Show me the $$$: Finance is not an "F" Word

I hear the word finance and I imagine men and women in very expensive suits in luxurious offices completing transactions that neither you nor I could ever possibly understand. Ok, there may be some tasks they do that I probably won't ever do myself. For example, at my own company, I doubt they will ever ask me to determine the appropriate investments in order to minimize the tax ramifications for the following year. That's usually a job delegated to the accountants and MBAs, not the nursing staff. 

 While the word Finance may seem intimidating, it is NOT the "F" word to be feared. 

Finance is Personal. It's a tool that allows you the FREEDOM to spend money in ways that add value to your life. There isn't a one size fits all method when it comes to money, because its well, personal. Let me give you an example. 

While we can talk about how snow is made (rain freezing at a certain temperature... moisture coming from cloud formations, etc.) and a teacher could grade your right or wrong answers  in science class about the process-- It is also impossible to compare the tiny snowflakes that make up the snow because each is unique and different. 

This is how money is personal. There are universal truths, but the application is where the rubber meets the road and adapts to your unique situation. 

Personal finance is defined as The process of determining a person's financial needs or goals for the future and how to achieve them. 

In other words, you decide what you want to spend your money on and then figure out how to do it. So how does one, dare I say BUDGET? It all comes down to planning. I promise not to bore you to tears, so lets talk about a trip. 

• Your friend Taylor is traveling to Italy for work. 
• She will be staying in an apartment overlooking the Amalfi Coast. 
• YOU get to come with her, BUT you need to pay for your own airline ticket. 
• The trip is in 10 months. 

If you want to go to the Amalfi Coast your going to have to do a few things... but doing those things allows you to have a once in a lifetime opportunity. 

1. First, can you afford to go? You could start with looking up the cost of a plane ticket (factoring in a departure date 10 months out). 
2. Do you have the flexibility to pick your travel date (Flying on a Tues/Wed/Thurs is usually cheaper) or do you need to fly with your friend?
3. Once your route is selected -- stick it in the shopping cart and get an ESTIMATE. prices change all the time but your looking for a ball park number.
4. Can you realistically save the money in advance with enough time to book the flight? (Not necessarily 10 months to save if you need to pay for the ticket in advance). 
5. What about other expenses you may have in order to go --- Do you need a passport? What kind of spending money will you need for food, transportation, and to do amazing things? Do you need to pay someone to watch your pets while your gone? 

Now all of those thoughts did not come to me right away. In fact, my good friend Amanda helped me outline all of that (and if your lucky, you'll get to hear more from Amanda as we help debunk finance on the blog) but You see, we all need a little Amanda in our lives, because I have a confession to make. 

I have not been great with money. 

Well, you might say, maybe I didn't know any better. 

Perhaps I grew up in a poor household with parents who did not understand and could not teach me about money. That would make for a great story! Then I could tell you about how I rose from poverty to the upper middle-class life you see me in today. There is one problem with this story, it isn't true.

(It may ring true for Amanda, but not for me). 

You see:

• My father was a CPA who rose through the ranks in the 1950s and 1960s to become a controller (similar to a chief financial officer). 
• My mother was a bookkeeper for a real estate firm. 
• My parents kept to a very tight budget. 
• My mom wore the same sweater for 15 years.
• We didn't buy a new car until our old one died or broke down one too many times. 
• Our house could have done with some new carpet.

Yet they would spend money on items they felt were important such as education and healthy food. In addition, my parents were always generous on holidays and birthdays. Pretty idyllic, right? 

So, what went wrong? Well, nothing at first. 

But I let depression and life take control of my good judgement. That's a story for another time. The point is that I am working to improve my bad habits and I invite you to join me for the ride.

Finance is an important topic that affects everyone. This is an especially relevant topic for those with chronic depression and bipolar depression. Our condition clouds our judgement at times, and we make poor decisions with money based on our mood(s). It's true! This article dives a little deeper on how individuals diagnosed with bipolar disorder may spend copious amounts of money in the midst of a manic episode -- and we all understand the concept of Retail Therapy and the guilt that can come with it.  

But all of that above doesn't mean that we are doomed to fail. 

If we take the time to understand ourselves, our condition(s), and how we can develop some healthy habits, we can change Squandering Sam into Reasonable Riley. 

While Amanda is convinced I'm not a lost cause, I think she has her work cut out for her... But I'm thrilled she has agreed to join me on this segment of the blog so hopefully my past experiences can be your classroom and we can all figure this out together. 

Thriving not Just Surviving is a personal blog, written and edited by yours truly, and features guest writers and my personal life stories. I am NOT a financial professional... I am not a CPA, nor do I hold any financial certifications. Please seek a professional for any “real” advice when it comes to your own finances and money. The views and opinions expressed on this blog are purely the blog owners and are meant for entertainment purposes.