Ted McLyman
Today’s Guest Blog is by Ted McLyman, the author of Money Makes Me Crazy. He has some great insight into why this green stuff we use seems so, well, hard to keep track of and just plain hard to keep in our pockets, let alone our bank accounts. I found it a delightful take on why us simple human beings struggle with money. I hope you enjoy it as well.
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I’ve been working with people and money for years. This is what I’ve learned:
Money makes us crazy!
I have too many choices. I am inundated with too much information. And life is moving at warp speed. I bet I’m just like you. So in deference to Stephen Covey, here are my Seven Habits of Highly Unsuccessful Spenders:
- I can do it, just watch me. We are overconfident that we can control our spending. We think we can control our behavior—this time. We accept the teaser credit card application because we think we won’t use it. We buy “six-months-same-as-cash” because we know we’ll have everything paid off in time. Bad things—life—only happens to the other guy.
- I know I’m right and I can prove it. We rationalize and confirm our spending decisions. No one likes to be wrong and losses/failure emotionally hurt—a lot. We ask “experts” we agree with to confirm our spending choices. We discount anyone who disagrees with us. Over time, we can rationalize just about any spending decision.
- I’m smart. We think the skills and abilities that have made us successful in one area will carry over to our spending decisions. I know a number of very smart and successful professionals who thought they could run a restaurant. They could not—regardless of how good their mom’s pizza recipe. We tend to confuse luck with being smart. Admit it, some of our buying choices worked because we were at the right place at the right time. Brains had nothing to do with it.
- This time is different. We want to believe that a bad spending choice in the past won’t happen again. It can and it may. We aren’t very good with figuring out risk and probability. If we were everyone would own life insurance and not more than 10% of their company’s stock. Remember, the group can be wrong—dot coms, housing, and so forth.
- It’s an investment. We as individuals have no control over the market price or rate of return of anything. We can ask a price for our Beanie Babies, gold plated coins, and collector’s edition presidential plates but the market will determine what it is worth. Just because the guy on television says it’s a great investment does not make it so.
- I have enough time to get my spending under control. We never have as much time as we think. Compounding is our friend—if we use it. We seldom get a “do over” with our money.
- I don’t have enough money. If we are really honest with ourselves, we have money. We simply don’t like to make the hard choices about our spending choices. Instant gratification is great. Our feeling brain loves it. However, have to choose between the car that cost more than my first house and being able to retire in the future.
Now, put down the remote and back away from the television. Spending money is hard work.
Take time now and ask yourself…
What is most important in life to you?
What will it cost to get it?
If I keep spending the way I have been, will I get it?
Don’t worry, you can do this kind of planning any time of the year.
About Ted McLayman:
Ted is a fully licensed financial advisor and author. Prior to forming his own company, Apexx Behavioral Solutions Group, he was a district manager with two major financial planning firms. Ted is a retired Lt. Col, USMC where he served in various command and staff positions to include: economics instructor, U.S Naval Academy; Aide to the Assistant Secretary of the Navy for Financial Management; and served a tour in Southwest Asia during Operation Desert Storm. Ted is an accomplished public speaker and trainer. He’s been married to his high school sweetheart for 35 years. They have two daughters and they make their home in Augusta, GA.
To purchase Money Makes Me Crazy
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