Debt $ense

I spent sometime at the library today reading David Bach’s “Smart Women Finish Rich.” There were a few sections I only skimmed, but overall I really enjoyed it. I had a pretty good idea what his “Latte Factor” was just from reading other PF blog posts mentioning it, but reading his explanation did make me more determined to cut unnecessary spending from my life.

The part that worked better for me was his values ladder, which was a useful exercise. I realized seeing new places and learning new things is at the top of my ladder, which explains why I’ve been thinking so much about traveling with like-minded friends during the last few years. Knowing that will help with my “Latte Factor” because I can now think “would I rather buy this or be that much closer to the train trip?” I think more often than not, I’ll be putting stuff back on the shelves.

Another part that I liked was writing down extremely specific goals for my financial future. I have a list of six that I’m going to print and tape to my bathroom mirror. I’m also going to tape it to the inside of my money holder so when I’m tempted to spend, I can be reminded of my goals. Just thinking about what I wanted and when I wanted it by was a useful exercise.

I ended up pushing a few goals back a few years once I started writing them out and doing the math, but I will revist them in July after my annual review. At that point, some work-related items should have shaken out and I’ll have a better sense of what the opportunities are there, so I can adjust accordingly. I also added a few goals I had never really thought about besides the vague dreams. Now they will happen, instead of remaining wisps of ideas.