February 17, 2009
One of my son's favorite toys is a stuffed Cookie Monster doll. Being just shy of three months old and being entertained very easily, Landon will lie in his playpen and laugh and smile at the blue googly eyed creature until he eventually falls asleep.
Cookie Monster and Personal Finance
Cookie Monster is famous for his love of cookies, especially chocolate chip. In 2006, Cookie Monster began to change his habits. Recognizing the need to instill healthier eating habits in children, he started to say that cookies were a "sometimes food" and did not need to be consumed all the time.
Cookie Monster could teach all of us a lesson in how to better manage our finances.
To Cookie Monster, cookies used to be something that he felt he needed. When he changed his habits, he recognized that cookies were not something he needed, but rather something he wanted. How often do we mistake something we need for something that we just want?
The best way to get a start in straightening up your personal finances is to divide your expenses into needs and wants. Some examples of things you need are food, shelter, and transportation. Some things that you may just want are a new iPhone, a dinner at an expensive restaurant, or a new flat screen TV.
Once you're able to decipher what your needs are versus your wants, you'll begin to cut your spending and put more money in your pocket.