FInances Part 1

Good morning.  I hope you've had a fabulous week, that you had a chance to put not only thought but action behind your planning and organization for the next four weeks, and your mindset has been on moving forward in at least one area of your life around being organized.

My focus for the next two weeks will be on finances and guess what?  Organization and planning play a key role here too.  Now that Christmas/Hanukkah is a month behind us, are you still paying off your credit card bill?  How much longer will it take to get everything paid off?  Are you having to forego other wants/needs because of the credit card holiday debt?  If you’re not able to pay the entire amount, you do realize you are paying more with the credit card late fees, right?  Were you able to purchase what you had planned, were you able to donate to others, were you able to enjoy this time of year because of no money worries? 

In the past, I would be stressed out about the money I was spending during the holidays, because it was coming out of our monthly checking account.  What was a complete turn around and life saver was our decision, about 6 years ago, to make Christmas a monthly deduction.  Setting money aside each month into a savings account and also getting a credit card used exclusively for Christmas purchases and donations was the best thing we ever did!!  Any time I purchased something for Christmas whether it was in January or July or October … I used the designated credit card.  When the credit card bill came, I took money out of the savings account and paid the bill.  Done.  No hassles, no stress and no late fees.

At the beginning of the year, I set up my budget with the different categories.  Because of our family growing with grandchildren, our desire to give donations to more nonprofits, and an increase in shipping costs, the total amount of what I spend has increased over the 6 years.  Because of that increase, we have increased the amount paid into the savings account.  Not a big deal to add $10 more on a monthly basis.

Some of the categories I set up with my Christmas budget include a maximum dollar amount for our children, their spouse, our grandchildren (amount changes depending on their age), what we can spend for each other, and our parents.  The items that can be forgotten, but now in my budget include:  gifts to our mail person, milkman, the newspaper, donation to a charity, a service organization etc., stamps, Christmas cards, mailing of packages, mailing of the Christmas breads I send, as well as a misc. category for such things as purchasing a wreath for the front door, ornaments, etc. 

Budgets and keeping to them has usually been a challenge for me, however, with a new system like this and one I’ll talk more about next week, has totally changed our lives.  I keep a file labeled “Christmas,” and in it is my budget in a table format.  Each budget item is listed on the far left, the total allocated amount is next, followed by the amount spent column, and the last column is the final amount left which should either be zero or maybe a little left over.  Once I purchase an item, the receipt is put into an envelope, and then recorded in the check register.  The check register begins with the total amount allocated for that year, and each item is then deducted in the register and on the budget table.  I can easily look at that table to know how much money I have left with that line item.  For my own information, I also list each person so I can keep track of what it is I have purchased and the amount.  That comes in handy especially if I buy something throughout the year and put it in a “gift holding” box. I have a tendency to forget that I did buy something earlier in the year.  

This sounds like there is a lot involved and very time consuming.  On the contrary, it’s like anything else, it is a habit but it is also easy to do along the way.  If you try to do this all at one time in the end, it will not be accurate nor relieve the stress and frustration.  Is this the only way?  Absolutely not, but hopefully it will give you a way to begin with a system that works for you.

The key to this type of system is three-fold.  First, create a realistic budget.  Go back over your expenses this past year and see where you spent money.  These then will help you create the categories for your budget line item.  Once you have everything including something maybe you would like to have been able to do but couldn't afford at the time, you will now have a total you will spend.  Divide that total by 12 months (11 months now), and that will be your monthly deduction.  There may need to be some adjustment in your necessities budget, but it’s easier to do that now and MUCH less “painful.”   Second, set up a savings account only for Christmas/Hanukkah.  Make a monthly deposit into that savings account.  The monthly amount will depend on your budget determined by your needs.  Finally, apply for a credit card (not a debit card) which will ONLY be used when you purchase items for the holidays.  Having a separate savings account and credit card keeps things separated and easier to track versus having money co-mingled.   When the credit card bill arrives, all you now need to do is transfer funds and pay the bill on time – no late fees!!

This system allows me freedom to purchase items throughout the year, to have a handle daily (if I want) on how much I have left to spend on a particular person, line item etc., and it gives me a peace of mind that the money is there.  After the holidays, the last thing I do is to see the totals spent in each category and set up a budget for the next year.  I had to increase my shipping line item as that amount is increasing for 2015, a few other line items were dropped as they were no longer needed etc.  I found, in the end, we need to increase our monthly contribution to the savings account by $10.  Doesn’t make a difference on a monthly basis but could make a big difference at the last minute and the total is $120. 

I encourage you to take time this week to look at how you are allocating money for the holidays.  What is your system, where is your money being spent, how did you do this year, and the key…are you debt free after the holidays or are you paying off credit cards which now include late fees? January 31^st is Saturday.  February could be the beginning of your new system to prepare for the holidays!

I wish you peace of mind with this area of your finances, let me know what you think of these suggestions, and I would love to hear what other ideas you have for what you do. 

Planning and organization Part 2

Martin Luther King is the epitome of someone with a purpose, he had a BIG PICTURE, and he definitely had priorities.  What he began as the pursuit of civil rights through non-violence has been challenged and “put to the test” over the years.  Progress has been made but not near enough.  Now, more than maybe any other time in recent history; with the violence in Ferguson, MO, today is a day to examine our personal beliefs with more authenticity.  I hope yesterday didn't pass without you taking time to reflect on what the day represents and what each of us can do to move forward so ALL people feel valued, respected, and heard.

From last week’s blog, how did you do with your own reflection on YOUR Big PICTURE?  What priorities did you decide you want to continue, rework, or even new ones you want to establish?  You may have chosen just the area of work or home which is great for a start.  (You will also want to examine the areas of finances, your spiritual health as well as your physical health as you move ahead.)

The BIG PICTURE is the key to a strong “foundation” of what we want to accomplish which then leads to prioritizing our focus and activities.  Yet no matter how hard WE are working on those priorities, we also need to be flexible without losing site of our overall goal.  As my daughter reflected on last week, she had HER priorities of what needed to get accomplished, however, there were other demands on her time outside of her control.  Customers needed to talk, loan committee took more time, there were drop in requests, last minute needs from others which caused her priorities to stack up.  She focused on customer service which is a key priority and the "right thing" to do.  Consequently, she worked on her day off. Working on a day off, ideal?  No.  Necessary, yes.  Once again we are in charge of our priorities and actions on a continual basis.  It’s a CHOICE.   Keep in mind, we must always be flexible to various situations that pull us away.  The key, however, is not to lose sight of that BIG PICTURE and our priorities.  Don’t be too hard on yourself if you too have to make adjustments.  Just don’t allow that occasional situation to continue when you can get back on track. 

Planning and organization are the two areas we began with when talking about how the holidays went this past year.  In my humble opinion, that period of time is usually a reflection on how we do throughout the entire year.  For me, I can say I’m usually pretty good at planning and am always looking for better ways to do something or to organize my life.  For me, the key is to get things on my calendar first, then I can “back into” what needs to be done. Having a deadline even if it's self imposed keeps us accountable.  It’s a strategy.  You may have a different way which as long as it accomplishes your priorities then it’s working.  I learned this approach many years ago through a high school study skills class.   Planning and organization do not come naturally for most people - it is a life skill that needs to be modeled, taught, and practiced like any other skill.

When I was first teaching, I made many assumptions that my students knew how to plan and organize.  It wasn't until my own children were having difficulty getting a handle on their long term assignments, that I began to rethink how I was dealing with teaching the skills of planning and organization.  My first change was to have all the students use planners (calendars), write  in the due dates with reminders along the way.  (Fifth grade is the first year where assignments may be over a week rather than just overnight.)  So why did I continue to have many late assignments?  My “ah ha” moment was to realize there is a lot of time between the start and end of a project or assignment.  Once I began to teach the students how to break things down into smaller steps to reach the end goal, I began to see more success. That meant together we brainstormed all the steps it would take to complete a task, then we “backed into” when those tasks needed to be done.  I modeled this step by writing in my planner, and they did the same in theirs.  Did everyone have success? No, but there were far less late and/or incomplete assignments hence less stress and frustration on the part of the students AND their parents.  For those still struggling, we collaborated to find a strategy that worked for their particular learning style and needs.

What’s my point?  Planning and organization are skills that we may not have been taught or modeled, but they are skills that can be learned.  That means there has to be a BIG PICTURE of wanting to have less stress, less last minute running around, less frustration, less conflicts with others etc.   When something is  a priority it needs to have action behind it, but we often don't know where to begin.  So the first action might be to ask others in your same position how they plan and organize tasks, gather ideas and strategies from other sources like Pinterest, purchase the right tools (aka a calendar for 2015), ask for suggestions on a social media site, take a class etc. etc.  If you truly want to do things differently you can!

BIG PICTURE – PRIORITIZE – STRATEGIES TO ACCOMPLISH THE PRIORITY – TAKE ACTION.

Some of you will read this and think, “I’m already organized,” to which I say a resounding, “GREAT!!”  Maybe this is an area of strength for you, so be sure to help your children, co-workers, spouse, or others who seem to have difficulty.  My philosophy has always been to learn from those who I admire and who are skilled in an area I need help.  If planning and organization is an area needing attention it won’t change until you do give it attention by making it a priority.  My life as a teacher, a wife, a mother of two children with many areas to juggle demanded planning and organization with little “wiggle room.”  I continue to have planning and organizational needs even now.  It definitely “looks different” with fewer deadlines but still necessary. Life can be quite demanding especially when we’re juggling work, home, children, activities of each family member, church, times with family and friends etc.  The more we can prepare and be organized with fewer last minute tasks the more we can enjoy each day and the times we have both at home and at work. 

Make the next four weeks a priority to plan and organize the events, activities, and even the mundane tasks such as watering plants.  Use a calendar of some sort, prioritize what needs to be done and when, and see how life can become more manageable with less stress.  You will be thrilled with how much more you’re able to accomplish.  New habits take a minimum of 21 consecutive days to become established.  If you've fallen out of sync, get back on track, and if you’re a pro help someone else.  I would love to hear other’s suggestions of what they do to be well planned and organized.

Have a fabulous week of planning and organizing.  It comes down to mindset.  YOU CAN DO THIS! 

Planning and organization

I hope you made a commitment to have a reflective time last week and examine, in more depth, how things went for you over the holidays in the areas of planning/organization, money, and relationships.  What needs more attention in your life in order for the negatives not to repeat themselves?  This week, I want to focus on planning and organization.  As I said last week, these three areas aren't exclusive to the holidays, but they seem to be exacerbated during the holiday times.

In moving forward with each of us examining our own strengths and our weaknesses in the area of planning and organization, let’s go forward with a mindset that we ALL need some form of tweaking.  Let’s also assume that each of us wants to make a change,

and we're not going to use the same old excuses of why we can’t change and improve.  Do we all have our own excuses and rationale for why we can’t be better organized or better prepared?  Of course!  That’s a given. But read on if you truly want to make some changes no matter how big or small.   

I recently listened to a CD in the January Success magazine, with Darren Hardy interviewing Laura Stack who is considered the “productivity pro.”  I began to listen with more focus and attention when Laura began with the question whether we were busy or productive.  Interesting.  The common “buzz” seems to be the word busy.  Her definition to busy is “we look the part but there aren’t results.  Activity vs. accomplishment.  Productivity, however, is not measured in the number of hours, it’s the value you create and there are measurable RESULTS and “documented” accomplishments! We all have 24 hours in a day, some days are more productive than others, yet in the big picture are we seeing results of our efforts?  Are we accomplishing the things which are THE most important to us? 

As a side note, I learned several new strategies of things I want to accomplish this next year.  We all don’t know what we don’t know which is why it’s important to constantly be reading, listening to CD’s, “picking other people’s brains,” in order to come up with refining, tweaking, or developing a totally new approach.  Looking beyond ourselves is NOT a weakness.  On the contrary, it’s definitely a strength.  It’s not settling for the excuses, it’s not settling for the same old ways, it’s realizing that in order for change to happen, we need suggestions and help.  The only way that can happen is to commit to personal growth and open ourselves up to needing help.

Laura pinpointed what is preventing us from being productive.  (And I include myself in all that I’m addressing in today’s blog.)  The list includes; not prioritizing, not being able to say “no,” not being organized, our plate seems already too full and we’re overwhelmed, we put other’s needs before our own etc. etc.  Busy?  Productive? 

   

In today’s world, there is a lot of our daily time that seems to be out of our control due to the needs of our small children, the needs of staff, our boss, technology etc.  Many of us have some kind of “to do” list.  It’s not prioritized so we will generally do the “feel good,” easy, fun things first.  However, emotions are a bad judge of prioritizing.  Second, some people do things in the order they appear FIFO – first in, first out, and a third is the order you think of them.  You’re multi-tasking and constantly reprioritizing but it’s all happening in your mind.  These actions are more focused on being busy rather than prioritizing with a purpose.

Instead of coming up with New Year’s resolutions that data shows only 8% of the people who set them are still working on them after 6-8 weeks, let’s set monthly goals instead.  In the next four to six weeks (you set the time line) focus on PRIORITIZING.  Pick an area in your life: home, family, work, health, spiritual etc.  Once you have that ONE area, now take a few minutes to ask yourself the question, “If things were the way I would really want them, what would that look like?  (We started with reflecting on how things went over the holidays, but as I also said, it’s really an all year issue.  The holidays just seem to bring planning and organization to a head.)  Breaking this down even further after identifying the area of my life (business) I want to prioritize (improving my organization), I now need to have a BIG PICTURE of what will the end results “look like” if I am organized in my business.  What will it look like for you in the area of life YOU want to improve?  This is a crucial step – the BIG PICTURE.  This is NOT the time to start a long list of “to do’s.”)  In a sense, it’s like having your own mission statement that is realistic, has your focus and desires all wrapped up in a couple sentences.  This is your “map” to guide you through each day, each decision of what to do next.  If you have that big picture, that mission statement, then your “to do” list for the next day, week, or month may only be two to three maybe four things.  For example, I know I need to communicate with my customers on a regular basis and to me regular means weekly.  (I’m specific and not general in the time).  If at the end of the week, I have only completed that one thing and it’s moving me closer to my mission statement then I have been successful.  I don’t need to lament over all the things that didn't get done which, in the past, would have been my tendency.  I still have the “to do” list of getting the laundry done, reading, exercising etc. but I’m not going to let the emotional, feel good tasks get in the way of my priorities. The laundry etc. gets my attention AFTER I've done THE most important item of communicating with my customers.   

The goal for myself and for you is to look at life in a different way.  Rather than being overwhelmed with all that you feel “needs” to get done, all the demands you feel coming from children, spouse, co-workers, bosses, the expectations of what you think others think etc. etc. keep in mind… if you have your BIG PICTURE goals and what you want to accomplish in your life then it’s NOT about the number of tasks accomplished. It IS about prioritizing that will lead you to accomplishing what is truly important and valuable to you.  The reality is if your boss tells you that you need to be at a meeting at 11:00, then you’re at that meeting at 11:00.  If you're meeting with a recruit and his/her family on Saturday morning then you're there.  If your little one is running a fever and you need to leave work to pick them up from daycare then you do it – no questions asked.  Growing a business whether it’s self-employed, coaching, employment by someone else still entails a personal mission statement, a BIG PICTURE, and prioritizing.  Starting a new business, starting a new job, raising small children has its own set of demands.  At first, that new job, the young age of your children, the new business may be more time consuming; that’s natural and expected.  Yes, the laundry may pile up etc.  but that’s only short term.  However, if your organizational challenges continue to be the same problem year after year then something does need to change. The definition of insanity is doing the same thing over and over expecting different results.

Obviously, there are lots of variables when dealing with priorities.  What I hope the take away here is one, in order for things to change YOU have to make a commitment to change; two, learning and growing as a person first and foremost will unlock the door to many ideas, suggestions, and avenues that wouldn’t be available otherwise, and three having a BIG PICTURE with a mission statement as your road map on a daily, weekly, and monthly basis is a necessity.

Now here’s the BIG QUESTION…are you interested in changing the way things have been?  Or are you already making excuses that you don’t have the time; you’re too busy?  We all have 24 hours in a day.  So let me rephrase the “I’m too busy” to “that’s not a priority for me.” If you know your priorities then you’ll never again use the “I’m too busy” excuse.

 

I wish you a reflective week and a positive mindset.  

2015 a New Year

Welcome to 2015!  I hope you had a very special Christmas/Hanukkah season and a Happy New Year.  It was a special time for Jon and me as we were able to have individual time with each family and the grandkids.  Despite some traveling challenges getting to Elsa’s on the 23^rd, it all worked out. We cherished each visit, celebrated the holidays, and most important we enjoyed the memorable time with family.  We are truly blessed.

I've chosen to start 2015 reflecting on this past holiday season.  Before being able to move on to make plans for a new year, I hope you will take time to “analyze” how things went for you.  Now that the holidays are behind us, how are you feeling?  Are you looking at the past two weeks with a smile, a sigh that thankfully it’s now all behind you, or somewhere in between?  Take a few moments to think about what went well, where did you have fun, what events/activities were the most comfortable, time-wise how did your preparation go?  Did you stay within your budget or did you even have a budget?  How did family time go?  This also includes extended family.  Can you pick out at least four or five of your favorite moments or are you only thinking about the conflicts and turmoil?  Can you identify the relaxing times or are you thinking more about the times you had to walk on eggshells for fear someone would be upset?  Did you ever find yourself thinking, “next year I'm going to…?”  That might be a positive…something you want to be sure you do again, or it could be something you don't want to repeat.  The point here is to take time to reflect and then make plans for next year.  It’s not to have everything go perfectly.  The goal is to be able to enjoy the holidays, have positive memories, and to have as little stress as possible. 

Planning/organization, money, and expectations seem to be the areas that give us the most angst.  How do you do in these areas?  How much do you plan ahead and feel ready once the holidays arrive?  Do you have a Christmas fund so you have the money for the holiday expenses ahead of time?  Do you have realistic expectations when family gets together? Now is the time to take a few moments to make some decisions about how you can make things different in the future.  When you think about it, these really aren't problems exclusive to the holidays.  Planning ahead, having money first then spending is a basic economic principle, and having realistic expectations anytime family is together are true on an everyday basis.  If you would analyze these three areas for yourself, they may also be the areas you want to focus on for 2015.

I will deal with each of these areas in the next three blogs, so your job now is to identify how things went for you over the past holiday season.  Do this now while it’s still fresh in your mind before life “gets in the way” which if it hasn't already, it will soon enough.  People are back to work, the kids are back to school, and the demands for your time are escalating.

In addition, I have one more thing to add to your “to do” list.  If you have not already, I hope you write thank you notes! This is a personal bias of mine, but I feel strongly that we thank people, in a written note, for gifts etc.  That does NOT mean an email!  First and foremost, the people receiving the thank you know you received the gift and even if you were present when the gift was opened that thank you can express gratitude one more time.  It doesn't have to be a book, but take the time to thank people for the gift, the thoughtfulness etc.  No excuses.  And if you're a parent, help your children write their thank you’s.  The young ones can draw a picture or have them add their own special addition.  This is teaching them a life skill that means a lot to people and sends the message of appreciation.  My bias extends to actually handwriting the thank you’s, or at least use a service such as Send Out Cards to send the card for you – they even have a way to use your own handwriting.  That personal touch will mean a great deal to the recipient.  AND the thank you’s include your grown children and parents! 

I wish you a reflective week and a positive mindset!