Our bags are packed and we are all set to go. After months of waiting we are on our way to Sydney to attend Brendon Burchard’s Experts Academy.
We knew where we wanted to go, the date we were leaving and how we were going to get there; so planning for this trip was really quite easy.
Other times when we travel, we are more fluid. We have a departure date and a date we need to be home and what happens in the middle is totally flexible. So we decide what to do on a day to day basis.
Goal setting is like that, sometimes you have a short sharp goal that you just need to get stuck in and achieve. Maybe saving for that unexpected large dentist bill or setting up your emergency fund.
Your goal may go something like this “I want $1,000 in a savings account for emergencies in 90 days from today”. That ticks all the boxes in terms of being a clear, measurable and attainable goal.
But if you are 25 and you have a goal to have enough money to retire on when you are 65, you will need a bit more flexibility in your planning, by turning your large goal into smaller measurable and attainable chunks.
So, when you are setting your goals. Think like a travel agent
Where are you now?
Where do you want to go?
How are you going to get there?
When do you want to arrive?
We love to hear from you, so please leave us a comment or to learn more about our programmes, feel free to contact us.
Our beliefs, or our view of the world starts with our early childhood memories. We learn from our parents, our environment and form our own beliefs from those observations. So what are your earliest memory’s of money? How do you think that has impacted on how you relate to money now in your adult life?
My earliest memories of money revolve around the word ‘No’. No I couldn’t have the umbrella with the pink frill; the must have winter fashion accessory for a 4 year old. No, I couldn’t have a Barbie doll, they were too expensive, so I got the imitation one instead.
My parents were (and still are) very careful with their money, they were quite frugal in day to day expenditure but that meant that there was money set aside for our holidays and should any emergency crop up.
Their goal was to be mortgage free, as they hated any sort of debt and over the years they achieved that goal.
It is an exciting day and also tinged with a bit of sadness when our children leave home. Maybe they are off to see the world, heading to university or flatting with their friends. Does this mean we stop supporting our children financially? This question can become the elephant in the room for many families.
The short answer seems to be no we don’t stop supporting them financially! Among friends and clients it seems many of us with adult children are still helping out in one way or another.
The agreement we had with our children was we would support them during university and after that they were on their own. Sounded like a really good plan at the time, but over the years it hasn’t quite worked out that way. The number of parents in the same boat as us seems to be growing.
The old adage of children leaving home at 18 or when they finish their tertiary education and supporting themselves, has disappeared for a high percentage of parents. We are faced with the dilemma of supporting our children for longer than originally thought. This can cause friction between the parents.
This story was told to me in a humorous way, but there were serious undertones.
“Our son came back from overseas, no money, no job, so of course we welcomed him back home. Six months later he is still here, he has a job, but isn’t contributing a penny. Continue reading →
Throwing good money after bad or the ‘Sunk Cost Fallacy’ is another form of overspending that we can slip into without realising. It could be the house renovation that becomes the never ending money pit and deep down we know we will never recover these costs when the house is sold.
Sunk Costs are everywhere and they don’t occur only in your finances or business. Have you sat through a really bad movie thinking “oh well, I’ve watched an hour so I may as well watch the rest”. Gottcha!! You have just succumbed to a Sunk Cost.
“In for a penny, in for a pound” my Dad would say, as we headed to the local eat-all-you-want buffet restaurant for a family dinner. “I’ve paid my $25.00 (ok, this was a little while ago), so I am going to get my money’s worth and eat as much as I can”. Over the course of the next couple of hours he was true to his word!
So what is the Sunk Cost Fallacy? Well, in a nutshell: we keep making decisions (monetary or otherwise) based on how much we have already spent on a project. It’s hard to let go of something that is going backwards, or not complete an expensive project even though the cost of continuing just isn’t logical. Continue reading →
I bet you didn’t know you were an author did you. Whether you recognise it or not we all tell ourselves stories to justify and rationalise our spending. Some of those stories are short blogs, and others are full length novels!
What do I mean by justifying and rationalising our spending? I looked up the Merriam-Webster dictionary to see what they had to say about it and this is the definition of justify, “To provide good reason for the actions of [someone].”
Interesting. What about rationalise? “To think about or describe something (such as bad behaviour) in a way that explains it and makes it seem proper, more attractive etc.”
I probably don’t need to add much more as those two definitions really sum it up. But I am going to.
We were at a dinner party recently, and the usual question of “what do you do” came up. Generally one of two things happens when I say I am a money mentor. The person suddenly has to go and talk to someone else (the same thing happened when I used to say I was an accountant). Or I get chapter and verse about how good (or bad) they are with money. Continue reading →
I touched briefly on what money means in my blog “Money. Love it or hate it you have to live with it”. Let’s delve now a little deeper into our own money meanings. It’s important to define what it means to you, as it impacts on your view of the world, how you view others and your decisions. If you want different results you need to dig deeper than just your behaviours.
Why is money such a complicated subject? It should be straight forward shouldn’t it? But there are two sides to money: money the thing, it’s about maths. The other side, well this is where it gets complicated. Go and have a look in the mirror, who do you see? Yourself. That is why money gets complicated.
The maths side is easy. You know how much you earn. You know how much you spend (well, you should do). You know how much of it you save. If you subtract what you earn from what you spend and what you save you have either a positive or negative number at the end. Simple!
We (that’s that person in the mirror again) complicate money because we add meaning and emotion. We tell ourselves a story about money and you know what, we are all great authors when it comes to our money stories!
Now, I know this may be getting into the realms of ‘touchy feely’ but before you can really knuckle under and start making money be just about maths and getting ahead, you need to understand what stories you are telling yourself about money then you can change the ending. Continue reading →