Melissa Tosetti - Living The Savvy Life: The Savvy Womans Guide to Smart Spending and Rich Living

LIVING

the SAVVY life

The Savvy Womans Guide to
Smart Spending and Rich Living

MELISSA TOSETTI AND KEVIN GIBBONS

LIVING the SAVVY life

The Savvy Womans Guide to Smart Spending and Rich Living

MELISSA TOSETTI AND KEVIN GIBBONS

2011 Melissa Tosetti and Kevin Gibbons. All rights reserved.

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I find it romantic to believe that money isnt important. How wonderful would it be to live life without being burdened by monetary details? But the truth is, money affects every aspect of our lives. It affects how we dress, where we live, what we eat and how we spend our free time. It affects our emotions and enhances or detracts from our enjoyment of life.

There are an abundance of good personal finance books and resources out there offering tips on everything from cutting coupons to investing in your 401(k). However, effective money management is about so much more than retirement plans and saving money at the grocery store. To illustrate this point, we offer you a brief comparison of the lives of an Average Woman and a Savvy Woman:

An Average Woman

An Average Woman has no idea how much money is in her checking account at any given time. She often uses her debit card with a knot in her stomach, hoping it will not be declined.

She has a closet overflowing with clothes, few of which can be pulled together into a complete outfit. Many of the clothes in her closet still have the tags on them because she realized she has nothing to wear with the item once she brought it home. She continues to purchase clothes at random, always feeling the need to buy more.

She finds herself in the drive-thru several days a week because her kitchen cupboards are bare. When she does buy groceries, she does so without a plan and isnt quite sure what to do with them once she gets home. When she goes to her favorite high-end restaurants, she feels a tinge of guilt as she pulls out her credit card to pay the bill.

She takes a vacation at least once a year with several weekend getaways interspersed. She finds herself preoccupied while on holiday since she was just on the verge of paying off her previous vacation when she headed out the door.

An Average Woman is a consumer who keeps buying, hoping the next item she purchases will magically create the life she so desperately wants.

A Savvy Woman

A Savvy Woman knows exactly how much money she has in the bank and always spends less than she makes. Her growing savings account gives her a confidence that is visible to others.

She has a pared down wardrobe comprised only of clothes she loves, look great on her and make her feel good. She is a style setter, not a trend follower. Because she knows what looks good on her, she can shop at discount stores and look like she shops at high-end boutiques. She is willing to invest in her wardrobe, but asks if an item will be going on sale. She shops with purpose, yet she is open to serendipitous moments. She never purchases an item for her wardrobe unless she has fallen in love with it.

She cooks the majority of her meals at home. She has numerous dishes mastered and is always on the lookout for new recipes to add to her repertoire. She has a black belt in grocery shopping, and her pantry and refrigerator are stocked full of ingredients ready to be made into delicious meals. The fact that she cooks the majority of her meals at home allows her to enjoy the occasional meal out at her favorite high-end restaurant, without guilt to spoil the experience.

She has an appetite for adventure and consciously saves money for those long weekends away and the trip to Italy she has been planning for the past year. When she vacations, the trip is paid for prior to departure, so it is a true holiday.

A Savvy Woman picks and chooses what she brings into her life, being selective versus mindlessly consuming. This control over her financial life allows for even greater joie de vivre.

Does the Average Womans life sound a little familiar? Are there times when your paycheck doesnt last until the next payday? Is your closet overflowing with clothes, but you have nothing to wear? Do you have trouble fully enjoying a vacation or dinner out knowing that you put it on your credit card? Perhaps there are certain aspects of your life that you have under control, but you get derailed by holidays, special occasions or when your car unexpectedly breaks down.

The Impact

Of course, not having control of your financial life puts understandable stress on you, but how does it affect those around you?

Do you and your spouse argue about money or silly things that ultimately relate back to money? If you have children, are they aware of your anxiety? As they look forward to a special occasion, do they know you dread not knowing how you are going to pay for it?