>>> ALL MONTH IN OUR "START
TODAY" SERIES, WE’VE FOCUSED ON
OUR PHYSICAL HEALTH.
THIS MORNING, WE’RE TALKING
ABOUT WEALTH HEALTH.
>> WE CALLED ON BUSINESS
CORRESPONDENT MS. STEPHANIE
RUHLE.
SHE HAS FOUR WAYS TO IMPROVE
SPENDING HABITS AND BOOST YOUR
SAVINGS.
MORNING.
>> MORNING.
LET’S GET STARTED.
WHAT DO YOU RECOMMEND PEOPLE DO
TO BE MORE MINDFUL OF THEIR
MONEY?
>> THINK OF IT LIKE YOUR MONEY,
YOU WANT TO HAVE KNOWLEDGE.
KNOWLEDGE IS POWER.
THAT RINGS TRUE FOR MONEY LIKE
IT DOES ANYTHING ELSE.
THINK ABOUT YOUR FINANCIAL
HEALTH, LIKE YOU DO YOUR
PHYSICAL HEALTH.
YOU CAN’T POSSIBLY KNOW HOW TO
SPEND OR HOW TO CREATE A BUDGET
UNTIL YOU KNOW WHERE YOUR MONEY
GOES.
THE BEST THING YOU CAN DO IS
CREATE A SPENDING JOURNAL.
TRACK YOUR MONEY.
JUST LIKE YOU WOULD A FOOD
JOURNAL OR FITNESS JOURNAL.
DON’T JUDGE YOURSELF.
DON’T CHANGE YOUR BEHAVIOR.
JUST WRITE DOWN, PUT IT IN A
NOTEBOOK, PUT IT IN YOUR PHONE.
EVERY PLACE YOU SPEND.
ONCE YOU HAVE ALL OF THAT OVER A
FEW WEEKS OR A MONTH, THEN YOU
CAN START TO ESTABLISH YOUR
MUST-SPENDS AND THINGS YOU CAN
PROBABLY GET RID OF.
>> TO THAT POINT, STEPHANIE,
ONCE YOU KIND OF FIGURE OUT
WHERE YOU ARE OVERSPENDING, WHAT
TIPS DO YOU HAVE FOR PEOPLE TO
HELP WITH NOT DOING THAT?
>> MY FAVORITE THING TO DO IS GO
ON A CASH DIET.
WE’VE ALL GOTTEN TO A PLACE
WHERE WE JUST SWIPE, SWIPE,
SWIPE.
IT IS EASIER.
WHEN YOU SWIPE, YOU SPEND A LOT
MORE.
RIGHT?
I HAVE A 14-YEAR-OLD SON.
WHEN I PUT MONEY ON HIS DEBIT
CARD, HE JUST GOES PLACES, AND
YOU KNOW HOW MANY TIMES HE
CALLED ME AND SAID, "MA, I’M AT
7-ELEVEN AND THERE’S NO MONEY ON
MY ACCOUNT."
THAT WOULDN’T HAPPEN IF HE WAS
GETTING $10 CASH.
HE WOBTULDN’T GO UP TO A REGISTE
WITH $1 LEFT.
DYLAN, HAVE YOU WALKED INTO A TJ
MAXX WITH THE IDEA TO BUY ONE
THING, AND SUDDENLY, THERE’S ALL
THESE KNICKKNACKS ALL OVER THE
PLACE?
>> OH, I NEED A CART.
>> RIGHT.
THEN YOU BOUGHT TEN THINGS.
IF YOU HAVE THE CASH ONLY FOR
ONE ITEM, YOU WON’T SPEND MORE
THAN THAT.
>> SURVEY AFTER SURVEY SHOWS WE
DON’T HAVE ENOUGH IN THE WAY OF
SAVINGS ACROSS AMERICA.
WHAT’S YOUR ADVICE TO HELP FOLKS
BUILD UP THEIR SAVINGS?
>> SAVINGS IS REALLY IMPORTANT.
DON’T THINK ABOUT IT LIKE
PUNISHING YOURSELF.
DON’T SAY, OH, HERE’S MY MONEY
IN MY CHECKING ACCOUNT.
I’M GOING TO PULL SOME OUT.
I CAN’T SPEND IT.
THINK ABOUT IT LIKE PAYING
YOURSELF FIRST IN THE FUTURE.
HERE’S WHAT I MEAN.
AUTOMATE IT.
EVEN IF IT IS $5 OR $10,
WHATEVER YOU CAN AFFORD TO DO,
HAVE IT AUTOMATICALLY TAKEN FROM
YOUR PAYCHECK AND INTO A
SEPARATE SAVINGS ACCOUNT.
NOT YOUR CHECKING ACCOUNT, A
SAVING ACCOUNT.
MAYBE ONE AT A DIFFERENT BANK,
HIGH YIELD ACCOUNT THAT EARNS
MORE.
IF YOU PUT $25 INTO THE ACCOUNT
FOR EVERY PAYCHECK NOW UNTIL
THANKSGIVING, YOU’LL HAVE OVER
$500 SAVED.
THEN YOU CAN THINK, I’M READY
FOR NEXT YEAR’S HOLIDAY GIFTS.
TRY TO MOVE THE MONEY BEFORE
IT’S IN YOUR HANDS.
>> I KNOW WITH ANY TYPICAL DIET,
MODERATION COMES INTO PLAY.
DOES THAT WORK WITH FINANCES,
TOO?
IF SO, WHERE CAN YOU TREAT
YOURSELF?
>> THAT IS THE PERFECT
COMPARISON.
JUST LIKE PHYSICAL FITNESS OR
DIETING, IF YOU ARE ON SOME DIET
WHERE YOU WERE DEPRIVEING
YOURSELF OF EVERYTHING JOYFUL,
YOU’D BE MISERABLE.
YOU’D BREAK IT.
GO BACK TO THAT SPENDING
JOURNAL.
LOOK AT EVERYTHING YOU’RE
SPENDING.
FIGURE OUT YOUR RENT, YOUR GAS,
YOUR INSURANCE.
WELL, THAT’S NON-NEGOTIABLE.
LOOK AT EVERYTHING ELSE.
PEOPLE ALWAYS SAY, IF YOU
WEREN’T GETTING THE STARBUCKS
EVERY DAY, YOU’D SAVE SO MUCH
MONEY.
MAYBE THE STARBUCKS IS WHAT
GIVES YOU JOY.
MAYBE THAT COFFEE IS WHAT GETS
YOU OUT OF BED.
FOR ME, I REALIZED RECENTLY THAT
I GET NEWSPAPERS, ALL THESE
NEWSPAPER SUBSCRIPTIONS, AND THE
TRUTH IS, I DON’T READ ANY OF
THEM.
I REALIZE, WHY DON’T I STOP
GETTING THAT AND, SUDDENLY, I
HAVE MONEY TO SPEND SOMEWHERE
ELSE.
WHEN YOU CAN SEE WHERE YOU’RE
SPENDING, THAT’S HOW YOU’LL FIND
THE EASIEST PLACES TO START
PULLING FROM.
DON’T PUNISH YOURSELF.
>> STEPH, YOU BRING UP AN
INTERESTING POINT.
THESE HIDDEN SUBSCRIPTIONS AND
THINGS THAT WE HAVE ALREADY
SUBSCRIBED TO, THEN WE END UP
NOT USING, WHETHER IT’S A GYM
MEMBERSHIP OR EVEN, LIKE, YOU
KNOW, SUBSCRIPTIONS ON YOUR
PHONE.
>> APPS.
>> HOW DO YOU GET RID OF THAT?
WHAT IS THE BEST WAY?
THAT’S ALMOST LIKE LOST MONEY
THAT YOU DON’T EVEN REALIZE.
>> 100%.
SO YOU NEED TO LOOK AT YOUR
BILLS AT THE END OF THE MONTH.
LOOK AT YOUR CREDIT CARD BILLS.
THIS GOES BACK TO THINGS YOU’RE
AUTOMATICALLY PAYING FOR.
WEBSITES THAT HAVE YOUR CREDIT
CARD INFORMATION.
THEY’RE EASY TO CLICK, CLICK,
CLICK.
THE END OF THE MONTH, LOOK AT
YOUR CREDIT CARD BILLS AND SEE
WHERE YOU’RE AUTOMATICALLY
SUBSCRIBING TO THINGS.
ASK YOURSELF, WHY AM I SPENDING
THERE?
IT IS A GREAT WAY TO START
SAVING.
>> ALL RIGHT.
STEPHANIE RUHLE, THANK YOU SO
MUCH.
WE APPRECIATE THE ADVICE.
ALWAYS GOOD TO SEE YOU.
FOR MORE EXPERT ADVICE, HEAD TO
TODAY.COM/WEALTH HELP.
AT 11:00 A.M., TUNE INTO "WEALTH