Let me answer that in one word — absolutely!  Following your intuition means listening to your heart and gut instead of your head.  I’m not talking about following your intuition and taking a week-long vacation in Europe when you know you can’t afford it, but I am talking about changing jobs when you hate what you’re doing and believing in yourself to find a new more fulfilling one, or getting help with your finances when you know that you lack the knowledge, skills and tools to do it yourself.

Recently, I made a decision to follow my intuition.  I know that my intuition is 100% right all the time, and it’s proven so over and over again in my life. This decision to follow my intuition came after feeling pulled in two different directions-that of my financial coaching business and that of my wellness business which helps people to live a healthy lifestyle from a personal and financial perspective.  In both businesses I’m fortunate to coach people in making big changes but, as you can imagine, running two businesses on a full-time basis leaves little time for sleep and other important priorities for balance and happiness in life.

So, I felt I was at a crossroad.  I knew that I had to make a choice on where I wanted to focus my time and energy.  I’ve been listening to my inner voice/intuition for these last few months and, as a result, have decided to give 100% focus in 2012 to my wellness business.  I’ll be helping people to live better, healthier and to achieve financial independence and freedom at the same time.  What a powerful combination!!

I thank you for being a loyal reader, and I wish you success and happiness in your financial future.  In the meantime, I’m always here to answer any financial questions you may have via email.  You may send me your question at cindy [at] spendingplan.biz.

If you’d like to begin living a healthier lifestyle and gain financial peace of mind and prosperity, please give me a call to schedule a free 15-minute consultation at 207-590-1931.

What’s more important to you during this holiday season?  Is it making sure that underneath the tree there are presents galore, or that you have financial peace?  Be assured that your loved ones won’t love you any less because you are being fiscally responsible.

Remember, if you overspend and rack up debt during your holiday shopping days, you’ll most likely be starting off 2012 in a way that you really hadn’t intended.  Don’t get caught up in all the hoopla during the holidays, instead create a clear plan.  I encourage you this holiday season to think before you spend.  Here are some helpful tips to keep you out of debt this holiday season:

1.  Determine how much you can afford to spend (in cash) on gifts by taking a look at all your expenses for the month.

2.  Before you head out to do your holiday shopping, make a list!  This is one of the key components to financial success during the holidays.  Take out a piece of paper.  On the very top of the list, write down the total amount you can afford to spend on gifts.  On the left side, write down each person’s name for whom you’ll buy a gift, and on the right side, write down how much you’ll spend for each individual.  Do not spend more than you have decided for each person, no matter what!

3. Leave all credit cards at home.  Only use cash during the holidays; it will help keep you focused on your spending goals from tip number 2 above.

4.  Bring that list with you while you shop, and each time you purchase a gift for someone on your list, write down the total you spent next to his/her name.  You may find that sometimes you find the perfect gift and the actual cost is less than what you actually anticipated spending.  Good for you!  Give yourself a pat on the back and pocket the savings!

5. Make it a stay out of holiday debt game!  Really, let the focus be sticking within your budget and paying cash while finding the best gift for that special someone.  It’s not about spending now and figuring it out later.  Financial success and independence comes from figuring it out and having a plan NOW!

So, go ahead and create your holiday shopping plan and stay out of debt this holiday season.  Financial peace be with you! 

There are a number of reasons or excuses people use in holding themselves back from being financially successful. Here are a few I’ve heard:

• I’m just crazy busy

• I don’t have the money to get financial help

• I’ve just never been good with money

• It’s just too overwhelming

• I feel alone in managing our finances

Here are my comments and solutions to each reason or excuse:

I’m just crazy busy: We are what we tell ourselves we are! So, if your focus is on being crazy busy and you continue to tell yourself so, you’ll actually never find the time to pay attention to your money. Begin repeating more positive phrases to yourself like, “I have plenty of time to focus on my finances,” then find time each week and schedule a money appointment on your calendar! Doing so will affirm that you do, in fact, have plenty of time to manage your finances. Remember, you get more of whatever you focus on.

I don’t have the money to get financial help: My guess is that whatever financial situation you’re currently in, you somehow found the money. Here’s the truth, whatever you decide is a priority is what you’ll spend the time and money doing. If you’re overwhelmed with your finances and you would benefit from the help of a financial coach to get you moving in the right direction, then do so. Educating yourself about managing money is one of the best investments you can make in your financial future.

I’ve just never been good with money: Again, watch what you say to yourself. What you tell yourself is what you’ll believe and this kind of talk drives your behavior. Find a time when you were good with money-what did you do right? What decisions did you make that left you feeling powerful and in control of your money? Only focus on those behaviors that leave you feeling financially confident. Recognize how good this leaves you feeling.

It’s just too overwhelming: A big reason people feel overwhelmed in their financial situation is because they go through life having no money plan or real financial goals. Set goals and then put a plan in place to achieve those financial goals. Taking small steps to achieve your money goals, instead of looking at everything that needs to be done, will help build financial confidence and will increase the chances you’ll succeed. It takes time to achieve goals and win with money so go forth one step at a time!

I feel alone in managing our finances: Often I see one spouse more involved in the financial decisions than the other. It’s perfectly fine if one really wants to take on the role of paying the bills and in general overseeing the money. What is key to achieving financial success as a couple is to make decisions as a couple. Do so by scheduling monthly money meetings with your partner to discuss your money goals and plans. Work as a team in setting goals and achieving financial success and you’ll both feel good about it.

So what does your FICO score really say about you? Well, it’s an indicator of how responsible you are with money and helps potential creditors see how you handle the money you earn and borrow. The higher your score, the lower the interest rate you’ll pay on home, automobile, and credit cards. Lenders use this score to assess the risk you represent.

If your score is low, a lender views you as more likely to be unable to pay back the loan. The idea is that past performance is an indicator of future behavior. A good credit score is considered to be 700 or above. Of course, the higher your score, the more negotiating power you’ll have for a lower interest rate.

What goes into a credit score?

There are five major categories that make up a FICO score. Some factors are weighted more heavily, such as your payment history and debt owed. Here’s a breakdown of all five factors and the percentage totals:

1.  Payment history (35 percent) — Your account payment information, including any delinquencies.

2.  Amounts owed (30 percent) — How much you owe on your accounts. The amount you owe on revolving credit is heavily weighted. Lenders typically don’t like to see any more than 30% borrowed from what’s available.

3.  Length of credit history (10 percent) — How long ago you opened accounts and time since account activity.

4:  Types of credit used (10 percent) — This reflects types of accounts such as revolving or installment.

5:  New credit (10 percent) — How often you pursue new credit, including credit inquiries and number of recently opened accounts.

Here are 3 things you can do to keep your FICO score in the good range (700 or above):

1. Be sure you “always” pay your bills “on time.” I recommend designating one evening per week (set aside 1-2 hours) to focus on your finances. Use this time to pay bills, file and organize papers, review retirement account statements, and make a list of any phone calls you need to make the following day. By giving attention to your finances weekly, you won’t forget what’s important.

2. If you have credit card balances above the 30% ratio, pay this debt down! The goal should be to pay it to zero and then never charge more than 30% of the total credit available for each card, each month. If you have a tendency to abuse credit cards, get rid of them. Yes, it will affect your FICO score in the short-term, but the goal is to keep you financially healthy for the long term.

3. Don’t focus so much on the “Score.” I know that sounds kind of contradictory here, but instead of focusing on the score, focus on your financial health and success instead. Practice good money habits, understand your spending, and live within your means. When you do this, you’re FICO score will naturally go up!

What do you want your FICO score to reflect about you? Start living financially well today!

Do you know what your financial IQ is? You have your IQ, or intelligence quotient, that assesses your overall intelligence level, and an emotional IQ, which measures your ability to control your emotions. Your financial IQ is a measure of your financial intelligence – how well you do with money!

Having a high financial IQ means the most when it comes to your financial success. You can be smart and make a good income but have a low financial IQ, meaning you handle money irresponsibly. A high financial IQ means you make smart financial decisions and take the right action to better your financial circumstances. People with a high financial IQ understand exactly what to do when it comes to managing their money and do it!

Anyone can increase his/her financial IQ. It doesn’t take a Harvard graduate to do so, just pure willingness and commitment to turn your financial situation around. Regardless of how much money you make, you can begin increasing your financial IQ now. This will make you feel financially empowered. Are you ready?

Here are four ways to begin building your financial IQ today!:

1. Stop Avoiding: How long would your boss keep you around if you just ignored or avoided those tasks you really didn’t want to do? Not long–that’s for darn sure! When you begin to give your finances the attention they deserve, that’s when you’ll begin to see change. Working on bettering your relationship with money will increase your financial IQ.

2. Educate Yourself: I’m not suggesting you go back to school to learn about finance or enroll in a class so you know more about stocks and bonds. It’s not necessary that you understand the details of investing when you can hire a trusted advisor to help you with those choices and decisions. It is important that you understand how to change the way you behave with money. Notice how you behave with your money and what decisions you make every day that either better or worsen your financial situation. Commit to engaging in only those behaviors that benefit you. This will increase your financial IQ.

3. Shift Your Thinking: Often it’s our thinking that keeps us in a place where we aren’t growing intellectually. To increase your financial IQ and feel financially successful, shift your mindset. Start thinking more about building wealth than the next expensive thing you think you just can’t live without. When the focus is on spending, it keeps your financial IQ low, but when you start thinking about how to have more money, you’ll increase your financial IQ and start making decisions which follow that mindset. Getting smarter means thinking smarter!

4. Spend Your Time Wisely: Increasing your financial IQ involves allocating time to actually doing the work required to live healthier with money. To be well with money, you’ll need to do well with money. Freeing yourself of debt will increase your financial IQ, so too will controlling your everyday spending. Instead of waiting and wondering whether you can afford what you want, take time each month to plan out your finances by writing down exactly what money comes in and exactly how you will choose to spend that money. Doing this gives you greater control over your money.

Are you ready to start building your financial IQ? You can, and it doesn’t take a Harvard graduate to do so. You can be as smart as you want to be with money when you work on your financial IQ!

Does spending less lead to living more? Is t

For example, my car is now 12-years old and still runs great. My house is filled with items I really enjoy and not filled with lots of things I thought I couldn’t live without. Of course, my car has a few more dings and nicks than it used to when it was in it’s prime, but I know that if it were brand new, I’d be overly protective and pre-occupied with keeping it immaculate and this wouldn’t fit with my lifestyle. Now, I only need to be sure it’s washed every month, waxed once a year and taken in for scheduled maintenance. Oh, did I mention, no car payment for years! That sure is more!

What about you? Do you buy things because you really feel you’ll enjoy them? Or do you tend to accumulate stuff because it was “on sale” and in a few months realize that all it really does is clutter up your life, deplete your energy and reduce your cash flow? Take a day to clear out all the energy drainers in your life. Look at what sucks up your energy and either sell it in a yard sale or donate it. It’s good to purge the things that don’t bring you joy or benefit you in any way. Do this at least once a year–you could make a little money in the process!

I have a relative that has lots of little knick-knacks all around her house. There was a time when she really enjoyed them but now feels they take up her time and energy. She often feels overwhelmed with how much time it takes to clean around all of her decorations. Having fewer decorations would actually free up energy for her to focus on the things she truly loves and enjoys in her life.

Ask yourself these five questions to help you understand why spending less is more:

•  Are there areas in your life where you spend that later just become energy drainers? Maybe it’s a closet full of clothes you don’t wear, household decorations or piles of toys for your kids.

•  What areas do you spend that if you stopped would mean you’d have more money or time

•  Are there times you spend money because you’re unhappy somewhere else in your life?

•  What would spending less really mean for you?

•  How would spending less benefit your relationships?

Spending less often means more time to focus on creating a more meaningful relationship with someone you love, more time with special friends, or more time to work on your dreams and goals. Having less doesn’t mean there is something missing. It’s quite the contrary. Less really means more. Try it and you’ll see!

What times in your life have you felt most happy and joyful? Was money involved?

Here are some examples of when less is more:

•  Less shopping, more time for you and those you love

•  Less spending, more money for retirement

•  Less stuff, more time and energy for what you really love

•  Less debt, more freedom and choices

•  Less time focusing on what other people are doing, more time for you and your financial goals

•  Less financial chaos, more peace and happiness

•  Less financial doubt, more confidence!

•  Less dancing with your financial fears, more financial success!

Let less be more in your life. As for my 12-year old car, I hope she makes it to 20!

A:    I’m assuming that you’re saying you are “anti-budget” because you somehow think this limits you.  The word “budget” sounds more restrictive than say money plan, financial game plan or spending plan, so perhaps changing your approach and thinking about it a little differently might also shift your mindset.  A financial game plan will help you win with money. I recommend Quicken Deluxe for about $60.00.  It provides a great platform to manage your monthly finances.  It allows you to manage and reconcile accounts (bank and credit cards), create reports to view your monthly spending and setup your Spending Plan should you change your thoughts about money planning.  If you own a Mac, iBank for about $60.00 does all of the above and includes an envelope system feature for planned expenses.

Good luck to you and thank you for your question!

Got a question about money or simplifying your financial life?  Ask me, Your Financial Coach, at AskYourFinancialCoach.com.