Archive for the ‘Patterned Behavior’ Category

Spending Without Thinking

Patterned Behavior | April 21, 2011

Do you know what causes the biggest waste of your money? Impulse.

All successful savers and investors have one thing in common. That is? Impulse control.

When is the last time you stopped and had a 10 second conversation with yourself about what you were about to buy? People love to solve their problems (is it really solved?) as quickly as possible so that they don’t have to think about it anymore. Why is it so difficult for everyone to delay decision making where it pertains to spending money? Isn’t that what has our Country in trouble right now? You know, road rage and impulse spending are caused by the same mechanism. In both cases, your inability to control yourself is the cause of the problem. So what if someone drifted into your lane? You’re fine. Do you really need to chase him down and tell him what you think? So what if you are getting tired of your car? Do you really need to go to the dealership today and replace it?

If you answered yes to either of those questions, I feel sorry for you. I also know in my heart that you can change. I’ve seen it happen many times. Is today your day? What do you need to do to take the first step? Do you need to get in an accident? Do you need to be arrested? Do you need to lose your house, go broke or compromise your future? Or can you simply begin today to take responsibility for your actions? Can you act like a fully functional adult? Can you control your impulse?

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History and Control

Patterned Behavior, The Psychology of Money | February 25, 2011

Two major keys to your financial success are tied to history and control. Understanding both can lead you to where you want to be financially. The question is…….will you study history (yours and the market’s) and will you give up control?

Typically, the most difficult people to convert to a new way of thinking are those that are most in need of a new way to think. Folks that do not save or invest their money wake up one day to find that for all of their hard work, they have nothing to show for it in the form of savings. You might think that would lead to an epiphany. “I need to start saving now. I need to start investing now.” Unfortunately, it usually doesn’t happen that way. Too often, people become embarrassed about the position that they find themselves in. They may even become depressed. Embarrassment and depression usually lead to inaction or coverup or worse of all, justification. “I couldn’t save because (insert reason here).”

A few years pass and the cycle starts again. No different than how most people diet or exercise. Cure one and you cure them all. Think about your habits. Commit to changing them. Live with the discomfort (it’s temporary – trust me, been there many times) and allow your nervous system to be reset. In the meantime, try to stop using a lack of knowledge as a roadblock for beginning the process. Hire an investment advisor, a trainer and a nutritionist. Don’t over worry if they are the right one. Use your gut. You can always change advisors later if you don’t feel synergistic with them. Getting into the process is the most important part. Start today and you’ll be one day closer to your goals. Don’t and you’ll be one day further away from your goals and your true self.

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The Other Half of the Story

Patterned Behavior | November 4, 2010

Have you ever sat back and listened, really listened, to the half stories that are presented to you every day in the media?

What is a half story? You know, when the person selling something only tells you the part that sounds good and leaves out all of the rest. I think you may know what I’m talking about if I call it what it really is……….a lie by omission.

If you pay close attention, you will begin to see this pattern everywhere. It is damaging, deceitful and wrong. And the worst part? You do it too.

Whenever you have a regularly accepted way of doing something, you have a half story. Here is how it works. Someone ( advertisers, media, corporations, groups etc.) create a message. The message is intended to create action. It is typically worded in a manner that has the following characteristics:

1) It is brief

2) It is easy to remember

3) It requires minimal thought from the listener (You)

4) It requests immediate action from the listener (You again.)

5) It always includes a half story that claims to cure your problem (The one you didn’t know you had).

Examples? Sure. I love examples.

Realtors: “Now is a great time to buy!”

Automobile Dealers: “Get top dollar for your trade in!”

Retailers: “Buy now and make no payments for 1 year!”

“One day only!”   “Buy one, get the other half off!”  “Dress up like a boa constrictor and get 10% off admission!” Ok, I made up the last one but I’m almost certain that you’ll hear that one used soon.

You get my drift?

Oh yeah. And now for the part where I explain how you do it too. You do do it, don’t you?  Do you mindlessly repeat what you hear to all of your friends? Maybe a little reminder would help to jog your memory?

“OMG! 3rd pair free sale tomorrow at the mall. Want to come with?”

“Bro. $3 pints and free mini wings tonight at Drunky’s. Wanna go? It’ll be awesome!”

And therein lies the problem. You see, whatever it is that you do you become susceptible to. It’s a very simple reality. You may not have control over the marketers but you do (or you could) have control over yourself. So if you don’t want to be marketed to, stop marketing to others. Stop telling your wife what a great deal you got on the jet ski and then get mad about the new shoes she just bought.

C’mon Dino. I understand your point but I love sales! I just can’t resist saving money!

I hear you. Well, here is something for you to consider until next time. How can you save money by spending it?

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