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within your means, Spend Joyfully can help. It explores the basics of money in
your life.
• What does money mean to you?
• How do you manage money?
• How can you use money to your advantage?
• Why do you make the choices you do when you spend?
• How can you get the most bang-for-your-buck when you spend?
With Spend Joyfully, James W. Stone changes the way you think about spending
money. He explores how you can live your life with purpose and make decisions
about your money to fulfill a goal in life. The result is a new attitude about money
that leads to a more satisfying life. Tying that Attitude to a Budget, and
understanding Cash Flow are the ABC’s of managing your Financial Lifestyle.
The subject matter is presented in three sections focused on: 1) Where
your money is and how to manage it; 2) How to protect yourself from spending
mindlessly; and 3) How to live in a world dominated by advertising.
Spend Joyfully is easy to read, with several small stories to illustrate the material
and help you retain what you have read. Readers will identify with many of
the examples given. Spend Joyfully focuses on avoiding financial problems,
identifying problems when they do arise, and solving these problems. It does
not tell you how to make more money or how to invest your money. Rather, it
is about using the money you have to live a more satisfying life — and live
without letting money take control over you.
by James W. Stone
This publication is designed to provide accurate and authoritative information in regard to
the subject matter covered. However, it is sold with the understanding that the publisher
and author are not engaged in rendering legal accounting or other professional service. If
legal advice, or other professional advice, including financial, is required, the services of a
competent professional person should be sought.
ISBN: 978-160844-084-9
Library of Congress Control Number: 0000000000
Introduction....................................................................................1
Part One...........................................................................7
It’s about money (and elephant stew).
Chapter 1 .........................................................................................9
Setting the Stage
Spend like a millionaire........................................................9
Where’s the money?............................................................10
How do you GET money? ..................................................10
How do you SAVE money? ................................................10
How do you LOSE money? ................................................11
Chapter 2 .......................................................................................13
Life Objective - Principles and Practices
The LIFE OBJECTIVE ......................................................13
The Power of Vision............................................................15
Principles and Practices ......................................................16
Chapter 3 .......................................................................................19
Cash Flow & Cash Position
How much money do you have?.........................................19
What is Cash Flow? ............................................................20
How do I manage Cash Flow?............................................23
Cash Position, another great tool........................................26
How big should my Cash Position be? ...............................31
What about a budget? .........................................................32
What is your situation? .......................................................33
vi SPEND JOYFULLY
Chapter 4 .......................................................................................37
Developing a Plan
Big things are often just lots of little things .......................37
Break big things into smaller pieces...................................38
Surprises .............................................................................40
Spending Joyfully ...............................................................43
Tweaking the Spending Allowance .....................................45
Teach your children ............................................................47
But what about YOU? .........................................................48
Cash Flow Analysis worksheet ...........................................51
How’s your Cash Flow? ......................................................54
Chapter 5 .......................................................................................57
But I can make the payments
Danger ahead ......................................................................57
Is there a way to fix it? .......................................................58
The Three Essential Steps...................................................58
Give yourself a raise!..........................................................59
There is risk if you don’t act...............................................60
An Action Plan ...................................................................61
How soon do I see benefits?...............................................68
Your credit report................................................................69
Chapter 6 .......................................................................................73
What’s normal?
Just like everybody else I see .............................................73
Confident and Free .............................................................74
Eleven Principles & Practices of the Confident & Free .....75
Will you accept my invitation? ...........................................81
Chapter 7 .......................................................................................83
Don’t go shopping yet—A recap of Part One
So far it’s all about money, not about spending ..................83
So what have you learned so far? .......................................84
And what can you DO with this knowledge? .....................85
MANAGING YOUR FINANCIAL LIFESTYLE vii
Chapter 12 ...................................................................................139
Building Habits, Breaking Habits
A change of habit..............................................................139
Compulsion, Obsession, & Conviction ............................139
We’re all quirky ................................................................141
But these are only habits...................................................143
And what does this have to do with Spending Joyfully? ..144
Chapter 13 ...................................................................................147
Now you can shop—A recap of Part Two
So what have you learned in Part Two? ............................147
And what can you DO with that knowledge? ...................148
Part Three.....................................................................151
Recognizing forces that drive your decisions.
Chapter 14 ...................................................................................153
Advertising & Marketing
It’s You vs. the World ........................................................153
How to deal with advertising............................................153
Five Essential Deconstruction Tools.................................155
Chapter 15 ...................................................................................161
What Drives Your Decisions
Be Happy, Belong, Be Important......................................161
Maslow’s Hierarchy of Needs...........................................162
Who uses Maslow’s Theory? ............................................163
I know all this and I still “spend stupid”...........................166
Chapter 16 ...................................................................................172
Chasing the Image of Wealth
Confusing style with substance ........................................172
Does wealth set you apart from the crowd?......................173
What does set you apart from the crowd? ........................174
But I like Bling!................................................................174
Real wealth, where you want to be ...................................176
MANAGING YOUR FINANCIAL LIFESTYLE ix
Chapter 17 ...................................................................................179
The Roadmap
The game is scored by the amount of satisfaction you get in
exchange for your money. Here’s how to win the game.
Glossary of Terms.......................................................................185
Index............................................................................................193
ACKNOWLEDGMENTS
When a book is published with a single author, you can be fairly
sure there are other people who deserve some of the credit. That is
certainly true for Spend Joyfully.
The background material for Spend Joyfully came from my
experience in business and my good luck to have known great men-
tors. Some of my most profound guidance came from people who
have no idea how much they changed my life. Keep that in mind as
you live your own life … others are learning from you.
I particularly appreciate the opportunities I found while
employed by Illinois Tool Works. At their corporate Technology Cen-
ter, I was deeply involved in plenty of projects all over the world deal-
ing with operations, new product development, and marketing issues.
Is there a better way to learn how products are made and sold? Imag-
ine. I was constantly talking to management, suppliers, and our cus-
tomers about products for retail, commercial, industrial components,
and commodity hardware. This proved to be a great laboratory for
studying how people (management and the customers) make spend-
ing decisions.
My wife, Judy, has been behind the scenes all the way since I
mentioned the idea of writing this book. I must give thanks that God
made someone who can be as tolerant and helpful as she has been.
Judy has provided support, encouragement, and critique for every
step of this journey. She reviews every word and helps make my
thoughts understandable to readers. And that’s just a small part of
why I love her.
There was a team of family, friends, and associates who
reviewed the first manuscript and explained what needed to change
if this project were to succeed: Patrick Farran, Lin Fernholz, Bill
xii SPEND JOYFULLY
We’ve been in a party mood for several years. Credit has let us
do things we now realize we shouldn’t have been doing. We put our
trust in people and ideas we didn’t really know. Those people told us
it was okay to party with our credit cards and Home Equity credit
lines. They showed us how to do it and it was a great party. Now we
see a mess that needs to be cleaned up. Hello!
To clean up this mess, your first reaction is to stop spending —
totally. After all, you need to use your money to pay off your debt.
But when everybody stops buying, business dies. Jobs are being lost,
and yours could be the next one on the chopping block. To keep jobs,
we have to keep spending. Your income is generated, in some way, by
other people spending money.
The truth is, you can’t totally stop spending money. If you could
do that, you wouldn’t need money in the first place. But in our world,
you need to pay for a place to live, for clothing, and for food. Each
one of these purchases involves making a choice … How much do I
choose to spend on housing so that I’ll have money left for clothing
and food? Today, it’s harder to get credit than it used to be. You don’t
have the option of using credit to get what you want and simply hope
it works out in the future. Now, you really need to live within your
means. You don’t want to spend money you don’t have.
When you get down to the very basics issues of paying for what
you really need to have, and you are not sure you will have a job, or
that you can get a new credit card to charge to, the choices you make
begin to look very important. If you get too much of one thing, you
won’t be able to get something else you need.
The stress of making those choices — those purchase decisions
— with actual money and no wiggle room offered by credit is very
real stress. There is nothing “joyful” about those decisions. But learn-
ing better ways to track your money and evaluate purchasing oppor-
tunities can greatly reduce the stress. In fact, if you know you have
made a good decision in what you buy, it can be JOYFUL.
That is what this book is about — Learning to SPEND money
joyfully, responsibly, with satisfaction, and without guilt or regret.
Being confident of your choices can make you feel rich beyond
what you feel today. But if you think of “rich” as having a lot of
money, there will always be somebody with more money than you
have.
MANAGING YOUR FINANCIAL LIFESTYLE 3
out. But you should take the time to find out why you made bad deci-
sions that got you so far into debt, and how not to make the same mis-
takes again. If you don’t understand how you got to the bad decision,
how are you going to get above doing it again?
Most readers can do a better job of controlling their spending if
they are given some simple tools to work with. Let’s start with some
simple observations:
Our land is more valuable than your money. As long as the sun
shines and the waters flow, this land will be here to give life to men
and animals; therefore, we cannot sell this land. It was put here for
us by the Great Spirit and we cannot sell it because it does not
belong to us.
—Blackfoot chief, (c. 1880)
The complete book may be
ordered from the author’s web
site
www.SpendJoyfully.com
(also available from fine bookstores everywhere)
www.dogearpublishing.net
ISBN: 978-160844-084-9