Woo hoo!  Par-tay!  This is likely your favorite piece of advice I’ve doled out thus far; glad I could be of service.  Simply put budgets suck! When you think about a budget, if you are like me, you cringe- and then quickly distract yourself with something more enjoyable like… pretty much anything else.  Budgets are restricting, they are claustrophobic, and they are definitely NOT ENJOYABLE!  If you read my blog post last month (Say what…you didn’t?!?  I’m giving away information that clients pay hundreds of dollars for so save yourself some money and take advantage of these freebies! No worries, just click here to read it.) you will know that how you approach something and the terminology that you use to identify it is powerful.​

For example, let’s say I have a work seminar to go to and I don’t want to go, I don’t like the people that are going to be there and I am expecting it to be boring, chances are I will close myself off and I will be miserable the entire time.  Same goes for the reverse, if there is a work event that I am interested in going to, where I think I might learn some new skills, and I’m curious to see what kind of characters will be there to brainstorm and network with, the probability is that I am going to enjoy myself or at very least be amused.  Unfortunately, a budget is akin to that damn work seminar that you are dreading, the one you avoiding and trying to fake an illness to get out of- How odd, I feel a case of bird flu coming on?
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Because of this deep negative psychological conditioning we all have associated with budgeting, I simply don’t do budgets. Instead, I plan. Just like you might plan your fun/productive/fulfilling/essential social or family engagements on monthly basis I plan my spending on a monthly basis. Once I’ve done my monthly spending plan, I check in with my plan each week just to make sure I haven’t forgotten anything, to make sure I have removed events (spending) that have been cancelled, and to double check that I haven’t overcommitted (spent more than I intended to) in any given area.  Like you, sometimes I will make it to all my social gatherings/dinners/birthday parties/appointments but sometimes I just don’t feel like going or I accidentally overbook myself and have to choose between events.  Your monthly spending plan is exactly the same.  In life you have a finite amount of time that needs to be allocated wisely to manage your schedule.  In your financial life, you have a finite amount of money that needs to be allocated to different areas in order to manage your spending and just like life (and unlike a budget) you have the flexibility and fluidity to change your plans (and your spending) as the month unfolds, or even at the last minute if something changes.  

​For me, doing a spending plan is quite cathartic.  It is 20-30 minutes of personal time I take each month to reflect on my life. It is my time to look ahead and focus on what I hope or anticipate the next month will bring.  How much money will I make? How many birthday presents do I need to buy? Is there anything I really want/need? We often get so busy in our everyday lives that we function on autopilot and miss out/forget about the important things that make up the whole adventure of this journey called life. Sitting down to do my spending plan gives me the time to reflect on my life- as I sit in front of my calendar I ask myself these things…

Where am I going (both literally and figuratively)?
What am I doing?
What are my needs?
What are my wants?
Is next month the same as/similar to this month? Will I make more or less money than I did this month?
Is it a long month? Or a short month?
Are there any birthdays I need to think about…gifts? Dinners? Cards? Events?
Am I traveling anywhere?
Am I out of any toiletries, household supplies etc? Do I need to run any specific errands?
Do I need to transfer money in or out of my savings account?
Do I need to return something I bought? Or research something I want/need to buy?
 
For a couple or a family, it’s a really good way to take some time to specifically think about “us”, time we will spend together as a unit, events we will attend together, things WE need as a unit.  It is an opportunity for inclusion and discussion as a unit.
 
What events do you want to do together as a family?  Movie night? Sporting events?
 Do your kids have birthday parties to go to? Are they having a birthday? 
Do you want to schedule an adult date night?
Are you celebrating an anniversary or milestone? Do you want to buy gifts for one another? Do you want to set spending limits for gift?
 
As you can see, my spending plan is essentially my vision board for the upcoming month. Extremely opposite from a budget wouldn’t you agree? Unlike budgeting, I find creating a spending plan relaxing and fulfilling. I enjoy taking the time to plan and focus on myself and to really remain present and connected to my wants, needs and goals. In the past, budgeting may have felt exhausting, trivial or like a waste of time to you.  Going forward, by creating a spending plan instead, you are taking time to care for yourself, and paying attention to YOUR needs.  If you are like most people you spend most of your time taking care of everyone else’s needs instead of your own- and while you are busy doing that, who is taking care of you?

You may be asking; sounds great but how do I stay focused in order to think about all of these things?  It’s actually pretty easy!  You have heard me repeatedly talk about the key to financial wellness being the act of tracking your spending. Part of the tracking process involves setting up a spending plan template and creating a whole bunch of categories- areas in your life where your money currently gets spent, areas where you would prefer your money to be spent, or areas where you may want to tune in better to become more aware of unconscious spending habits (I call these spending leaks!).  I then use this list of categories to jog my memory, and more often than not, I will see a certain category and go “oh yeah, I need to…”. Then because I allocate money for it on my plan I actually remember do it/pay it/buy it. This works especially well when you are checking in on your plan on a weekly basis to see if my still works with any changes that have been made. Believe it or not, your spending plan can actually pull double duty as a reminder/to do list. Two birds, one stone!  Who doesn’t love that in this age of mutli-tasking?

So, what are you waiting for?  Get started!  Create those categories and start your vision!  If you need help setting up a spending plan, or figuring out how to reach your financial goals, make a free consultation appointment today and I will help you sort it all out.   

Most people assume that working with a money coach means they can kiss any extravagance they currently spend money on goodbye.  Bye bye morning lattes, auf wiedersehen dinners out, adios new clothing, sionara new gadgets, and a fond farewell to…. well, everything. Some clients have even told me that a big hesitation in working with a coach was that they felt by cutting back on these things they would appear cheap to their peers.  Good news!  This is NOT how money coaching actually works. You do not have to give up the things that truly make you happy or the things that fulfill a physical or emotional need in your life.  You only need to give up or cut down on the things that don’t matter.

Recently I came across a little story on the vast interwebs which really encapsulates one aspect of what I try to teach my clients. The blurb (source unknown…if you have any idea where this came from let me know) reads:

Let’s use my personal experience as an example.  Before I became a money coach I always felt compelled to donate money to non-profit organizations that I believed in.  Somehow, even though I was making great money I never seemed to get around to donating.  In looking back, I know the reason I “never got around to donating” was because my money was being diverted to my hot spots instead and I never felt I quite had enough extra to donate.  For me, donating was a low spot- something I wanted to do, something I knew would provide fulfillment in my life, but something that was being steamrolled by my hot spots.
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By tracking my spending I was able to isolate the fact that if I were to cut down on my clothing expenses I could free up money to shovel into my low spot.  But I like clothing, and as you can imagine from my previous career being surrounded by very expensive clothing day in and day out my taste is expensive. In fact, my favorite brand is Theory.  So the question was, how could I cut down on my clothing spending when the things I like are really expensive?  Well, as a money coach I know that simply going out and buying cheap knockoffs is not going to serve me in the big picture.  Likely the knockoff is not made well, the fabric will be synthetic and not feel good against the skin and chances are I will lose interest in wearing it and simply purchase something else to replace it anyway…bringing me right back to where I started.  Does that mean I A) just don’t buy anything at all because why buy a knockoff if I know it’s a circular pattern or B) go ahead and splurge on the clothes I want and simply continue to ignore the low spot in my life?

Surprise, trick question, the answer is C! This is where I put on my frugal badge and wear it (pun intended) like a champ! Instead of picking A or B, I got creative and found a way around this dilemma.  I now find the things I like from Theory on ebay often for a fraction of the price and still with the tags on.  This is a win-win solution!  I get the exact well-made clothing that I want, clothing that I know will last a long time and get repeated use, and I have now freed up money to donate. I have filled both a want (clothing) and a need (fulfillment from making a donation and a difference) simply by being frugal about how I spend my money and it feels GREAT!

Recently I had a client tell me an incredible story of how being frugal changed their lives.  By tracking their spending this client realized they were spending more money than they thought was reasonable on Perrier.  In wanting to achieve the same result (being able to continue drinking their bubbly water) but by doing it “for less or no money” they decided to invest in a Soda Stream and make it at home.  In the long run this would save them money that could then be diverted towards a low spot in their lives.  But it gets better, in recent months this client had been very sick with kidney stones but when they switched to homemade bubbly water they noticed a vast improvement in their health, all of a sudden they were starting to feel better.  In relaying this connection to the doctor they discovered that the high mineral content in the copious amount of Perrier they had been drinking had been the underlying cause of the kidney stones!  In this instance, being frugal didn’t just save them money, it changed their lives significantly!

Granted not all stories about being frugal are going to be that impressive, or that dramatically life altering. Sometimes being frugal simply means stocking up on items that you use because they are on sale as opposed to buying them one at a time at full price. (Remember buying things you don’t need or don’t already use simply because they are on sale or you have a coupon is not being frugal. Need a refresher? Click here.) It could simply mean trading mediocre meals out for fantastic meals at home (or even mediocre meals at home for that matter).  Sometimes it is renting a movie instead of going out to a movie, or making coffee at home instead of buying a latte.  Figuring out how you can be frugal in the areas that don’t matter to your bigger picture can actually be fun, especially when the payoff is fulfilling something in your life that was constantly out of reach in the past.  Maybe that low spot is a vacation, or a house fund or even making a dent in old debt.
So I challenge you, going forward, how can you meet your financial goals and fill your emotional needs/low spots for less or no money?
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If you are stuck and need a helping hand to figure out what your hot spots and lows spots really are, if you want to start tracking your money but don’t know how, or if you simply want advice when making a big financial decision, make an appointment today and I will help you sort it all out.

Many of you probably don’t know this but my brother, Aaron Gold, is one of a select handful of professional big wave surfers in the world and I am not only super proud of him but continually impressed by him.  Five years ago he reached a pinnacle level in his career and was invited to surf in the most prestigious big wave competition in the world, The Eddie also known as the The Quicksilver in Memory of Eddie Aikau. 

This competition takes place once a year at Waimea Bay on Oahu provided that the waves are at least 40 feet high (20 feet by Hawaiian measurements since they measure the back of the wave and not the face) for the duration of the 8 hour competition. Unfortunately, since 2009 the waves simply haven’t been big enough to run it. The holding period for the Eddie begins in early December and runs through the end of February meaning the contest officials can call on the contest at any time giving the surfers 24 hours to get themselves and their teams to the North Shore of Oahu.

Luckily my brother lives on the North Shore of Oahu so getting there is not an issue for him. However, getting there is much more of a challenge for me but I wouldn’t miss this potentially once in a lifetime event for anything in the world.  A last minute trip can be extremely costly, so how did I prepare for something like this financially?

Every January I sit down and do my January spending plan, (a spending plan is like a budget but much more flexible taking into account life’s little surprises and the fact that no two months will be the same) but also my ANNUAL spending plan.  The annual spending plan incorporates not only all my monthly anticipated expenses but all those add-ons that can’t be pigeonholed to one specific month like periodic expenses, savings goals, travel, home repairs etc.  As I thought through my intentions and goals for 2016 I had high hopes that El Nino would bring the waves needed for me to finally witness my brother surf in this amazing competition.  Because of this possibility I made sure to allocate a portion of my income this year towards traveling to Hawaii, and if you’ve read my previous blogs, you will already know I try to make it to Hawaii a few times a year anyway along with some other travel adventures sprinkled in for lasting good measure. So, when I got the call that the Eddie was finally going to happen on Feb 10th, 2016 I was stoked.
 
However, before I make any large financial decisions (and even smaller ones too) I always check in with my monthly spending plan to see what kind of concessions I may need to make later in the month if I want to make something unexpected happen.  Fortunately my February spending plan had a little wiggle room to absorb most of these extra travel costs. I did have to give up those pair of jeans I wanted to buy and a few dinners out along with what I had planned on saving; not including my periodics savings of course) but these things were a small price to pay and the decision was easy. 

So, I jumped on a flight the very next day and as often happens in life, this trip didn’t exactly go as planned.  We got to the beach in the early morning twilight on Feb 1oth ready to watch the amazing surf and by dawn the officials had called it off.  The waves were simply too small and everyone was sent home.  Such a huge bummer.  As quickly as it started, it was over, but I did get to spend time with family which made the trip worthwhile and I came back to LA with a tan which is a bonus!

What I couldn’t predict was what happened next.  On February 22nd, I got another phone call.  It was my brother telling me that the officials were going to try for take two.  The Eddie was on (again!) for Feb 25th, 2016. I hesitated for a moment... could I really reschedule client appointments, arrange for dog care, and get back on a plane just 10 days since my last flight back from Hawaii?!?! It seemed insane to go but I couldn’t dodge the feeling that if I didn’t go I would always regret it.  Again, instead of letting my emotions make my decisions for me (although I never completely ignore them- there are some things in life more important than  money) I consulted my spending plans. Had I simply gone back to my February spending plan the answer would have been an unequivocal NO!! The first trip was barely squeezed out of the February budget, let alone a second one. So I deferred to my annual spending plan, which confirmed the fact that if I stay on track the way I have planned this year, I can definitely afford this trip while sticking to all of my savings and investment goals too. It simply meant that this month I would dip into my savings to cover the added costs, but that I will be able to replenish that amount throughout the year, little by little.  My annual spending plan said YES!! GO!! What the hell are you waiting for?!
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​​So I did, I got on a plane the next day and I enjoyed every second of this last trip without any financial guilt or stress because I knew that I had planned on traveling this year and that the cost was already anticipated in my 2016 annual plan. The only caveat is that most of my travel for the year has now already happened in the month of February, which is absolutely fine by me.  I got a front row seat to watch my brother place 10th in the world.  The power and awe of being there in person was something well worth blowing the majority of my yearly travel funds on.


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As you can see having a working annual spending plan (Where all money going out INCLUDING money being sent to savings, and debt payments = money coming in) allows you the opportunity to say, absolutely 100% yes, to chasing after adventures when they unexpectedly present themselves even when your monthly spending plan discourages it.  My annual spending plan gave me full guilt free permission to chase my brother whilst he chased his waves, an experience I will never forget, and never regret emotionally or financially!
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If you need a hand figuring out how to create a spending plan, either monthly or annually, what the next step is to keep you moving towards your financial goals, or if you simply need advice before making a big financial decision, make an appointment today and I will help you sort it all out.

Imagine a classroom full of small children.  Perhaps you are imagining colorful walls, cubby holes, tiny chairs and tables (omg…how cute!), and all the buzzing activity that goes along with a preschool or an elementary school.  When the teacher in this classroom engages the kids in an activity they are focused, determined, creative, artistic, learning, growing and having fun!  Now imagine that the teacher stops paying attention…or simply leaves the room for a few minutes.  Gasp! You guessed it!  It won’t be long before pandemonium ensues, kids start to wander, someone is writing on the walls, inevitably someone gets hurt and starts crying… welcome to total meltdown mode. (Well maybe it’s not that bad but definitely not the ideal situation! You don’t need to have kids to know what I am talking about!)

Now when the teacher returns, getting these little people focused, happy and harmonious again is going to be even harder than it was in the first place. Adrenaline and anxiety take time to move through these little bodies.  This poor teacher is going to have their hands full.  Perhaps they should have just stayed in the room? Ah, hindsight.

You are probably wondering what I am getting at with this analogy, but trust me I have a point. When it comes to your finances, YOU are the teacher and your money is a classroom full of small children.  If you pay attention to your money, guide it, give it purpose, keep it engaged, it will easily become a happy and fulfilling part of your life.  If you look away (i.e. not looking at bills) or stop paying attention (not knowing exactly where your money is being spent) chaos, pain, and maybe even some crying are inevitable.  And getting back on track one you've started and then looked away is going to be even harder but it must be done.
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Just like little fingers without a task, your money will find a way to get itself into trouble.  That’s why a spending plan is so important.  Your spending plan is your lesson plan! You would never attempt to teach a group of children without some sort of plan so why would you try to deal with your money without a plan?!    Some people will call it a budget but to me that term has such a restrictive connotation.  I hear budget and immediately think, “Great, there goes any and all fun!”.  But it doesn’t have to be that way.  A budget denotes strict limitations whereas a spending plan is simply an outline of where and how you intend to spend your money.  In order to keep your dollars from getting into mischief like buying things you don’t really need or even want, it is extremely important to set a task (intention) for every dollar coming into your life.  This intention could be to save it, use it to pay down debt, or even to spend it. 

For the most part dollars that have a task to do are well behaved and will do what they are told.  If they act up (begging to be spent on stuff you don’t need), give them a time out, just like you would a small child.  Would you allow a 5 year old to have ice cream just because they are screaming their head off after you said no?  Probably not, a time out would be in order to allow for them to calm down, regroup and start thinking rationally again. So when in doubt, put your money in “time out”, weigh your options (think about how spending this money will affect you in the long term), and give yourself a moment to make some rational decisions.

Having a spending plan in place will not only help you to make those rational decisions but it will also allow for fluidity and changes in life as needed.  Sometimes small children have meltdowns for no logical reason that will inevitably throw off your entire day.  Since you can’t actually strangle these tiny terrors, as a teacher or parent you would need to take a deep breath, regroup, adjust your schedule and get back to the remainder of your regularly scheduled activities as soon as humanly possible.  This should be the same method you use in your financial life.  There will be times where your car has a meltdown or an unexpected bill shows up.  As much as you’d like to strangle your car I’m going to advise against it. Simply allow yourself to take a few deep breaths (you are totally allowed to be pissed off), pull out your spending plan, regroup, make some adjustments and get back to normal life as soon as possible.

If you continue to nurture, encourage, and be patient with your finances like you would a small child I guarantee you that your money will grow into a well rounded, supportive, sustainable, caring and dare I say joyful aspect of your life.

As always, if you want help honing your financial skills, figuring out what it is you truly need, or to make sure your money is working hard for you, make an appointment today and I will help you sort it all out.

P.S. Hats off to all you parents, teachers and tiny human caregivers out there.  You all are AMAZING!
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