Whenever I see something like the TV show, Extreme Couponing or hear about people rolling their debt over and over again or defaulting on a loan payment, I’m reminded of just how hard it can be for us humans to exist happily somewhere in the middle.
I’m sure everyone has had an episode or two in their lives where they did something to the 
extreme; either took no action or became borderline obsessed. Personal finance, or rather making, saving, spending and investing money, is not immune to this perpetual imbalance that so often gets the better of us. Learning a money management approach that puts us somewhere closer to the middle of the two poles of debt-ridden or saving fanatic is one of the best ways to guarantee a life that is less stressful, more secure and a heck of a lot happier.
"Trying to manage your money responsibly without becoming so focused on it that you don't get to enjoy life is a major challenge,” 2 Cents, the creator of the personal finance blog, Balance Junkie, explained. “I find setting up basic routines helpful. I look at our accounts monthly and try to do a ‘big picture’ review at the beginning of each New Year or when a major change in our circumstances comes up - and that's happened a lot recently. Still it's important to remember that money is just tool.”
When 2 Cents was first married, she realized she needed to learn more about personal finance and how to best manage their money. She started reading books about saving and investing but initially struggled to determine what type of approach would work best for her and her family.
That was close to 20 years ago. Since then, 2 Cents has developed her own financial approach through which, she said, she tries to maintain a good balance between what’s financially wise and what’s also conducive to a fulfilling family life.
Now, 2 Cents is the first to admit she isn’t a naturally money minded person but, throughout the pages of her blog, you would be amazed to see just how much she has learned and what a valuable resource her posts are to others who might not always think in terms of dollars and cents but who want to learn how to manage their money.
From Portfolio Options for a Risky Market, and Should You Take Money Out of RRSPs to Pay Off Debt, to Passive Investing: Mixed Feelings, Balance Junkie is the perfect place for those who are tired of the ups and downs of a disproportionate, or perhaps non-existent, financial approach and who are eager to learn their way to a more balanced way of living.
“For those who aren't naturally money-minded, there are ways to manage your money efficiently without feeling like you're a slave to cash flow,” 2 Cents said. “You may never get as excited about a spreadsheet or budget plan as those who truly enjoy the study of finance, but that doesn't mean you can't learn the basics. Learning to control your money rather than letting it control you can help you lead a less stressful life and leave you free to focus on the things that matter to you most. If you're not interested in the finer details, just keep it simple. It's really not rocket science.”
Sure, it’s always a little scary when we don’t feel we’re ‘good’ at something or something doesn’t come easily, and I’m sure I’m not the only one who feels added pressure when it comes to making decisions about what I think is the ‘best’ move for my money, but one of the worst things you can do is do nothing at all.
“Another important lesson for me was learning that I needed to take control of our finances and that no one else would have as much knowledge about our life and values as I do,” 2 Cents explained. “Getting professional help when needed is not a bad idea, but realizing that no one cares as much about your money and your life as you do is essential. In the end we're responsible for making sure we have enough money saved for retirement.”
As a mother of three, 2 Cents knows all about juggling the financial demands of having a family and, what’s interesting, is that one of her tips for keeping a financial balance while raising children is to involve them or at least tell them about how you, as a family, spend, save and invest money. This is certainly an excellent way to prepare children for their own financial futures too:
“Recently, I showed our boys our budget,” said 2 Cents. “They now have a rough understanding of how much money is coming in, where it goes, and why we have to be careful how we spend it. They see us looking for a better deal on major purchases. They understand that they may have to wait for their favourite cereal to come on sale before we buy it.
On the flip side, we try to point out that we are able to take them to a concert this month because we shopped wisely for other things,” she said. “They didn't get that connection at first. Now, it's gratifying to see them using similar approaches with their own money. No more blowing $10 at a time at the convenience store and then wondering why they can't afford the new guitar or violin they wanted to buy. Instead, they spend very little, save a lot, and then shop around for a good deal.”
When talking about how the rest of North America fares in terms of financial balance, 2 Cents said she thinks a lack of education when it comes to money and the “advent of easy credit and ultra-low interest rates” are to blame for a society that has largely lost touch with anything that’s in between all or nothing.
“Banks were more careful about lending in decades gone by and it wasn't as easy to qualify to borrow large sums of money,” she said. “We need to educate ourselves on how to control debt and maintain our savings in this type of environment. Many of us are already realizing that more stuff doesn't mean more happiness or fulfillment. Hopefully, the consumerism pendulum is starting to swing the other way.”
For me personally, and this extends to all areas of life, not just my personal finance approach, the best course of action is always the one I can sustain. So while I know it certainly wouldn’t be wise to not save anything, I also know that denying myself or taking frugal living to the extreme isn’t something I’ll want to keep up for very long.
One thing I do know is that reading how others are finding balance in their lives is one of the best ways to get motivated to change your own. Head over to Balance Junkie and learn how 2 Cents has learned to use personal finance, for the betterment of a balanced life.
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