Wednesday, January 21, 2015
[Ed. Note: This is from the drafts folder, written October 2013. Don’t know why I never posted it, seems good enough to send out into the world. Even though it will bump Julia from the home page, and put Dave Ramsey there. That’s an unhappy trade if ever there was one. But in the interest of Fresh Content, I am hitting the “publish” button.]
For a while, I’ve been thinking of doing a new feature on this blog called Where I Read Books So You Don’t Have To.
I was reminded of this recently when I read Dave Ramsey’s Total Money Makeover. Man. Talk about stretching things out. That book is barely a magazine article, it’s maybe a Reader’s Digest article, yet the author and publisher managed to stretch it out for 280 completely excruciating pages. Holy schmoly.
I’ll save the full analysis for a future post, but in the meantime I want to talk a little bit about I what I found to be the biggest flaw with Dave Ramsey’s strategy in that book. (Okay, one of the biggest flaws. There were quite a number of flaws, but I’m going to stick with just this one for now.)
One of the main flaws I found with The Total Money Makeover is that Step One is Save $1,000.
Most people I know who are struggling with their finances are struggling BECAUSE THEY ARE UNABLE TO SAVE MONEY. How is telling them to save a thousand dollars useful? If they knew how to save a thousand dollars, wouldn’t they just do it?
Maybe I’m missing something here.
So personally I would suggest a few preliminary steps to get people to the point where they can save a thousand dollars.
The very first step is to think about why you want to fix your finances. What problems are you having that you do not want to have anymore? What goals do you have that you will not be able to achieve living the way you are currently living? What do you hope to accomplish with the program you are thinking of starting?
It might seem like you can skip this step, of course you want to fix your finances, who wants to live paycheck to paycheck for the rest of their life, but the reason you want to do this is because it’s going to be hard and it’s going to take a while and you are going to run into things that totally knock you off track. You need to be motivated enough to get through the hard things, to get back on track, to keep working.
I learned this lesson when I was trying to be more organized.
Progress was slow, and sometimes I felt like I tried as hard as I could but I kept ending up back in the same place. When I started to feel like it wasn’t worth it, I just wasn’t going to be able to do it, maybe I just didn’t have it in me and who cares anyway, the thing that worked to get through was to remember what I was trying to accomplish. Not the grand plan of “being organized,” but living in a house that didn’t always have piles of laundry, or not being late. Those are the things that bothered me, so those were the things I focused on. And those are the things I fixed.
I’m still not organized, but I’m not late anymore, and I always have clean clothes when I need them. [2015 note: Hmm, okay. May have to revise this now that I’m in school. I always have clean clothes when I need them, but they are not always folded and put away. Clearly experiencing some backsliding on this particular goal.]
So think about specifically what you want to fix, and why, and keep that foremost in your mind. Especially when it all feels hopeless.
The other thing you can work on if saving a thousand dollars sounds like taking a trip to the moon is imagining yourself saving money.
If you can imagine yourself saving a thousand dollars, that’s great, you can start working on saving a thousand dollars. If not, get it down to an amount you can imagine saving, in a time frame you can think about. How much can you save each week? Can you save twenty dollars? Ten? One? Start with whatever you can think about starting with and build from there.
As Marilyn Paul says in It’s Hard to Make a Difference When You Can’t Find Your Keys, it’s very difficult to make something happen if you can’t even think about it.
Think about what you want your life to be like. Think about being able to save money. Then imagine yourself doing it.