When I was 15 my mom and dad decided that they would take me out to go look at used cars. My sixteenth birthday was right around the corner. As any 15 year old would be, I was sooo excited to go look at cars. I was on top of the world. My mom took me to a used car lot that was down the street from our house. I asked my mom on the way to the lot how much my limit was. She said that dad and her decided that $8000 was the limit. She told me that it was up to me to try to use that money wisely. I was excited to try to negotiate the purchase of a dream car for only $8000. Of course like every 15 year old on the planet, I had no clue of the value of $8000. It was just a number...a big number.

We got down to the lot, and the first thing that caught my eye was a 1968 Ford Mustang. It was beautifully restored. It was a forest green color with a bit of a sparkle. It didn't have a price tag on it. I had just turned to my mom to ask her how much she thought it cost when a portly older gentlemen approached us. I could tell by his pinky ring that he worked there. He cordially greeted us, and asked me if I had any questions. I, of course, asked him how much the Mustang was. He then asked me how much I was looking to spend. I told him that I couldn't spend any more than $8000. He then told me that I was in luck because the Mustang was exactly $8000.

Needless to say, my mom was hip to this. She told me that we should go to talk to my dad about it. When we got in the car she told me my error. I was embarrassed to realize that the Mustang (without the price tag) would have cost whatever amount of money that I was willing to spend. She still loves to tell this story. I guess you could say it was this lesson that got me thinking more like Pete the Planner.

I have come to discover that this same used-car sales princliple is the reason that people spend exactly what they make. People are dumbfounded when they realize that no matter how much they make, they keep spending all of it. I can talk to someone who lives paycheck to paycheck that makes $150k per year, and they lived the same paycheck to paycheck lifestyle when they made $80k per year.

I clearly needed some better negotiating skills when trying to find my dream car, and most people need better budgeting skills when they deal with their income. I have seen peoples' incomes go up year after year, but they always end up living one check at a time. There is literally no limit to this problem. I have clients that come to me that make well over $400k per year that do this very same thing.

The next time you get a raise, please think of me and that beautiful 1968 Mustang...and the guy with the pinky ring the size of a Big Mac. In fact if you do that now and want help then go over to www.petetheplanner.com or shoot me an email pete@petetheplanner.com . We need to talk.