Ramit Sethi, a personal finance blogger I greatly admire and respect, recently bashed budgets again in a post entitled
7 Lies We Tell Ourselves About Money. In lie number 3, “I’m going to start keeping a budget,” Ramit correctly identifies why people don’t track their spending:

1. It’s hard,
2. It makes you uncomfortable, and
3. It’s easier to pick your nose with your mouth agape and do nothing.

Sound suspiciously like the same reasons there’s an obesity epidemic in the United States.

Many people dislike budgets, because they’re difficult to successfully execute. That’s to be expected. If you’ve spent practically your entire life mismanaging your money, don’t expect the behavior to change instantly.

And forget about the notion it takes 21 days to break a habit. That’s bullshiggedy. You’re in for a much longer battle than that. Every January 2nd, the gym is overrun with people who’ve resolved to exercise more and lose weight. By mid-February, the resolutioners are all gone, and I can show up to spinning class 5 minutes before it starts confident a bike will be available.

If people worked out consistently, made healthy food choices, and burned more calories than they consumed, would they lose weight? That’s what the experts say.

Does the common gym have the equipment necessary to increase muscle mass and burn fat? So I’ve heard.

If your income is greater than your expenses, is it possible to save money? There is no other way.

As the answers to the three questions above indicate, it’s not the gym or the budget that’s keeping you from accomplishing your goals.

Don’t be too hasty blaming your failure on the plan. The problem doesn’t lie within the plan. It lies within you. Budgets, like fitness goals, aren’t suppose to work.

You are.

If you allow it, a budget can be an effective tool in your overall financial plan. It’s a written testament to the fact that monetary resources are limited and that in order to accumulate wealth you must live below your means.

Oh, what a magical world we’d live in if the mere act of writing down wishes automatically resulted in receiving them. Unfortunately, a carefully crafted budget ain’t worth a warm bucket of spit if you don’t follow through.

How do you plan on achieving your 2010 financial goals?

The previous post dealt with The First 5 Questions to Ask Yourself Before Buying Anything. Here we’ll primarily address what to do if you haven’t convinced yourself not to purchase a particular item, or you don’t know how to get it for free. Before you open your wallet, ask the following:

1. Can I borrow it?

With the exception of money, to the extent a friend, family member or neighbor is willing to loan you something that won’t result in the transmission of a contagious infection, then I’m all for it.

There are two big upsides to borrowing: 1) it usually doesn’t cost anything and 2) you don’t have to store the item when you’re done with. Personally, I have a tendency to destroy things, so I try to shy away from borrowing stuff that’s prone to breakage.

2. Should I rent it?

Depending on your lifestyle, there are certain items that are more cost effective and more convenient to rent. It’s hard to find a justifiable reason to blow a lot of money on something needed for a specific occasion. Sites like Zilok and Rent the Runway provide the perfect marketplaces for renting that pressure washer or party dress you’ll only use a time or two.

3. Can I exchange something I don’t want for it?

You probably got plenty of valuable junk laying around that you can give up in return for something useful. With websites like SwapTree, Swapstyle.com, U-Exchange, and BarterBee.com, you can make room for possessions you’ll likely use in return for some mess you’ll never use.

4. Can I buy it for less than full price?

We’ve already touched on how to save money by consuming a modest dosage of patience in The First 5 Questions to Ask Yourself Before Buying Anything. But let’s say you either can’t or aren’t willing to wait. Here are a few tactics you can apply to get the best deals along with websites that make saving money easier.

• Use a mobile coupon or coupon code*: RetailMeNot, Currentcodes.com, DealsPlus, Coupon Chief.

• Look for on-line cash back offers: FatWallet, Ebates, Coupon Cactus, Bing cashback.

• Hunt for bargains: The Bargainist, CheapStingyBargains.com, GottaDeal.com, DealCatcher.com

If all else fails, conduct a Twitter or Google search using the name of the product or retailer you’re looking for plus either or all of the three search terms: coupon code, discount code, or promo code.

5. Can I afford it?

Ah, this is one of my favorites. If you get to the point where you are shamefully willing to pay full price (I’ve been there) for a product or service, a “no” answer to this question should put the breaks on any spending.

Here’s the quick and dirty test to determine whether you can afford something or not. If you can’t pay cash for it (whatever it is), then it’s not within your means. I’ll leave you to read into that statement what you will.

*If you’re a smartphone user, don’t be afraid to flash the cashier a store coupon on your mobile device. A few days ago, I saved 15% by redeeming an unprinted Kohl’s coupon I found on RetailMeNot using my iPhone. And yes, I conducted the last minute on-line coupon search in the dressing room.

Are there any questions you ask yourself before making a purchase decision? What resources do you find helpful in answering any of the questions above?

The likelihood of us becoming close friends is inversely related to your propensity to hassle me. Words generally used to describe me are “smart,” “sarcastic,” and just plain ol’ “awesome.”

Over the years, I’ve managed to escape labels such as “generous” or “giving.” Why? Again, because I don’t want to be hassled. You need a favor. Leave me alone. Figure out how to do it yourself. I have little patience for those who don’t grasp the concept of self sufficiency.

However, I don’t see myself as selfish. Before I help someone, I usually ask myself three questions:

1. How burdensome is the task they’re asking of me?
2. Can they do it themselves with relative ease?
3. If I asked the same of them, would they be able and willing to help me?

Right now, you’re probably thinking that I am pretty selfish.

Allow me to explain.

Just because I’m unwilling to sacrifice my time, money and energy for an individual who resembles the likes of an inconsiderate freeloader more than a disadvantaged victim, doesn’t mean I’m selfish. And you know what? If you share the same opinion (albeit biased), you’re not selfish either.

Many people confuse spinelessness with generosity. They know they don’t wanna help nobody. If they weren’t afraid of what others would think of them, their responses to common requests would go something like this:

Transportation Request

Question: Can you drop me off at the airport? My flight leaves at 6:00 in the morning.

Answer: No.

Question: Why not?

Answer: Because I don’t feel like it. You know I don’t wake up until 8:15. Take a cab.

Moving Request

Question: Could you help me move on Saturday?

Answer: No.

Question: Why not?

Answer: I don’t know you like that. Plus, I don’t feel like it. You’ve been ducking and dodging me since I loaned you $50. Um, since you brought it up, where’s my money?

Money Request

Question: Can I borrow $350 to pay my light bill?

Answer: No.

Question: Why not?

Answer: You already owe me $50. If I had it to loan, I’d give it to you. Actually, I could give it to you. But I don’t feel like it. Maybe if you sell that big screen you just bought, you’ll have the money to pay a taxi and the movers and your light bill.

You have to shut down people who always need something. Unlike genuine charitable giving, enabling deadbeats only make you feel like a pushover. Not only are they time sucks and financial drains, they rob you of the opportunity to relish in your charitableness.

Before you agree to lend your services, ask yourself – Am I doing this because I’m generous, or is my lack of a spine clouding my judgment?

How do you decide who’s deserving of your sacrifice?