This is a guest post by Jen Smith. If you want to guest post on this blog, click here to get more information.
I have gotten a lot better at financial management in the last few years. Now I have to be honest 
and attribute a lot of the credit for this to my husband 
. He is good at managing money in a very positive way and luckily our values and goals in life are very similar. However, obviously I am a willing learner and partner in this process for it to work. I haven’t always been this way and I wanted to share what I have been learning about money and how the way I now manage my money has enabled me to work less.
I have worked full-time in my main job (37 hrs) until July 2009, when I started working 30 hrs. I got a new job in December 2009 and am now working 18.5 hours a week.
Now you may be happy working full-time. I am not suggesting everyone wants to cut their hours down. The reason I am cutting the hours of my main job is to have more of a work life balance and also to create more time to work on my passion: my Personal Development and Life Coaching business.
Get clear.
Where is your money going? The first step to having power with our money is to know ‘what is so’. How much is coming in? How much is going out? At times, when I haven’t been so good at managing my money, this has been the hardest question to answer. I didn’t want to know, and in some ways, keeping things unclear helped me to keep my head in the sand. However, we all know that ignorance can be bliss, but when we are doing this, we are just ignoring reality! The sooner we deal with the reality of our situation, the sooner we regain our power in this area. I have also found that when I start taking responsibility, turning things around or reaching goals (whether that is getting out of debt, saving or whatever) it is usually a lot easier than I had thought!
What do you want?
The message I want to get across is that improving the way that we manage our money can free us up to have more of what we want. What we want is unique for each of us. You may want less time at work to start a business, like I am doing, have more time with your family, more time for hobbies or maybe just to relax and be at work less . On the other hand, you may want to stay on the same hours because you enjoy your job so much! That’s great, but managing your money better can still give you more of something else of your choice … new outfits, better holidays, early retirement. It’s about working smarter not harder and valuing our money and the time we give to earn it.
Question everything.
Do you use it? For example if you pay for Sky TV – how many channels do you actually watch? In the UK, we can buy a Freeview Box for less than £20 one off payment and get 30+ channels rather than the monthly instalments with Sky. How many times do you honestly go to the gym? Is it worth the money you are paying? Really look at your life and how you are living. Be ruthless. It’s surprising how much money we can waste paying for things we don’t need and don’t actually use!
Do you really need it?
When you buy something – think do you really need it? Yes that car might be a nicer design. But, if keeping the car you have got or buying a cheaper one could save you thousands of pounds, how much time would that save you? How much more would you have to work to pay it off? My husband and I had gone through a phase of thinking about buying a bigger house (mainly for a larger garden), but realized that would probably cost us at least 30k extra. Adding it on to the mortgage sometimes takes the reality of how many hours working that would mean!
One thing I have noticed (and I am sure I have done myself when I worked full-time) is envy by full-time colleagues over their part-time colleague’s hours. “I wish I could do your hours” often said whilst the same person spends lots of money on nights out, new clothes, holidays etc. I’m not having a dig (as I said I know I know have felt like this myself in the past) but it is about priorities. If you look at all the things you spend your money on in a month that are not essential, for example less new clothes, lattes on the way to work or meals out, it could equal fewer hours at work. It depends what you want more. If you still want your luxuries, just know you have chosen that.
Summary
What I want to get across here is that we always have a choice. We are in charge of our destinies and with a little financial management and discipline, our dreams are often a lot more achievable than we think they might be. Step by step we can move in the direction of our dreams. Shake things up, start being creative and thinking outside the box. Just because full-time is the ‘normal’ working hours, doesn’t mean you have to do it too, if that’s not what you want.
What do you think? What ways have you found to live more and work less?
This guest article was written by Jen Smith, who regularly writes on the topic of personal development. She is a Psychology graduate and is a Life Coach and Mentor. You can also follow Jen on Twitter.
If you want to guest post on this blog, click here to get more information.
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Hi Bob,
Thanks again for letting me guest post here for you.
Jen
.-= Jen´s last blog ..On the road again =-.
Hi Jen,
It’s a treat for me to have your guest post grace my blog!
Best,
Bob
Great post as always Jen!
You had it completely right when you said it’s all about choice.
If you choose to take back control of your finances and use them to do what you want to do, life becomes a little bit easier. But if you let your money control you then you’re on to a loser.
It all comes down to making the choice
Hi Jen!
Great to bump into you on Bob’s site and thanks for this post which I found both practical and inspiring.
When I started down the road of believing I could develop a business off the back of my blog site, Steve and I scrutinised what we were spending our money on. We kept little cash books for a month and then did the maths and we were shocked!! There were three things we found leeching our funds: coffees, food shopping and (in my case) clothes and cosmetics. We realised we’d turned expensive Starbucks type coffees into a daily (and sometimes twice daily) necessity and decided first to cut back on our general coffee consumption and second to allow ourselves a Starbucks type treat a couple of times a week. On food shopping, we now plan what we’re going to eat a week at a time and do our shopping on that basis. We’d previously been wandering into supermarkets two or three times a week, making it up as we went along, and spending a fortune. On clothes and cosmetics, I now set myself a budget each season for clothes. When it’s spent, it’s spent! I used to use expensive creams etc, but am finding that cheaper ones actually do the same job.
The great thing about getting your money and spending under control is how liberated you feel and how it opens up your choices about what you do and don’t need to do.
.-= Christine Livingston´s last blog ..Lost heart with your current job? Don’t rush to escape =-.
Great to see you here too Christine and I am really glad you found this post useful. Thank you for sharing your experiences. Like you I have found that it’s the little things (like Starbuck’s) that can really drain our finances. I also write a shopping list each week – and that planning and awareness really helps too. Getting our priorities in line and a little discipline can go a long way.
Thanks Ben! thanks for your comment and popping into Bob’s site (a great fellow blogger if you havent met him yet
) and I like what you said – it is all about what we choose.
.-= Jen´s last blog ..On the road again =-.
Jen -
I agree 100%. It’s all about choices. Some people might want change…for example, working less, but they don’t think they can afford it. The first step is to figure out your priorities. What is it you really want? Do you want to work less…travel more? If so, then figure out where you can cut money. Can you move somewhere that is cheaper? Do you need to have cable or satellite TV? Do you go out to eat too much? Many people flat out don’t know where their money goes. The first step is taking a close look at your finances and really evaluating where it is you can cut some of your expenses to save more for things that you really value.
.-= Nate´s last blog ..Devastation in Haiti =-.
Hi Nate.
Thank you for your comment. Absolutely. I used to be pretty bad with managing my money, but at the time I wasn’t willing to do the work (which is never as much as you think it will be) to work out my priorities. Taking responsibility and putting myself in charge (rather than the other way around) has made the world of difference. We really can have what we want if we work out what that really is.
.-= Jen´s last blog ..On the road again =-.
The first time I started tracking down where my money are going, I discovered that I was spending at least $500 just for working. The rest is spent in taxes and other things, but working alone was costing me a lot. I cut down that by going to work at that place only 3 days per week and want to cut it down even more. Great post.
.-= Oscar – freestyle mind´s last blog ..A Tremendous Money Saver – Wait 48 Hours Before Buying Anything =-.
Thanks Oscar.
It is often really enlightening to see what we actually do with our money, when we look properly isn’t it? Thank you for sharing your experience, it sounds like you have made life a lot easier for yourself by reassessing what was going on with your money.
Loved this jen!!!
My wife and I read this post, enjoyed it and have come up with a plan to document spending habits.
When you do the maths of how much you’d have saved(this is not a case of being stingy) in a year of things you dont really need, it adds up.
A typical example is a deep fryer which cost 60pounds bought 3 months ago & still in its box. Never had any cause to use it. Dont get even get me started lol!!!
take care!!!
Hi Jen (and Bob)~
Great post and very inspiring! I love the message that it’s all about choices and being very intentional with what you really want. Thanks so much for sharing your experience!!
xx,
Nona
Hi Nona,
Jen was nice enough to post on my blog. She is the best! Thanks for stopping by and reading Jen’s post. Long time no talk…
Best,
Bob
Aw thanks Ayo!!
We have all done something like that I think!
That is awesome. I really wanted this post to be practical and inpsire people, so I am delighted that this post was useful for yourself and your wife. As you say, it is not a case of being stingy but just being aware … and such a great example of the deep fryer!
I would love to hear how you and your wife get on with your new plan.
Jen
Hiya Nona!
Thanks so much for your feedback – I am glad you enjoyed this post.
Happy New Year btw!
Jen
.-= Jen´s last blog ..Cherish the small stuff =-.
Hi Jen,
Great post! I, too, have just become better at managing my money (my husband, too) as we have discovered the awesomeness that is Mint.com. It’s a free money-management/budget tool. http://tenaciousme3.wordpress.com/2009/10/01/a-free-budget-tool-to-help-you-reach-your-financial-goals/
I hope everyone will find that as helpful as we have.
On another note, good luck with your life coaching business! I checked out (and subscribed to) your site.
.-= Laura Lee Bloor´s last blog ..Have You Been Screened for Skin Cancer? =-.
Jen,
Was intrigued by your title, “Do you have to work full time,” because like you I am looking to find ways to cut back on work hours and have more time for my passion, which right now is writing on personal growth and developing my blog. I experienced such freedom when I left my full-time job, and contracting work is really working well for me and has for the last year plus.
In terms of ideas for cutting back – I am a big fan of leftovers. I rarely eat out, and almost always bring a lunch and sometimes a dinner to work. Saves me a lot of disposable cash.
Linda
Hey Laura,
I have heard very good things about mint.com, it is great it has been so useful and thanks for posting the link here.
I reeally appreciate the feedback and am delighted you have subscribed to my site.
Look forward to seeing you around the blogosphere soon!
Jen
.-= Jen´s last blog ..Cherish the small stuff =-.
Great to hear you are doing this to follow your passion too Linda. Also great idea about leftovers Linda – saves so much money!
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Lucy
http://keyboardpiano.net
.-= Lucy´s last blog ..Digital Piano Keyboard =-.
Hi Lucy,
If you are referring to this blog, I appreciate the comments. Since you have commented on a guest post, I’m sure that Jen also appreciates the comments on her blog post. I hope you will subscribe to this blog and to Jen’s ReachourDreams blog. Great to have you here reading and commenting.
Best,
Bob
If you work smart and figure out exactly what you want your life to look like, then take action and remember why you’re doing it and at the same time make sure to have fun, I bet there’s not much that ISN’T possible to achieve in life.
.-= Eric´s last blog ..Lets Help Each Other =-.
Very interesting. I often wondered what it meant to be a Life Coach since I am always called one. Now, I think I may just be it!
I train young people who are looking for their purpose in life to be positive and find their direction in life!
Cheers
Sheila
.-= El Sheila´s last blog ..An old poem =-.
Hi Sheila,
I also have another post on exactly what life coaches do. I interviewed two of them. You may enjoy it..
Best,
Bob