Behavioral Cents Blog

Sarah Fallaw is CEO of Data Points, and also the daughter of Thomas J. Stanley, author of The Millionaire Next Door. I’m a fan of hers, and I have lived my life by that book. For anyone who has worked in a company where you have a job description, Sarah has come up with a brilliant, simple job description for managing our every day cash. 

It’s fair to say I would never be mistaken for a fashionista. Most of my wardrobe reflects my career in financial services, except when I break out and rebel. This year I bought a fun pair of flowery shoes for spring and summer. While running around New York City one day, 3 different men came up to me and said “I really like your shoes”. No joke.  Then 2 more men came up to me another day. This never happens to me. (BTW my shoes were only $70).

Are you interested in one small mindset change that reduces Anxiety, increases Control and Saves Money? What if I said this one thing wouldn’t take much time? Would you be interested? I think so! Here it is: Define Your Opportunity Cost. 

I’ve been a fan of Neuroscience for a few years now. It not only appeals to my inner geek, but it assists me in being the best coach possible for my clients. Did you know that our Amygdala, that has served us well since the dawn of time when it helped us decide on fight or flight, now doesn’t serve us quite so well?  Very simplistically, if we are bitten by a dog while talking about money, our Amygdala may decide that money is pretty scary.  When we hear the word, it will tell us to RUN.

The word Mantra comes from the Hindu and Buddhist religions, representing a repetitive chant of word or phrase. For those of us in the North American culture, the use of mantra loosely refers to a set of beliefs or phrase tied to motivation. It's our mindset.

I interviewed a client a number of months ago, and it became clear she was strongly driven by “productivity”.  Productivity is a very North American word – something that our culture values. “Time is Money” comes to mind immediately.  However, sometimes a productivity mantra is too narrow. Here is an example of how my client’s money mindset sabotaged her money behaviors.

Thanks to my colleague Tod for this title and question that prompted my thinking.  Tod has been dating a woman for about a year, and his friends inquired whether Tod had “done the CVS run with her yet?”  Tod sought clarification.  Apparently, it is a wonder that a woman can spend $200 in CVS in just minutes, and fit it all easily into her purse.  As a woman, this does not surprise me at all.  So why does it surprise men?

Thanks to Cheryl and Stu Benton for willingly ‘baring all’ on their money beliefs, and how they found common ground as a couple. Here is their story.

If you’ve ever talked with Cheryl, her intelligence is evident. She had the guts to build an ad agency which was purchased by a larger company, and then started The Three Tomatoes. Women listened and her newsletter “The Three Tomatoes” continues to grow.

My husband commented that I should check my tires since one in particular seemed a little deflated.  I never look at my tires -never thought to – unless of course one goes flat on the way to a really important meeting while I’m in my best suit. Then I’d notice.

The mundane chore was fit into my schedule a week later when I got around to it.  The exercise shocked me. 

My colleague, Stacey Francis is CEO & President of Francis Financial.  She is also Founder of Savvy Ladies, a non-profit organization that spreads free financial information to women.  As with many of us who are in the money business, we have stories that drove us here.  These stories are personal and emotional. Here is Stacey's:

We all know the feeling – when we’re getting a tax return and we feel, well, rich. Not rich like a millionaire, but richer than we were yesterday. It’s like gold falling from heaven. And then it starts. The “what can I use this money for” dreams begin. And believe it or not, we probably dream spending 4 or 5 times the value of our refund. This is money euphoria.