• Home
  • About
    • Rave Reviews
  • Services
    • For Individuals
      • Estate Planning Done Right
    • For Small Businesses
    • Tax Problem Resolution
      • "Innocent Spouse" IRS Relief
      • Bankruptcy Options That Work
      • Find Out What The IRS "Has" On You
      • Non-Filed Returns--Done For You
      • Payroll Tax Protection
      • Protection from IRS Asset Seizure
      • Protection From IRS Levies
      • Protection From Wage Garnishments
      • Safeguard Yourself From IRS Liens
      • Settle Your IRS Debt for Pennies on the Dollar
    • Tax Services
      • IRS Representation For You
      • Tax Planning For Big Savings
      • Tax Preparation Done Right
    • Additional Services
  • Tools & Resources
    • Financial Calculator Gallery
    • Refund Tracker
  • Contact Us
  • Blog

Call Now: (770) 984-8008

Email E. Dennis Bridges, CPA

Dennis Bridges Uncovers Your Money Mistakes In Plain Sight

In the course of our daily work here at E. Dennis Bridges, CPA, we not only work with tax forms and legal/financial documents a TON … but we also get a regular crash course, via those documents, on how people (our clients, mostly) have arrived to the place where they actually have something to *protect*.

In short, we get to be around a great many well-accomplished families.

So, perhaps it’s odd to you, but I’ve learned to pay attention to the subconscious lessons I can learn from my clients, and from people of means around the country.

I’ve discovered a few things along the way about what keeps people from the kind of accomplishment and means which they are looking for.

So I’ve decided to channel my inner Clark Howard today and deliver some advice which isn’t the “same old, same old” — and which can help you think about how you’re handling your finances a little differently.

Even many of my clients make some of these mistakes … and they can hurt you. Especially because we hardly ever think about them.

Dennis Bridges Uncovers Your Money Mistakes In Plain Sight
“Leadership is practiced not so much in words as in attitude and in actions.” – Harold Geneen

You pay your bills on time. You try to save as much as you can. You even follow the advice which you read in books and hear on the radio about how to keep your finances in check.

But you’re still not getting ahead.

Well, sometimes, it’s the unchallenged assumptions about how we’re handling our money which rise up and bite us in the keister.

So, in the course of working with clients, I’ve identified some mistakes I see (as well as ones I’ve made myself!), which can be fixed. All it takes is thinking a little differently…

Subconscious Mistake #1: Inappropriate Mental Accounting
Definition: Tendency for families to divide money into separate accounts based on subjective criteria.

Typical Example: Treating $100 you received as a gift from Grandma, differently than a $100 bill earned.

Typical Example #2: Having money languishing in a savings account earning 0.25%, while carrying high-interest debt to pay off at 12%.

Cure: Funnel income, no matter the source, into one savings account.

For any “found money”, such as a tax refund or gift from Grandma, quickly decide where that money is best utilized.

As for expenses, occasionally change how you pay. If you always pay with a credit card, try cash. This will get you remembering that all of it, for the purposes of your mental “books”, should be lumped into one monthly bucket.

Subconscious Mistake #2: Manipulative Price Anchoring
Definition: Our tendency to relate the value of a purchase to a price point which, rationally, should have no bearing on the amount spent.

Typical Example: The “rule of thumb” to spend two months’ salary on an engagement ring.

Typical Example #2: A realtor will tell you that “in 2011, this house was going for $500,000 – and is now listed at only $350,000!” … causing you to think this house is undervalued.

Cure: For big ticket purchases like a house, car, or engagement ring, ask a friend whose financial values you respect for their input.

For everyday purchases, avoid looking at the MSRP or sticker price.

Ask yourself:

Can I afford this today?
What do I really want to spend?
What is this really worth to me?

Marketers are experts at this sort of price-anchoring, and we really should know better … but yet we still fall prey to it. Try not to let outside sources set up the comparison by which you should be considering such large purchases.

There are a few more big ones, but for the sake of brevity I’ll save those for another week. But do let me know: is this helpful to you? And what more could we do for you, to help?

Warmly,

Dennis Bridges
(770) 984-8008

E. Dennis Bridges, CPA

More from my site

  • Is Your Business Properly Valued?Is Your Business Properly Valued?
  • Debit or Credit?Debit or Credit?
  • What Happens When You Lower Your Prices?What Happens When You Lower Your Prices?
  • Greater Atlanta Tax Expert on Making Sure Your 2014 Taxes Are Done RightGreater Atlanta Tax Expert on Making Sure Your 2014 Taxes Are Done Right
  • Resisting Financial AutomationResisting Financial Automation
  • Dennis Bridges’ Strategy for Writing Off Almost AnythingDennis Bridges’ Strategy for Writing Off Almost Anything
This entry was posted on Monday, September 15th, 2014 at 8:52 am and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

New Strategy Posts for your Finances

Looking Ahead to 2019 Taxes

Looking Ahead to 2019 Taxes

You have your 2018 tax return filed, or perhaps on extension, and now it is time to look forward to [...]
How Does Combining a Vacation with a Foreign Business Trip Affect the Tax Deduction for Travel Expenses of a Self-Employed Individual?

How Does Combining a Vacation with a Foreign Business Trip Affect the Tax Deduction for Travel Expenses of a Self-Employed Individual?

Article Highlights: Primarily Business Primarily Vacation Special Circumstances Foreign C[...]
Student loans --- YECH!

Student loans --- YECH!

As a general rule, most debt isn't helpful to you. In fact, I could probably state that more clearly[...]
We Love Sharing Good News: A Happy Tax Story

We Love Sharing Good News: A Happy Tax Story

Here at Team Bridges, we love cutting income taxes for you, just so you can keep a LOT more of your[...]
Four Good Reasons To Give, No Matter The Tax Deduction

Four Good Reasons To Give, No Matter The Tax Deduction

"When in doubt as to what you should do, err on the side of giving." - Tony Cleaver As often is [...]
Tweets by @EDBridgesCPA

Rave Reviews

Always helpful and friendly

December 7th, 2013

"Tim and I couldn’t be happier with what Dennis and his whole office have done for us with our taxes[...]

I saved more

December 7th, 2013

“I saved more taxes in one hour with Dennis’ strategies than I did with my previous accountant in th[...]

He saved us over $5000

December 7th, 2013

"Somebody told me about Dennis Bridges so I figured I’d give him a try. We had about the same gross [...]

He understood my situation

December 7th, 2013

“I would’ve never believed it if I didn't see it with my own eyes… I owed the IRS over $54,000 for s[...]

Latest Posts

  • Looking Ahead to 2019 Taxes
  • How Does Combining a Vacation with a Foreign Business Trip Affect the Tax Deduction for Travel Expenses of a Self-Employed Individual?
  • Student loans — YECH!
  • We Love Sharing Good News: A Happy Tax Story
  • Four Good Reasons To Give, No Matter The Tax Deduction
  • Resisting Financial Automation
  • What to Do When You’re A Saver and Your Spouse is a Spender (or Vice Versa)
  • Making Money Work In a Marriage
  • Tax Tips for First Time Return Filers
  • Ill-gotten Gains

Get our
Exclusive Free Report:

 

"The Top 5 Personal Tax-Saving IRS 'Secrets' For Surviving Tough Economic Times"

 

We'll also add you to our popular, weekly

Real World Strategy Notes

 
Interesting Image
 
 

SECURE & CONFIDENTIAL Your information will never be rented, traded or sold. We guarantee your confidentiality. We hate those spam criminals even more than you do! You will receive the promised report, as well as timely strategies for growing your personal or business finances.

E. Dennis Bridges, CPA | 234 Creekstone Ridge, Woodstock, GA 30188 | (770) 984-8008

© Copyright 2014 – E. Dennis Bridges, CPA – All Rights Reserved