Financial "Moksha"

In yoga, we use a term called “moksha”. It loosely means “freedom”. This exercise is about finding financial "moksha". So much of our stress and inability to manifest is because we do not have a healthy relationship with money. Some of this is due to a simple lack of understanding…money, credit & bills are all very confusing. Some of this is also due to a simple need to fulfill the void in our life with material items.

I will tell you that shopping and spending does buy happiness. Who doesn’t get a little lift from a new pair of shoes? Unfortunately, this lift is temporary and that means we continue to spend our way to happiness and it’s like chasing a 747 attached to a kite. Ultimately we simply victims to the currents created by the 747’s noxious fumes and mired in debt and even more unhappiness. It’s time to take control of the current.

Budget.

Duh. I know you’ve heard this again and again. Seriously, do you know what you have. Follow this formula, fill in the gaps and change as necessary:

Monthly Net Pay (look on your paycheck and make sure your employer is withholding your taxes, it’s easier)	+
Savings (this equals 10% of the gross on the Monthly GROSS. That’s the big number.) You must do this to secure long term happiness. Set up a separate bank account to transfer savings to.	-
Mortgage or rent (include insurance and property taxes) Do have the bank hold these items in escrow. It’s easier and stress free.	-
Utilities: (electric, gas for home, trash service, water, homeowners association fees)	-
Cable television, Internet, home phone, security systems	-
Cell phone service	-
Home Maintenance (plan for your HVAC maintenance, gutter cleaning, lawn treatments, etc.)	-
Health Insurance (in a perfect world your employer is paying this and it’s taken out of your paycheck). If not, call an agent and get some.	-
Car Payment	-
Car Maintenance	-
Car Insurance	-
Groceries ($50/week per person in your home on average)	-
Eating Out (include your expensive lattes here)	-
Children (lessons, sports, school fees, musical instrument rental)	-
Children’s college fund	-
Christmas (holiday) savings	--
Birthdays and Gift savings	-
Other debt (add up monthly minimums on all. We’ll address getting out of debt later)	-
Pets (grooming, vet, feeding)	-
Entertainment	-
Shopping (clothes and other)	-
NET PROFIT OR LOSS

Now you might find at this point that you are (1) way over budget or (2) can’t afford certain important things like college savings. Do not stress. This is a process and this is where we begin. Print out this sheet and start eliminating non-mandatory spending (entertainment, shopping, what maintenance can you perform yourself? Is your car to expensive? Can you sell it and get a used car? Shop your cable access, shop your insurance)

You might find too, that you don’t know what you spend. This is your time to start tracking your purchases. Make a spending journal. Keep it on the fridge so that the whole family can understand. No secrets. Put it out there. This is a team effort. What are you teaching your children by acting like everything is unlimited and okay? You are teaching them to overspend as adults. Get everyone on board. As you realize that you have habits and unrecorded expenditures, add them to your budget.

SPECIAL NOTE ON INSURANCE

If you do not feel you can afford insurance, do know that it is imperative to have “catastrophe” insurance at a minimum. In the event you have huge bills, you are going to be taken care of….think car wreck, serious illness here. This means that you have a large deductible….you are out of pocket on most care. Don’t fret over that because with health and dental, most doctors and dentists will help you with a payment plan. With the car insurance, it’s not as easy, but it is better to have something, rather than nothing in this world we have created.

Now you have a budget. If you are like most people, you have noticed that you are wasting a lot of money. Don’t feel bad, you are in good company! Time to take control.

WANT AND NEED

I know you have heard this before too and I know that this is tough. During this Cleanse you are learning that material items are not fulfilling you. You are craving something more. Perhaps you don’t realize it yet, but what you are craving is simplicity. Here are some things to do that can make you feel great about your choices, help the planet and fill up some of your time if you had to cut your entertainment budget:

· Go through all your clothing. If you haven’t worn it in the last two years, send it to charity.

· Go through your pantry. Donate to the food bank all the “unhealthy” choices you have accumulated. I know…I know… I don’t want the people dependant on the food bank unhealthy, it’s just such a sad waste and they do need the calories.

· Go through your house. Donate. If your “stuff” has become a burden, start to eliminate. Give it away to those less fortunate. You’ll feel great and free.

· Plant a garden. This is going to cut down on your food budget and entertain you for hours on end. Your entire family can get involved in gardening. If you don’t have a plot of land, use pots.

· Volunteer. We call this Karma Yoga in the studio. Work trades and bargains with the people and places providing you services. You would be surprised at what small business especially are willing to do for you if you are willing to do for them.

· Buy bulk. Stop wasting your money on individually packaged items. Definitely, do not buy water in bottles. Drink tap water and fill up a reuseable bottle.

· Shop local, farmers markets, organic and whole. Can you imagine the money that you are saving eliminating expensive items like meat, dairy and processed food? Do you know how inexpensive beans, grains and veggies are! Feel like you are treating yourself to not just quality food, but a few hours of entertainment by shopping the farmers markets, reading labels and making educated choices.

· Kill the coupons. Unless you are getting a % off, they are never worth it. Most food coupons are for processed foods. Buy two cans of garbage and get one free. Cancel the newspaper that is sending you the coupons. News is free on the internet.

· Buy used. Recycle, reuse, repurpose. This is so trendy right now and total fun! What can you turn your old stuff into? What can you buy used. Flea markets and garage sales make great entertainment too!

· Help and Serve. Volunteer everywhere you go. You will find you have no time for TV, shopping, talking on cells and surfing the net. Your entertainment quotient will multiply! There’s no better way to feel good about yourself by giving away. You will garner a whole new appreciation for the people and things in your life.

· Avoid. Don’t go to the mall. Don’t go to your fancy friend’s fancy house. Don’t look at the magazines that are trying to entice you. Don’t covet. Withdraw your attention and you will find an ease in your longing for possessions. Let ‘no’ be your first word. Don’t be tempted.

· Be strong. Tell people that you are on a budget…that you are sustaining the planet…that you are saving for your child’s future. It will give them something to think about.

Credit Cards: Cancel all but two. Keep the debit card. This is how you get out of debt. (1) don’t charge another item and (2) follow the below instructions:

Pull your most recent statements.

Rank your cards by the smallest to largest amount owed.

Make the following table that will be updated every single month:

Card Name Amount owed Monthly Minimum Balance

Bank of Unfulfilled Dreams	Total balance	Minimum balance	Balance after minimum payment
Totals:

Now that you know what you owe….pause…breathe…it’s okay. We will get there. You aren’t alone. The latest stats show that most American homes are carrying about $16,000 in debt. Let’s not continue to be “most” though. Let’s fix this.

So here goes….

The credit card at the top of your sheet with the lowest balance is the one you are paying off first. Make all your minimum payments and give this card all the extra that you can. Then move to the next card after the first is paid off and cancelled. Don’t use your credit cards anymore. You are done with overconsumption…. Pause here to feel powerful.

Consolidation:

Make an appointment with your bank. Take all of this information to them and tell them that you need help. If the first bank is not helpful, go to the second. See what you can do to refinance your mortgage to the lowest rate and to consolidate your debt. This is the job of the people who work for the bank. We just gave 7 billion dollars to bale those guys out…make them work for it. Let them guide you.

Savings: always take advantage of the savings plans offered by your employer. They are the best out there and you won’t get a better deal. If no savings is offered by your company, go to that bank and ask them your options….words like ROTH will come up. Trust them.

What’s really going on?

Isn’t this easy? I mean seriously, the hard part is your emotional response to money, status and all the bling of life. Do you realize that you have been “sold” on this American dream by a bunch of CEOs who are actually living it? Do you really want to support them? Why not take your power back and create your own dream. Whatever happened to the idea of of living modestly, raising a healthy family and retiring to a life of peace? TV, magazines and media have destroyed us. Let’s create a new dream that we are in charge of. Our dream includes stress-free living…no sleepless nights, no aching needs, no destruction to our environment and planet. We will now laugh in the face of our enemy…the CEO.