Title: Money on Your Mind "Living Beyond Paycheck to Paycheck" May/June 2009 PT 2

" When -- at the store and something's 59 that's really what she came port 59 bucks that's what you need. But of course because retailers are good merchandisers its next to something at seven night. Few more bells and -- little bit nicer this -- yet but it is -- like twenty bucks more but you're paying with a credit card -- if you're paying ability month. You're far more likely to swipe the card and get the seven -- dollar one. As opposed to just handing over three twice. And getting 591 when unattached guy and that's why it really does help to start using cash to heal that pain and dictators and from there."

" Rain especially if you set a budget percent examining the storm going to buy this for sixty dollars. And you bring that sixty dollars and that's where some people even -- that little bit extreme sort of level of captain news about -- and say this month on food person like that. When it out -- out. It's done whereas when it's your credit card it's kind of a little bit unlimited. In and out our that's right now and it fell on similar kind of opposite topic one of your other strategies is about enjoying free -- Eight and a lot of times people almost forget -- way. Their money in some cases or their -- too much of their giant forgetting how to enjoy the stuff they can be. Really low -- that's right I really free to travel about how people can be doing Dan."

" And one of things and people always seem to forget you know we're a pretty urban environments Somerville and surrounding areas not a cheap place to. But on the other hand there's so much available in this community in nearby that doesn't cost anything because you have so much culture here there's no facts or there's no. Fear admission -- go to the public -- known around the common people watching on both the street there's no charge any of those things used to be a lot of fun. This this may still a lot of us find it except that that was a lot of fun and obviously have to go into the restaurant of the -- Our perceptions change as we get older you know when your teenager. You have no money. Your stress isn't really over not having money it's over your friends and news any time with them like she doesn't like you. And as you get older it's almost as though in order to entertain our behalf we must be spending money. And it's and it's really about -- what you're doing and enjoying yourself and there are so many things around this area that we can do now particularly its inventor of the summer. So much to do that really can be enjoyable than the end of the day you can have a really good day and sleep spend any money."

" Well -- don't -- thing and we just get. Almost train -- train ourselves like again this habit that -- involve money with that but it really doesn't and you're touching on this at this sweet point and that. It's about the experiences we have and that's what are remembering whether it's with their family their friends at those things minutes that lock in the heart literally in literally I don't know."

" And the bigger and tell you think I think it's like they're floating camera look at Wrigley apologies because society say that's too easy he's not spending money but the truth as I challenge anyone. You know if you the choice between spending thirty dollars on some random launch or going with your son or daughter pushing him on the swings are watching a soccer game. What truly makes you feel better and your son or daughter in that I thank him to close in fact the quality time that's that you remember that they create memories that comes from."

" Hey and that's the whole idea of it's really coming from a and it's not these outer things that are going to spend their money on. That then going to impact that's really how we feel that's -- the factors spending and just our whole self esteem and worth in the process. And only talk about enjoying the free stuff. Maybe we can do is give people a challenge here to really start to think about what can that be free you know what they're free things that are in your life. That you could be. You know is it add at zero dollars at five dollars to 109 to twenty ninth I've done this in my class is the black. And it's like less of paint that people can come out went. When they just put their creative minds together. And what people can learn from each other like nobody could do that right now and there's so much that's available now and there's even let's say it's -- will million coupons for things -- email -- coupons. In a group -- now. And that will give you a lot of stuff that's going on in the area. And then eat now I've noticed that -- art studios are open -- whether it's the south and in the first Friday or it's. And icy layer of fine -- are so many things now that people can be doing that happening -- I have opportunities raking no. And you just sit in in July yet anything else you can think of time to get it."

" The second thing you know but I I don't I always give people one hour. -- is the stuff that you grew up doing it was whatever was you know it was playing soccer was playing piano as you know going -- going to the beach all these things that I used to. Do plenty of growing up our hobbies and we get disconnected partially because we're working so hard by the way to make money to pay for the things we don't really actually want. But it can get it through with one thing is a lifestyle changes you talked about being partially financial purpose there's more to this than just money it's more than just as technically it's a lifestyle need to adopt if you want to stop living paycheck and part of it is just getting connected with. What truly major happy as a child. The extent of those things can still be Angel today making the time that don't cost a lot of money in all of a sudden your. Quality of life -- up and that's. -- bills."

" Right it's just so amazed and an academy that's simple to really take that step back to think about it. In a couple other of your strategies that I -- so relevant right now is one as the idea of major on the major. And then we can touch on -- how we address the minor -- in terms of not forgetting about that recurring -- and they kind of turns into a major -- so want to restart with the made on the major what some things. Are the people can be doing now that would consider the fact."

" The key point of the major on the major mine on the -- strategy as it sounds it's -- focused right that you want to put major emphasis on the -- expenses but the same time to free yourself we weren't about what's truly nonsensical grand scheme of things because people can swing too far and it becomes like -- regular -- and nutritional diet where they don't forget this is isn't working and you're frustrated and it to the whole thing. So which you really want to do -- seat belts every other part of your life. And so it does give you permission and that strategy major enemy human element to forget about the small things in my mind if you're pushing a shopping cart down and going past. Stop & Shop and have a list which is always a good thing of course but you see the salt in -- remember you know what. We ran -- all -- it and you pause and think I wonder if that's cheaper target Wal-Mart stop the nonsense right it's over its software you're gonna buy it again in five years it's 59 cents. Pick up the salt put in the carton of one of your life. Right you can't get so worked up over small things. Another and I do you want people to be concerned with the major things. And the major things are expanses. That reaches certain dollar threshold of course for you and -- and all the people watching it's different on. -- amounts for different ages we had different savings to this point lines. But there's a rule of thumb that I developed I think works very well for everyone to take home with them right now I think it's very simple. If when you're making the time the decision to make a purchase if at that time. You can't afford to buy the whole thing with cash during the signing up for monthly payments -- finance. That means it's a major expects doesn't it's about expects but it definitely needs is some speakers include house code of conduct with a car right. Few people can buy. Those things for cash but if you live in the work in the suburbs in a car right not a bad thing. For some people flat screen TV is a major expense for others it's not. Life isn't fair but for the person who's making that major decision. To make that purchase I want you to be the -- to decide you know what I can handle. The implications. Of what this purchases -- the rest of my financial life it's worth it to me not to be able to collapse for a couple months because I want to Steve or to not. But the key takeaways which is really something that's changed over the last couple generations is that just because someone -- selling something doesn't mean you can afford it. Do you now have to be the one to decide whether or not worth it -- want people to me. Major focus on those decisions."

" So Leo part of it is that quality of being fiscally responsible and right and recognizing that you are in control of the spending that you're making. And how can you actively choose what you want to focus on and really how you can maximize the return that you're getting and minimize your investments right. And -- animators people can think about it when they're making that initial purchase but they can also think about it. Currently so let's say that they bought their house five or ten years ago now they can still look at the money that they're spending. Even you know at the time there was a major Spencer and now it still major when they look at whether -- is going in the month. So they can -- animator and that way to I'd imagine on a monthly basis and look at where the big items that you're spending and can now -- be reduced about they think sometimes people get into this like status quo mentality where they think oh there's nothing I can -- I'm always going to have to be spending tax dollars on my mortgage but the reality is that especially right now. People can't pursue other options they can consult the if there's. Cost benefit to refinancing right now -- right and they have other major things that people commit looking at the other."

" Think it's always a possibility that you could revisit some of these major expenses through refinancing and so forth. But for most people refinancing -- exception of the -- I'd -- car you know once you sign up for that recent 36 months you're paying that amount for 36 month period there's no undo button that's it you're stuck with. And you can get you know fortunate an environment where interest rates are going down. If your house press hasn't gone down with -- that you may be able to refinance but for most people I want campus to be on when you're making the purchase decision. And the beautiful part about that strategy also this doesn't come up off. How often you're -- house how often really Bangkok a few times a decade. Where is getting the -- decision getting a lot -- getting the groceries you gotta get those right several times a week an animal can still as important as making sure that you can get a car between it."