First, you’re asking yourself, “What are you talking about?”
Well your “O Shnike (pronounced as if you’re shhh nike shoes) Threshold” is the threshold where you start to get nervous when your funds dip below a certain amounts. It’s that mental threshold that you give yourself when you’re gauging how much money you have to spend for doing x, y, z the rest of the week/month.
So let’s put this into everyday action:
You want to see the AWESOME new Iron Man 3, grab a coffee with friends, AND go out for drinks Saturday this week. You look at your bank account to gauge if you have enough to do all three. What best describes your “O shnike threshold” when you look at your bank account?
A) If you do all 3 you’ll be at basically $0 by the end of the week. You’re cool with that because paycheck is coming in a few days and you have a credit card for emergencies.
B) You have enough to grab coffee, but not the movie & drinks. Not a big deal, you’ve got room on your credit card so you decide to go to all social events.
c) If you go to all 3 you still have $136 left over. You decide to go to coffee, but stay in and invite friends over for a movie night and drinks. You still want to be social, but when it dips below $200 you get nervous.
Were you a, b, or c?
Let’s analyze each:
A) Your the “0” threshold person. You only spend what you make typically, but typically you spend all that you make. If you have it in the bank account, it can easily be gone by the next paycheck. This is living on the edge because you’re not preparing yourself for emergencies. If you spend all the paycheck before you receive the next paycheck you could be devastated by a last minute emergency with a credit card bill that your finances aren’t ready to pay for.
B) You’re credit card dependent. Not only is it the emergency fund, but it’s also gets you between paychecks at times. You’re the “Negative” threshold person. Typically your credit cards hold a balance and your checking account is often low. A huge emergency will quickly put you in a very tough spot.
C) You have to have “wiggle room” or “buffer” in your bank account. You’re the “Positive” threshold person. You need to have a good chunk of money in your account to feel comfortable doing anything social or otherwise.
I hope that you can guess which is the best to have. If you answered “C” you are correct. If you’re use to A or B then it may be a good time to re-evaluate your financial habits.
Changing habits takes baby steps. For the “Negative” threshold person, you’ll need to step into the “0” threshold, including paying off all the credit card debt built by ignoring the “0” threshold in the first place.
For the “0” threshold person, bump it up by $100 each paycheck.
Once you become a “Positive” threshold person, you need to validate that threshold with a professional that is appropriate for your situation.
One of the hardest thing you can do is say “no” to social exchanges. One thing I suggest is to open about what goals you have in life and come up with cheaper alternatives. Movie nights at the house, potlucks at friends, or just relaxing with drinks at home may be a great alternative and save a lot of money.
If you ever need help finding a cheaper social alternative, make sure to comment below and we can work together to find a more financially fit solution. 
