Have you ever felt frustrated, overwhelmed, or confused about a big financial decision? Most of us waffle about whether we should or shouldn’t spend money or make key financial moves. In this post, Laura gives a simple framework to stay disciplined and make better money decisions in less time, with a lot more clarity and confidence.
Have you ever felt frustrated, overwhelmed, or confused about a big financial decision? Maybe you’ve wondered if you should empty a retirement account to pay off debt, buy a home, splurge on a vacation, or take a job in a new city.
Most of us waffle about whether we should or shouldn’t spend money or make key financial moves. In this post, I’ll give you a framework to make better money decisions in less time, with a lot more clarity and confidence.
Free Resource: Laura's Recommended Tools—over 40 of the best ways to earn more, save more, and accomplish more with your money!
Get Focused on Your Finances
You probably know that you should have financial goals to steer your decision-making, right? Sometimes we don’t set goals because it seems like creating a page full of targets is just too complicated.
Maybe you feel like it’s a waste of time because you created financial goals in the past, but they didn’t help because you completely forgot about them just a few weeks or days later. Or perhaps you’ve been putting off creating goals because you’re not sure what they should be in the first place.
As we approach a New Year, I want to give you a completely different way to think about success with your finances. I call it your One Money Objective, which is a single word or short phrase that gives direction to your entire financial life.
The idea for creating One Money Objective came to me after reading The One Thing, a bestseller by Gary Keller and Jay Papasan. The book’s premise is that you’re more likely to find success when you dismiss distractions and narrow your concentration to one thing.
The One Thing made me realize that trying to focus on too many financial goals can easily clutter your mind and put distance between the actions you take and what you want to achieve. Instead of thinking big, I want to invite you to think small, very small.
There are only so many hours in the day, so getting laser focused on One Money Objective can make you more effective when faced with a major money dilemma or when you just need a fresh perspective to get your finances back on track.
Choose one word or phrase that encapsulates what you absolutely desire for your financial life. Having to boil down your goals into one word forces you to get to the point and is so much easier to remember than an overblown, complicated financial plan.
Having to boil down your goals into one word forces you to get to the point and is so much easier to remember than an overblown, complicated financial plan.
Now, I’m not saying that your overall objective for your financial life shouldn’t be big. But what I am saying is that success comes as a series of small wins. You make one good decision and then another and another. Over time, the positive effects of each small decision build up for massive success.
Here’s a quote from The One Thing:
“When you see someone who has a lot of knowledge, they learned it over time. When you see someone who has a lot of skills, they developed them over time. When you see someone who has done a lot, they accomplished it over time. When you see someone who has a lot of money, they earned it over time.
The key is time. Success is built sequentially. It’s one thing at a time.”
Just like multitasking usually backfires and causes you to be less productive, trying to accomplish too much or to make too many changes to your financial habits at once is generally a recipe for disaster.