Sarah Fallaw is CEO of Data Points, and also the daughter of Thomas J. Stanley, author of The Millionaire Next Door . I’m a fan of hers, and I have lived my life by that book.
For anyone who has worked in a company where you have a job description, Sarah has come up with a brilliant, simple job description for managing our every day cash.
5 Good Household Cash Behaviors
1. Social Indifference:
The more you care about what people think of you, and the more time you spend on Facebook/Instagram etc. getting “likes”, the more you will spend cash based on peer pressure. HOW TO CHANGE: Define your own dreams instead of following others.
2. Conscientiousness:
Is paying attention to details, sticking to a spending plan and doing what you say you will. No exceptions, no special rules, no letting yourself off the hook. HOW TO CHANGE: Start with small rules, like paying cash for everything under $50.
3. Focus:
Means keeping your eye on your goals. HOW TO CHANGE: Set aside time to review your money regularly – as in once a week or once a month, not once a year.
4. Empathy/Agreeableness:
Is your ability to work through issues with your partner by understanding their needs and wants as well as your own. HOW TO CHANGE: Understand their money beliefs , family money history compared to yours.
Related: One Small Change Reduces Anxiety + Increases Control + Saves Money
5. Financial Literacy:
Is the ability to make financial decisions that contribute to your financial well-being by having the necessary tools and understanding. Click here for basics.
Having these behaviors means you exhibit them most of the time. How are you doing so far as Chief Household Cash Manager? Stay tuned for the final 5 behaviors in my next blog.