Last December I purchased material and a pattern to make my granddaughters a very popular costume. It was not a simple construction project so it was easy to postpone the task, while “thinking about it.” My only incentive to get the job done was the nagging feeling that they might move on to another character or outgrow the pattern before I got it done. Then this fall the call came: both of them had decided they wanted this costume for Halloween. It’s funny how someone helping you set a deadline finally makes a thought turn into action.
I think personal financial goals are the same. Individuals have good intentions to change how they manage their money, but until they have specific steps to take, a deadline for getting it done, and the support and expectation of someone else, it isn’t likely to happen.
The Extension store has available a Money Management Calendar, created by our Extension partners in Alabama. Changes in the 2016 edition include a goal writing page. That’s smart, because until you actually plan to earmark $10-$25-$50 each month (each or pay period) toward a money-related goal, it will probably be something you only “think about.” A clear plan can lead to action.
Another key to taking action is to find someone who will benefit from or support the goal. It can be tough to stay on track if you are alone in your effort; when an obstacle arises, it’s easy to reason your way out of following through with your plans. Another person’s expectations and their voice saying you can do it can keep you on track and moving forward. Get started by taking a look at the goal page of the new calendar. What do you want to move from “thinking about” to action?
Joyce Lash is a Family Finance Specialist and pleased she reached a goal! Happy Dance!
I often talk to people who feel like failures financially. They’re focused on all the things they’ve done wrong. Often they regret past purchases, past borrowing decisions, failure to save… that sort of thing.
It’s natural to regret your past mistakes. But after you’ve learned whatever lesson the past has taught you, there’s no point in dwelling on it. In fact, it is downright harmful.
The best way to improve your financial situation is to focus on what you CAN do. The past is outside your control. So is the price of gas. Thinking about them is just a waste of time. Instead, look for what you can do today to move you toward your goals.
Most importantly, notice when you take a positive step. Did you go to the store and avoid impulse purchases? Pat yourself on the back! Did you return a purchase to the store after deciding it wasn’t very important after all? Hooray! Did you shop around to find the best deal on your new tires? Three cheers for you! And when you reach a savings goal, that’s something to post on Facebook so your friends can celebrate with you!
Noticing the positive steps you take helps you believe that you can be a smart financial manager. As long as you focus on past failures, you will have trouble being optimistic about the future. But when you stop and look, you will see many smart decisions you make, too — both small and large.
People don’t reach for goals until they have reason to be optimistic. By noticing your own smart financial moves, you build confidence and optimism that will help you set and reach even larger goals.
What is a positive financial decision you made this week? ~Barb
Barb Wollan is a Family Finance specialist and a firm believer in the power of attitude
Pinned on the bulletin board behind my desk is The 10 Commandments of Alzheimer’s Communication. #1 – Never argue, instead agree; #2 – Never reason, instead divert; and the hardest one for me to keep…#5 – Never say “remember”, instead reminisce.
Dad has lost his “filter” and like a child, can be brutally honest at times. Last night, as I tucked him in, he was distracted and a bit upset. He wanted to know why he doesn’t know how much money he has. “Don’t I get that thing from the bank?” – Yes. “Is it addressed to me?” – Yes. “Well, how come I never see it?” Typically at this point I would break commandment #5 and say, “Don’t you remember….” Of course he doesn’t remember! Why else would we be having this conversation!
We have this discussion once or twice each month. At first I was quite offended and hurt by the accusation. I would go and retrieve the old statements and show them to him. I even had him sign the statements after he opened them, so later he could see his name written on it to prove that he had seen it. The joke was on me…he would see his signature and then ask, “How did my signature get on that piece of paper from the bank?” Every time I show him his bank statement, he would hand it to me and admit that he doesn’t understand it. I would give a detailed explanation and he would then ask, “So, how much do I have?” I ask him what it is he needs to buy. Sometimes he did have a want. Most times he didn’t know what he needed; and…around and around we go.
So, last night, when the conversation about money started (again for me and anew for him), I agreed (commandment #1): “yes, you get the thing from the bank”; and “yes, it comes addressed to you.”
I then shift to commandment #2 – “How about we look at them tomorrow?” This time, I did not break commandment #5. AND, the good news: he woke this morning not remembering last night’s conversation. He is in the garage, happy and content, cleaning and scrubbing old bee hives, getting them ready for next spring. ~Brenda
Goals, Spending plans
My daughter had a negative experience a while back when the Post Office delivered a package to her apartment; it didn’t fit in her mailbox, so they left it outside her door. Unfortunately, she never received it; she believes that someone walking through the hallway simply stole it.
She called the Post Office, who verified that it had been delivered and said there was nothing they could do; she called the apartment complex management, who said there was nothing they could do about it either. But when she called the company she purchased the item from, they were wonderful – they expressed regret, and replaced the lost merchandise. For the replacement package, she contacted the post office about her options, and they explained that she could have all packages held at the post office, which guarantees that packages won’t be stolen from her doorstep in the future.
My daughter’s story provides lessons about consumer precautions when having merchandise delivered. Note: there is one more option she would have explored, if the vendor hadn’t replaced the lost merchandise. She would have checked with her credit card company to see what protections they offer; many credit cards offer automatic protection against lost or damaged packages. It’s something to think about when choosing a credit card.
But there’s a bigger lesson here, too: it’s smart to ask. When things go wrong, or even when nothing has gone wrong but there is something you need, you can only gain by asking a business or agency to help you. They won’t always be able to help, but they usually will if they can.
Do you have a story of a time you asked and it paid off for you?
Consumer Knowledge, Goals, Spending plans
Guest blogger Kelsy Reynaga writes:
Maybe you recognize the quote “There’s no place like home” from The Wizard of Oz. Since I’m a Kansas girl, people love quoting this classic movie to me. The main character (Dorothy) was lost and wanted to go back home. On her journey she met some interesting characters who guided her through her journey.
In a way we are all like Dorothy: we have something that we would like to achieve but may not know how to get there. The process of setting goals is important not only in your personal life but also for your financial success. You may have a goal of buying an elephant (!) OR something more realistic like paying off your student loans. In the financial world there is an acronym used for goal setting called SMART:
- S stands for Specific; clearly identify what you want in exact terms.
- M stands for Measurable; identify how much you will need, or how will you know you are making progress toward your goal.
- A stands for Attainable; identify steps that lead to achieving your goal.
- R stands for Realistic; if your goal is challenging, what sort of obstacles may stand in your way?
- T stands for Time-defined; when do you plan to reach the goal?
Let’s walk through these steps with an example. Suppose I want to see some elephants. I need to be more specific about where I want to see them. Do I want to go to the local zoo or travel to another country? How much do I need to save to travel to Africa? Can I do this? Is this goal realistic? How long will it take for me to save up money for this trip? Those questions are practical and can be applied for any goal.
By using SMART, you are able to think through the goal and realistically plan for it. If I officially decide that my goal is to visit Africa to see elephants in their natural habitat, then I might learn that I need to save $4,000 to visit Africa for 2 weeks. This can be done if I save money from each paycheck for this trip. One obstacle may be that I am not currently saving any money from my paychecks; I’ll need to identify how to overcome that obstacle. If I decide that I want to achieve this goal in 3 years, I create timeline which lets me figure how much I need to save each month for this big trip. By first looking at the big picture goal, and then going into detail, you prevent a lot of stress and wasted time, and you are more likely to achieve your goal.
Perhaps if Dorothy had used SMART instead of just dreaming about being home, she might have reached home much faster.
Kelsy Reynaga is a senior at Iowa State University majoring in Child, Adult and Family Services and minoring in Financial Planning & Counseling.
I dread the day when dad no longer knows who I am, but in some ways I think these earlier stages of Alzheimer’s may be more difficult, for me as a caregiver, than the final stages. Dad is/was a very intelligent person, and he knows it. He was a problem solver…very creative, inventive, entrepreneurial, and giving of his time and talent. He never sat still and did nothing. He doesn’t remember or chooses to forget the fact that he is 81 and has an incurable disease that has stripped him of many of his skills and talents. To do nothing (sit and stare at a TV or take naps), is unbearable for him. He becomes depressed, cries, and then starts scheming…trying to find a way to get to his wood shop, three hours away.
He wants to be turning beautiful wood bowls on a lathe or putting a new roof or siding on my shed; cutting wood on a table saw or skill saw. His passion is bees and I am thankful it occupies a lot of his time and most of his thoughts right now. What he really wants/needs to do right now is build 24 new supers (wooden boxes) for his bees to fill with honey. His doctor says he shouldn’t use power tools and I agree.
I have been trying to get dads finances in order. I suspect his eye care and dental needs have been neglected for several years and had hoped to schedule appointments this month, but have instead purchased 30 super kits for his hives which dad can assemble and paint for his bees. He is anxious for their arrival and I am thankful that, though the kits are more expensive than building from scratch, he will be busy, productive and also safe (no power tools required).
I never thought I would see a day where I would put a ‘want’ ahead of a much needed dental or eye exam, but that is exactly what I have done today. Putting off dad’s checkups for one more month is not going to hurt anything.
Taking care of dad’s physical NEEDS (food, shelter and clothing) is easy. Caring for his psychological needs and wants is much more difficult and time consuming, and this month…more expensive. ~Brenda
Goals, Spending plans
Think about time management, and the clutter in your home, and then think about this next statement.
Most people use only about 20 percent of what they own. Think about the clothes that you have worn in the last two weeks – you probably only wore 20 percent of the clothes that you have. The other 80 percent is just taking up valuable space, getting in the way, and causing more work than is necessary. Some people would call that clutter in your life.
This rule also applies on the job. The rule indicates that 20 percent of a person’s effort will produce 80 percent of the results. As a business person, if your goal is $100,000 in sales, 20 percent of your efforts toward this goal will result in $80,000 in sales. The remaining 80 percent of what you do will only result in the remaining $20,000.
Attention to the 80/20 rule can help you prioritize your time, focusing on tasks that have the most impact. The rule, called the “Pareto Analysis Principle,” is useful to anyone who is juggling many tasks.
Consumer Knowledge, Goals
I’m a fan of the Iowa State Fair and recently filled one of the shifts at Camp CY, the Iowa State University, Iowa State University Extension & Outreach display in the Varied Industries Building. My job for the day was to assist individuals with taking a virtual roller coaster ride using Oculus Rift. The College of Design FLEX team had created an amazing ride through campus and jokingly suggested that there was a “go fund me” campaign to begin construction. Many times during the day I had to put a hand on someone’s shoulder or behind their back to keep them from losing their balance as they experienced the virtual twisting and turning of the ride.
I thought of this today when visiting with an individual who had been listening to the financial news and was feeling concerned about their retirement funds. Investments are very much like a roller coaster ride; you have to decide how much you can handle the experience. As long as things are slowly climbing upward we’re okay, but you can’t go up forever. Financial experts are sharing the typical response: it’s a normal correction; now is a good time to invest; historically when the S&P experiences a drop it has a good recovery period; and those with more time will be okay. Sort of like that hand I placed on someone’s shoulder to steady them.
I expect that we’re in for a bumpy financial ride with many different dips and rises. The Federal Reserve has been giving out early information that they will increase interest rates (look for news in September), and China’s market adjustments are something to expect. As usual the best advice is to stay the course if you are confident you have things allocated correctly; find someone, your financial adviser, to give you some support; and be prepared for some discomfort as we roll ahead.
Life is not about money — but how you deal with money has a huge impact on your quality of life, your family’s life, and the life of your community.
When you have sound information and strong skills, you can make your money work for you and for your future.
The Your Money, Your Future program is a 2-hour, online class offered the first Monday each month. The class will help you get more for your money, show you how to save money for your financial goals, and manage credit. There is still room available in the May 4th class which begins at 5:30. To register or get more information, contact me at Schmitt@iastate.edu.
Credit, Goals, Saving, Spending plans
Money Smart Week, started 13 years ago by the Federal Reserve Bank of Chicago, is designed as a public awareness campaign to help consumers better manage their personal finances. Here in Iowa, more than 200 partner organizations have joined in the fun, promoting financial education with many interesting opportunities to learn. All Money Smart Week programs are free, and strictly educational (no marketing allowed).
ISU Extension and Outreach has been a MSW partner for many years. Programs are offered for audiences from preschoolers to seniors. From scout nights to shred days, essay and poster contests, geocache for college cash, piggy banks, books, and kites – in many cases, a chance to win a prize makes the learning even more fun. Educational program topics include: establishing a budget, protecting financial information, raising money-smart kids, and more.
Go to www.MoneySmartWeek.org for more details about activities in your area. Check out your local libraries for a display as well as programming. Spread the knowledge!
Consumer Knowledge, Credit, Goals, Retirement, Saving, Uncategorized