Posts Tagged ‘savings’

We buy things for many reasons, we buy lots of things we need and lots of things we don’t need. If you have serious designs on making money it is vital that you understand why people buy.

# Necessity:

We can’t live without things such as food, water, shelter etc, so we have to aquire them. However there is a subtle difference between actual necessities and perceived necessities.

Human beings can be extremely impulsive and exposure to products and services can make us think that we cannot live without them. Furthermore we are very susceptible to the power of peer pressure. ‘The kid next door has got a new bike so our kids have to have one.’

We actually feel guilty or bad if we don’t buy our kids everything their conmtemporaries have. Thus, we as a society leave ourselves wide open to exploitation by the advertising industry.

“An object in possession seldom retains the same charm that it had in pursuit.” –  Pliny the Younger (62 AD – 114 AD)

# Emotions:

Our emotions play a great part in our shopping habits, lots of people comfort-shop, they buy things to give themselves a boost. Our mood is easily manipulated and our senses our susceptible to music, visual displays, enticing smells etc.

We buy for fun, we buy things that give us pleasure, we buy things that make us feel good, we buy to escape reality.

Mementos are also big sellers, there is nothing we like more than something that reminds us of a cherished memory – The power of nostalgia is immense.

We are all capable of greed, we all love a bargain, we all buy bulk items that we will never use.

# Real benefits:

We are fortunate to live at a time of great technological advancement, the labour-saving devices that have become available to us over the last 50 years have been astonishing.

Most of us like to improve ourselves, we will buy something if it will educate us or our children. Education is now available to a large proportion of us whereas less than a hundred years ago it was only available to a priviliged few. Furthermore the internet has made it possible for us to access information like never before.

We also buy things that we hope will make us money, we invest in all manner of things from jewellry to stocks and shares.

“To have little is to possess. To have plenty is to be perplexed.
Lao-tzu.” (604 BC – 531 BC)

# Image:

Everyone loves to look and feel good. image and prestige are both key buying motivators, if something makes us look good in the eyes of other people then we will buy it.

# Health: If we don’t have our health then we have nothing. People will pay to become healthier. Too often though we think we can get a ‘bargain’ a ‘quick fix’. Prevention is always better than the cure, moderation in all things

# Influences:

I started my career in retailing so I know a bit about sales psychology. I think the most important thing you can convey to someone in order to get them ito buy from you is TRUST.

We all like to buy from people we trust, someone that is going to make sure we get value for money, someone who is going to guide us through the minefields of their particular product or service. Trust is a key ingredient of repeat business.

Top advertisers and retailers are extremely adept at influencing our decision making when it comes to buying things, they create the right ambience for their products and services. They appeal to our ego’s, they make us think buying their goods will improve us in all manner of ways.

Personally, apart from life-saving products I think freedom and space are the most important commodities. If we can acheive these things then we owe it to ourselves to find the time to enjoy them.

“Before we set our hearts too much upon anything, let us examine how happy those are who already possess it.” F. Rochefoucauld (1613 – 1680)



No matter what we think about money it is vital to everone’s existence. Money often gets a bad press but placed in the right hands it can do amazing things.

Money is meant to be fluid, to flow from one person to another, it is not meant to be horded.

“Money can’t buy you happiness but it can buy you the kind of misery you prefer” (Author unknown)

Many people prevent money from comming into their lives for a variety of reasons. Some people don’t think they are worthy of it, it’s not the money they cant handle it’s themselves. To allow more money to come into our lives we have to believe we are worthy of it.

How do we do that?

We must practice what it is like to have lots of money, get used to the ‘feel’ of being rich. In fact if we want to be good at anything we must practice how to do it. Hang out where rich people do, save up and buy quality clothes and products. Start dressing, acting and thinking like a wealthy person.

Ignore your shortcommings:

Too many people get hung up on their weaknesses instead of concentrating on their strenghs. Just because a person has a limited education, comes from a poor background, speaks with a common accent etc doesn’t mean that they cannot become wealthy. On the contrary most rich people have major shortcommings in other areas of their lives.

“Money frees you from doing things you dislike. Since I dislike doing nearly everything, it comes in handy.” (Groucho Marx)

Money can come to us from many different sources.

Too many people think they can only get money from their jobs. This is such a limmiting belief. Money can come to you from everywhere if you let it. Start thinking positively about it and it will start to flow to you.

Right out of the blue last week I got a cheque from the taxman for over £1,000, the week before my wife found a £20 note whilst clearing out a drawer, the week before that we received an insurance cheque for £850.

Start expecting it, asking for it, wanting it, thinking positively about it, stop moaning abouty the lack of it, being grateful for it and it will start comming to you.

Yesterday, I dropped a penny down the side of my car seat and spent 15 minutes retrieving it, not because I’m a skinflint but because I respect money and what it can do for us.


Clothes shopping is definitely a passtime that divides the sexes. Most women love it and most men hate it. Personally, I can just about tolerate it, I like OWNING new clothes but going shopping for them is a different matter.

I always try-on new clothes before buying them because they can look totally different on than they do hung up in the shop. I always tend to be with my wife when I shop for clothes. The reason for this is probably a combination of her motivating me to buy them and me trusting her taste, if she doesn’t like it I wont buy it.

Her judgement I can handle but most of the male changing rooms in the Uk have a waiting area where all the repective wives and girlfriends congregate. The upshot is that you end up modelling the clothes not just for your own partner but for a host of other women you have never met before as well.

By the end of a clothes buying session I feel that I know these women personally, afterall, most of them will have commented, to my wife more than me, on how I look in numerous different shirts and pairs of trousers. ‘Shucks, the mere thought of it is making me feel all embarassed.’

How come there’s no waiting area for the men in the female changing rooms? They probably use the space to stow all the ‘unsuitable’ shoes and handbags.

What is it with women and handbags? (closely followed by shoes)

Why do women have to posess upwards of thirty handbags? I just dont get it. Yeah, okay they need somewhere to put all their girlie-stuff and I understand the need to match the handbag to the outfit but 30, 40 or even 50 of the damn things, it’s just absurd.

I think a more realistic luggage allowance would be 20kg for men and 100kg for women, ‘That’s including shoes girls put those back in the wardrobe NOW.’ On our last trip abroad I was only allowed 2 pairs of shoes, whilst my wife somehow scraped by with 7.

Why have women never got anything to wear?

This is another fashion mystery, how can it be physically possible to have nothing to wear when you spend half your waking life shopping for clothes?
Most items women buy go straight in the wardrobe and next see the light of day when they decide to have the ‘old season clearout’. Why buy something if you are never going to wear it, guys will wear things until they are worn out and THEN utilise them for wearing whilst doing the gardening or DIY.

I once left my wife alone for 10 minutes in our local village center and when I met up with her again she’d bought a new dress! I vaguely remember her saying something about how it was an absolute bargain and it would’ve been foolish of her NOT to buy it…hmm. Foolish of me more like.

There is no doubt about it women love clothes and a word to the wise for the boys, women ALSO like men who wear nice clothes, I’ve even heard women describe men by what they were wearing and not by what they looked like.

‘Scary, consign that old wardrobe to the gardening shed guys and go out and buy yourselves a new one. That’s if you can you can get past all the women blocking the entrance to the male changing rooms of course.’


It’s the easiest thing in the world to get stuck in a rut, we’ve all done it. Practicing bad habits over a period of weeks, months and even years, then we wake up one day and think how did this happen to me? how did my life become like this? it’s not how I intended it to be, it’s not how I intended to be at all.

We all had fantastic dreams when we were kids, we wanted to be all manner of things; astronauts, football players, models, actors.

Then we hit adolescenece and we started to think differently, by this time we’d been sufficiently conditioned by society to think small, to be sensible and to accept our lot.

Why should we limit ourselves?

Why shouldn’t we think big and if we’ve done things we regret or not been a very nice person we CAN change it, we can set the record straight not just for other people but for ourselves.

Jim Rohn, the legendary personal development specialist once said “Work hard at your job and you will make a living, work hard on yourself and you will make a fortune”.

How true this is, even a little time spent working on ourselves will yield rewards, just admitting that we should strive to improve ourselves is a major acheivement.

I’ve always said that a total life transformation takes about five years but as soon as a person begins working on themselves they will see changes immediately and not just small ones either. But habits both good and bad are hard-wired into our brains so if we want to change them we have to be prepared to be persistent.

When we are looking for a starting point for how we can improve our lives the best place is with the concepts of COMPROMISE and EMPATHY.

If we can make ourselves just 10% easier to deal with both in our business and personal lives then our world’s will take on a much happier complexion. Once people realise that we are making more of an effort with them they will reciprocate it, often to a much greater degree.

We are by nature very impressionable so the company we keep is vital, we should strive to get good people around us – our own personal support group and avoid NEGATIVE people at all costs. Negative people are like parasites they feed off and sap other people’s energy.

Many famous people have turned their lives around so I recommend delving into occasionally to see how the did it.

There is good and bad in everyone, thus it is vital that we are not too harsh on ourselves and we make our personal development goals small and achievable.

We are our own masters, we are free thinkers, we can be whatever we want to be.


A few years back I decided to start monitoring our family budget. Previously, my wife had written down everything we spent and kept a kind of rough running total, it was messy, complicated and moreover it just did not work, it was so innacurate it was unbelievable.

We are all busy people so obviously I didn’t want to commit lots of time to this matter. As important as money is I just wanted a system that was quick, simple and effective.
The method I devised was just that.

So much so that in year one it saved us over £12,000 or if you look at it another way the equivelent of earning another £18,000 per annum before tax.

This is my system:

Monday to Friday I check our current account either by phone or online. I record the balance and the debit transactions in a notepad, this process takes about 2-3 minutes per day. On Friday I also record our credits, plus the ANNUAL RUNNING TOTAL, ie monies in versus monies out, I do nothing over the weekend I don’t have to.

I record the ANNUAL RUNNING TOTAL on a spreadsheet, WEEKLY. Again this takes 2-3 minutes. There’s also a MONTHLY total but this becomes obvious via the spreadsheet. (see below)

(Note on ANNUAL RUNNING TOTAL: If on week 1 total incommings are say £500 and total outgoings are £400 then The A.R.T. is +£100 if the same thing happens on week 2 then the new A.R.T. is +£200 etc)

That’s it, It’s that simple.

There is something about this simple monitoring process that really works, it does NOT make you stingey, just more AWARE, like reversing the psychology of credit cards. IE spend, forget, spend, forget, spend, forget…then big bill drops on your doormat at the end of the month…Oops!

So I reckon for an absolute maximum of 30 minutes extra work per week we ‘earn’ an additional £346.15 per week before tax or £230.76 cash.

What can you do with all this extra money?

I’ll give you some ideas.

My wife is the holiday expert in our family, she sits on the internet (sorry, I mean works dilligently at her office job) like a Preying Mantis and when a bargain comes along, she strikes.

So far this year We’ve had 7nts all inclusive at a brand new 5 star hotel in Morrocco – £720 total (NOT each) and 10nts all inclusive at a brand new 5 star hotel (Paloma Pasha, I think) in Turkey – £1110 total.

Within half an hour of her booking the Turkey holiday it had gone up to £1,850 and I think it’s still about that much for next year. But we won’t be paying that kind of money, no way, we (sorry, she!) will find yet another bargain.

We always check the holidays out thoroughly on ‘trip adviser’. To some degree you can ignore the holidaymakers comments, afterall, there’s just no pleasing some people. Instead, go off the overall rating at the top, not the star rating, the OVERALL customer rating, it’s a really good guideline.

I’ve digressed somewhat, the bottom line in saving money is this:

If you want to effect anything positively then MONITOR it, knowledge really is power. Necessity is the mother of invention but wether you need to save money or not, surely it’s better in your pocket than in someone elses.

Wether you simply read this post and walk away or wether you take some positive ACTION to impliment the system for yourselves is obviously up to you.
But those cocktails on the beach sure do taste nice.

Jotting down the daily debits is easy, the spreadsheet takes a little more effort to set up, but you only have to do that once PER YEAR, then remember to fill in the ANNUAL RUNNING TOTAL once PER WEEK and the MONTHLY TOTAL once PER MONTH.

The spreadsheet looks like this (My site blog will compresses this, so you’ll have to imagine it in columns)


1st  =  NIL
8th  = +£100
15th = +£200
22nd = +£300
29th = +£400



5th  =
12th =
19th =
26th =


At the end of the year the sum of both totals should be identical, the reason I place more emphasis on the ANNUAL RUNNING TOTAL is that it shows you the bigger picture, if come June you are already £5,000 in the RED for the year, then it’s time to start cutting back.

I also make margin notes on any unexpected expenditure we’ve had that week. If you do start making a habit of monitoring exactly what you spend you will become really skilled at it and the previous years spreadsheet will act as an indicator for when your most expensive times of the year are.

I’ve included my notes that helped me compile this blog post for your perusal:

daily records,
previous notes,
what you can spend it on,
weekly totals,
2 minutes per day,
monitor it,
you forget you’ve spent it,
1 credit card only,
dont feel it,
rubs off on everyone else,
pleasure from bargains,
savings allow you to buy quality,
savigs are tax free,
like earning an extra 20k,
amount of waste is amazing,
teaches you organisational skills,
record keeping,
good daily habits,
gets quicker with time.

Enjoy those Pinacolados!