Overcoming the ‘F’ Word: Finances

Photo Credit: Taxcredits.net I confess. I never do math in public. Not even easy math. I am a non-money person and I sometimes think I chose law as a career for the very purpose of avoiding numbers. It's so common among my species that a Bar Exam test-writer once admitted to me that he commonly inserted meaningless numbers into his questions just to derail law students. Some people just don't love it. Their brains aren't wired for numbers. They're scary, and it's work. Hard work. By "some people" I mean me. And chances are, if you're reading this, I'm talking about you, too. Because the consequences are so severe, most of us number-haters are responsible enough to do the bare minimum. But there's a lot more to managing the family coffers than just paying the bills. I was married for nearly ten years the first time my husband explained, "You're not managing our finances. You're paying our bills. There's a difference." My husband was the one recognizing savings opportunities, tracking our budget, recommending when to pay debts, and investing. I was writing checks and hoping I'd eventually save money. But hope and finances just don't go together. For those of you who find yourself exactly where I was, I'm here to offer you hope because you too can overcome your fear of the "F" word! Here is the information you need to know to finally transform your fear into control and success. Less is More Lt Col Shane Ostrom, USAF (Ret) is a Certified Financial Planner and Deputy Director of Financial and Benefits Information for the Military Officers Association of America Transition Center. It's a long title but his advice is something that is astoundingly simple: consolidate. "The more accounts, the more complicated the situation, the more out of control the management and oversight. It can slowly suck you into a whirlpool of trouble," warns Shane, who has seen many families struggle. Remove the complications and time investment required to track multiple accounts. You can consolidate by: - Making sure you don't have multiple retirement accounts, 401(k)'s or savings accounts - Using the minimum number of checking accounts and credit cards - Closing unused loan or credit accounts completely by directly contacting the lender Now that you know how to simplify what you've got, you need a solid plan for tackling the absence of a realistic budget. Our next expert addresses the one best way to overcome this common problem. The Verdict is In: Not Guilty One of the problems that sometimes keeps me from revising my budget is the guilt that accumulates the longer I put it off. I always think I'm becoming my father, who didn't want to go to the hospital because they might tell him he was sick. Ignoring it never makes it go away! Doug Nordman , Navy Veteran and author of The Military Guide to Financial Independence and Retirement, guides military families to financial independence based on limited military pay & benefits. Doug says that his biggest tip for non-money people trying to conquer financial success is to start by knowing what you've got so you can remove guilt from the equation and have a saving incentive. "Make a spending plan that lines up with your values and then track spending instead of wondering where the money goes (or feeling guilty about your debts). Feel proud of yourself for spending money on the things that you value. Before long you'll stop wasting money on the things you don't care about and begin saving as much as you can." Curbing truly damaging spending habits can be more difficult to overcome. Our next expert gives us some tips about how to crush even the most difficult off-budget purchasing desires. Disengage the Primal Brain Latasha Kinnard , CEO of Start Young Financial and author of Amazon #1 Best-Seller 20-Something and Rich , recognizes that one of the top problems for young families is overspending. She helps young people just starting out learn how to take strategic control over financial success. But deciding to rely on sheer willpower and rock-solid discipline is a recipe for disaster. To implement a change in your life, you need some practical tips for overcoming bad habits, and Latasha has some perfect advice about just how to do it: "Before making an unbudgeted purchase, stop and create some physical distance between yourself and the object you want to buy. Speak your motivation out loud so you can hear your own reason. Impulse purchases are driven by a primitive part of our brain that only deals with emotion. If you can give your potential purchase some real thought, and space, you'll have more success sticking to a budget." Removing yourself from the temptation isn't the only way to simplify reaching your financial goals. Our next tip speaks straight to the non-money people who feel genuinely burdened by the task of monthly bill-paying. Use the Easy Button Jeff Rose, author of Soldier of Finance and founder of GoodFinancialCents.com , doesn't want you to spend too much time doing something you hate. So instead of fretting about the time you'll spend, set yourself up for success by automating as much as possible. You can even stagger payment dates to coincide with paychecks and avoid surprises: "Much of your finances can be set up automatically (automatic bill pay, contributions to your TSP or 401k, household expenses) and with free resources like Mint.com or PersonalCapital.com you can track your bank accounts and investment accounts in one central place. So even people who hate to deal with money can keep tabs on their finances in little as 15 minutes per month. The key is getting your systems set up in the beginning to make it as painless as possible." We could all use an Easy Button. And here's a list a resources that will help you find the Easy Button that's right for you. Get What You Need Below is a list of valuable resources that will set you on your way to feeling downright good about the state of your financial affairs. I still hate math, and I still dread having to crunch the checkbook, but I love these experts and their advice. You can't make a change by just reading about all of this, though. You've got to take some action. Let us know in the comments below if you want to share other great financial resources for military families! The Military Guide to Financial Independence and Retirement VetAll royalties & blog revenues go to military-friendly charities MOAA's "Financial Frontlines" Blog A free online resource dedicated to financial planning and education Start Young Financial Group Customized affordable planning for young adults chasing financial goals Good Financial Cents Portal Free Money-Dominating Toolkit, finance blog, and more USAA Money Manager Free personal spending tracker to keep your budget on track Lori Volkman is a Navy brat turned Navy spouse who spent a career as a deputy prosecutor before becoming a corporate consultant for companies with Veteran Benefit Programs. She is CEO of Trajectory Communications and lives with her husband, now a reservist, and her two children in the Pacific Northwest.

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