Refrigerator Reflections

I got this idea from Wall Street Journal columnist Jonathan Clements who suggests it's best to learn your lessons the old-fashioned way, which is through constant repetition and public humiliation.  No, this has absolutely NOTHING to do with New Year's resolutions and eating habits, but it does have a lot to do with beginning a New Year, your personal finances and your refrigerator. Okay, so you're thinking:  what do my personal finances have to do with my refrigerator?  EVERYTHING! 

Here's how it works:  Your refrigerator serves as your family bulletin board, which is visited not only by the entire family multiple times a day, but also since most social gatherings end up in the kitchen, it is visited at numerous times by extended family, and "highly motivated" neighbors, friends and guests.  That being said, what if you were to allow all of the aforementioned to know your progress for the financial goals you set for yourself?  Do you think you would make greater progress on those goals if you were to face them several times daily?  I think so, for public humiliation can go a long way to achieving those goals.

I've come up with a few examples you can display on your refrigerator.  These are areas we can reflect on improving in the coming year.  Once they begin to take shape, I bet you'll have a desire to make them even better and better so you can prove to your family, friends and neighbors that you not only reached your financial goals, but you also surpassed them.

1. As the saying goes, "Pay your self first," so let's start with this one.  Keep track of how much you're putting into savings.  Start a chart, and add every amount you're putting into savings and your 401(k) at work.  When I was in second grade we had a book contest at school to see who could read the most books by the end of the year.  Everyone had a space on the chart, and we all became very competitive, so we read more and more.  Could this possibly be the beginning to saving more and more?  Hmmm...
2. List all your credit card debt.  This will be a tough one for some folks.  Letting everyone know what you have on your credit cards can come with trepidation.  It may be a great way to embarrass you in to paying them down.  If the refrigerator isn't the right place, perhaps putting the list in a less public place, such as your nightstand would be better.  You'll see it at least twice a day and thus, it will serve as a great reminder.  Either venue, you'll have the reminder and perhaps the motivation to get rid of it.
3. Mr. Clements suggests putting a list of all your financial blunders.  It's not a bad idea, but the way I look at it, no one really makes financial blunders because we're not taught financial literacy to begin with, so how are we supposed to know this stuff?  If you look at what you think are your financial errors, armed with the thought of knowing they really aren't our fault, then you'll be able to face them with confidence and a sense of humor.  As long as you learned from those errors, you'll be constantly reminded of what you learned.  Reward yourself for the learning process by getting a scoop of ice cream.  Ooops...
4. Post a list of all your purchases each day.  Keep them up for a week, and each week take them down and begin posting those week's purchases.  See if patterns begin to develop.  Start to notice those things you really don't need.  This is the area your "concerned" friends and neighbors can help.  They'll be quick to offer suggestions and hints..."Ewww...you spend your money on that????"  Some people are rather insensitive, but they'll at least give you some things to think about.
5. If there is something you wish you could spend less on each month, give yourself a budget.  Say this item is soft drinks.  Give yourself $40 for the month, post it on the refrigerator and subtract your expenditures from the $40; at the end of the month, see how much you have left.  You may have spent more than the $40; if so, plan to do a better job next month.  If you spent less than the $40, see if you can improve the following month, or pick something else out in the following month for which you wish you could cut back.  Make it a game for yourself and you'll have fun.
6. Check your credit report and put up your score.  You can get a credit report for free at Equifax, Experian and TransUnion once a year, so I suggest getting one every four months, that way in a year you'll get your free report from each.  Strive to increase your credit score with each report.  This will also allow you to see if your identity has been compromised; if someone has obtained a credit report for you, which will show up on the report, and you didn't authorize it, perhaps someone is stealing your identity.

Have some fun with your refrigerator reflections.  Get the whole family involved.  You'll create better spending habits and hopefully have some fun at the same time.

Here's to a happy, healthy and prosperous New Year!!!