s because we unconsciously equate love with money. Not only is there absolutely no connection between the two, this self-imposed spending minimum can lead us to bypass meaningful gifts in favor of expensive, less meaningful ones (which the recipient may not even remember by Christmas of next year).

“A gift with a lot of thought behind it or shared meaning for you and the recipient can have far more significance than a more expensive item,” says Greenman. “For example, a special photo of you and a friend in a frame with a special note about how much you enjoyed the time you spent together is a great gift. Or have your kids write down the 10 things they love about their grandparents and include the list in a photo album of the kids. These are all gifts that involve more thought and meaning than just going to the store and buying a gift. And the people receiving them will truly appreciate it.”

Make a list, check it twice, and bring cash! How many times have you walked into a store and immediately found the perfect gift for a friend? Sure, you hadn’t planned on spending that much, but she would love it, so why not? You can just put it on your credit card, right? Wrong, says Greenman. Buying on credit is a trap to be avoided if at all possible—and the best strategy for defeating temptation is to bring a list you don’t veer from and only the cash needed to purchase the items on it.

“If you use your credit card, you’ll probably end up buying those gifts two or three times over in interest payments,” she notes. “Do not stray from your list. If you do stray, the cost of the non-list item needs to be the same as the one you had already budgeted. Bring only cash with you when you’re shopping, or at the very least, use your debit card or write a check.”

Don’t shop with a holiday budget saboteur. If you prefer doing your shopping with someone else in tow, choose someone who won’t encourage you to go off budget. In fact, make sure it is someone who will truly hold you accountable. Many people are easily influenced by the behavior of their friends. When they’re with free spenders, they become free spenders. Likewise, when they’re with more disciplined friends, they’re influenced by this positive peer pressure.

“If I shop with one of my girlfriends, I know it could quite possibly turn into a several hour affair,” notes Greenman. “I also know that some of my girlfriends would rather encourage me to splurge than support me in my efforts to stick to a budget. If you’re going to pair up with someone to do your holiday shopping, make sure it’s someone who’s going to keep you on track. For example, maybe your mom is a stickler when it comes to managing the family budget or maybe using the holiday shopping outing to educate your kids about sticking to a budget will help you hold yourself accountable as well.”

Point, click, and save. The benefits of online shopping are obvious. You don’t have to battle holiday traffic, it is practically hassle-free, it’s easier to compare prices, and best of all, it allows you to resist the temptations that come along with being in a store.

“When you’re in a store it can be really tempting to wander off your plan and start looking at items that aren’t on your list,” says Greenman. “Because you can search for specific items, online shopping helps you to stay on task. It also provides a greater selection of those items so that you can easily compare cost and quality. And usually free shipping is offered around the holidays!”

Don’t be afraid to regift. Regifting has a stigma attached to it. Many people feel it violates gift-giving etiquette. Maybe they think it makes them feel like an unimaginative gift giver or perhaps like a poor person. But remember, you’re opting out of the herd mentality this year anyway. Take a new look at regifting. When done well it can help you find a home for items that you’re never going to use and make the day of the gift recipient.

“There is nothing wrong with regifting items that you haven’t used and that you know someone on your Christmas list would like,” says Greenman. “Sure, there is a line that has to be drawn. If your grandmother got you a sweater you hate, but she expects you to wear, then that’s probably not an item that you should regift. Suck it up and wear it! But let’s say a former colleague got you a scarf as part of a Secret Santa exchange at work last year. It’s a perfectly nice scarf, but it’s a color that just doesn’t look good on you. That’s a great item to regift. You’ll get it out of your house, and someone else will love having it.”

“Other great options are unused gift cards—as long as they haven’t expired— or clothes or other items either with the tags still on or still in their original box that you never used,” she adds.

“Don’t convince yourself that just because it’s the holidays it’s okay to ignore your budget and overspend,” says Greenman. “If you don’t know the big picture of your current financial status, then make sure you have a very clear understanding of it before you start your holiday shopping. Remember you can give a lot without spending a lot. Stick to your budget and then be generous with your time and spirit. Once the holidays are over, you’ll be happy you didn’t blow your savings, and you and your family and friends will be fulfilled by the time you all spent together.”

About the Author: When Leslie Greenman’s husband unexpectedly passed on at age 35, she suddenly became a single mother of two boys (ages two and four). Leslie learned how quickly life can change. She went into the financial industry to empower women with the knowledge and confidence to take action and be prepared. Through her tough experiences of becoming suddenly single, she realized how easily women can be misinformed and taken advantage of. Dating Our Money offers women the important information they need to confidently make smart choices with money and men.

Ten Ways to Keep Cash Flow Problems from Putting You Out of Business

Every small business owner knows the trouble that comes with managing the ins and outs (pun intended!) of cash flow. You can have tons of loyal customers and be an expert at getting new business and still be kept awake at night with cash flow worries. Authors Tage Tracy and John A. Tracy commiserate. They know cash flow is an issue that can send good businesses to their graves.

“Cash flow problems have a habit of sneaking up on a business, especially in a rocky economy,” says Tage Tracy, coauthor along with John A. Tracy of Cash Flow For Dummies®. “If a business is earning a profit, many business managers simply assume that cash flow is satisfactory. But even if profit is good, cash flow can be bad.”

Cash flows pose an unending challenge to business owners and managers because they have to be carefully managed. Read on to learn what you can do to make 2012 the year of the cash flow reboot for your business.

Respect and understand financial statements. According to some surveys, 25 percent of businesses don’t even maintain accounting records (let alone produce financial statements).

“The bottom line for small business owners is simple,” says Tracy. “If you don’t make an effort to prepare, review, and completely understand your financial statements, then you need to ask yourself why you’re in business in the first place. And this especially holds true for the statement of cash flows, because an abundance of invaluable information is available from this most commonly overlooked and mismanaged financial statement.”

Plan, do projections, and plan some more. Proper planning is essential to the launch, growth, management, and ultimate success of your business as measured by the ability to generate profits and, just as important, to avoid running out of cash. According to Tracy, “Having access to sound financial plans structured for different operating scenarios is an absolute must.”

Focus on capital and cash—the lifeblood of your business. One of the most common reasons small businesses fail is that they lack adequate cash or capital, not only to survive difficult times, but also to prosper during growth opportunities.

Understand your selling cycle. The length of the complete selling cycle is often much longer than the aspiring entrepreneur projects and/or wants to believe.

“The selling cycle in its entirety spans the time from the very start of the process when a product or service is first visualized and developed to supporting customers after the sale and developing additional products or services that may be in demand,” says Tracy. “And if not properly managed, the selling cycle generally becomes one of the largest consumers of cash in a business. Without fail, almost every aspiring business owner, at one point or another, will experience delays in the selling cycle.”

Manage your disbursements cycle. To counteract the selling cycle cash consumption machine, businesses need to understand that the disbursement cycle (managing expenditures and cash payments to vendors, employees, and other creditors) can be leveraged and managed to be a primary source of cash for your business.

“Invoke what’s called the matching principle,” advises Tracy. “That is, similar to properly matching revenue and expenses to ensure that an accurate measurement of a business’s profit or loss is obtained, you should be able to match cash inflows and outflows.”

Be creative to generate cash. The following three areas offer significant opportunities for creativity when looking to improve cash flows:

Turn your assets over more quickly. The more quickly you can turn over assets, the more quickly they turn into cash. It’s as simple as that.

Leverage your vendors, suppliers, and financing sources. They don’t want to lose your business, so placing just the right amount of leverage on these groups can result in enhanced cash flows because liabilities offer a source of cash.

Manage external sources of cash proactively. Proactively manage your relationships with banks, leasing companies, and even the federal government to ensure that cash is made available when needed.

Balance the balance sheet. Many businesses overlook the concept of properly managing the financial structure of their balance sheet, which has gotten more than a few businesses in trouble.

“Your business needs to strike a proper balance between making sure that current assets are financed or supported with current liabilities,” notes Tracy, “and making sure that long-term assets are financed or supported with long-term sources of capital such as a five-year note payable or equity. Every business should strive to achieve a financial condition that ensures constant maintenance of adequate levels of both solvency—the ability to pay all just debts—and liquidity—the ability to quickly access cash to support business operations.”

Understand external capital markets. When it comes to external capital markets, think well ahead. In today’s economic climate, it takes a long time to identify external sources of capital and to secure them. So plan well ahead to make sure that you’ll have cash available when needed, because it’s not a process you can rush.

Protect cash at all times. Cash has a unique characteristic unlike other assets that makes it highly susceptible to additional risk of loss: Cash is an extremely liquid and marketable asset.

Always think of CART. CART equals complete, accurate, reliable, and timely. Your company’s financial and accounting information system needs to produce complete, accurate, reliable, and timely financial information, reports, data, and so on, which management can use to make informed business decisions.

“When you have the proper systems in place and know what to look for, you can keep cash flowing, helping you to grow a successful business,” says Tracy. “Let 2012 be the year you place a renewed focus on properly managing your cash flows.”

About the Authors: Tage C. Tracy is principal owner of TMK & Associates, an accounting, financial, and strategic business planning consulting firm. John A. Tracy is professor of accounting at the University of Colorado in Boulder and the author of Accounting For Dummies®.

… and How They Can Cope

Often called the glue that holds the family together, women also often assume the role of keeping the home together. They work hard to provide their family with a home that makes them feel comfortable, safe, and secure. When foreclosure strikes, it’s common for the woman of the house to place a great deal of the burden of saving the family’s home on their own shoulders. Their natural role as wife and mother is to keep the home intact.

Some facts that will help you as you strive to save your home:

1. A denial is not necessarily the final word. If a bank denies your request for a loan modification, try again. Many homeowners have been unsuccessful in their first attempts, then received approval on a subsequent attempt. Some of the things you can do are to lower your family’s debt, increase your income, and reduce household expenses. For instance, selling a car could eliminate a monthly payment and your debt, making it easier for you to afford your mortgage, while altering your debt-to-income ratio enough to make you a candidate for loan modification.

2. Mistakes are common. Banks make errors. Don’t take them at their word—always ask what figures they used and do your own math. Double check. Become informed about the foreclosure laws in your state and make sure your bank has the necessary documentation and is following the legal timeline.

3. If you know you are right, you can fight back. Be persistent and don’t back down. Provide the bank with facts, figures, data, and anything else to support your position. If necessary, be prepared to take your cause to the next level. If you are right, they will have to readdress the situation.

4. Sale dates are commonly postponed; you have to stay on top of it. Make it a point to confirm and reaffirm the scheduled sale date, even as close as the day before or the day of the sale. Postponed dates are not uncommon and will give you more time to save your home.

5. You cannot be thrown out/evicted prior to foreclosure. Know the foreclosure timelines in your state. By law, your family cannot be removed from your residence before a foreclosure, and many states provide a period of time after foreclosure before the residents must leave the premises. The law specifically sets the time you are allowed to stay in your home—not the bank.

While it’s understandable and commendable that women want to save their homes, while they’re doing so, it also undeniably creates additional emotional stress. Along with the pressures of work and day-to-day family and financial responsibilities, they now encounter the emotional toll and pressures of dealing with their bank. At the same time, they feel responsible for appeasing the worries of other family members, assuring them that everything will work out. Some wives have the support and assistance of their spouse or partner; however, some are flying solo, pushing to save their home from foreclosure when their spouse wants to wave the white flag and give up. Naturally, such diverse viewpoints can create conflicts in the marriage, adding yet another stressor to these women’s lives.

While the process of saving one’s home from foreclosure is often fruitful and well worth the effort, it’s also necessary for women to remember that their health, well being, and happiness shouldn’t be sacrificed during difficult times. In fact, it’s times like these when it’s even more important to relieve stress and find peace, joy, and happiness. While that can be difficult at times, it helps to follow some of the following guidelines, which can help reduce pressure and bring some much-needed relief from stress.

1. Find private time. It’s not always easy for women to find time to themselves, but it’s especially necessary when facing major challenges. Take a few minutes idea to relax. Read a good book that will take your mind off your problems, take a leisurely walk, or meditate. You’ll find that these activities can help clear your mind, and as a result, you will be better able to think clearly when communicating with your family or the bank.

2. Exercise. Whether it’s a brisk walk, tennis, swimming, a zumba class, or other activity, exercise is a natural stress reliever that also rejuvenates and increases energy—these are all things that will benefit you and give you added strength during trying times.

3. Eat right. Advising women to eat a balanced, healthy, and nutritional diet is not just for doctors. Caffeine, sugar, and empty calories might give you a quick pick-me-up, but that only lasts a short time before they counter with a let-down. When you’re under pressure or stress, your body needs the right nutrition to stay healthy. Otherwise, you will feel too sluggish, tired, and drained to meet your family’s needs.

4. Get enough sleep. One common complaint among women facing foreclosure is that their worries prevent them from sleeping. Tossing and turning, they don’t get enough deep sleep to function mentally or physically throughout the day. Practice relaxation exercises and develop a routine before bed time that is conducive to sleep. Staying awake at night is not going to help your family, or you, for that matter.

5. Get organized. Whether it’s routine household things or financial paperwork, organization saves time and needless worry and energy. Put everything in its place and keep your documents organized, filing them in an easily accessible manner so you don’t have to waste time or energy looking for a vital document, your car keys, etc. The time you save from organization can be spent on loan modification paperwork, planning, or spending time with your children.

6. Talk. If your spouse isn’t in agreement with you on saving your home, it’s vital that you talk and express your feelings. Opening the lines of communication is vital to the marriage. Work together to make plans, to save your home and/or in the event you are not able to do so. Passing blame or arguing will only add to your burden—remember that your family will always be your family, even if you lose your home. Being respectful and considerate of each other’s feelings and wishes will help you to find common ground.

7. Seek help. Foreclosure is a difficult burden to bear alone. It helps to share your troubles with someone who will listen and not judge. Turning to a friend or relative for support can provide relief. You can also:

Seek counseling. Homeowner’s counseling is a good place to start. If necessary, you can also seek counseling or therapy to handle stress and the various emotions you’re facing. Some women turn to spiritual counseling to find inner peace.

Find a sitter. Whether you have a meeting at the bank or are scheduling an important call with your bank, it’s often beneficial to be alone, in a quiet area where you can think without interruptions. Ask a friend or neighbor to watch the kids during those times, or simply to give you some much-needed time alone with your spouse or to enjoy doing something that brings you satisfaction and happiness.

Share responsibilities. Children are often aware that something is going on. Even if your children are too young to understand, you can ask your family to pitch in and help with routine chores so you can free some time to exercise, visit a friend, or work on preventing foreclosure. Remember, just because you are the wife and mother, that does not mean that you have to be super woman and do it all.

8. Lean on your faith. Whether you worship God or another being, turn to your faith to find inner peace, calmness, comfort, and support. Prayer is a powerful ally, and one which you should turn to frequently for strength, assurance, and support. Your faith will never desert you—it will help you through difficult times and still be there when you’ve cleared this hurdle in your life. Let it guide you and bring you peace of mind in knowing that you have done everything you can do. Then turn your worries over to your God so your burden becomes lighter.

While these suggestions might not save your home, they will help you to mentally, emotionally, physically, and spiritually support you while you do so. By following them, you will be better able to address your current and future situation with as little disruption to your life and the lives of your children. You can do it—you just don’t have to do it all.

Anna Cuevas, known as “America’s Loan Modification Guru,” has guided thousands of Americans in keeping their homes from foreclosure. A popular blogger (askaloanmodguru.com and huffingtonpost.com), Cuevas has been called a “superhero of the loan modification industry” and has been nominated for CNN’s Heroes. She is the #1 bestselling author of SAVE YOUR HOME Without Losing Your Mind or Money.

Today CardHub.com released the 2011 Credit Card Application Study which rated the 10 largest credit card issuers on transparency based on the clarity of their online credit card applications. While it is highly recommended that all consumers read the fine print before applying for a credit card, the reality is that most people do not. Since all credit card issuers know this, it is up to them to determine how up front they want to be with their customers.

Each issuer was assigned points and ranked based on how easy it was to find key components of the credit card agreement, including APRs, annual fees, balance transfer fees, and rewards program information.

Key Findings:

• The majority of issuers improved their absolute scores in the 2011 study relative to 2010.

• Capital One and Bank of America continue to be the best performing issuers, with top scores of 98.6 percent and 97.9 percent, respectively.

• The most improved issuer was U.S. Bank, which improved its score by 32.1 percentage points.

• The two issuers that scored the lowest were Discover and Citi, with scores of 82.5 percent and 82.1 percent, respectively. Both issuers fell by 4 positions relative to their rank in 2010.

• Overall, the disparity between the highest and the lowest score is much less in 2011 than it was in the 2010 study.

• Information related to rewards redemptions and information on the balance transfer fee continue to be the areas with the most deficiencies across the board.

For more information about the study, visit www.CardHub.com today.

It’s Not the GOP or the Dems – It’s CEOs

Mark Faust is tired of hearing politicians complain about President Obama, Obama complain about Congress and Congress complain about taxes when it comes to the stuttering economic recovery.

“The truth is that none of these people have that much to do with the growth of our economy,” said Faust, founder of Echelon Management and author of Growth or Bust! Proven Turnaround Strategies to Grow Your Business. “Tax and monetary policy can influence growth, but the onus is on business leadership to take steps now. It’s the leaders in business whose shoulders prop up the economy, and while they tend to be even more demonized than politicians these days, they are the ones who hold our economic salvation in their hands. The leaders of companies are on the front lines of an international economic war. Their chief strategy to fight this war must begin to encompass a mindset that includes a turnaround mentality to put every facet of American business into an accelerated growth mode. As in war, failure is not an option, and there is only one mission for business leadership at this time – growth.”

Faust, who has consulted for many major blue-chip corporations such as Proctor & Gamble, IBM, Monsanto, Apple, Syngenta, Bayer and John Deere, believes that business leaders have a far greater responsibility to Americans than any elected official, and now is the time to own up to that responsibility.

“The fate of the jobless, families and children are literally in the hands of business leadership,” he added. “To not accelerate growth and innovation is to abandon those in dire need. Our C-level executives must begin to adopt the attitude that tolerating mediocrity in their leadership and growth is a sin. In a free market, the recession is a burden on the people, but a blessing to business, because it eradicates complacency, which is the opposite of innovation and true growth. It also destroys the enemy of growth and innovation: hubris and pride. It gleans the herd in business, which can sometimes have short-term ramifications for everyone, but in the long run it creates jobs, opens opportunity and strengthens the economy as a whole.”

CEOs should be held responsible for their roles as leaders, moreso than even politicians, according to Faust.

“CEOs and company presidents need to be held to the same type of productivity yardsticks that production and others are held to,” he said. “However, rather than productivity, the yardstick boards of directors must use with top leadership is the rate of innovation being facilitated throughout a company. Cost cutting as the only means of growing profits is the tool of inept, derelict and uncreative leadership. When there is a consistent level of mediocre performance in the innovation of a company, the board has only one option with the CEO/President, to allow him to leave the position the same way he or she came into the position, fired with enthusiasm.”

About Mark Faust: Since founding Echelon Management in1990, Mark Faust has consulted with hundreds of companies and spoken to hundreds of organizations on how to foster sales growth. He has interviewed and worked with Fortune 500 CEOs as well as many turnaround CEOs on growth and turnaround projects and many articles. Faust has worked with companies such as P&G, IBM, Monsanto, Apple, Syngenta, Bayer, John Deere, as well as smaller closely held organizations, government agencies and even non-profits. He has been an adjunct COO, VP of Sales, board member/advisor and an adjunct professor at the University of Cincinnati and Ohio University. (www.echelonmanagement.com)

New Study Finds Women are Less Focused on Financial Goals Than Men By Rebekah Barsch

I recently came across a startling statistic: 80 percent of men die married, while 80 percent of women die single¹. Due to increased longevity and other societal factors, this is a reality that women must face. And when it comes to finances, the issue is even more pronounced. Studies still show that women are earning 77 cents to every male dollar², so it is imperative that we take control of our finances today to ensure our financial security tomorrow.

The numbers don’t lie. According to the ‘Stick With It’ study from financial security company Northwestern Mutual, only 21 percent of women have financial goals that extend more than 10 years, while one-third of men have financial goals on that timeline.

The research was conducted by Harris Interactive and surveyed 1,000 men and women to gauge the financial tenacity of Americans today. It also uncovered wide-ranging insights into how women and men prioritize their goals and pursue them over time.

While the research found that in many aspects of our lives women are more goal-oriented than men, this isn’t the case when it comes to long-term financial planning. So what can we do to ensure we are adequately prepared for our financial futures?

For starters, we must view income as our most important asset. Because studies show that over time women tend to earn less, we need to be diligent about protecting our income. Additionally, we must give ourselves options. We should not build our retirement savings thinking that we will live to “average life expectancy.” Women live longer than men, and we need to plan accordingly to ensure we are financially secure for life. Remember, it’s not about getting to retirement… it’s about getting through retirement.

Further, remember that it’s never too late – or too early – to start setting financial goals for the future. The key is to start now. And there is good news for women – the ‘Stick With It’ study also found that we are better at being proactive to achieve goals, using far more strategies to do so than men. For instance, 72 percent of women set interim goals and 57 percent put goals on paper to help keep on track (versus 63 percent and 44 percent for men, respectively).

What’s more, women are more goal-oriented than men when it comes to the short-term financial picture. Nearly two-thirds of us have financial goals that span five years or less, as opposed to only 42 percent of men.

The key is to create both long and short-term financial goals. It’s important to think through what you want to save for now, and in the future. Find an advisor that you trust to help you make tough decisions and keep you on track. Then, stick with your plan.

But remember, life isn’t all about finances. The study also revealed that women define success by more than just their net worth. Women are much more likely than men to define success as being healthy (82% vs. 75%), spending quality time with family (79% vs. 70%) or having a good of a relationship with their significant other (75% vs. 68%).

My message for women: step up and take an active role in your finances. In the end, you’ll only have yourself to thank.

Rebekah Barsch is vice president of market strategy and training at Northwestern Mutual. She is responsible for leading the development of Northwestern Mutual’s strategies surrounding retirement and financial security.Barsch holds a Bachelor of Science degree from the University of Wisconsin-La Crosse, and an MBA from Northwestern University’s Kellogg School of Management.

Expert Reveals the Secret is to Start with a Little Soul

Debt-ceiling debates, credit-rating crises and international economies teetering on a double-dip recession might just be more than enough to scare would-be entrepreneurs out of the risky business of pursuing their ambitions. But not all of them.

Self-made success story Melissa Evans believes innovators who have come to know their true strengths and align their business with their purpose and natural abilities will succeed even in turbulent times.

“Entrepreneurs and companies who have a clear understanding of who they are operate with certainty and confidence, which are the two things businesses and customers want most in these troubled times,” said Evans, a healthcare industry consultant and author of Sole to Soul: How to Identify Your Soul Purpose and Monetize It “Everyone is not broke in this economy, some are thriving. Monetizing your purpose is the best way to have an abundant life.”

Hers is a modern, spiritual take on a classic economic theory: Countries and individuals are most successful and efficient when they know what they do best and focus on it. Aspiring entrepreneurs seeking more control over their financial futures or those looking to remake their careers after a layoff aren’t out of luck if they look inward and define their natural talents, she advised.

Evans offers these points for those looking to swim against the economic undertows:

• Entrepreneurs must start by looking inward: They must know, love and be themselves to be successful.

• They must inspire people to become aligned with their strengths and natural abilities and to put those skills to good use and to work for the good of their community.

• Business people and companies must understand and assess the importance of being clear about their service so that customers can find them.

• That clarity and forthrightness, in turn, will help people and companies monetize the talents and skills they offer, while removing limits to their growth.

“These are times that call out for individuals and business – and even our nation – to clearly define what makes them powerful, unique and able to move forward,” Evans said. “The greatest eras of economic growth occur when individuals, communities and countries embrace their gifts, talents and purpose and come from a place of genuine service – then they will be financially successful.”

As legions of both the unemployed and working people face the prospect that the overall economy will not improve soon, Evans believes a defeatist attitude is the worst possible path to take for individuals and the nation at large. Having interviewed scores of successful business people who succeeded despite the odds against them, Evans said the path to prosperity is clear: Those willing to work toward a single-minded, soul-inspired goal are successful and in turn create abundance for others, she said.

“You can monetize your ‘soul’ purpose, but it’s not all about the money – it’s about your gift and what you offer to others,” she said. “Those who understand what skills and traits make them special, who then develop a purposeful business plan and know how to remove the barriers that stand in their way – even a barrier as big as a recession – will and do succeed.”

About Melissa Evans: Melissa Evans, MHA, PMP, Master Coach, self-made millionaire at age 31 and “The Guru of Implementation,” founded The Broshe Group in 2001 in Atlanta, Georgia. With her focus on the healthcare industry, Evans helped numerous companies improve patient care, safety and service while growing profits. Her privately-held company serves clients worldwide. Read more at www.soletosoulbook.com

10 MONEY TYPES HELP IDENTIFY YOUR “FINANCIAL SELF”

Maggie Baker, Ph.D.

Author of “Crazy About Money,” Offers 10 “Money Types” That Identify One’s Unique Relationship to Money

Brain wiring, behavioral quirks, and our early life experiences provide a new way of understanding our “money behavior.” The better you understand how you use money, how you think and feel about it, and how you organize it – or how it organizes you — the easier it is to figure out what is holding you back from having a more balanced attitude toward money.

Maggie Baker, Ph.D., a Philadelphia area financial psychologist and author of “Crazy About Money: How Emotions Confuse Our Money Choices and What to Do About It”, has developed 10 “money types” which identify your unique relationship to money which are a part of your “financial self.”

Which type are you?

1. THE SPENDTHRIFT: Enjoys spending money for immediate pleasure; has a hard time saving and prioritizing for the future.

2. THE STOCKPILER: Hoards money; carefully follows a budget in order to achieve financial goals.

3. THE INDULGER: Saves obsessively, then spends all of his/her savings in a flash without really knowing why.

4. THE SPARTAN: Believes that the love of money is the root of all evil; self-esteem is derived from feeling superior to money and those who seek it.

5. THE ELUDER: Balancing a checkbook provides anxiety and tension. Avoiding the topic is this type’s course of action.

6. THE AMASSER: Self-worth is an extension of how much money they have accumulated.

7. THE GAMBLER: Risk-takers who love the thrill of adventure; tends to throw their money around in the hope of winning big.

8. THE CONSERVER: Determined to find the best value for their money no matter what it takes.

9. THE DEALER: Loves showing his/her power and ability to get a better deal on whatever he/she buys.

10. THE RISK AVOIDER: Hates financial surprises and setbacks; chooses safety and security in all things financial.

Once you’ve identified your “money type” or mixture of types, Baker believes it will help you develop the awareness and ability to effectively reflect and understand how you behave with money, and how money affects your self-esteem.

Baker states that the way we deal with money and the resulting emotions can interfere with rational decision-making processes. The impact of unacknowledged emotion on behavior and self-esteem is powerful and leaves people with little control over what is happening to them financially. By learning to experience emotions directly and reflect on them, we become more creative, solve problems more effectively, and feel better about ourselves.

“None of the money types are essentially good or bad; rather, each simply characterizes our attitude and behavior toward money. If our attitude or behavior is obsessive – too intense, too extreme, too rigid, or too destructive – it is time to examine your money type and behavior in depth,” says Baker.

For more information on “money types” or to purchase a copy of “Crazy About Money How Emotions Confuse Our Money Choices and What to Do About It,” visit Amazon.com or maggiebakerphd.com.

Copyright (C) 2011, Maggie Baker, PhD. All Rights Reserved. Reprinted by permission of Maggie Baker, Ph.D., financial psychologist and author of “Crazy About Money: How Emotions Confuse Our Money Choices and What to Do About It.”

By Paul Vazquez 

Times are tough. Financial pressure can impact your physical and mental health, your relationships, and your ability to be a good spouse, parent, and employee. Here are some great ways to lower your stress by making a few simple changes in the way you “do life” and handle your money.

•If you don’t need it, sell it: All of us have stuff that we no longer need or want, and much of it has value. If you have lots of small items, consider having a garage sale. If you have large items or items that have significant value, post them on Craigslist or eBay. Selling your “extra stuff” has the double benefit of clearing out unwanted clutter and giving you some extra cash.

•Don’t pay retail: Almost anything you need or want can be purchased at a discount. Shopping at discount retail stores like Marshall’s and TJ Maxx lets you wear the latest fashions without having to pay full retail price. Use coupons and buy in bulk whenever possible. Know retailers’ seasonal sale cycles and wait for sales. And don’t overlook shopping online. Not only is it easier to comparison shop, but many online retailers offer promotions and discount codes that can save you tons of money.

•Brew your own coffee: Sometimes it’s the small things that are the difference between budgeting success and failure. That cup of coffee you buy on the way to work probably costs you between $2 and $5. On an annual basis, that can easily cost you $400 to $1,000! For much less than what you would spend on your favorite latte, you can brew your own premium brand coffee and add just about any flavor imaginable. Your morning Cup O’ Joe will be even more enjoyable when you think about the money you are saving.

•Practice the art of bartering: Don’t be afraid to haggle on large purchases and services. When buying something like a water softener, it’s not unusual get a discount by naming your own price or by asking for free “add-ons” like a supply of softener salt. Many companies such as those in the home remodeling and construction industry are scrambling for business in this difficult economy. Most tradesmen are willing to forgo larger profit margins for the chance to stay busy and maintain a relatively predictable income. Negotiating can even work with retailers, especially if you can point to offers from their competitors.

•Be a smart Back-to-School shopper: Labor Day sales are a retailer’s last big opportunity to push Back-to-School sales and deals. Many Labor Day sale items are holdovers from summer and are deeply discounted, but they are still in fashion and can often be worn by many kids into or through the fall. Don’t stray too far from your “needs list.” The urge to buy extra clothes and supplies during the Back-to-School savings blitz is tempting, but acting on the urge can drive up your costs and leave you with little left for those unexpected expenses that are sure to crop up after classes begin. Weekly circulars from your local supermarket or drug store often offer discount pricing on school supplies to encourage customers to shop in their stores. Kid-oriented stores like Gap and Old Navy offer great deals that are typically updated each week beginning in mid to late July through the end of August.

Paul Vazquez is the Director of Media Relations at Keycode.com, an online coupon and promotion code company.  The vision of Paul and his two partners at Keycode.com is to help consumers find outstanding online deals and discounts by offering the best available coupons and promotion codes to online shoppers from over 3,000 retailers.