Happy 2013, everyone!
It’s time to take yourself a little more seriously and step up your game. My cousin, a year younger than me, had major heart surgery a couple weeks ago and nearly lost his life on the operating table. Not to be all melodramatic, but it was another close-to-home reminder that time is a finite beast. If you’re going to leave your mark on the world (or just on your little private Idaho), 2013 is the time to make changes.
Here’s the gameplan we’d use when practicing financial planning with clients back in “the day” and it’s also what I’m using this year to shift up a gear:
1) Write out clear, actionable goals. I like Maria at The Money Principle’s post about themes. Start with an idea generally of what you want to do, then drill down toward specific tasks.
My 2013 theme is about tying up loose ends and focusing harder on core tasks. I haven’t yet crystalized completely the theme (it should be more succinct than what I have so far), but that’s not bad news. I’ve been thinking about it constantly, and this action gets the right thoughts in my little noggin’.
My main goals are simple: I have the first draft of a book written, and I’ve let it sit for about 9 months. Why? I have no idea. Other priorities. But now’s the time to finish that project. I’ve run marathons now for two years. I’d like to run one faster than ever. I’d also like to try an ultramarathon. I need to focus on cooking healthier food at home and have a more regimented plan. On the website side, we’ve talked about creating some products. These need to be launched in 2013.
2) Direct deposit to your savings account. Everyone direct deposits money into their checking account…and immediately drains it. Reconfigure your system so that you direct deposit to savings. Manually move money to live on over to your checking account.
While this seems like a little step, it’s a huge change. Now you’re saving automatically and having to think every time you spend money. You’re a conscious consumer, rather than an auto-spender.
3) Protect your downside. I know this for a fact: bad stuff that you don’t expect will happen in 2013. I don’t know where it’ll come from, so the best course of action is to look for Achilles Heels and apply duct tape. Do you have an emergency fund? Is your insurance up-to-par? Is the budget tight?
I need to adjust Cheryl’s life insurance (adjusted mine in 2012). Our will is now six months from being out-of-date (my children will be 18 years old…how the hell can that be? They were just babies yesterday….). I also have to begin “landing the plane” with my kid’s investment funds, so they’re ready when and if I need them for college expenses.
It’s also time for me to get home and auto quotes again. For some, checking out Insure 4 a Day may be a good idea. They offer a variety of cheap short term car insurance options dependent on your requirements.
4) Focus on energy, not time. I agree with Jim Loehr and Tony Schwartz in their book The Power of Full Engagement on this one: the key to optimum performance is to manage your ability to crank stuff out. As workers, we’re like tennis players: we compete year-round. It stands to reason that we can’t be great every moment of every day. We should gear up for those times when there are “big tournaments” in our life and focus on those days.
I’m working on a model day that better uses my energy and shelters that time I need for key tasks. I generally experience great creativity in the morning and low energy around 3 pm, so I’m reconfiguring my day to take advantage of that morning time and guard against the afternoon letdown. I’m also focusing more on my diet to avoid those crashes (just as soon as I finish these chocolates….).
5) Create surround sound. The best way to stay motivated is to surround yourself with people, books and podcasts that keep your mind on those activities that’ll help you achieve your dreams. Schedule meetings with your planning partners, spouse, and close mentors. Don’t just say “I’ll talk to people more often about my plans.” That doesn’t happen, does it? Set a time in your calendar and stick to it.
We created the podcast for this reason. I enjoy casual talk about subjects I’m interested in, not hard core discussions. I couldn’t find many chatty money podcasts (Planet Money is probably the closest I’ve found), so we created one. If you’ve listened to our show you know: it’s more about equating money with fun and less about deep drilling.
Biographies work well for me, too, to create surround sound. I don’t know why, but I particularly love books about chefs. Maybe it’s because they have to be in-the-moment so much. I loved Kitchen Confidential by Anthony Bordain (don’t read this book if you don’t like foul language and discussions about illegal activities). Currently I’m polishing off Restaurant Man by Joe Bastianich. Both of these are great looks into the world of business, written passionately by someone who knows their craft inside-out.
This list could be 100 points long, but if you practice those five above as you walk into 2013, you’re going to move faster, with more energy, and with fewer distractions.
ON that note, how about $100 Amazon money or cash to start your year off right! That’ll buy a bunch of groceries, books or mp3 players…..
Photo: TheBusyBrain
Great ideas Joe! I especially love #1. We make lists for many financial and non-financial things we want to accomplish. It helps us stay a straighter path as well as make rational decisions. This can be immensely helpful when you’re dealing with things like money and life decisions.
Yeah, I really like it, too…especially the “theme” idea. I think better along themes than I do just rote lists with no real point. If I start with the theme and then make a list, it helps sort out B.S. tasks.
I really like #5. That is an interesting way to put it. What helps motivate me financially is the PF community. I know that I am not alone in my money struggles and that we are all trying to wrestle that beast known as “money”.
Right on. I think this community is great surround sound. Visiting a few blogs a day keeps your brain on healthy money activity. Maybe I need to find a site about doughnuts….
I’m not sure why I never thought about automatically having part of my check go directly to a savings account. If you’re saving the same amount each month that makes so much sense. And like you said it’s harder to touch because it’s a savings account not a checking account.
That’s not the whole thing, KK, though you’re on the right track. Deposit THE WHOLE check to savings. It’s amazing what happens when the money’s already in savings and you have to move it to checking to live.
Great tips! I definitely think writing out clear goals and noting down how you intend on reaching them is important, and hey, it works for me!
Right on, Mo! Most people remember the goals….but the milestones are the key to reaching them.
These are all good ones! #4 is my favorite. I need to make much better use of the time I have.
I know what you mean, Holly. I’m always frustrated when I feel myself slowing down when there’s so, so much to still do….
As I get older, I never have enough time. Therefore I try to make every day count. I am big on goals and keeping them right in front of me. It helps me focus on them.
Time is my biggest problem too, KC! I never, ever seem to have enough.
I like the idea “Surround Sound.” If I could focus on one thing in my life right now, this would be it. It’s actually what I’m doing right now with my blog. Staying in touch with people who are like minded and have the same goals and work ethic that I do. Keep up the good work, Happy New Year!
Here’s to a fantastic 2013 for Brick by Brick, Marvin!
Dangit, I was going to use this post to convince my wife to let me buy a huge Klipsch 7.1 surround sound system with an 18″ subwoofer, but then I kept reading about point #5. Oh well, I guess being motivated and accomplishing tasks will have to be good enough… #bummedout #hashtagsdon’tworkinblogcomments
There may be a reason why your brain is blocking the book project. Maybe your mind knows it is not for you, or you would do better on other projects. I often find that when I reluctantly do something, I often do it for nothing. I was so happy when your last podcast FINALLY downloaded because my internet is so slow and I have never been able to listen to one here, but it stopped after 20 seconds. Argh!
I think you heard the best 20 seconds (not really, but just trying to make you feel better).
Great stuff there! Best of luck to you in the new year!
Okay, so this book isn’t written by a chef, but it is written by the former NYT food critic. Here’s an excerpt – but the full book is great, too!
http://www.nytimes.com/2009/07/19/magazine/19bruni-t.html?pagewanted=all&_r=0
Love the energy not time concept. I feel like I’ve been dancing around that one for a while, but hadn’t been able to describe it quite so eloquently.
We usually create family goals and have a family saying or verse to go along with each year. Still mulling over this years theme.
I like the idea of surround sound. I am big on goals. My husband and I have personal goals and we do a quarterly/annual review. We make it a date. I have to really get better in managing my time efficiently though. That is something I want to work on this year.
Focusing on energy instead of time is something I should take into consideration. I always feel busy, but perhaps I could instead check my energy level and make sure I’m not just spending a ton of time doing tasks at a low level.
Happy New Year!
I love the idea of direct depositing into savings. It makes the whole process of spending money so much more conscious.
I don’t really set New Years Resolutions. I set goals throughout the year as I’m inspired to. It helps my procrastinating self avoid motivation deflation.
“Motivation deflation” might be the term of the week!
I really like #2. I think for many people this will be sure fire way to increase their savings. In behavioral finance, we like to call that mental accounting 🙂
We do that with our money. We direct deposit it to the savings account and then move what we need to the chequing account. This has made it much easier to handle. We don’t normally carry cash or use our debit but it still helps us to have control of our savings. Great tips. Mr.CBB
I’m re-focusing as my main goal this year, on both my sites. I think sticking to your main theme is very important, and I think my blog lost a little focus (and readers) as a result.
I like the thinking behind “Focus on energy, not time”. I always seem to be chasing my tail when it comes to time. Perhaps it’s time for a change in tactics 🙁
This was excellent — I hope your cousin is okay. Here’s to 2013!
Good luck with it, Joe and if I can help in any way just let me know – will be around like a…running cheetah :).
This year, we’re actually going to reduce the size of our emergency fund. We’ve let it grow too big, because we’ve been too hesitant and unsure of ourselves to put that money elsewhere, where it could better work for us.
Love #4. You’ve got to focus on success in whatever you’re doing.
I want to focus on getting more in my emergency fund while still maxing out my Roth 🙂
I love the idea of having a “theme” year. I am going to rethink my plans for this year and revolve them around one particular theme. It will put a bigger mark on the initiative!
I love number 5. I mean they are all great, but number 5 is a focus of mine this year and so far, it’s going much better than last year. What and who you surround yourself with makes a huge difference to your life.