The reason I wanted to write about this to you today is because I want to stop this cycle we are in. I want to help you put procedures in place so you can decipher a want versus a need. When times get tough, you have to cut expenses somewhere, this will help you decide where.

Look at the bills you pay monthly. Needs may be your rent or mortgage, electricity, water, sewer, garbage, gas, etc. Those are some of the pretty obvious ones. Wants may be cable, pest control, pool service, etc. Some of you may be screaming at your computer monitor right now. Yes, cable is a want… :0) You need a roof over your head, you need to stay warm in the winter and cool in the summer, you need gas in your car to get to work and pick up the kids. You do not need to have someone take care of your pool, go to one of the local pool supply stores and get a kit to do it yourself. You do not need cable, I know this may be hard, but with cable bills going through the roof, it is a choice you may have to make. You do not need pest control, you can go to your local hardware store to get the stuff you need to do it yourself. Just make sure to follow the directions exactly and take the appropriate precautions with handling the chemicals.

Sometimes your brain might try to fool you into thinking something is a need instead of a want. Don’t let it do that to you. Take 24 hours to think something over, write out the pro’s and con’s to the purchase, call a friend to discuss and see what they say. All of these things put space between you and the item. Quite frequently you will find you don’t “need” it as much as you originally thought you would. Try it and see!

Over the next couple of weeks I am going to outline ten steps to financial summer survival.  Today is step one:

Take a Vacation – I know that seems counterintuitive, because that takes money, right?  I am aware of the fact that it takes money.  However, I am one of the worst culprits when it comes to not taking a vacation.  I can always come up with some excuse as to why we cannot, usually related to the family budget.  See if you think my logic makes sense, if you take a vacation, you will be refreshed and relaxed…ready to take on the world when you come back.  You will be less likely to get sick or burned out.  So, now you are ready to conquer the universe.  With all that extra energy, you will perform better at work, impress your boss, maybe you will end up getting a promotion, which all leads to more money in the future.  I don’t know about you, but I like that way of thinking.  It is worth spending some money now to rejuvenate…it will pay for itself in the future.

So, take my advice and go on vacation, even if it is a little one.  Something is better than nothing.  Get creative; you don’t have to go to Hawaii to get away.  Check out hidden treasures in your own back yard.  Living in the Sacramento Valley, I have Lake Tahoe or San Francisco within two hours either way.  Not to mention the Napa Valley or any of the other beautiful vacation spots.  Check out your neck of the woods and see what you can find. 

The most important thing is that you relax.  Go!  Have some fun…

Let’s give a mention to all the fantastic things you can do with money:

• It makes you feel good when you have lots of it.
• You can buy lots of cool stuff with it.
• People respect you more if you have it.
• You feel successful if you have plenty of it around.
• It gives you the ultimate freedom.

Who wouldn’t want lots of money around with all those great benefits?  So, let me just make it abundantly clear here, I am not saying money is bad in any way.  I want people to stop running their lives with it. 

Does money run your life?

Ask yourself these questions:

• Does every decision you make revolve around money?
• Do you make decisions that you know in your heart are not right, but financially they “make sense”?
• Have you stayed at a job, just for the money?
• Have you stayed in a bad relationship, just for the financial security?

I know money has run my life for most, if not all, of it.  I spent my entire childhood swinging on a financial pendulum (at no fault of my parents, just life circumstances), holding on for dear life. 

Unfortunately, once I had a little more control of my own finances, I went ahead and built my own pendulum and jumped on (what seemed to be) willingly. 

Recently, I have been experiencing a personal and professional awakening.  Through this experience, I have started to notice all of my decisions are based around money.  I have been making decisions that I knew were not right for me or my family…just because we “needed” the money.  Well, I have put a stop to that. 

One day I was trying to make a very important decision.  I was torn between what my heart knew was right, and what made financial sense.  I did not know what to do. 

As I was sitting quietly with myself, trying to figure everything out, I heard my father’s voice in the back of my head. “Take money out of the equation.  Then make your decision.”  Once I did that, my decision was as clear as day.  I was a little nervous, but I knew my heart would not steer me wrong. 

I can honestly say, that is how I try to make all my decisions now.  If I am really struggling with what is right, I stop and see if money is the largest factor.  If it is, I take it out of the equation and follow my heart.  Life is much easier that way.

If you are miserable when you pay your bills, my guess is, your money is managing you.  You will not have financial freedom as long as that is the case.  I remember when I would pay my bills and I felt like a bird taking a bath.  There was money and paper flying everywhere, not sure where it was going, but it sure was not staying in my bank account.  Since then, I have put in some steps that take that feeling away.  They are:

• Have a specific place you pay the bills
• Make sure you have all the items you will need to take care of everything in one sitting -  If you have to get up to get something, chances are you will find another project to take your attention and the bills will not get paid. 
• Clear the space - You do not want it messy, that just adds to the confusion. 
• Select a day and time each week to pay your bills – If you put it on your calendar, you are more likely to keep the time carved out for that particular task.  If you try to squeeze it in somewhere else, it is much less likely to happen.
• Create a checklist – This way, you make sure you take care of all the things you need to do at one time.  Things like paying bills is obvious.  However, something you might forget to do is transfer money to savings or donate to your favorite charity. 

Hopefully some of these tips can help you create serenity while paying your bills.  I know that sounds like a dream, but you hold the key to making it a reality.

A good friend of mine (Jennifer Bourn, owner of Bourn Creative) shared a quote from Jim Rohn on Twitter that I thought was perfect for this topic.  It is “Reward in becoming a millionaire isn’t the money.  It’s the person you have to become to be a millionaire in the first place.”  If you are struggling with money and finances in general, stop and take a look at how you feel about it. 

• Do you expect to succeed when it comes to money or are you feeling beaten and frustrated? 
• Are you always confident that the money will be there to pay the bills? 
• Do you think the Universe is conspiring for your greater good? 
• Is there a lesson you may need to learn before you can move on to brighter days with regard to your finances? 
• When you go to pay the bills, take stock of your body.  How do you feel?  Are you tense? On edge? Nervous or relaxed?

I am not saying this is an easy thing to do.  Start with one step at a time.  Recognize your feelings.  Try to remember everything happens for a reason.  Maybe there is a lesson to be learned.  Relax and realize you have complete control of your fate.  If you expect to succeed, chances are you will.  You have to become that person first, then the pieces will start falling into place.

Then…things changed.  I am not sure if it was just California or the United States, or the entire world, but things changed.  All of a sudden, sufficient was not good enough.  It was like we all caught this disease that made us think we needed and deserved more than we could afford (myself included).  When my husband and I decided to have children, we knew we needed a larger vehicle, so instead of buying a practical larger vehicle, we went for a full size SUV with navigation, DVD, fancy rims and tires.  Did we really need all that…no.  But, why shouldn’t I have the best?  Right?

I remember feeling pangs of jealousy if my friends had a bigger or nicer house than me.  Wanting a new car after buying the last one six months before because the new one had Blue Tooth technology that my current car did not have.  What did all this do for me (and probably the rest of America)?  It got us into a lot of trouble financially.  Why did I feel the need to have the name brand jeans from an upscale store, when I could go to a discount store and get the same ones for half the price?  I look back now and I don’t know what got into me.

One day, I literally just woke up.  I got it.  My material possessions did not define who I was as a person, nor did they define my family.  I don’t think my friends really care if I am wearing name brand clothes, and if they do, then they really are not true friends, are they? 

As a society, we seemed to get really attached to our material possessions and where that placed us in society.  I saw one of the heirs to the Johnson & Johnson fortune on Oprah several weeks ago and he noted that it was not “cool” any more to flaunt your wealth.  Thank goodness!  When you think about it, it is pretty sad that society got to the point where it was cool to basically rub in everyone’s face how “wealthy” they were.  Maybe we have turned the corner and America has learned a lesson.  What is that lesson?  There are a couple I would like to share with you that I have learned from personal experience.

• Material possessions do not define who you are.
• It is more important to have money in your savings account than material possessions.
• Take note of how your possessions make you feel.  (i.e. If you are buried under an enormous mortgage or car loan, consider selling the house/car.  You will be amazed at how much better you feel without the weight of that mortgage/car loan on your back.)
• Who cares what other people have, you need to look at what is right for you and your family.

Now, I am not saying everyone should go out and buy the most economical house, car, clothes, etc.  I just want people to start being conscious of needs versus wants and what fits into their budget.  If you do that, you should be on the right path in no time.

1. Contributions must be made to qualified organizations to be deductible. You cannot deduct contributions made to specific individuals, political organizations and candidates.
2. You cannot deduct the value of your time or services. Nor can you deduct the cost of raffles, bingo or other games of chance.
3. If your contributions entitle you to merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received.
4. Donations of stock or other property are usually valued at the fair market value of the property. Special rules apply to donation of vehicles.
5. Clothing and household items donated must generally be in good used condition or better to be deductible.
6. Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution.
7. To claim a deduction for contributions of cash or property equaling $250 or more you must obtain a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document from the organization may satisfy both the written communication requirement for monetary gifts and the written acknowledgement requirement for all contributions of $250 or more.
8. If you claim a deduction of more than $500 for all contributed property, you must attach IRS Form 8283, Noncash Charitable Contributions, to your return.
9. Taxpayers donating an item or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which requires an appraisal by a qualified appraiser.
10. Contributions made for relief efforts in a Midwest disaster area receive special benefits. For more information, see Publication 4492-B, Information for Affected Taxpayers in the Midwest Disaster Areas.

Having a good credit score is important to your financial success. It will give you the upper hand when dealing with creditors. Your score is a reflection on how likely you are to make your credit payments on time. Not only does your credit score affect your ability to get a loan, but it will also affect the interest rate you pay for your loan. It will determine where you live, what you drive, and your quality of life.

FICO scores range from 300-850. Most people score in the 600’s and 700’s. Credit scores above 700 are very good, and are a sign of good financial health. FICO scores below 600 indicate high risk to lenders and result in higher interest rates or no loan offered. When you have a low score, a creditor can increase your rate on a credit card you already have without warning.

Many factors go into your credit score. Your payment history makes up the largest part of your score (35%). How much you owe makes up another large part (30%). This also includes how much of your available credit you are using. The length of your credit history is also considered (15%). If you have recently applied for new credit, this will be factored in (10%). Having a mix of loans such as auto, lines of credit, and credit cards also affects your score (10%).
Some ways to improve your score are:

Paying your bills on time

Keep your balances low on credit cards

Pay off debt rather than moving it between credit cards

Apply for and open new credit accounts only when you need them for a true emergency

Check your credit report regularly for accuracy, fix errors immediately

If you have missed payments, get current and stay current

Having good credit will give you the peace of mind that when the opportunity arises you will be able to use that score to your advantage. You will be able to have a home that is yours. You will pay smaller deposits to utility companies. Your credit process will be quicker, preventing you from missing out on lost opportunities.