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.
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.
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.
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!
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!