I’d also like to share some what I’ve learned from T. Harv Eker in his book, Secrets of the Millionaire Mind. Among 16 other great ideas, he suggests a money-management formula that I’ve found hard to beat. He says to use half your income for necessities, and allocate the other half into five equal accounts (and if you don’t think you can do this right away, start smaller and work up):
1. Give to whatever inspires you, no strings attached.
2. Save for long-term, big-ticket items, like a car or down-payment on a house.
3. Educate yourself, you should never stop learning! Maybe even focus that education on how to invest.
4. Invest, find one or more vehicles to invest in that give a great return.
5. Have fun! Just blow this 10% of your income every month on something that makes you feel rich, because if you don’t, your subconscious is going to rebel against all the scrimping and try to sabotage you.

David

First– while I work for a credit union, I am not writing as a representative of my workplace, but as a person who believes that every choice I make with my time and money is a “vote” of my values.

While much of your advice to “Wanting Off the Hamster Wheel” in Q&A: How to Finally Get Out of Debt! is very good in terms of change and influence, I’d like to add these thoughts about debt:

• Writing the mission statement (your personal values and goals) should come FIRST. Consider before you buy whether each expenditure is in line with your values and goals. Make a list of all your expenses, including debt payoff. Use the mission statement to help distinguish between a “want” and a “need.”

• Your value of “time with friends” could include a board game or DVD night, or making a dinner together with potluck ingredients, instead of buying dinner out.

• One other idea for a free night out: volunteer at a local theater or event.

• Prevention (i.e.-health & auto care) is less expensive than emergency care.

• Most people don’t have vacation homes or boats to sell–yard sales might be more appropriate.

• Consider researching credit union membership. Find out if you can consolidate any credit card bills onto a low rate, no annual fee card.

• This is a hard road you’re on and you have my admiration. You clearly DO want to pay the debts, or you wouldn’t be able to stick to your goals for months at a time. Try to stay positive–think of ways to have fun without spending money. Think of how much you do have. Be proud of your goals. Think how good it will feel to get a fresh start without debt. It gets better.

Thank you. I love the newsletter and philosophies you espouse in your books. You give practical advice for better communication and making real change.

Can others share the strategies that have worked for them? Of course, not every strategy will work for every person–but the more we can throw against this wall, the more likely we are to help others.

David

I could not have been more wrong!

My daughter’s immediate reaction was “Good. That means we can sit on the couch and read together.”

And I have enjoyed so many things that I lost to the 1-3 hours of daily TV I used to watch – meaningful conversations, books and poetry, photography, walks, cooking, exercise . . .

Since then I have been remaried, and though we could arguably afford the financial cost of a satelite or cable subscription, neither my wife nor I are interested in giving up all the other, more meaningful ways we are able to connect with each other and our family. Our 9 and 12 year-olds have never once complained about not having TV.

Whether your subscritpion costs $30 or $200 per month, your life-balance may benefit even more than your check-book balance when you choose to cancel it.