With Christmas right around the corner and buying gifts on everyone’s mind, now is a good time to plan for Christmas 2020. My wife and I pay off our credit card balance in full each month, but with Holiday gift-giving in full swing, it is difficult to do. So, for 2020 start setting aside (in an envelope, if that works for you) each Friday the weekly amount you need to save, so you have the funds available for your 2020 Holiday spending. It’s quite simple to plan and execute, you just need to decide how much you think you will spend on the Holiday in 2020 and divide that number by 50. There are 52 weeks in a year, but I don’t count the last two weeks of December in the planning process. So, say you expect to spend $500 for Holiday gifts, then set aside in an envelope $10 per week. Each Friday put $10 in an envelope and by Mid-December you will have $500 in cash for your Holiday shopping. Because many of us start Holiday shopping in October or November you will have $400 saved as of the first week of October and $470 saved by Thanksgiving, available IN CASH in your secret hiding place. We have a small safe which we use for important documents and our Holiday Cash.
Say for example you plan to spend $1,000, then you will save $20 per week in your Holiday envelope. By the first week of October, you will have $800 saved and by Thanksgiving, you will have $940 saved in CASH for your Holiday shopping. No more Holiday credit card bills.
If you’re like me, sometimes the thought of doing something seems too difficult because we only look at the end result and don’t break them down into manageable consistent steps. As part of the 1DriverAtATime Wealth Program, I help you breakdown your End Goal into simple monthly actions that will help you reach your End Goal over time without you having to look at a Large Distant Goal that many times seem impossible to achieve.
The added benefit of the End Goal approach is that you will over time change your habits to match your End Goals. While my program addresses your financial End Goal, you can apply this approach to any of your goals, whether it be to lose weight, workout, improve your eating habits, or whatever goal you may have. (I weigh myself almost every day and have done so for the past 4 ½ years). It has become an important part of my daily routine that I feel weird when I occasionally forget to weigh myself first thing in the morning. And those days where my weight jumped by a pound or so I take notice and make a conscious effort to change my eating habits that day, so it doesn’t become a pattern. As for working out, if it seems daunting, just make it a goal to go to the gym each week. Initially, I wouldn’t focus on a specific workout, but just getting there. Over time it won’t be a problem getting to the gym and at that point, you can focus on your specific workout goals and add to them as each step becomes a habit.
Take some time to think about how you can break down your goals into a plan with simple daily or weekly steps that over time will become an unbreakable habit. With the 1DriverAtATime End Goal, you will set up a monthly transfer to your investment accounts that is automatic each month, so once it’s set up you don’t have to think about it. Your other goals may take more action on your part, but over time your actions will become automatic just as I weigh myself first thing each morning.
Good luck with setting up your Plan and achieving your goals!