Stashing the cash is all in the mind

Are you one of those people who seem to go around and around in circles with regards to sticking to a spending and savings plan?
This could be because some of your thoughts about money are self-defeating. Thoughts such as "I will save money if I buy this on special" are self-defeating as the words "save money" mean to accumulate money. What you are actually doing when you buy something because it is on special is just spending less than if you bought it at the full price. You can't save money by spending it.
In order to change those self-defeating thoughts and actions, you need to understand how to turn those thoughts and beliefs around.
Rational Emotive Behaviour Therapy (REBT) can help you do this. REBT uses the ABCDE method to change irrational thinking.
How it works:
A is the activating event, that started things off.
B is the underlying belief you hold about a certain thing.
C is the consequence and action you take or the reaction you have because of what your underlying belief is.
When you discover a self-defeating belief towards money, then consciously dispute that belief (the D) and exchange it for a new rational belief (the E).
An example of this is: My brother was diagnosed with bowel cancer (the activating event). Because of his brush with death he constantly says "there's no point in being the richest man in the cemetery" (his underlying belief now is there is no point in saving for the future). Therefore his action because of that belief is that he now spends his capital on going on cruises with his wife.
Although he is now close to retiring, he has no savings for the future because of this belief. Thankfully, he also has a belief that if you can't pay for something fully today - don't buy it. So although he doesn't have any savings for the future, he doesn't have any debt either.
So before you spend your money (the action) evaluate your own thinking to see if it is rational or irrational. Try to identify beliefs you have deep down and how this could show up in your everyday financial transactions.
Although you cannot change the past, you can change how you let the past influence the way you are today and the way you want to be tomorrow.
Sylvia Bowden is the author of the book Parents: How to Stop Your Kids From Going Broke!, and The New Zealand Household Budget Kit, which is available from www.silbo.co.nz