Gail Vaz-Oxlade - Easy Money

GAIL VAZ-OXLADE

Grass Roots Press

Copyright 2010 Gail Vaz-Oxlade

First published in 2010 by Grass Roots Press

All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without the prior written permission of the publisher, except in the case of brief quotations embodied in reviews.

The Good Reads series is funded in part by the Government of Canadas Office of Literacy and Essential Skills.

Grass Roots Press also gratefully acknowledges the financial support for its publishing programs provided by the following agencies: the Government of Canada through the Canada Book Fund and the Government of Alberta through the Alberta Foundation for the Arts.

Grass Roots Press would also like to thank ABC Life Literacy Canada for their support. Good Reads is used under licence from ABC Life Literacy Canada.

(Good reads)

Print ISBN: 978-1-926583-27-3

ePub ISBN: 978-1-926583-54-9

Distributed to libraries and educational and community organizations by

Grass Roots Press

www.grassrootsbooks.net

Distributed to retail outlets by

HarperCollins Canada Ltd.

www.harpercollins.ca

To Daphne, from whom I learned that literacy and smarts have nothing to do with each other. Your strength and determination showed me that anyone can do anything if she sets her mind to it. I love you.

INTRODUCTION

Do you wish you made more money? Would more money mean less worry? How much more would you like to make? And if you made more money, what would you do with it?

Most people would like to make more money. Making more money would mean more freedom and less worry. You could have more of the good things people like to buy. Making more money would make life easy. At least, thats what most people think.

Each of us needs a certain amount of money to cover our basic needs. We need to pay rent or a mortgage. We need to buy food. And the kids need new shoes because they insist on growing. There are bills for the phone, utilities, and cable. Dont forget the bus pass or the car payment.

Our needs can be expensive. So can our wants: we like to have fun and enjoy our lives. Having money for a beer or dinner out with our pals is nice. We also enjoy going to a movie, to a concert, or out dancing on a Saturday night.

Sometimes it feels like it doesnt matter how hard we work, we just never have enough money to do the fun things. By the time we pay bills and buy food, the money is gone. If only we could make more money!

The truth is, making more money does not make people happier. Making more money doesnt mean anything if you also spend more money. And that is the trap most people fall into when it comes to money. The more they make, the more they spend.

Can you remember how much you were making when you first started working? When you got your first raise, did you take a deep breath and think, Thats better? How long did it take until your spending completely gobbled up your raise? Not long, if youre like most people. And then you got back to wishing you made more money.

The mistake most people make when it comes to managing their money is thinking more money will make life easier. More money may be important if you dont make enough to cover your basic needs. But more money is seldom the key to happiness.

Figuring out how to manage the money you have can be one key to happiness. If you can take control of your money, you can feel like youre in charge.

Learning how to manage your money is the first step in taking control.

Thats what this book is all about: learning how to manage your money. Use it to figure out what is important to you. Take the time to decide what you want. Take charge, so your money is working for you instead of slipping away.

If youve watched me on my TV show, Til Debt Do Us Part, you know Im bossy. I take away peoples credit cards. I give them jars and make them live on less money. I also make them do things differently so their lives will be better.

If you are willing to do things differently, I can help you take control of your money. If you want to be in charge, I can show you how. But you cant give up halfway through. You must stick with the plan until you get to the end.

Are you ready to change how you deal with your money? Are you ready to take control?

Lets get started!

CHAPTER 1

One thing that confuses some people and messes up their money is thinking, I need this. Maybe its a pair of shoes, a bottle of body lotion, or a magazine. Very often we talk about the things we want as things we need because we want them so badly they feel like needs.

Children speak this way: But Mom, I need those new sandals. The shoes Molly is wearing still fit. There are no holes in the soles. They look good. But they are not this years style. Molly is sure she needs those new sandals. She wants them so badly it actually feels painful not to get them.

Money and emotions are closely tied together. Pleasure centres in our brains respond when we spend money. Some people become addicted to the drugs their brains release when they go shopping. Shopping creates a sense of well being. Not shopping creates a sense of loss.

And that is how wants become needs. We convince ourselves to go out and buy something we want by telling ourselves we need it. This wouldnt be a problem if we had the money to satisfy all our wants. The problem comes when we dont have the money the cold, hard cash and we must turn to credit to scratch our shopping itch.

Needs and Wants

I meet people all the time who cant tell the difference between a need and a want. Needs are the things we must have to keep our lives working. We need a place to live. We need food to eat. We need to be able to get to and from work or school or church.

Wants are the things we really like. While we need a roof over our heads, we want a four-bedroom, three-bathroom house on a nice lot, with parking, schools close by, and not too much traffic. While we need food, we want steak. And while we need to get to work, we want to arrive in a snappy car our friends will admire.

People who confuse needs with wants cant imagine not having all the cable channels available. They have fancy cell phones with expensive call features. And they think that because they work hard they deserve a vacation in Florida in the winter. People who confuse needs and wants simply cant imagine their lives without all the extras they see others enjoying. They want to enjoy those pleasures, too. And if they have to use credit, thats what theyll do.