I'm hoping to accomplish some goals with the New Year. This first is to use this blog more. So for the next few days I'm going to outline a goal for the year each day.
I originally started the blog to track a debt free year. I did not have a debt free year. In fact, I spent most of the year paying down purchases I had to make with the credit card, then having to make more with the credit card. Bad move. I just paid the thing off- pre-Christmas. Good move.
With the wedding Jim and I are working on saving. The yearly goal is $3,000 on top of what we already save and on top of any gifts received. That should be easy. It's 125 each a month. That should also cover air-fare for our year later honeymoon planed for 2013. So that's the big, measurable goal.
The less measurable goal it to approach money differently. I want to approach it like I approach a race.
Hanging out with my parents is always wonderful. But as I 'grow up' it becomes apparent that my parent's handle money really well, and not just because they make a bunch. They are reasonable, and know how to enjoy things that they treat as indulgences. Their indulgences are not daily things, but things like fishing trips for the family while we are at the beach house. They pace themselves, if you will so they can enjoy what counts.
I think the race metaphor is good for me, because I can pace myself and manage my race like a pro when I'm in shape. You get in shape, you know what you can do, and you do it, but save enough that those last few minutes of the race you can pick it up, reel people in and fly by them. If you've done a good job you aren't laid up for a week because of your efforts. Granted, for most of the race people are flying by me, but there are people who set themselves up for me to pass later on by not pacing themselves early on.
So, while there is a money saving goal for the year, there's also a bigger, more important goal. It's to get in shape, learn to pace myself and enjoy those things that are important and that I remember. That means my indulgences can't be things like a latte in the morning. Really, they shouldn't. That's not an indulgence. It's an expensive habit. A great indulgence is not feeling squeezed when going out to a fancy dinner with J. A great indulgence is surprise airfare to go visit friends and family. A great indulgence is replacing the TV that direly needs replacing.
Being able to afford and enjoy these indulgences means being able to afford the other parts of life without hassle. Dogs need to go to the vet. Cars need maintenance and sometimes repair. Emergency funds need funding.
So this goal is going to work like training for a race season, with a few basic phases. These won't work exactly like a race season. Life is dynamic and there are going to be moments that call for certain behaviors, so while there are steps, they may all be simultaneous.
Phase 1- Build a base- get the house in order, get into shape and figure out where your limits are and how to push yourself further. It's painful at times and feels like it's taking over your life, but it's mandatory if you're going to run a successful race. I think I have an okay base at this point, but it needs work. Base building should happen as a part of the normal course of things.
Steps:
- Review the budget
- Determine what is excessive and what is necessary
- Refine my savings plan
Phase 2- Speed building- For the financial goal this is going to work on getting over obstacles, and learning how to manage the race. It's living, but not indulging. It's determining how to make indulgences easier. What shortcuts are there?
Steps:
- Learn about Travel Hacking
- Reduce crap. Sell what we can.
- Choosing indulgences.
Phase 3- Race- Live, follow the plan, use my base, remember my speed training, and enjoy the finish. Enjoy what counts. There are times in the race where you are in a pain cave. No surprise. It'll happen. There have been good and bad training days. But there is a time to enjoy it.
Steps:
- Be aware of surroundings.
- Don't use the slightly faster person to pace yourself early on.
- Enjoy the ride.
I think in a way my metaphor gets confusing. It happens. There are not really phases in this whole living thing, but I think they all sort of happen, and you just have to choose what phase you're in. For January we are in Phase 1. Saving and recouping. Figuring out what our base is and how we can work on speed. There's not a lot of racing to be done when it's so cold out.
