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What I Accomplished This Year

12/26/2018

 

Feeling Behind? This Can Help.

I work at a fast-paced software company that is growing like crazy. That means that no matter how much I accomplish, there are always things left undone, and I feel like I should be able to figure out how to do more. In a meeting with my manager, where I shared this frustration, she told me that needed to remind myself of what I DID get done. She challenged me to take time each week to list out my successes. I've been doing that for about a month now, and it'a amazing what a difference it makes. Instead of focusing on the negatives, taking a moment to appreciate, and be grateful, for all the things I've accomplished really helped.
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That's right. I get ALL the thumbs up for my list of successes!

Applying Work to the Rest of Life 

While completing this exercise for my job, I also included a few successes from life in my list. I quickly realized that, as at work, I get way more life things done than I realize. I decided to go bigger with my list. At this time of year--when we so often focus on all of the things we're going to totally change in our lives--I decided to take stock of what all I accomplished this year first. Here are 50 things I did this year.

50 Accomplishments

  1. Attended new high school freshman orientation with my daughter and lived to tell the tale.
  2. Booked my first Air BNB.
  3. Bought a new car.
  4. Braced for an emergency airplane landing and walked away unscathed.
  5. Celebrated my 9th wedding anniversary with my lovely husband.
  6. Checked out two new grocery stores.
  7. Completed the 60-day fitness challenge at my gym.
  8. Created a joint email address for my household.
  9. De-crapped our entire downstairs by going through all drawers, cabinets and closets.
  10. Donated 23 bags of unneeded stuff to charity.
  11. Drove to work for the first time in 13 years.
  12. Endured the longest battle with the flu I’ve ever had and survived.
  13. Enjoyed seeing the Minneapolis skyline at night at Windows on Minnesota.
  14. Enrolled in TSA Pre Check (which is the best $85 I have ever spent).
  15. Experienced a Cameron Carpenter performance.
  16. Finally snapped a picture of my cat, Meathook, in her Santa hat.
  17. Finished my first trail skate on inline skates.
  18. Found my daughter an orthodontist.
  19. Gave up meat and switched to a Whole Foods Plan Based (WFPB) diet.
  20. Got together with my best friend on a (nearly) weekly basis.
  21. Had a new luxury vinyl floor installed on the first floor of my home. (Thanks to my aforementioned lovely husband, MIke.)
  22. Heard Shawn James perform live at The Turf Club.
  23. Helped my daughter celebrate her golden birthday.
  24. Hired four, full time people to work on my team.
  25. Inline skated at US Bank Stadium for the first time.
26. Joined a gym.
27. Made my first smoothie in my very own smoothie maker.
28. Painted the living room walls red and gray (again, mostly my lovely husband).
29. Planned an upcoming vacation to New Orleans.
30. Read 13 audiobooks.
31. Rode the train from Duluth, MN to Two Harbors, MN.
32. Rolled over my old retirement account.
33. Roller skated at US Bank Stadium for the first time.
34. Saved money for retirement in a 401(k) and Roth 401(k).
35. Saw "Singing in the Rain" at the Heights Theater.
36. Shared my employment success story with the White Box Club.
37, Shopped for and bought my first inline skates.
38. Signed up for my first inline marathon.
39. Started a new job as a training department manager at a growing SaaS software start-up.
40. Stood in two states at once – Iowa and Nebraska.
41. Switched banks.
42. Took a foam roller class.
43. Traveled to 13 US states.
44. Treated myself to monthly massages.
45. Visited my mom and had mother/daughter/granddaughter holiday lefse making day.
46. Walked along the beach and watched the sun set over the Pacific Ocean.
47. Watched "Lethal Weapon" at the Parkway Theatre. 
48. Went to the gym at least eight times a month from April through December.
49. Won two Step Bets to and increased my overall activity level.
50. Worked my first learning and development contracting gig.

What's Next?

Whoa. I did accomplish a few things. I love that I had milestones including health, adventures, and garden-variety adulting. Seeing this list helped me remind myself of the amazing things I can do. Taking a moment to celebrate, and be grateful for, these successes has me excited to plan for next year's adventures!

What Do You Think?

What did you accomplish this year? Leave your thoughts in the comments. 

Learn More

  • StepBet
  • Shawn James
  • TSA Pre Check
  • White Box Club 
  • The White Box Club Handbook: Simple Tools for Career Transition
  • Why You Should Keep an Accomplishments List

My Top 3: Key Steps After a Job Loss

10/24/2017

 

Some Days You Go To Work and Come Home With a White Box

Recently, I was laid off from my job. It is the fourth time I’ve been laid off over the course of my 20+ year career in corporate training and development. It’s also the third job I’ve had in a row where the company, not me, decided when my tenure at the organization was complete. I have not actively decided to switch jobs in 13 years. Given my field of choice, training, and my penchant for working for companies that are acquired, struggling, startups or reorganizing, this is a part of my professional life (and also why I moved to a larger job market after layoff number 2). Given my track record, I know how to handle a layoff.

Even though I know the drill, it still sucks each and every time. There’s the loss of a daily routine, the changing of work friendships to acquaintances or regular friends, the excitement (and terror) of getting to find a new job, and the highs and lows of not knowing whether you’ll be unemployed for a week or for a year. It also comes with a new unpaid full-time job—which is finding a new full-time job.

Each layoff has also been a little different. My tenure ranged between 4 months and 8 years. My severance ranged from 2 weeks to 16 weeks. Twice, I could rely on my husband’s income and benefits, and once I was mid-divorce with nearly everything falling apart at once. Regardless of circumstances surrounding a layoff, there are a few good next steps to take.
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Some days, you go to work thinking you have a 10 am meeting with your friend Margaret, and find yourself with a white box being walked out of the building instead.

1. Process Your Emotions

Curse you, feelings!

Losing your job, even through no fault of your own, is an emotional roller coaster. Given how much of your life you spend at work, suddenly not having the same job is a huge change. In fact, it’s the same level of change as things like getting divorced, having close friend die or having to go to prison. You may feel fine one moment, angry the next, then ecstatic, then in tears. Realize this is completely normal.

​Just like dealing with a death in the family, you’re dealing with the death of the future you thought you had. Losing that imagined future, regardless of the role that your job plays in your life, is a big loss that needs to be addressed. Figure out how you will cope with these changes. You might choose positive ways (exercise, reconnecting with friends, journaling) or negative (overeating, overthinking, or a good old-fashioned bender). Find your emotional support people and confide in them. Talk to your partner, family and friends. Find a support group (in-person, or online, or both) to help you work through it.

As much as you may want to jump over the part where you have to admit you have feelings that influence how you live your day-to-day life, you need to address them—whether it happens now or later. Personally, two layoffs ago, I was going through a whole bunch of new and exciting (read "stressful”) life changes all at once. Then, I compartmentalized and focused on the business of moving and finding a new job. Once I was in my new job, I pretty much worked during the day and went through the process of dealing with all of the life changes at night. Do what works for you.

A Note About Social Media

As you process your feelings, be cautious about sharing too much on social media. Remember, the things that you share on social media are somewhere at least somewhat publicly available, forever. Even if you post things only to friends on the Facebooks, there is no guarantee that other people won’t see it given Facebook's ever-changing privacy parameters. Process those feelings in private, not in public on social media. You are not a Kardashian. You don't want prospective employers--or everyone ever--to see the dirty details of your process. ​
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This picture probably doesn't make any sense here. The cardboard dude is totally losing it, through.

2. Manage Your Finances

Disclaimer: (You know there has to be one of these now that we're talking about topics like money and health insurance.) While I know stuff, I'm not a currently licensed, authorized anything. Feel free to take my advice, but double check my facts (and everyone's facts for that matter). This is your life, and you will care more about your finances and health care than anyone else does. With that, read on. 
Whew! I'm glad we got THAT out of the way.
​
​Most of us work because we have expensive habits to support—like living indoors and eating on a regular basis. When a job ends, there are financial concerns that need to be addressed right away. While you won’t have the income from your job, you will receive your final paycheck, possibly vacation time that you have earned and, hopefully, severance. You may also have additional sources of income (from a spouse, partner, or additional work). If you receive severance, realize that it may be less money than you think because taxes are taken out of that sum. Depending on your severance package, and the length of your unemployment  you may also be eligible to receive unemployment benefits. While this may not be a lot, it will help to cushion the blow.

You also need to revisit your budget. Prioritize paying things like your housing and transportation, and plan to spend less on discretionary expenses like entertainment, shopping and eating at restaurants. If you have an emergency fund, this might be the time you start using that. If not, you may end up accruing a little debt. For most people, this isn't the time to buy a new car or build on to your house. This is the time to scale back and get through the yuck until you're gainfully employed again.
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This is my favorite bizarre piece of clip art anywhere. Apparently, as you think about your budget, figure out how the potato helps balance your money spoon. Obviously.

A Note About The Joy That Is Health Insurance

​Since many people rely on their employer for health insurance coverage, figuring out this aspect can be tricky. If you are fortunate enough to have a spouse/domestic partner/parent who can bring you onto their health insurance, check that out right away. In general, if you were covered by an employer's plan, and lose that coverage, you will be eligible to switch to another employer sponsored plan. At least ask that question.

If that's not an option, you have a few more decisions to make. If you do receive a severance package, health insurance coverage for some period of time may be included. Find out if your previously employer sponsored health insurance coverage is paid for by the employer, or if you will receive money to cover the cost of coverage. (These are two very different things.) You may also be eligible for COBRA coverage, which means that you would continue your previously employer paid health insurance, but pay for it yourself. Be sure to brace yourself when you see the amount that you will now be charged for that coverage--because it is usually A LOT more than you paid as an employee.

If you are not willing and/or able to continue with your previous employer's health plan, you may be able to go on the insurance exchanges to find coverage. Depending on your situation, you may also opt for the “be careful” health plan (no health coverage, but no sky diving either). Figure out what makes the most sense to you, and how to mitigate any risks you take.
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Health insurance can be confusing--but you need to think it through.

3. Start Your Job Search

Now that you are without a job, you need to figure out how to get a new job—which is no small effort. Think about what kind of a job you want and write it down. Take time to think about the job titles, possible employers and salary range you want to target. It’s hard to find what you want until you actually know what you want to find. Get your resume updated (if you haven’t already). You may even need a couple of different basic resumes if you’ll be applying for different types of jobs. (Personally, I have an instructional designer resume, a training manager resume and a program manager resume.) Figure out how to highlight your unique skill set and showcase what problems you can help your potential employer solve.

From here, start letting people know about your new status of being “in transition” (not unemployed) and ask people for help. Many times, people offer help. Letting them know specifics on how they can help will do wonders. Perhaps they can introduce you to people who work at one of your target companies. Perhaps they know about a position that has not yet been advertised. Perhaps they know someone who knows someone who you should talk to. Maybe they have a lead on an up and coming company who needs someone just like you. Rely on those working relationships that you have built and put them to work. (Also remember that this is a two-way street. Be sure to help your fellow job seekers, or people who are trying to fill positions. Creating mutually beneficial relationships helps everyone.)

Keep in mind there are additional resources beyond your current network. Just like with emotional support, there are groups that can help with job searching. Check out LinkedIn groups, in-person meetups and seminars on how to network. Find a professional group and meet those people. The more people you meet, the better chance you will have to find a new position that is right for you. 
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Networking: go forth and meet all the people!

Final Thoughts

Through my many, many layoffs, one thing has remained true. I have always ended up in a better place, both personally and professionally, than I would have expected. I learned new skills, met new people and made life changes that I probably needed to make, but I only did when life gave me the shove I needed. 

Learn More

  • Five Tips for Getting Through a Major Period of Transition
  • Seven Things You Need To Know To Deal With Major Life Changes​
  • Resume Tips From A Frustrated Hiring Manager

My Top 3: Tips for Buying a House

9/3/2017

 
Buying a house is one of the largest financial decisions that most of us will ever make. I have bought two houses in my life. The first, I made many, many mistakes that I’ll share here for your amusement and general edification. The second, after having more experience in adulting and all things personal finance, I did in a much more planful and intentional way.
 
Through these two very different experiences, here are my top three tips for buying a:
  • Assess your housing wants and needs
  • Work with a buyer’s realtor
  • Learn about the financial implications

A Note on the Use of Information in this Article

​Here is my disclaimer regarding the content in this article. (We all know there has to be one of these just to set the record straight.) The ideas included are for educational purposes only, and should not be construed as financial advice. Concepts covered here are overly simplified examples of basic finance related information. Please consult a qualified financial professional to learn additional details about each financial concept and to help you figure out what is right for you.
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Buying a house is a project.

A List of Don'ts: My Life as a Clueless First Time Home Buyer

The first time I bought a house, I did things in a way that hurts my current, better financially educated self. At the time, my then husband and I, were recently married and realized that more adultier adults bought houses. Here are the highlights of the poor decisions we made during this process:

Bad Decisions:

  • ​We didn’t really figure out what we wanted in a house. We just went to open houses, partly for entertainment at first, then realized we wanted to buy a house sooner, rather than later.
  • We didn’t work through a budget to figure out how much house we could afford.
  • We looked into financing after we had made an offer on the house we wanted to buy.
  • We financed our house through a mortgage broker and took out an adjustable rate mortgage with a 7% interest rate.

Worse Decisions:

  • We didn’t think about costs for maintaining a house like fixing appliances, doing home repairs, finding people to work on our house, buying new appliances, landscaping or getting a lawn mower.
  • We didn’t think about the time needed to maintain a large house—including gardening, cleaning, general maintenance, painting or shoveling snow.  
  • We bought a house with some weird characteristics that made reselling trickier including no air conditioning, oil heat, a flat roof, 4 bedrooms and a one car garage. 

Downright Awful Decisions:

  • We bought way more house (4 bedrooms, 2 living rooms) with way more yard (2 huge lawns) than we needed--or were willing to maintain.
  • When we made an offer, we asked the people who were selling the house how we did that. (I kind of want to punch my younger self in the face for this one.)
  • We used the inspection of the people who were selling the house instead of getting our own independent inspection.  
  • We did not use a realtor.
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Buying a house the right way.

A List of Dos: My Life as a Much Smarter Home Buyer

​Years later, after having worked in the financial services industry for a bit, my soon-to-be fancy new husband and I decided to consider buying a place together. This time around, being 10 years older and a ton smarter, we had a more methodical process.

​We talked about how we wanted to live our lives and bought a house that would support those wants and needs. We also worked with a realtor, who helped us through the details of being a smart homebuyer. Finally, we had a greater understanding of the financial aspects and what we were getting ourselves into.

Tip 1: Assessing Housing Wants and Needs

Before looking at houses, we talked about what we each wanted, and what was important to us collectively. We took our lifestyle into consideration and turned those abstractions into our list of must haves and nice to haves. Our list of requirements included the following:

Housing: Must Haves

  • Enough house to live in, but not too much to maintain; no excess rooms we wouldn't use
  • A balance between privacy and the convenience of living in an urban area
  • 3 bedrooms (2 for bedrooms, one for a guest room/office)
  • A garage
  • A patio or deck
  • Close to the train (I take the train to work)
  • South of downtown (to make it easier for him to drive to work)
  • A condo or townhome with an association (people to help with external maintenance and upkeep)
  • Air conditioning
  • Washer/dryer
  • Dishwasher
  • Parks nearby
  • Wider hallways so his ridiculously wide shoulders wouldn’t hit the wall

Housing: Nice to Haves 

  • 2 bathrooms
  • Gas heat
  • A basement
  • Grocery store nearby
  • A two-car garage
  • Ceiling fans

​Once we assessed our needs, we knew what we were looking for. We could also then assess if we were in a financial position to purchase a house that met our needs, or if we needed to wait longer. 

Tip 2: Working with a Buyer's Realtor

When buying a house, there is no earthly good reason not to work with a realtor. Realtors get paid a percentage of the cost of the house being bought, which is paid by the seller. In short, it costs you no more money to work with a realtor than to work by yourself.

Realtors will also help you save time, money and frustration because this is what they do for a living. They will help you find possible houses that meet your needs. They arrange house showings so you can privately view a given house. They may also know about houses that are going on the market before they are listed to give you a head start on other potential buyers. They also typically have relationships with people who do financing and home repairs, so they can help with recommendations throughout the whole process. They can walk you through the paperwork from start to finish.

Typical realtors represent people who are buying and selling houses. We worked with one who only helps people buy houses—a buyer’s realtor. Part of the reason why we chose a buyer’s realtor is that their only job was to help us buy a house, not to also sell other people’s houses. This means that they do not have a possible conflict of interest (unlike realtors who both buy and sell houses) since there would be no temptation to try to sell us a house that they had listed. 
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Figuring out home financing.

Tip 3: Learn About the Financial Implications

Some people, mostly homeowners, tout the financial benefits of owning a home—and believe me, there are many. However, buying a home is also a multi-pronged financial commitment that goes beyond the desire to stop "throwing money away" on rent. Here are a few financial factors to consider when considering buying a house.

Figure Out How Much House You Can Afford

There are several calculators available online to help you figure out how much house you might be able to afford. If you look at guidelines for how much of your income should be spend on any given thing, typically they recommend spending 25-35% of your income on housing.

Personally, I think a lot of calculators suggest an amount that is higher than it makes sense to spend. (A calculator I ran recently suggested that I could afford to spend more than twice what I currently spend on my house—which is not something I would ever do on purpose). One more conservative recommendation is that you plan to spend 25% of your net income. (As a reminder, your gross income is the amount that your employer says they pay you, and your net income is the amount of money that actually shows up in your paycheck on payday). In the end, you need to figure out what makes sense for you.  

Housing Costs: More Than a Mortgage

Financing Your Home Purchase

It’s not just the purchase price of your house, but how that translates into monthly payments for you. Most people  obtain a loan to buy a home, which is called a mortgage. The amount you pay on a monthly basis depends on the interest rate, the term (how long you plan to pay it back) and the amount that you borrow.

There are several loan options, but here are two common ones:
  • Fixed Rate Mortgages: This is probably the best option for most people. A fixed rate mortgage has a specified rate of interest that is effective for the length of the loan. 30 year and 15 year loans are the most common terms. The shorter the term, the less you’ll end up paying in interest, and therefore overall for your house. With a fixed rate mortgage, your monthly mortgage payment will stay consistent for the term of your loan. 
  • Variable Rate Mortgage: Variable rate mortgages may also have the same 15 or 30 year term, but the rate of interest is subject to change. The loan may have a set amount by which it can vary (like 1%) and a frequency for how often the rate can change (like once per year, or once per month). This means that the amount of your mortgage can change significantly (going up or down) over the term of your mortgage.

    I have had friends who have lost their houses because they borrowed more money than they probably should have AND they got a variable rate mortgage. When the rate went up, they were unable to make their payments and they ended up going into foreclosure. 
 
House Buying Expenses

  • Down Payment: This is the money that you need to have in addition to the amount that you’ll pay for using a loan. Depending on the loan program, the amount you’ll need for a down payment can range from 3% to 20% of the cost of your home. Some programs, like FHA loans, expect at least a 3% down payment. To put this into numerical terms, if you’re purchasing a house that costs $100,000, you may be expected to have anywhere from $3,000 to as much as $20,000 to pay for your house up front. There may also be programs where there are different down payment related rules.
  • Closing Costs: When buying a house, there are a multitude of additional expenses accrued that may total 2%-5% of the cost of the house. Items included might be home appraisals, assessments, pulling credit reports, home inspections, title insurance and fees. In some cases, closing costs can be rolled into the final amount being borrowed. 
 ​
Ongoing Housing Costs
  • Escrow: In many cases, lenders also set up an escrow account along with a mortgage. This is an additional amount of money you pay to your lender that the lender then sets aside to pay annual expenses. Typically, things like real estate taxes and home insurance policies are payed from escrow accounts. The amount your lender asks you to put in escrow may change from year to year depending on the change in tax and insurance costs. 
  • Association Dues: Above and beyond what you pay back to your lender for your mortgage, you may also pay things like association dues or condo fees (if you live in an association that collects fees for common expenses). This is a monthly fee that continues as long as you live in the condo regardless of whether or not you still have a mortgage.
  • ​Maintenance: Furthermore, it’ll be easier if you plan ahead for things like house repairs, replacing appliances, home improvements or paying deductibles for claims (like a fire or damages from a storm). In short, remember that you are now your own landlord. Instead of having someone to call when your heat is out at 2 am, you now get to either fix it yourself or figure out who to call and pay them to come fix it. 

So Now What?

​After you have a big long cry after realizing there is more to this than you thought there might be, realize that looking at houses is a part of adulting. Get thee a good buyers realtor, who has been through this a bunch of times, and then can help talk you through what you need to do. The more you know about the processes, the better off you’ll be. 

What Do You Think?

​What advice do you have for people considering buying a home? What missteps did you make that you’d like to help others avoid?

Learn More

  • How to create your house buying wishlist
  • Differences between a buyers agent and listing agent
  • Budgeting percentages and how much to spend on a house
  • Differences between a fixed rate and variable rate mortgage

The Million Dollar Question: "How Much Do I Need to Save for Retirement?"

7/21/2017

 
​Many people think of retirement as the magical day when they no longer have to work. The reality is that retirement is not just a one-time event. Instead, retirement is a phase of your life that could last decades. Part of the challenge of planning is making sure that you have enough saved in your retirement account so you can enjoy yourself without outliving your money.  

My Experience with Retirement Planning

​In a previous life, I worked as a corporate trainer supporting a group of Financial Coaches in one organization’s Retirement Planning Group. The goal of this team was to help people prepare to retire. This included financial coaching conversations about topics including saving, investment options, health care, and the million factors to be considered when figuring out the logistics of retiring. In addition, we also focused on helping people envision the lives they want to lead, and figuring out what financial resources would be necessary to make those retirement dreams a reality.  
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Retirement is apparently that-a-way.

A Note on the Use of The Information in this Article

​Here is my disclaimer regarding the content in this article. (We all know there has to be one of these just to set the record straight.) The ideas included are for educational purposes only, and should not be construed as financial advice. Concepts covered here are overly simplified examples of basic retirement related information. Please consult a qualified financial professional to learn additional details about each financial concept and to help you figure out what is right for you.

Just Tell me the Magic Number

​Now, let’s get back to an often asked question about retirement planning. Many time, when having initial conversations about retirement, people just wanted us to tell them what they perceived to be a very simple question: How much money do I need to save for retirement?
  • The short answer is—a lot.
  • The longer answer is—it depends. 

One Common Answer

Sometimes, articles on retirement planning suggest a simple answer that even includes an actual dollar amount: $1,000,000.

That’s right. ONE MILLION DOLLARS!
​
Doesn’t that sound like a CRAZY amount of money? Certainly, if I had a million dollars, I’d be rich—and for sure able to do whatever I wanted in retirement.

One Key Factor: How Long Will Retirement Last

​The trick with retirement is that it may last a really long time—think 30, 35 or even 40 years. When we’re working, we get more money every couple of weeks as long as we stay employed. In retirement, though, we start with a big pile of money and our goal is to figure out how to not run out of money while we’re still alive. So how do we do that?

How Much Yearly Income Could You Get from $1,000,000?

One common strategy for attempting to not outlive your retirement money is the 4% rule.

In super-oversimplified terms, the thought is that if you withdraw 4% of your total account value annually, there’s a pretty good chance that you’ll have enough money to last you for 30 years. (Notice that the word “guarantee” is nowhere in this statement. There are no guarantees. There is only planning as best we can and adjusting our plan as we deal with the challenges life throws at us.)
​
Basically, if you start with $1,000,000 in retirement savings, and use the 4% rule as a guide, in your first year of retirement, you would withdraw $40,000 worth of income. If you’re for real using the 4% rule, you’d adjust what you take out each year based on inflation—meaning that you’ll typically end up taking out a little more each year. 

How Much Do You Need?

Translating $1,000,000 into about $40,000 a year puts that amount in perspective. Depending on your lifestyle, you may need to save more, or less, money for retirement. One commonly recommendation for figuring out much income you need is to anticipate that you’ll need to replace approximately 85% of your pre-retirement income. If for example, your pre-retirement income is $50,000 per year, 85% of that would be $42,500. (Again, in this super-simplified version doesn’t consider other sources of retirement income, like Social Security, or inflation.)
​
One way to estimate the amount you may need to save is to take what you anticipate to be the annual income you want, multiply that number by 25, and use that as your overall savings goal. If, for example, you decide your annual desired income from your retirement account is $75,000 per year, $1,875,000 could be your desired retirement savings goal. (Again, in this super-simplified version doesn’t consider other sources of retirement income, like Social Security, or inflation.)
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According to movies, once one has a million dollars, one must carry it around in a silver briefcase.

So Now What?

  • If you’re not saving anything, start. Even if it’s only $25 per paycheck, save something. If your company has a retirement plan, save money there because it’s easiest and even has some income tax benefits. Even if you think you are way behind, just start. Worrying gets you nowhere. Getting started makes things way better.
  • If you’re saving something now, try to save more. Up your contribution annually. When you get a raise at work, use some (or even all) of your raise to boost your retirement savings. With company sponsored retirement plans, most people are eligible to contribute $18,000, and possibly more depending on their age. 

Learn More

Check out these resources to give you another take on these topics. Don’t take my word for it—keep learning more so you can make the best decision for you.

  • 3 Serious Problems with the 4% Retirement Rule
  • NerdWallet’s Retirement Calculator
  • Information from the IRS about Retirement Plan Contribution Limits
  • "If I Had a Million Dollars" performed live by the Bare Naked Ladies

Budgeting Based on Personal Values

7/8/2017

 

Standard Personal Financial Advice

When it comes to basic financial advice, we all know what we're supposed to do. Spend less than you earn. Save for retirement. Pay down your debts.  This covers the what, and a little bit of the how, but skips the most important part: the why.

Your Values Impact Your Budget

 When figuring out how to budget your money, you need to know what you care about and how that influences what you spend your money on. Without thinking thorough the why, you may catch yourself spending money on things you don't really value just to keep up appearances--or because you think you should spend on those things. 

Most of us inherently know what we care about, but we have a hard time putting it into words. Fortunately, Think 2 Perform offers a free, online tool that can help you name and prioritize your values. For me, this tool helped me translate my ambiguous thoughts about what matters to me into a few helpful terms. 
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I'm not sure what's up with the potato, but I just had to use this picture somewhere.

Brenda's Values

Here are my top 5 identified values:
  • Happiness
  • Health
  • Autonomy
  • Relationships
  • Education

What Those Values Mean to Me

Here's what each value tangibly means to me: 
  • Happiness: For me, happiness means low stress, low hassle and low drama. It includes quiet time for me to recharge, and the time and money to do things that I want to do with people I  enjoy. It also means I have choices and options and I can decide what I want to do and when I want to do it. 
  • Health: After seeing friends and family members struggle with health issues that limited their mobility and quality of life, being healthy is a priority. Health means getting enough sleep, eating well, staying active, being functionally fit, having energy, not being in pain and making time for my mind and body to rest. It's important to me that I am able to take care of myself and my family and set a good example for my daughter so she doesn't have to struggle with some of these same issues.
  • Autonomy: I like to have options. I like having control over my schedule and being able to decide what to do on a given day. I like to be able to work from home and work shorter hours on some days and longer hours on others depending on work demands.  I like living in an area that has so much to offer and being able to have multiple possibilities for what to do in a given day.
  • Relationships: I work to maintain the strong relationships I have with my husband, my daughter, work colleagues, and friends I've made during different part of my life. My best friend and I get together weekly--even if it's just to run errands together or take a walk. My daughter and I have game night and go roller skating together. I make the time to participate in communities related to my current job, my profession, my daughter and my neighborhood. 
  • Education: In day to day life, I look at each interaction as an opportunity to pick up information--whether it's a new meditation app, a great place to buy a Vera Bradley purse or characteristics of the best roller derby wrist guards. I also do the standard things like take classes, attend webinars and re ad daily.  At my professional job, I create experiences to help individuals continue grow their knowledge after initial training has been completed. Overall, education is a big part of who I am.

How Values Translate to Spending

So how do those values translate to how I choose to spend my money? Here are a few examples on how this manifests itself :
  • Happiness: I budget for a monthly light rail train pass. Since driving in traffic stresses me out, I commute to work via train.
  • Health: I budget for monthly massages for myself. It  helps me make time for self-care and promotes my overall physical and mental health. 
  • Autonomy:  I budget for 2 vehicles.  In addition to my train pass, my family owns a car and a truck. We have a car because it's more comfortable for road trips and a truck so we can haul things. There is also less coordination of plans, and we have a backup vehicle if one needs repairs. 
  • Relationships:  I budget for roller skating. Since my daughter and I both started doing roller derby earlier this year, one of our mother/daughter activities is roller skating. We usually go once a week together, and sometimes she brings a friend or we skate with other people we know. 
  • Education: I budget for exercise classes. Recently, my best friend and I went to an all day yoga festival where we got to try out multiple yoga styles. 

So Now What Should You Do?

  • Take the values assessment (There's a link in the "Learn More" section).
  • Identify your top 5 values
  • Reflect on what those values mean to you. Write it down.
  • Look at your budget. Determine how your current spending fits in with your values.
  • Adjust your budget accordingly.
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Start with your values.

Learn More

  • Free, Online Values Assessment by Think2Perform
  • Money and Values Exercise from A Debt Free Stress Free Life​​

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    Brenda is a dynamic training and development leader and an innovative learning experience designer. Brenda also enjoys learning all the things.

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