How You Spend Money

July 5, 2011

Interview with Karen McCall, author of the book Financial Recovery: Developing a Healthy Relationship with Money

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Mike Carruthers:
Managing money is a problem for a lot of us and that takes a toll.

Karen McCall:
That feeling of worry and anxiety for a lot of people, they know at some level that they don’t know what’s going on. They may get their credit card statements and be shocked and what they’ve really spent.
 

Karen McCall, author of the book Financial Recovery: Developing a Healthy Relationship with Money...

The other thing that can be a red flag is that most people when they get their credit cards they absolutely intend to pay them off every month. And sooner or later they find that they can’t especially if they haven’t saved, if they have no savings that’s another red flag.

It’s never too late to start taking control of your finances and Karen says, tracking your spending is a great first step.

If their tracking now they have data for what they are spending so they can evaluate how they feel about where they are spending their money. The other thing that tracking does is that is makes us conscious, “Ah, I’m spending money”. So many people report if they have to write it down they don’t want to spend it so tracking is one of the first things that people can do.

When you don’t have a plan for your money the money often runs out and then you start using credit cards. Karen says we know this because of what happens the 3rd week of every month.

That’s statistically when the credit cards comes out, because the money ran out. Yes, the check didn’t last long enough and that’s because of unconscious spending.

To hear the complete unedited interview, click here