Practice Money Consciousness

Developing money consciousness to the point that it is completely automatic has been recognized as one of the most important skills for any successful person to learn. But how can it be done?

First, identify the questions you want to ask yourself in any situation that could potentially involve a financial obligation. Your list might include the following:

• If I decide to do this, how much will it cost?
• Are there alternative, perhaps less expensive and/or better ways to achieve the same goals?
• If I do this now, how will I pay for it now?
• Is it best (most cost effective) to do it now or later?
• Am I sure there are not other things I would rather spend my available funds on than this?
• If I make this choice now will I consider it to have been a good decision tomorrow?

Perhaps you will want to write in large print on a note card: Is this a money conscious and wise spending decision? On the back write the above list of questions, or your own version, in smaller print. Put the first side up in your wallet where you will see it whenever you start to make a purchase.

Anytime you open your wallet you will see the question and think about whether you are practicing money consciousness in making your decision. If you are, congratulate yourself. If not, review your questions on the back and remind yourself to think about them before initiating an expenditure.

The most essential part of the whole process is that you must always know how you will pay for anything you do at the time you do it. And you must do so without using money that is needed for essential purchases elsewhere.

Don’t forget this either. Charging on a credit card is not paying at all! If you temporarily charge the expense to a card you need to know where the money is coming from to pay that charge before interest accrues.

There are many ways to go about developing money consciousness. It doesn’t matter how you do it. Just keep working at it until it is automatic, and seen as a positive part of the decision making process.

Certainly everyone deserves a little chocolate sometime! But it should never come at the expense of the electric bill or the house payment.

Master this skill and you will have discovered the key to learning how to live on less than you make and always having all the money you need for every good purpose, including an adequate amount of chocolate.