Permission to Catch Your Breath

 



“Rest”

Pressure to perform better, accomplish more, work harder, pushes us to the point where we need a time-out.  The time-out allows us to catch our breath.  We are driving ourselves crazy to please others, meet our goals, and fulfill our dreams.  When we run at break-neck pace, we lose sight of “why we’re doing what we’re doing.”  Taking a serious moment to revisit our life choices is both important and necessary.  

Here’s the catch. I look at my blog website and see a wealth of information written for your benefit. Then I realize there’s too much information and too little encouragement.  You need to know you are doing a great job. 

The fact that you are interested in improving your financial circumstances is commendable.  You are reading and at the very least are attempting to understand and implement better money practices into your day-to-day life so you are prepared for retirement, emergencies, and accomplishing your heart’s desires.

 

 

“Review”

Too much information weighs us down.  When we’re advised to do this, that, and the other thing, our heads spin. Examining what is best for us and meets our needs guarantees a successful outcome.  Too much information will spill out of our minds like  an over-filled hopper of barley will spill onto the ground. When we determine our purpose, reason, and desire for wanting to do “things” then we go in search of the information.  Knowing what you want helps you accomplish what you want.  This advice applies to a number of possibilities:  reducing your spending, saving money for your retirement, or effectively transitioning the family business to your children.

“Reflect!”

Maria Robinson so wisely said, “Nobody can go back and start a new beginning, but anyone can start today and make a new ending.”

What may have been devised as the best plan in the past might no longer be the best plan going forward into the future.  When we take a time-out to breathe, we have an opportunity to reflect and ask whether our goals and dreams will serve our needs going forward.  Your family dynamics may have changes; your health may have declined; or your job may be different.  Any alterations in your life are reasons to reflect on whether your present financial plan needs to be altered.

“Recharge!”

 

 

Reflection also serves as an opportunity to recharge your enthusiasm for pursuing your commitments to your goals and dreams.  When you recognize and celebrate your accomplishments to-date, you are fueling your motivation for the future.

Charles Duhigg, in his book Smarter, Faster, Better, offers two ground-breaking facts about motivation.

q Motivation becomes easier when we transform a chore into a choice.  Doing so gives us a sense of control. 

q Self-motivation becomes easier when we see our choices as affirmations of our deeper values and goals.

Charles’ fact-finding discovery came from his research of General Charles Krulak’s Marine Corp. Charles applied this new found knowledge to motivate him to write his book.  He simply said, “Motivation is triggered by making choices that demonstrate (to ourselves) that we are in control – and that we are moving toward goals that are meaningful.  It’s that feeling of self-determination that gets us going.”

So if you are the slightest bit demotivated about accomplishing your goals and dreams, ask yourself, “Why are you doing what you are doing?”  The Marine Corps recruits did just that.

“Why are you climbing this mountain?”  “Why are you missing the birth of your daughter?” “Why are you cleaning a mess hall, or doing push-ups, or running onto a battlefield when there are safe easier ways to live?” Forcing ourselves to explain why we are doing some thing helps us remember that this chore is a step along a longer path, and that by choosing to take that journey, we are getting closer to more meaningful objectives.

“Refresh”

When you walk through the steps: Rest, Review, Reflect and Recharge, you will feel Refreshed.  A short-lived time-out can be amazing without be extravagant. 
Simple things like playing your favorite song, making a list of the important people/things in your life, having a telephone conversation with a friend, setting aside prayer time, or relaxing with a cup of coffee in your favorite chair can rejuvenate you.  These mini-holidays clear your mind of clutter to help you think more clearly about your life choices.  Make that appointment with yourself the first chance you have.  You have permission to catch your breath.

Habits and Tools; Everything to Achieve Financial Freedom

 HABITS

How often do you hear people casually dismiss an inappropriate action as a “bad habit”?  We want to change…but it’s so hard!  We find ourselves always getting the same results from our repeated behaviors, vowing to do better the next time. Perhaps a first step might be to learn about habits and how to change them.  With the appropriate tools, we can stop beating ourselves up about our habits and proceed to make everlasting changes.

The book, The Power of Habit, Why We Do What We Do In Life and Business, was an eye-opener for deepening my understanding that there is an ingrained method to our routines.  Unconsciously, we go through the motions without detecting our hidden patterns.  Whether our habits are quirky or normal, we have them. Whether you floss your teeth at a certain time, tie your shoelaces in a certain way, or drive to work using a certain route, you have habits.  Unfortunately, when you want to change a routine or habit, you may face challenges.

People who attempt to change money habits related to saving and spending generally feel discouraged and defeated.  Understand that everything we do is cyclical. The loop begins with a cue which triggers a routine leading to a reward.

 


A simple neurological loop at the core of every habit

A fairly common occurrence happens on paydays.  The cue is having money in the bank account to trigger an event, a scheduled lunch date with friends or coworkers. The reward is a great meal with great people.  You may recognize this regular outing is becoming an expensive venture over the long term.  Your desires are to save more and spend less.  You know changes need to happen but you’re unsure how to break the cycle.  You may crave time with your friends but the question is whether you can find other less expensive ways.   

In the short excerpt, How Habits Work, Charles Duhigg shares his four step framework for replacing “bad habits” with “good habits.”   The four steps are:

1.     Identify the routine

2.     Experiment with rewards

3.     Isolate the cue

4.     Have a plan.  

In analyzing the cue, routine, and reward, you need to identify the unfavorable habit before you can forge ahead with a plan to change.

One of my favorite quotes in a long list of many is:

What you hear, you forget.

What you see, you remember.

What you do, you understand!

Often, I share this quote to highlight the importance in “doing” the action step to implement a positive change.  Whether the “doing” is to lose weight, exercise, or manage your money effectively, it’s about uncovering a new routine to lead to the reward.

TOOLS

Since you now have a better grasp on habits, let’s put this knowledge into action.  November is Financial Literacy Month.   Just like Christmas occurs every year, Financial Literacy Month has become a major event to aspire Canadians to take action.  This year’s Financial Literacy Theme is “Managing money and debt wisely; It pays to know.”   By committing to learn one new thing, over time you will develop money habits which inspire you to become a better money manager.  Cravings are the driving force behind habits.  When you crave “financial freedom”, the longing to be debt free or the desire to have a retirement fund, you are motivated to stick with your plan.

In order to measure your success, you need tools.  Financial tools are no different than other tools.  If you were fixing a leaky drain pipe or sewing a button on a coat, you need them to get the job done. These valuable financial tools, Net Worth Statement and Cash Flow Statement, were discussed in in the previous blog, Important Tools to Have in Your Toolbox.

Net Worth Statement lists your assets (everything you own) and liabilities (everything you owe) to determine your net worth.  It isn’t surprising to learn that the majority of people only create their Net Worth Statement when they apply for credit (loan, mortgage, or credit card).  This statement is a picture of your financial situation.  Creating this snapshot every year provides a clear indication of how well you manage your money.  Please don’t underestimate the value of this tool.   It’s a true measure of your financial success.



A Cash Flow Statement shows precisely the income coming into your hands and the expenses being paid over the course of a month or year. Tracking your income and expenses determines whether you have a surplus or a shortfall at the end of the period.  At a quick glance you also know whether you are “living within your means”.  The habit of tracking your expenses instills more control over spending because you categorize where your money is being spent.     

FINANCIAL FREEDOM

Whether you are developing new habits or learning new techniques, the greatest virtues are commitment, patience, and perseverance.  I was led to believe that new habits can be developed within 21 days.  Recently I learned that’s not necessarily correct.  When this tidbit of information circulated, somehow the words became skewed. The correct version is a new habit may take “a minimum of 21 days.” The truth be known developing a new habit takes as long as 66 days on average.  Do everything in your power to stay the course: find an accountability partner, seek a CERTIFIED FINANCIAL PLANNER^® professional to assist you, and use positive self-talk reminding yourself, “You got this!” You may soon enjoy the financial freedom you have been craving.