How to handle your money better

I've come to love learnvest.com.  It is the tool I use to cringe at my budget, and is much more non-math-person friendly than Excel or Word, which is how I used to keep our budget.  It lets me set savings goals, subtract bill payments from the rest of the budget, and create custom folders so I can manage where the money goes as well as see when we're approaching going over budget in any of the folders.  This is especially useful since I can update and change the budget any time.  I rarely "know" how much income we're going to have until it actually comes in, so I can edit the income and add money to whichever folders are high on my triage list.

The less income we have, the more I'm looking for ways to make it stretch.  I was super happy to see this article: http://www.learnvest.com/2012/03/7-habits-of-highly-effective-money-managers/?utm_source=email&utm_medium=lvdaily&utm_campaign=read-on

Here are the principles from it (because that's what I'm most interested in) that can help anyone move toward handling money more responsibly:

1. Make a promise and keep it. 

 A promise is a goal that you're held accountable to reach.  Someone who doesn't keep a promise is a liar, someone who doesn't reach a goal just "didn't make it."  Tie your integrity to what you're trying to accomplish.    I might be able to make a promise with my husband about what we'll put away in savings this month.  

2. Trade stress for focus

 Stressing about things doesn't make them happen.  Instead, choose to focus on that thing and actual tenable steps you can take toward accomplishing it.  This comes easier to me than to most people.  

3. Be informed about your purchases

 You can't have enough information.  Impulse buys are financially stupid--the more you "shop around" the better.  I love using the internet to search for better ways to get something.  I saved thousands on textbooks alone during college by not just showing up at the college bookstore with a list in hand--I got the information early and shopped online for used textbooks.  

4. Consistency is mandatory. 

 You can't give up dumb spending for Lent.  This is all your life or don't bother.  You must change who you are, not just what you do.  There is no such thing as "we're doing better, so I can blow more money now."  That opportunity of having a good month is a great time to further your financial goals.  

5. Be conscientious (self-discipline, need for achievement, and organization)

I am definitely high on the conscientious scale, but my mom takes the cake on this one.  I'm self-disciplined and organized, but I don't necessarily feel a need for achievement.  I think tying goals into promises will help me on that area, because then I'll have a very good reason to achieve those things.  

6. Be able to calculate.  "Brush up your math skills!"

 Ugh.  This is my weakest of the seven.  I tend to rely on my husband to do the math for me, as I can barely count to 20 without having to think about it.  Ask me to explain the parts of speech, and I'll be all over it.  I think there are 8, but that's a number.  I may bring a calculator with me on grocery shopping trips.  

7. Delay gratification

This one is so hard for our generation.  Few of us had parents who, when we asked for X item, told us to "save up for it."  My sister and I used to make plans on how many teeth we would have to lose before we could buy a certain toy horse.  Christmas and birthday money was well planned out, too.  We pooled our money, and I don't know how many teeth we lost, but we eventually had a whole box of toy horses.  

You can get the game/CD/DVD when the price goes down.  You can watch the movie in the cheap theatre or wait until it comes out on DVD.  You can wait for a coupon to get that item.  You can buy that or you can grow your own.  You can learn to make your own.  

Each time you delay gratification and it saves you money, write down how much you saved.  Keep a log of it. Some people do this and put the saved money away for a yearly vacation.  

The other thing to emphasize about delayed gratification is that this does not conflict with the consistency bit.  Your money is there, in part, for you to enjoy.  This does not mean that enjoying your money is equivalent to frivolously blowing it.  Even in your fun, maximize your savings.  The planning and information-gathering actually adds to the anticipation of planning a vacation or event.  

I have some principles to work on!  Which ones are the most difficult for you?  How can you work on them?