The problem with personal finance books – Part 1

The problem with personal finance books, is that they don’t allow for the “human factor”. The fact that we are emotional beings, and that we need rewards and encouragement along the way, to help us with our financial goals, are not usually covered in these personal finance books.

On paper, it all sounds good, you get excited, this is the year you are going to get back on track, pay off debt, and have lots of savings. You get out the charts as suggested in the finance books, you map a “strict budget” and feel that you will have the strength to stick to it.

NOT, this all sounds great on paper, like most diet, self help books, and especially finance books, they all give you great ideas, but many times they don’t take into account the emotions you are going to feel when you are deprived of your favorite things or activities in the name of “personal financial success”.

If you followed some of these finance books, you would go to work, not have any coffee, eat dried bread, come home sit in a corner in the dark, and then start again the next day!..and not spend a dime… A slight exageration, I know, but you get the message! No wonder people don’t stick to budgets, or even like the sound of the word!

The best way to deal with this, is to get some great ideas from the books on saving money, but you will also have to look at your lifestyle. How much are you willing to give up to save money?.. Make a list of all the extra’s you have been buying, especially with cash, and then work out an amount you can live with for during the work week. Work out what you CAN live without and what you just CAN’T live without, but also have an amount worked in for some “fun and entertainment”. Depending on your budget, it doesn’t have to be much.

This does not mean, run out and buy that skirt you always wanted, or go to that fancy restaurant, its all about balance, make sure you can go to the movies, or have dessert out instead of dinner, do some compromising. I know, it means this new financial success, will take a little longer, but you are more likely to stick to a new financial plan if you allow for some fun, and feel good rewards along the way… So, get some ideas from the financial books, but add in some of your own “reward columns”