10 Habits To Develop Financial Stability And Success

 Just like any goal, getting your finances stable and becoming financially successful requires the development of good financial habits. I’ve been researching this topic extensively in the last few years in my quest to eliminate debt, increase my savings and increase financial security for my family. I’ll talk more about these habits individually, but wanted to list them in a summary (I know, but I’m a compulsive list-maker).

Here they are, in no particular order:

1. Make savings automatic. This should be your top priority, especially if you don’t have a solid emergency fund yet. Make it the first bill you pay each payday, by having a set amount automatically transferred from your checking account to your savings (try an online savings account). Don’t even think about this transaction — just make sure it happens, each and every payday.


2. Control your impulse spending. The biggest problem for many of us. Impulse spending, on eating out and shopping and online purchases, is a big drain on our finances, the biggest budget breaker for many, and a sure way to be in dire financial straits. See Monitor Your Impulse Spending for more tips.


3. Evaluate your expenses, and live frugally. If you’ve never tracked your expenses, try tracking every purchase for one month.  Then evaluate how you’re spending your money, and see what you can cut out or reduce. Decide if each expense is absolutely necessary, then eliminate the unnecessary. See How To Save Money for more.


4. Invest in your future. If you’re young, you probably don’t think about retirement much. But it’s important. Even if you think you can always plan for retirement later, do it now. The growth of your investments over time will be amazing if you start in your 20s. Start by increasing your 401(k) to the maximum of your company’s match, if that’s available to you. After that, the best bet is probably a Roth IRA. Do a little research, but whatever you do, start now!


5. Keep your family secure. The first step is to save for an emergency fund, so that if anything happens, you’ve got the money. If you have a spouse and/or dependents, you should definitely get life insurance and make a will — as soon as possible! Also research other insurance, such as homeowner’s or renter’s insurance.


6. Eliminate and avoid debt. If you’ve got credit cards, personal loans, or other such debt, you need to start a debt elimination plan. List out your debts and arrange them in order from smallest balance at the top to largest at the bottom. Then focus on the debt at the top, putting as much as you can into it, even if it’s just $40-50 extra (more would be better). When that amount is paid off, celebrate! Then take the total amount you were paying (say $70 minimum payment plus the $50 extra for a total of $120) and add that to the minimum payment of the next largest debt. Continue this process, with your extra amount snowballing as you go along, until you pay off all your debts. This could take several years, but it’s a very rewarding process, and very necessary.


7. Use the envelope system. This is a simple system to keep track of how much money you have for spending. Let’s say you set aside three amounts in your budget each payday — one for gas, one for groceries, one for eating out. Withdraw those amounts on payday, and put them in three separate envelopes. That way, you can easily track how much you have left for each of these expenses, and when you run out of money, you know it immediately. You don’t overspend in these categories. If you regularly run out too fast, you may need to rethink your budget.


8. Pay bills immediately, or automatically. One good habit is to pay bills as soon as they come in. Also, as much as possible, try to get your bills to be paid through automatic deduction. For those that can’t, use your bank’s online check system to make regular automatic payments. This way, all of your regular expenses in your budget are taken care of.


9. Read about personal finances. The more you educate yourself, the better your finances will be.


10. Look to grow your net worth. Do whatever you can to improve your net worth, either by reducing your debt, increasing your savings, or increasing your income, or all of the above. Look for new ways to make money, or to get paid more for what you do. Over the course of months, if you calculate your net worth each month, you’ll see it grow. And that feels great.

A Guide To Living Frugal

 An ongoing quest for me, and one that I am renewing this year, is to eliminate all that is unnecessary from my life. Now, you might read this and think that I am cutting everything fun from my life, but that’s not true. Let me explain.

The first question in this quest, of course, is what does “necessary” mean? We must first examine what things are necessary … and the first question in this examination is … necessary for what? What is the true aim? My answer, which will be different than others, is “necessary for a happy life.”

This definition, then, would include many things besides the basics of clothing, shelter and food. I might not need a good relationship with my wife in order to survive, but it is necessary for me to be happy in life (I’ve found). Same thing with my kids. To be happy, I must develop a good relationship with them, make them happy, and spend time with them.

But that doesn’t mean that anything I do with them counts as necessary. I can be happy with my children just by going to a free park — I don’t need to buy them things all the time, or go costly entertainment (like movies, the mall, or waterparks).

Similarly, we need to eat, but we don’t need to eat junk food. True, you might say that sweets, or french fries, make you happy. Well, that’s the key to this whole exercise: do you really need something to be happy? And even more, do you need it on a daily basis, or can it be an occasional treat?

Coffee and chocolate are two recent examples for me. I love both. A lot. But I am addicted to them (because of the caffeine), and that makes me want them more than I really need them to be happy. So I am trying to cut them out, at least for now. I think later, after I kick the habit, I can indulge in those things as a treat, once in awhile, without lapsing into addiction.

Other things I can cut out (except as treats):

• Going to movies (I rarely do this anymore)


• Sweets, like pastries or baked goods or candies (rarer now, but still a MAJOR temptation)


• toys (gizmos and gadgets that are a lot of fun, but not necessary – like an mp3 player)


• new books (I try to buy used now, or trade em)


• eating out (have been trying to cut back, but still lapse more than I should)

And some things that I need to think hard about:

• cable internet (I have this at work — it’s nice at home, but I’m not sure if it’s necessary)


• cell phone (I don’t NEED it too much — it’s convenient, but it’s rare that I really need it)

On the whole, I’ve cut out a lot already, and I’m very happy with the simplicity I’ve created so far. I have a lot more to do, but it’s the process that I enjoy, not the end product.

Monitor Your Impulse Spending

 Do you have a problem with impulse spending? If so, the first step to controlling it is monitoring your urges. Make it a goal to monitor and track your spending urges over the next week or two.

Keep a small notebook handy, and every time you get an urge to buy something, practical or not, put a little tally in the notebook. Tally every urge, whether it is to buy something online, or at a store, looking at a catalog, thinking about that new iPod while at your desk, or even if it’s multiple urges to buy the same item.

Whether you buy the item or not, just keep track of the urges. Many times the urges are subconscious. You won’t be able to control your spending if you’re not aware of it.

Some other tips, beyond this first step, for controlling impulse spending:

• Avoid the mall or Walmart other shopping areas. Just going there practically guarantees you’ll buy something on impulse. Do something outdoors or at home instead.


• If you have to go shopping, go with a list. And stick to the list. Tell yourself that anything not on the list is strictly verboten.


• Keep a 30-day list. If you have an urge to buy something, make it a rule that you have to first write it on your 30-day list. If, at the end of those 30 days, you still want it, then you can buy it (if you have the money). Just the act of putting it on the list (awareness) and forcing yourself to wait (delay) can make a big difference.


• Breathe. And drink water. This delay can help you get past your urge.


• Find other things to do with your friends or family. Do you hang out with people who love to shop as a pastime? Encourage them to do something else. Go outside, to a park, to the beach. Have a potluck dinner at home. If your friends refuse to change, you may want to give some thought to who you hang out with, if you have different values.

Gmail Zen: Clean Out Your Inbox

 I use Gmail exclusively for email, and it constitutes a major part of my two day jobs. I get a fair amount of email each hour, and I am pretty quick at responding.

However, one thing you’ll notice about my Gmail inbox is that it is just about always empty.

It gives me a Zen feeling to have a clean inbox, a feeling of peace and calm and satisfaction. I highly recommend it to everyone. I wasn’t always like this — I had many emails in my inbox in the past. They would sit in there, sometimes unread, sometimes just waiting on an action, sometimes waiting to be filed, and others just waiting because I was procrastinating. I also had many folders for filing my email, so I could find them when I needed them. It would take me awhile to file sometimes, so I would put it off. Many people I know are the same way.

Here are my simple steps to achieving Email Zen:

1) Don’t check email first thing in the morning, or have it constantly on. This is a tip offered by many blogs, so nothing new here. Checking email first thing will get you stuck in email for awhile. Instead, do your most important thing for the day, or the thing you’ve been procrastinating on the most. Then check email. Better yet, do 2 or 3 things first. Also, if you are constantly checking email throughout the day, or it notifies you as soon as an email comes in, you will be constantly distracted and not able to focus on the task before you. I check once an hour, but you might have different needs.

2) When you check your email, dispose of each one, one at a time, right away. Make a decision on what needs to be done on each email.

2a) Is it junk or some forwarded email? Trash it immediately.

2b) Is it a long email that you just need to read for information? File it in a Read folder (or tag it Read and archive) or print it to read on the road (while waiting in line, for example).

2c) If the email requires action, make a note of the action on your to-do or GTD lists to do later. Also note to check the email for info if necessary. Then archive the email. You can easily find it later when you need to do that task.

2d) If you can respond to it in a minute or two, do so immediately. Don’t put it off. If you wait, you’ll end up with a backlog of emails to respond to, and you may never get around to it. I respond quickly, with a short note, and send it right away. That way I’m viewed as responsive and on top of things.

2e) If you need to follow up on the email later, or are waiting for a response, note it on a Waiting For list. Don’t just leave it in your inbox as a reminder.

3) I have only one folder: Archive. When I respond to an email, or finish reading it if it doesn’t need response, or note it on my to-do list, I archive it. Simple as that. You could add a Read folder if you want. I usually print longer ones to read later, like during lunch or while waiting for something. Other people have an Action folder or a Waiting For folder, but I find that that’s just an additional inbox that you have to constantly check. I don’t like to check extra folders. I have my to-do lists and my Waiting For list, and that’s good enough. So it’s as simple as pressing “Archive” on an email, and if I need to find it later, Gmail’s search is so good that it’s easy to find. I’ve never had any problems with this system.

Email Zen is that easy: check email at regular periods, take action on each email right away (or note it on a list to do later) and archive.

Ahhh. Empty inbox!

3 Easy Steps to a Permanently Clear Desk

 Once upon a time, my desk was cluttered with all the things I was currently working on — not to mention dozens of things I wasn’t working on: notes, post-its, phone numbers, papers to be filed, stacks of stuff to work on later. I was too busy to organize it, and if I ever did get it cleared, it would pile up soon after.

It’s a different story today. These days, my desk is always clear, except for the one thing I’m working on, and perhaps a notebook and pen for jotting down notes, ideas or to-dos as they come up. It’s a liberating feeling … it calms me … it reduces stress and chaos … it definitely makes things easier to find … and it makes me more efficient and productive.

How did I make the transformation? Well, it wasn’t an easy journey, and I’ve improved over the years, but the basic steps are outlined below. The important thing to remember is that you must have a system in place, and you must teach yourself to follow the system. Otherwise, you just clean your desk, and it gets messy again.

Here’s the system:

1. First, take everything on your desk and in your drawers, and put them in one big pile. Put it in your “in basket” (if it doesn’t fit, pile it next to your desk or something). From now on, everything that comes in must go in your in basket, and you process everything as below.

2. Process this pile from the top down. Never re-sort, never skip a single piece of paper, never put a piece of paper back on the pile. Do what needs to be done with that paper, and then move on to the next in the pile. The options: trash it, delegate it, file it, do it, or put it on a list to do later. In that order of preference. Do it if it takes 2 minutes or less to complete. If it takes more, and you can’t trash, delegate or file it, then put it on a list of to-dos (more on your to-do list in another post).

3. Repeat at least once daily to keep desk clear. The end of the day is best, but I tend to process and tidy up as I go through the day. Once you’ve processed your pile, your desk is clear. You’ve trashed or filed or somehow put everything where it belongs (not on top of your desk or stashed in a drawer). Keep it that way. You must follow the system above: put everything in your inbox, then take action on each piece of paper in the inbox with one of the steps listed. If an item is on your to-do list, you can keep the paper associated with it in an “Action” folder. But you must regularly (daily or weekly) go through this folder to ensure that everything is purged.

It’s that simple. Have a phone number on a post-it? Don’t leave it on top of your desk. File it in your rolodex or contacts program. Have something you need to work on later? Don’t keep the papers on top of your desk. Put it on your to-do list, and file the papers in your Action folder. File or trash or delegate everything else.

Leaving stuff on top of your desk is procrastination (and as a procrastinator, I should know). If you put it off until later, things will be sure to pile up on your desk. Deal with them immediately, make a decision, take action.

What I’ve described is a good habit to learn, but it takes time to learn it. You’ll slip. Just remind yourself, and then do it. Soon it’ll be a habit you have a hard time breaking. And trust me, once you’re used to your desk being clear, you won’t want to break this habit.

The Speculative World Building Template

1. The Physical Foundation (The "Where")

Before you populate the world, you need to understand the constraints of the terrain.

• Geography & Climate: Is it a single-biome world (like an ice planet) or diverse? How do mountains, oceans, or toxic wastes dictate where people live?

• Celestial Context: How many suns or moons are there? How does the day/night cycle or seasonal shift affect biology?

• The "Weird" Factor: What is the one physical law that differs from our world? (e.g., floating continents, a world where it never stops raining, or a planet with a vertical "up-down" gravity shift).

2. The Power Structure (The "Who")

Setting is defined by who holds the keys to the kingdom.

• Governance: Is it a crumbling empire, a corporate technocracy, or a loose collection of magic-wielding tribes?

• The Economy: What is the most valuable resource? Is it "Spice," mana, fresh water, or data? Whoever controls this resource controls the setting.

• Social Hierarchy: Who is at the top, and who is at the bottom? How does a person move between these layers (if they can at all)?

3. The Rules of Reality (The "How")

Whether it’s Magic or Tech, the "system" must be consistent.

• The Magic/Tech System: What are the costs? (e.g., using magic drains physical stamina, or FTL travel causes premature aging).

• Infrastructure: How do people get around? Think about the difference between a world connected by ancient "stargates" versus one reliant on horse-drawn wagons.

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4. The Daily Grind (The "Vibe")

This is where you find the sensory details that create immersion.

• Architecture & Aesthetics: Do people live in brutalist concrete bunkers or organic tree-cities? What do the textures feel like?

• Taboos & Traditions: What is considered a grave insult? What does this society celebrate, and what do they fear?

• The "Old World": What lies beneath the surface? Every great setting has "ruins"—the remnants of those who came before.

5. The Environmental Conflict (The "Why")

Finally, connect the setting back to your plot.

• Current Instability: Is the world dying, expanding, or undergoing a revolution?

• The Pressure Point: What part of the environment is currently making life difficult for your protagonist? (e.g., a looming "Long Winter" or a solar flare threatening the power grid).

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How to use this: Try to answer just three of these points in detail today. Once you have those, the rest of the world often begins to reveal itself through logical necessity.

Ideas to Save Money

 So you want to try the frugal lifestyle.  It will take simplifying your life and cutting back on little things, one at a time. And while there are definitely many more things you can scrimp and save on, these are some quick ideas.  Here’s how to save money:

1) Cut your own hair. I bought a $20 buzzer, and it lasts about a year. I used to get a haircut every month, at a cost of $20 (including tip, not including gas money to get there and valuable time spent there). So I save the cost of about 11 haircuts a year. I do the same for my three sons, saving another 36 haircuts (at $10 each). Annual savings: $580.

2) No Cable TV. You can watch almost every TV show you like on the internet now.  Also try watching DVDs or reading. DVD's are inexpensive now (especially if you rent or borrow them). Cable costs about $65/month. Annual savings: $780.

3) Became vegan. Eat fresh fruits and veggies, which are expensive, sure, but you are supposed to eat those whether you’re vegan, vegetarian or a carnivore, so I don’t count those as extra expenses. The real comparison is between meat, and the protein substitutes you use. Most of your protein will come from tofu, although you can eat beans and soy protein such as fake ground beef or soy burgers. Overall I believe you will save about $2-3 per day not eating meat. Annual savings: $900.

4) Don’t use the gym. I used to be a member of a gym. Didn’t use it much, and still got charged for a full year. Now I get a lot of exercise, but I do it at home and on the road. I do strength exercises in my living room and jog (and will soon start cycling and swimming). Annual savings: $420.

5) Rarely go to the movies. I used to go out to the movies at least once a week, and sometimes more. I slowly made it every other week, and now I don’t even go once a month. Now we take the kids to the park or out to do something more fun and creative. I figure this saves us at least $15 per week, although it’s probably more when you factor in the cost of my kids’ tickets, and concessions.Annual savings: $780.

6) Quit smoking. I quit about 20 years ago, but if you haven't this can be a huge savings. If you smoked a pack a day, plus a soda or tea or coffee to go with the cigarettes, at a cost of about $9 per day. Annual savings: $3,200.

7) Don’t drink much. I never did, still don't. But for some people, drinking is a major expense. A beer or two a day can add up, and for the sake of these calculations, I’ll count it. Annual savings: $800.

8) Never go out. Don’t go to clubs, or the theater, or ballet, or opera. This is an extreme and won't work for some people.  At least consider cutting back.  Annual savings: maybe $500.

9) Stay healthy. If you are a vegan, a runner, and don’t drink or smoke anymore, you may never have to go to the doctor.  If you keep up this lifestyle, your likelihood of getting the most common diseases are greatly lowered. Annual savings: probably $1,200.

10) Don’t go shopping. We used to hang out at the mall a lot. It was convenient, and had a lot of great stuff to look at, and a food court. The food court alone costs $30 for us, and if we bought stuff that would be another $25-75. Cha-ching. Now I rarely ever, ever, ever go to the mall. I hate it anyway. I only go to the mall or Kmart if I need something, and even then I try my best to avoid it. Annual savings: probably $2,600.

11) Try to be a single car family. Even if you are a married couple with six kids, soccer practice, choir, school functions, many many family gatherings, running events, martial arts, and much more. You can get by on one car. Look to get a used van with better fuel economy, and consider commuting at least a few times a week by bike. Annual savings: unknown, but perhaps $5,000.

12) Bring your own lunch. Your co-workers eat out every day, at a cost of $8-20 per lunch. I bring leftovers or a sandwich and fruits and pretzels and stuff. At a cost of probably less than $5. Annual savings: $1,800.

13) No magazine or newspaper subscriptions. I used to have the paper delivered. Now I read it online or at work. I used to subscribe to 1-2 magazines. Now I read the Internet. Annual savings: $360.

14) Rarely buy new clothes. Buy what you need, not what catches your eye in the store (another reason to stay out of the mall).  Annual savings: maybe $400.

15) Rarely travel. We would all like to travel. When you are out of debt and your savings accounts are nice and healthy, then travel. But for now, skip it. Others take at least a trip per year. Annual savings: $1,500.

16) No more lattes. Many of us get a latte every day. At a cost of about $4 per latte. Sometimes you get two. Make your own coffee. Annual savings: about $1,000.

There are more little ways that you can learn to save, like buying books at a used book store, cooking most of your meals (aside from the above-mentioned lunches), power-saving measures, no long distance calls. There are also ways you can still save, including eating out less (eat out 1-3 times per week, mostly fast food like pizza or Taco Bell or Wendy’s, all of which I can do without).

Estimated total savings: $22,000.

Now, I’m not sure if most people spend the full amounts listed above, or if I ever did. But at some point, I did come close, and I think many people do as well. But however you look at it, there are ways to save money. Does this all go into savings? Of course not. Choose two of the above or ten, either way you will start saving money!