Vickie's Viewpoint

Debt can be a vicious cycle. We start the debt cycle by finding a way to JUSTIFY adding on new debt.

Ways we JUSTIFY Adding on New Debt-

1 To rectify our past mistakes.

(Example: You got in a fender bender by not paying attention and you need to fix your bumper.)

2  To reward ourselves.

(Example: You’ve lost weight so you deserve to buy a new outfit.)

3  To get rid of the old debt.

(Example: Taking out a second mortgage to pay off credit cards.)

As soon as we JUSTIFY it, we take on new debt. This causes more stress and more financial consequences. For relief, we JUSTIFY adding on more debt. The more we do it, the more problems result and the more we seek relief from the problems.

When we catch ourselves explaining, rationalizing, defending, or making excuses why we need to add new debt, we’re caught in the debt cycle.

Click here for a FREE MP3 download of a live recording of Vickie Champion’s Avoid the Money Madness! Workshop.

I talked to two people this week who mentioned that they were tired of being nickel and dimed. This reminded me of a coaching client I had years ago.

This hard-working mother of four children felt shame that she couldn’t give her children more. So we poured over her budget and I learned that every night she was buying fast food for dinner.

Clearly she was nickel and diming her money away. And the habit was costly in other ways. She was overweight and two of her children also were getting chubby. Easy fix, right? Tell the mother to stop the nightly drive-thru runs. But she worked long hours and coming home to cook – her least favorite thing to do –wasn’t likely something she would stick with very long.

Instead, we returned to the issue of what she wanted her money to do for her: provide more for her children. I asked if she had millions of dollars what would she do for her kids. With no hesitation she answered, “Take them to Disneyland.”

I suggested she call a family meeting and ask her kids if they had a choice between Disneyland and eating fast food every night which they would choose. They chose Disneyland, which meant that everyone, including the 4-year-old, was responsible for saving for it.

Each family member, including her husband, was responsible for cooking one dinner a week. You realize for the two younger kids, that meant many nights of  cooking peanut butter and jelly and macaroni and cheese.

Whatever was leftover from their food budget that week was put in a piggy bank until they had what they needed.

Eight months later, the family went to Disneyland.

Here’s Some of the Benefits of Going for Their Dream…

Everyone in the family…

• Learned how to budget and save for what they wanted.
• Worked as a team.
• Bonded with each other over a common goal.
• Learned how to accept responsibility.
• Ate healthier and avoided gaining more weight.
• Built their self-esteem.
• Realized dreams can come true.

So often we put ourselves on auto pilot and nickel and dime our money away. Yet, if we would go for our dreams, we would benefit on so many levels.

Learn more about mindful spending, dream budgeting and taking your finances off auto pilot by clicking here for a FREE recording of Vickie Champion’s Avoid the Money Madness! Workshop.

When I was a kid, my folks gave me a weekly allowance. I had to make choices and save for what I really wanted.  But when I turned 18, I decided that a weekly allowance was kid stuff and I didn’t need it any longer.  I was a grown up now and ready for what I thought was financial freedom. What a mistake! After years of constant financial troubles handling things the grown up way, I finally figured out weekly allowances aren’t just for kids.

Here’s what I NOW know about weekly allowances:

Why EVERYONE Needs a Weekly Allowance:

1. Let’s us know exactly how much money is going out.
2. Breaks the mindless habit of using ATMs & Debit Cards.
3. Makes us think long term instead of getting a quick fix.
4. Teaches us and our kids how to manage money.
5. For couples, it keeps both equal so that one is not spending more than the other.
6. Makes budgeting so much easier and more accurate by not having to track the little purchases.
7. Saves a lot of money.
8. Helps us achieve our dreams.

Most of us are now in the process of learning how to manage money the hard way like I did. Don’t waste anymore time! Get EVERYONE in your household on a weekly allowance.

For more information on our relationship with money, see Vickie Champion’s articles in the About Money Issues section of her website.

Do you know of someone who is…

• Having financial troubles
• Avoiding their money problems
• Having a hard time sleeping at night over money issues
• Struggling to figure out what to do next
• Feeling hopeless

Click here for a FREE MP3 download of a live recording of Vickie’s Avoid the Money Madness! 5 Ways to Take the Scare Out of Your Financial Situation Workshop.

Maybe you’ve heard how a life coach can help you achieve your goals. Or you might know someone who has used a life coach to help them through troubled times. It’s great there are life coaches to help those who need it, but you’re NOT one of them. You are HAPPY with the way things are.

Here are a Few of the Many Advantages of NOT Hiring a Life Coach-

• You can AVOID doing something about your problems, thinking day after day, “Tomorrow will be better.” Lately, I think most people who have money issues are doing this.
• You can continue believing sleepless nights, fighting with your spouse, family and friends, feeling guilty and being afraid all the time are NORMAL.
• You can treat your friends to long CONVERSATIONS about your problems.
• You can keep yourself USEFUL by putting out one fire after another.
• You can appear SELF-RELIANT by trying to break your old patterns and solve problems with no one else’s help.
• You can continue to ENVY the lives of others.
• You can SAVE money! And you can take satisfaction in this, even if does mean sacrificing a quality of life and spending several stressful years of hard work.

If these advantages sound appealing, DO NOT hire a life coach. There’s a good chance, they will ruin this for you. A good life coach has a tendency to help you become self-aware, increase your self-respect, end your self-sacrifice, give you self-confidence and build your self-esteem.

If these advantages don’t appeal to you, visit Vickie’s Individual Coaching section on her website.