by Stacy Francis, CFP®, CDFA
One of my friends has grown to be such a Tony Robbins fan, she now quotes him daily. I went over to her house last night, to watch one of his videos and find out for myself what the fuss was all about.
I liked it. Even more so, I liked that even though the video dealt with life and overall goals, the technique can be narrowed down and applied to personal finance as well. Here’s how:
- Write down all the things on which you spend money. This includes every dime – no exceptions for the pack of gum you pick up at the gas station and the one-off birthday gift to your daughter’s friend.
- Write down your financial goals. When it comes down to it, what matters the most to you? Do you wish to achieve financial independence, send your child to a top-notch college, or simply be able to spend a little more at Bloomingdales?
- Brainstorm ways in which you can make the different situations where you spend money all part of your grand plan. When you deny yourself a mid-afternoon smoothie from Jamba Juice, rather than sulking, think of it as scoring yourself another tenth of a new pair of heels. Or, alternatively, don’t feel bad when you pick up that gorgeous cashmere scarf at Neiman Marcus. Instead think about how this is what you’ve been working so hard for.
In essence, it is all about dividing your spending into clusters, and aligning these clusters so that they all point in the same direction: toward the fulfillment of your dreams!