It almost has a cult-like feel to it, but I don’t think it is one.

Maybe the fact that it feels a bit like one reflects how off-course our collective thinking has become. Sometimes we need to, nearly literally, re-wire our neural pathways. This is what Byron Katie helps folks do.

The rewiring ought to result in greater peace, energy and mental clarity – surely something we’d all do benefit from regarding our approach to our money!
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So here’s the pitch.

We can and should challenge each of our distressing thoughts about money (or anything else, for that matter) by asking the following 4 Questions:

1. Is it true?

2. Can you absolutely know that it’s true?

3. How do you react, what happens, when you believe that thought?

4. Who would you be without that thought?

and the last challenge is to invert that thought and corroborate that inverted thought with examples.
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For example:

Thought: I might die a bag lady.

1. Is it true?
Well, of course, it might not happen. But it could. And that scares the hell out of me.

2. Can you absolutely know that it’s true?
Uhhh… no.

3. How do you react, what happens, when you believe that thought?
I panic inside. I feel discouraged, hopeless and don’t even want to think about money

4. Who would you be without that thought?
Hmmm. I would feel a lot more serene. I would be more confident and optimistic about my finances, and feel better about paying attention to them. I would no longer engage in self-destructive financial habits. I might even learn to invest and start to build myself a nice little nest egg!

And the turnaround inverts and corroborates the thought:

I am not going to die a bag lady.
Corroboration: I have a job and I actually could live a bit more simply and start building a nest egg. | I have relatives who will leave me an inheritance. It isn’t much, but that will supplement my Old Age Security, and it could supplement my own savings quite nicely. | I am addiction-free and mental-illness free and generally healthy. That does not fit the profile of bag ladies!

The last bit, the turnaround, is designed to open our mind to new ways of thinking which align just as fully as our original thought. It may feel unreal, or unlikely, because we are so accustomed to one way of thinking that these new ones are hard to believe. But over time, our neural pathways should rewire and open up in ways that reduce our anxiety and enable us to relax more about money.

Katie’s site gives tons of free resources. Go play with your brain for a while!

Anxious about money? Even paralyzed just thinking about it?

Over the next few days I’ll be posting various ideas and possible techniques to break free so that you have the mental and emotional energy you need to deal more effectively with your money.

Here’s one not-the-usual option. It’s called EFT, Emotional Freedom Technique. It’s a distant cousin of its more mainstream (and generally accepted by professional psychologists) technique called EMDR .

I recently tried it out on a non-money-related matter to good effect. Did it resolve everything? No way. But it certainly helped calm my anxiety and furthermore created some new possible ways of thinking about the issues.

I’ve embedded a video below that will lead you through the technique. You can find more details on this website here or via a google search. I also recommend a FB friend of mine, Sue Burness. I did a session with her resulting in a couple remarkable insights. You may also be happy to hear she has a pay-as-you-can policy.

PART 1

Yes, that Krystal may have done it but dammit, she’s the exception that proves the rule:   If you are hell-bent on getting rid of your debt NOW, you will fail.  Or most of you will.

I feel your stress level shoot up.  Hang in there.

First, some (begrudging) exceptions:

• If you have a healthy income and a small-ish debt ($500 – $2000), go hard.
• If you are young or youthful, unhindered by kids, dogs, violin lessons, boyfriends,  with quantum energy to work multiple jobs go crazy.
• If Frugaliciously You live well and truly below your means, have been for a while, and you’re good like that, go for it too.

But for the rest of you:  those of you who have hit some kind of panicky pissy pain point that makes you think This feels awful and I want this debt of my back NOW, for those of you, listen closely.

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If you are serious about eliminating your debt, it requires a long-haul strategy.   A long-haul, day after day after day after day after day after tomorrow and the day after that and the day after and the day after and the DAY AFTER THAT strategy.

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So.  What can you do to get started on a serious journey, not a loop-de-loop in debt | workworkworkwork | making good progress | DAMN NOW I’M BACK IN DEBT  journey?

Here are three starters:

1. Decide on three small, really small, changes that you can make in your lifestyle that you won’t feel.  Think of things like a subscription for a magazine you don’t read anymore; eliminating your land-line and using your cel and skype instead;  switching to public transit to save on parking fees at work (but only if you can really handle it).   That money you saved?  That specific amount (yes, get your calculator and get specific) now goes to your debt every month.
2. Move your debt to a lower interest debt. Credit cards can be moved to a lower interest card; lower interest card balances can be moved to lines of credit; lines of credit can sometimes be rolled into your mortgage if you have one.  The money you will save in interest? That specific amount (what.  you put your calculator away?  silly you) now goes to your debt every month.
3. Snowball it.  The money saved in #1 and #2 goes to your smallest debt.  Once that is paid off, combine the money saved in #1 and #2 plus whatever you had been paying originally for that smallest debt and start applying that to the next smallest debt.

Come back Saturday for PART 2.

oh, and if you’re burning to eliminate your debt and take control of your money right now, time for you (shameless plug alert) to take my program.

update: for a recap of all Sept Money 101 posts, click here

Photo Credit:  Firepile

Three different people taking my online money coaching program have contacted me recently about creditors who were hounding them, including two who were receiving calls at work.

Here’s one of the emails I received:

Credit cards and debt collection – is there a law stating how many times they can call you in a day? [credit card collections] has been calling me 4-8 times a day for 2 weeks starting at 7:30am! Last week I wasn’t able to answer my phone (mechanical failiure) but this week I can and I just asked to speak to a supervisor, who was of course out of his office.
Any suggestions? I’ve complained to them about this before.

I recognize that I am in arrears with my account, but does that give them the right to basically harass me? Any links / tips would be helpful. thx.

The answer is “NO!  Creditors cannot hound you like that”.  Most Canadian jurisdictions have laws regarding how creditors must operate.

Before proceeding with the resources below, it must be said:   If you are in a situation financially where creditors are hounding you, you need the help of my business.  Listen to this (my story) and take it from there.

In 2003, the Ministers Responsible for Consumer Affairs all across Canada agreed together to work towards legislating limitations on Collection Agencies in their respective jurisdictions.

BC.  According to the Canadian Bar Association of BC creditors can only attempt to call your employer to verify your employment.  They can call you at work once, only if they cannot reach you at home.  In addition, if you request in writing that they contact you only in writing, they must do so.

Alberta:  This legislation (scroll down on the page) applies to collections agencies (as opposed to businesses collecting money you owe)

Saskatchewan:  Collections agencies cannot call you earlier than 8am, after 6pm, or on Sundays or holidays.  There is further protection from harassment

Manitoba: Scroll down to Section 98 for the limits on collections calls.

Ontario:  They can only contact you three times (including leaving voicemail) within a seven day period.  Further information is here.

Quebec:  The legislation isn’t as specific but it provides some parameters

Newfoundland/Labrador:  Scroll down to Section 12

PEI: doesn’t allow them to contact your place of employment at all (see Section 5)

New Brunswick:  has robust regulations.  Scroll down to Section 14.

Nova Scotia:  see Section 20

Territories – sorry – it wasn’t easy to find legislation!  Worst case scenario, contact your MLA.

Today is the start of a 3-post mini series by Career Coach Karen Begemann with a recommendation today, tomorrow and Thursday to strengthen your job security during these days of real economic uncertainty.  We’ve been pretty jittery the past couple of years, haven’t we?  I don’t know about you, but I lived through the dismantling of a bank and it was, well, really awful. Most of you won’t experience anything that drastic (God forbid) but there likely have been and will be lay-offs around you. Here’s recommendation #1 to increase the odds that you won’t be one of them.
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Recommendation  1: Know your Why
Ask yourself, what motivates me to do the work I do?  For some it’s the lifestyle it affords them, for others it may be a sense of contribution, opportunities for learning, growth or advancement. The list goes on.  Think about someone you admire. What is it about them that draws you to them? Chances are they are driven by an inner passion to do what they do.  If you think about what makes people successful, one of the key qualities is this sense of purpose.

Think about moments in your own work where you are completely absorbed by what you are doing. What were you doing that engaged you so fully? These “flow moments” offer us clues to a deeper purpose that motivate us in our work.  Now ask yourself, how can I do more of this and other activities that really engage me?

While being highly engaged with your work is no guarantee of security, the odds increase that you will be doing the quality of work that makes you a highly valued employee.  Being clear on your Why will fuel you to be a high performer.

Check back tomorrow for Recommendation #2!
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Karen Begemann has worked in the career development field for the past 10 years in government-funded employment programs, the corporate sector and in private practice as a Career Coach and Facilitator. Her passion professionally is helping people to connect with meaningful work.  She provides a range of services including career exploration, job search (resume support, networking strategies and job interview coaching) and resiliency coaching (dealing with work related stress). Karen also specializes in working with professional moms who are planning to return to the workforce. She practices in Vancouver, BC and provides coaching services either in person or on the telephone. Karen can be reached at 604-828-5600 for a complimentary telephone session to determine an individual’s career coaching needs. For more information visit www.workmattersconsulting.com.

Photo Credit: Dave77459