Rebecca Surran's Blog

Why We Spend The Way We Spend

Growing inflation combined with plummeting housing prices and tighter credit have forced millions of Americans into deeper debt.  The current total on revolving debt for consumers in the US, which is comprised mostly of credit card debt, stood at 957 billion dollars for the month of April.  That's up a staggering 800 billion dollars from four years ago.  Financial journalist Stacey Tisdale says ironically many of our money problems have very little to do with money.  They start far before we swipe the card through the machine.  Stacey says there are three primary influences on our spending habits.  The first influence is the lessons we learn as children.  Anotherwords, if you grew up in a home where credit card debt was ok or a budget was an after thought then your money behaviour in your adulthood will be much the same.  Stacey also says social influences, particularly here in southwestern Connectictut drive us to make money decisions that often put us at financial risk. For example, you must live in neighborhood X, or drive car Y to be accepted, even if you can't afford the lifestyle.  And finally Stacey says the way we perceive ourselves is a tremendous influence on our spending habits.  If you tell yourself, "Saving isn't my style," or, "I'll never have enough to retire," then chances are you'll pattern your behaviour after that expectation.  Stacey says the way to get back on track financially is the next time you go to buy a new "toy" ask yourself, "Why am I buying this?  Do I need it and can I afford it?" If you're brutally honest with yourself, she says, you may be surprised at the answer.

Taking the Gang

You know the phrase, "When times get tough, the tough get going."  Well there is no denying these are tough economic times, with the cost of just about everything is sky-rocketing.  As a result, most of us are cutting back.  Business travelers, however, are getting creative, taking along family members on business trips to save on vacation costs.  Eileen Ogintz is a travel writer who has been an industry watcher for years, she says she's seen a significant increase in the number of employees that are combining business with pleasure.  She says there are some ground rules to keep in mind, though, if you've never done this before.  Most are common sense, but desperation drives us all to do silly things.  Eileen says have a good understanding of the nature of your trip, if it's to negotiate a big contract, bringing along the family probably isn't wise.  However, if you're headed off to a convention, then you may have some hours of personal time.  Eileen also says double check with your boss as well.  No matter the nature of the trip, some bosses just don't want kids along for the ride.  And don't be intimidated by the hotel.  Eileen says even the Ritz is now welcoming families.  She says they even have little bathrobes for the younger set to enjoy.  But what works best, according to Eileen, is checking into a suite style room; that way the kids can watch TV in one room while you catch up on some paperwork in the other.  And most importantly, make sure your child is the right age to handle the travel and disruption.  In my own parenting experience, sandboxes and swingsets are about the only locales where two year olds can be two year olds!

The Dash

So many of us spend our days dashing about.  We run here and there, giving little thought to our actions, just going through the motions... all in a effort to cram as much as we possibly can into 24 hours.  I'm guilty of it.  I get up, dart to the shower, run down the stairs to the coffee maker, quickly head out to drop the youngest off at school, head to work and so on and so on.  I am the human pinball, bouncing off the rubber stoppers along the way.  Hoping to at least once a week hit the sweet spot that sends the lights blinking, but often I miss just to fall back into the black hole only to be launched again. I dash ALL day.  This weekend, though, I started to think about how we feverishly run about.  I was watching some of the coverage of the death of Tim Russert on NBC.  I never met Tim Russert, but by listening to the tributes you knew he certainly was beloved by friends, family and coworkers alike.  But as I watched I thought, here was a man at the top of his career, returning from a trip to Europe in celebration of his son's graduation from a terrific college.  He had a good marriage, happy family, wonderful relationship with his son, big house, summer house, lots of money, etc.  And suddenly God decided it was time.  That's it.  All over on a Friday afternoon.  No one saw it coming.  And I started to think maybe the daily dash needs to become more of a jog.  And maybe I need to focus more on the other dash... you've heard this before... that hyphon that will eventually be etched on my tombstone between my year of birth and death.  The dash that represents the life I chose to lead. John Lennon was right, "Life is what happens when you're busy making plans."  I think I may try to take a little "busy" out of my dash.  Thanks Tim!

Take This Job and #@#%

We know the familiar country music refrain, "Take This Job and @^&*" but in today's current economy packin' up and walkin' out is a luxury.  Friday's unemployment number, up a half a percent, the biggest jump in 22 years, was a clear indicator that more and more folks are having a hard time finding a job.  So why leave the job you have if you don't have to... even if your boss is impossible.  I recently interviewed executive coach Keith Rosen.  He says there are many types of bosses out there and knowing their style, their strengths and weaknesses can help you navigate through the work day. Keith says there are genarally four different personality types when it comes to bosses.  The "Win-At-Any-Cost" boss.  You may have worked for this type of leader.  The tough, controlling boss that is not seen as honest, ethical or intelligent by their direct reports.  Then there is the "Taskmaster."  The boss with the Type A personality that is only focused on achieving goals... never cheerful or peaceful.  The "Likeable Loser" boss is charming but incompetent, inconsistent and clueless.  And finally the "Glad Handler."  The boss that is friendly and flexible but generally recognized as dishonest, unreliable and uncaring.  Keith says knowing what you're dealing with is the first step.  He says then workers need to "Coach-Up."  In other words, ask your boss what you can do to make his/her job easier.  What tasks can you take on to make the overall operation work better.  Keith says then eventually the law of reciprocity will kick in and your boss may ask what he/she can do to help you manage your job better.  But what if your boss remains impossible and the law of reciprocity never kicks in?  Keith says set your boundaries.  He says many bosses don't know boundaries.  Their job is to run the company not worry about your feelings, so stand up for yourself and establish your role.  Stop tolerating.  Keith says be clear about the behaviour you will not stand for.  And finally, Keith says write your job description, not the one HR has laid out, but your ideal job within the company.  You may find that in fact it's not your boss, it's you that's the problem and looking for a new job may be in the best interest of all.

The Dose We Need?

Could this be the dose of medicine we need?  I'm referring to the eye-gaping cost of energy.  We've been here before.  If you over 45 you remember the long gas lines of the 70's.  I stood in line with my family and our Pontiac, 400 horsepower gas guzzler waiting to pay 38 cents a gallon.  The price went on to jump to 55 cents a gallon by June of 1974, rationing was in full swing and the economy was reeling as a result.  Fast forward to today, gas in Connecticut has surpassed 4 dollars a gallon, the economy has once again been rocked and once again we are beholden to OPEC.  And with the global demand from China, India and other burgeoning markets, gas traveling to 12 to 15 dollars a gallon is becoming more and more of a possibility.  It hurts, there's no denying it, particularly for those who can afford it the least, those already having to choose between food and energy, those on fixed incomes with mounting medical bills, those marginalized by society in some way.  We missed our opportunity in the 70's.  When the embargo was lifted and oil retreated and we went back to our unquenchable thirst for crude.  So perhaps we've learned our lesson. Wind, clean coal, solar, geothermal, etc. are all technologies that have been improved drastically in the past 40 years and are technologies that Americans are now embracing.  There seems to be a momentum toward "going green."  Maybe this has been the bitter pill that we've needed for so long.  Being forced to develop innovative new technologies that will generate the clean energy we need without leaving us at the mercy of the Middle East and at the same time putting us in the position of becoming a global leader in selling those technologies that benefit the world wallet and the environment.  Perhaps our bitter pill is good medicine and just the dose we need.