Forget the Joneses Bootcamp 2009

The Forget the Joneses program is designed to help you put your most valuable resources - you money and your time where your prioirities are. This is our "Boot Camp" edition and will last six weeks, starting on January 1st. To participate you only need to be a registered member of the Mommysavers Forums. The program is broken down into two phases: The Spending Freeze and the Modified Spending Freeze each lasting three weeks.

The Holistic Approach
While the Spending Freeze is going on, we’ll be taking a closer look at your finances and coming up with a budget or debt pay down plan based on your situation in life and your personal goals. The second half of the Bootcamp will consist of a modified spending freeze where you’ll be asked to track your expenditures.

If you follow the program closely, by the end of the project you’ll have a clear idea of where you are, where you’re going, and the tools to get you there. You’ll also have a better idea of who you are as a person, what is important to you, and ways to enjoy life within the parameters of your own budget.

Often other money saving methods fail because problems financial problems are rarely about the money itself. In our FTJ Bootcamp, it will be important to examine other areas of your life that may be out of balance. Looking at your life holistically – not just your financial balance sheet – can help you get back on track in all areas of your life.

During the FTJ Bootcamp we’ll be asking you to not only think about your finances, but other goals, dreams, priorities. These steps are as crucial to your success as all the others.

What to Expect During the Spending Freeze

The first three weeks of our Boot Camp will be a complete spending freeze. During this time, all discretionary spending is put on hold. You’ll be asked to complete an “approved spending list” prior to starting. For some, it could include things like toilet paper, milk, or participation in a prior commitment such as a birthday gift for a party.

During this phase last year, we had so many questions about what was acceptable to spend money on. Is this OK? Is it OK to spend on that? You are the only one who can answer that question. I’ll say this much: You’ll get out of it what you put into it. If you make it too easy on yourself, you’ll miss the main reasons for participating. If you make it so difficult that you doom yourself to failure, there’s no value in that either. You’ll need to determine what the right balance is for you.

Getting Your Spouse on Board
If you can get your spouse to participate with you, your chances of success are much greater. Here are some tips to get him on board:

Make it optional. If you try to force your spouse into doing something, he's likely to rebel and decide not to do it at all. Explain to him why you're doing it - make them personal reasons - and see what his reaction is.

Give him some choices. If a total spending freeze is too difficult (and it is for many people; especially men) then suggest a modified spending freeze. Ask him what dollar amount per week he thinks he could get by with ($10? $20? $50?)

Be a good example. Show him that YOU can do it and that it isn't that hard. Maybe he'll be intrigued enough to join you.

Daily Assignments
Please check in here for Daily Assigments starting January 1st. Some assignments will be short, others will require more time. Try to keep up with them so you don’t fall behind. If you join us late, that’s fine. Try to catch up.

How Do I Sign Up?
There is no formal sign up. Participation is free. We do ask that you introduce yourselves so we know who is participating with us this year. FTJ Boot Camp Participants: Tell Us About Yourself

Participation
While participation in discussion isn’t required, it’s suggested. If you’re a lurker who hasn’t posted here before, please don’t be intimidated. We’re encouraging everyone’s input. Your comments, thoughts, and suggestions help the group as a whole. There is strength in numbers, and we welcome everyone’s comments on our daily activities and discussion topics.

Blogging
As you go through the project, consider starting a Mommysavers blog. As you look back at each daily entry, no matter how long or short, you’ll be able to see your progress over the six week project. We’ll be starting a blogroll sticky thread to link to blogs within and outside of the site. If you are participating in the FTJ Bootcamp and are a blogger outside of Mommysavers, we’ll link to your blog if you mention our site or our bootcamp within your blog. Send me your link via PM and I’ll add it. Or, feel free to add it in your signature line.

Materials You’ll Need:
•Start Saving Grocery Receipts and Fliers - You’ll need these to complete a price book project we’ll be working on in Week Three
• Many of the assignments will require journaling, writing down answers. You can do this online within a blog, a journal, or create a spiral-bound notebook to keep all your assignments. Choose the way that’s easiest for you.
• Two small notebooks that fit in your purse

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Day One: Go on a 21-Day Spending Freeze

What is a spending freeze? To put it simply: no more spending. Zip. Zilch. Nada. You’re not allowed to spend money on anything but necessities. Use up the food you have in your cupboards. Your grocery budget is now limited to what you must buy (milk and toilet paper, for example). Think of it as “Mommysavers Survivor” except the only prize at the end of the game is the money you’ve saved.

This phase is not a long-term lifestyle by any means. The main goals of the spending freeze are to get you accustomed to using up what you have, making do without, reinforcing the difference between needs and wants and to stay out of the stores. Why 21 days? Research shows it takes approximately 21 days to make something a habit. During these three weeks we’ll be practicing the following skills:

Questioning the Difference Between Wants and Needs

During your spending freeze you will need to question the difference between wants and needs. Some things will be clearer than others. Yes, chances are you need gas to get to work. No, you don’t need a new necklace to match the sweater you got for Christmas.

… But what about the things that aren’t so obvious? Do you really need to birthday card for you brother-in-law, or can you make one? Do you really need to get your hair colored? Those gray areas (pun intended) are where your challenges lie. Try to anticipate the decisions you’ll have to make in the next three weeks. Are you going to be invited out to lunch? If your child needs money for school lunch, will you have him brown-bag it instead? What will you do?

Learning to be Resourceful

Waste Not, Want Not. You may be familiar with this phrase if you had a parent or grandparent who lived through the great depression or experienced war rationing. Prior generations demonstrated that philosophy numerous ways and learned to be resourceful with what they had. But in today’s world of abundance, why would we want to live that way?

There is a creative side that gets tapped into when you have to make do with what you have. It forces you to look see what you have in a new light. You’re forced to use your imagination. You see the something’s hidden potential. You’ll also experience more satisfaction when creating something out of nothing. There’s another great byproduct: you save lots and lots of money!

Imagination and creativity are both traits that everyone has; whether they think they do or not. Like with most skills, they get better with practice. Unfortunately, the “quick fix” of being able to run out to the store to buy whatever we need can smother our resourcefulness. The best way to get back in touch with your creative side is to put it into practice each and every day. Once honed, this skill can apply it to other areas of your life: your career, your hobbies, and even your relationships.

Practice Delay of Gratification

There are always a million things that come up on your way to achieving your goals that could distract you. Learning to just say no when you can't afford something is a skill that requires practice, but can be learned.

Financial self control isn’t just a skill reserved for those without a lot of money. In fact, if you haven’t mastered this skill early on in your financial journey your problems are likely to only get bigger when more money comes your way. It’s a big reason why people who suddenly come into a lot of cash find themselves bankrupt a few years later. They haven't learned impulse control and how to wait for the things they want. Their pocketbooks may have expanded, but their temptations also get bigger. Since they've never mastered the skill of delay of gratification they will always have problems with money.

There are all sorts of hidden benefits from delaying gratification. Food tastes better when you’ve waited for it. Buying a piece of furniture feels more rewarding when you’ve saved for it rather than put it on plastic. Relaxing in the evening feels better after putting in a hard day’s work. In short: when you’ve earned something, you derive more pleasure from it.

The harder you work for something, the higher you tend to value it. Quick-fixes are rarely satisfying (think fast-food, shoddy repair jobs, etc.). Imagine your child comes to you asking for a new bike. She’s old enough to earn the money herself by saving birthday money, babysitting, or doing other odd jobs. Do you think she’ll take better care of the bike if she earns the money for it herself, or it is simply given to her?

Delay of gratification is an extremely important thing to put into practice when you have children. It’s one of the biggest indicators of success in life, so begin helping them practice at an early age. Here’s an interesting article on delay of gratification:
One Marshmallow, Or Two?

Once you start seeing the connection with delay of gratification and increased satisfaction and enjoyment, you’re more willing to exercise that skill and put it into practice on a daily basis. It will not only improve your financial life, but every other area of your life as well.


Day One Assignment: Create an "Approved Spending" List

Write down all the things you think you will need to purchase in the next three weeks (you'll want to either start a blog or a special FTJ Notebook or 3-ring binder for this). You are only allowed to purchase the bare-bones minimum, things you cannot get by without. This isn’t the time to hit the Target clearance rack (you can do without gift wrap for next Christmas) or to stock up on kids’ clothing for next fall (chances are they’ll have enough anyway). This is a time for you stay out of the stores and to question what is truly a necessity.

Now get going… write down everything that is on your “approved” spending list between now and January 21st. As things come up within the 21-day period, decide whether or not they belong on the “approved” spending list. You may unexpectedly run out of deodorant on January 15th. It’s OK to add it to your approved list when the need arises (or, you may decide to really challenge yourself and make a homemade version to get you through).

By participating in the spending freeze, hopefully many of you will learn that you can get by (and be content) with less in order to achieve your goals.

You're not going to be perfect. You will be tested. Sometimes you'll be strong, other times you won't. The Spending Freeze is more about the process rather than how much you can "be good" or how well you can "stick to the rules". Some of you won't spend a dime, but may not learn much. Other members will be tested - and fail - but really learn a lot.

It's what you learn from your own personal journey that matters.

Day One Check-in Thread

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Day Two: Create a Net Worth Statement

You can't very well get to where you're going if you don't know where you are. Before you really start to move ahead financially, it’s important to get a clear understanding of your current financial picture. This financial picture serves as a benchmark for evaluating progress towards your goals, and it can help shed light on areas you may want to improve.

The best way to do this is to calculate your net worth. Creating a net worth statement is much easier than you might think. In simple terms, it’s what you own less what you owe.

Before you begin, you’ll need to gather all your current financial records: loan statements, credit card bills, bank balances, and so forth. The more up-to-date and complete the records are, the more accurate your net worth statement will be.

First, list all of your assets – the things of value that you own. Examples are:
• Your home (current market value)
• Your vehicles (blue book value)
• Current value of investments: stocks, bonds, CDs, etc.
• Retirement account balances: 401(k) and 403(b) accounts, IRAs, etc.
• Bank balances: checking, savings, money market accounts, etc.
• Cash on hand

Next, list all of your liabilities – money that owe. Examples are:
• Remaining amount of your mortgage
• Home equity loans
• Credit card balances
• Auto loans
• School loans

Once you’ve listed all your assets, total them up. Do the same with liabilities. Next, subtract the total in the liability column from the total in the asset column to get your net worth.

Assignment: Create Your Net Worth Statement

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Day Three: Change Your Mindset

”If you don't like something change it; if you can't change it, change the way you think about it.” -- Mary Engelbreit

Thriftiness sometimes gets a bad rap. People think of frugality as deprivation, a budget a jail sentence. How do you think of it? Do you look at frugality with positivity and optimism, or do you feel constraint and limitation?

If you look at saving money as a sacrifice, you’ll feel deprived. If you look at frugality as being smart with your money and making the most of what you have, you’ll feel blessed. If your outlook is less than ideal, you could be jeopardizing your success with this program. Changing how you look at your finances and your life in general can greatly improve your quality of life. Here are some key areas in which to change your mindset:

Accept Responsibility, Empower Yourself

A crucial element in any kind of success is taking responsibility for your actions. There are always circumstances beyond your control that influence your life, but you control how you respond to them. Accepting 100% responsibility is a mark of maturity.

If you don’t like your current position in life, do you ever ask yourself why? The answer you give yourself is a good indicator of how successful you’ll be in life, as well as how successful you’ll be if you’re digging yourself out of the a financial hole.

If you’re in debt, stop right now and take a minute to fill in the blank. Our current financial situation (good or bad) is a result of: __________________________________________________ _______.

If your picture isn’t so pretty, do you blame your small income, high insurance rates or housing prices? Recession, inflation, or high taxes? Do you blame the cost of raising kids or something else outside of yourself? Stop. Your financial situation right now is a product of the decisions you've made in the past. If you don’t like where you are, stop blaming the situations and circumstances that surround you. Look in the mirror and accept personal responsibility for where you are today.

As soon as you realize the impact your decisions make, you can go into the future making choices that will affect your well-being in a positive way. You are in the driver’s seat. You’re the one controlling your life and finances; your finances aren’t controlling you. Once you’ve grasped the concept, you will realize it applies not only to your finances but to your life in general.

In today’s day and age are fortunate to have unlimited opportunities to create the life we wish to lead. If you are living in an expensive part of the country, you can move. If your job doesn’t provide good insurance, you’re free to look for another one. If you’re not bringing in enough money, you can look for a second job. Don’t let life happen to you while you sit back. Be an active participant in determining your own destiny. Be proactive, not reactive when it comes to your finances and your life.

Wealth Isn’t a Zero Sum Game

It seems like one of the most common errors in thinking about wealth and money is to think of it as a zero-sum game. A zero-sum game implies that all wealth is somehow fixed, and that wealth for one person happens at the expense of another. The phrase “The rich get richer, the poor get poorer” perpetuates the fallacy of the zero-sum notion. There isn’t a static pot somewhere that everybody draws upon. Wealth can be created out of nothing and can benefit everyone.

Wealth can be created out of nothing by advances in information, technology, and other creative endeavors. Just look at our own society compared to 100 years ago. Financially speaking, our incomes have shot through the roof. Where did that money come from? Inventions, technology, and ideas that lead to the betterment of society, largely.

Wealth is more about providing value than it is about money. It is created when the one creating it serves a purpose larger than himself. For example, Bill Gates got rich from his contributions to computer technology but also benefited many people in the process which, in turn, enabled others to create more wealth for themselves. Now his philanthropic efforts are benefiting countless thousands here in the United States and around the world. It’s a win-win for everyone.

Stop Jockeying for Position

In short, building wealth doesn’t mean that someone else has to have less. Remember this next time you look at your neighbor. Be happy for what others have, knowing that you don’t have less because they have more. You’re responsible for your own finances alone, and wishing that others had less or judging them for what they have doesn’t accomplish anything. .

While wealth itself is a zero-sum game, your position in society is not. In other words, if someone moves from third place to second place it means that someone else loses their ranking. If you get a raise which puts your income ahead of Joe the Plumber, your position goes up and his goes down although his income may remain constant. This isn’t true just in terms of what you have financially. People compete on a myriad of levels: athleticism, intellect, looks, and so on

We get an ego boost when we reach a goal, finish a project or win a competition. There’s nothing wrong with that type of accomplishment unless that happiness due to “outdoing” someone instead of internal measures of success. When we start looking to others to define our success we’re setting ourselves up for disappointment later on. Similarly, if we avoid trying new things because we’re afraid we may fail, we’re shortchanging ourselves.

If you are jockeying for position, either consciously or subconsciously, you tend to lose out on appreciating what you have. Think of the man who can’t be happy with his new Toyota because the neighbor just bought a Lexus. Or, the runner who can’t be happy with the race because he came in third instead of first even though he did his personal best.

Put on the Rose Colored Glasses

Some people look at the downside of things, no matter how much they have to be thankful for. The more you appreciate what you have, the more abundant your life will become. It’s a simple philosophy to follow, yet sometimes difficult to put into practice.

It’s really hard to be happy with what you have if you’re always dwelling on the negative. Self-talk like, “our house is too small,” “I can never go shopping,” or “my husband doesn’t make enough money,” are self-defeating ways to look at your life. Unconstructive attitudes weigh you down. They also perpetuate the very situations you’re trying to avoid.

Each and every one of us was bestowed with gifts, talents, and people in our lives to help us be the best we can be. Some of these gifts are material things, some are talents and skills. Our attitude about what we have colors our day to day experiences. If we choose to focus on the good things in life, they will thrive and our blessings will multiply.

Day Three Assignment: Start "Five Things" Notebook

One of the fastest and easiest ways to stop jockeying for position and to really get back in touch with your own blessings is to start a gratitude journal. If you watch The Oprah Winfrey Show, you’ve probably heard of gratitude journals before. She started keeping a journal many years ago after reading Simple Abundance by Sarah ban Breathnach and she frequently mentions its impact on her life.

If you aren’t really a journaling sort of person consider a “Five Things” notebook. I started one along with my then 8-year-old daughter about a year ago. The notebook was a way for us to recap the good things that happened in our day in a way that was easy for her. If your kids are old enough, get into the habit of asking them the five things they’re thankful for each day.

If going into great detail about your blessings seems intimidating, or you simply don’t have the time or energy at the end of the day, consider starting out this way. It doesn’t require any sappy, flowery writing skills and literally just takes minutes. If you want to challenge yourself, make it a “Ten Things” Notebook.

What we focus on expands. If you’re walking around thinking about the things in life that are bringing you down, you’re allowing those negative thoughts to have too much power in your life. Everyone has a reason to smile today, even if it’s something as simple as the sun is shining. Nothing is too small to be happy about. Placing the spotlight back on the good things in life is a quick and simple way to create more happiness in your day-to-day life.

Be sure to include plenty of examples that are within your power as well as unexpected blessings that come your way. Maybe you made a great meal. Maybe you had a great conversation with a friend because you decided to give her an unexpected phone call. You’ll start to see the connection between taking responsibility for your actions and your own blessings.

Day Three Check in Thread

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Day Four: Create a Family Mission Statement

Like running a successful business, it helps members to focus on common goals and values. A family mission statement can help clarify what you hope to achieve as a family and help make it a more cohesive unit. It can help keep you centered on what is important, make better use of your resources (like your time and money), and learn to say no to things that don’t support your mission.

When creating a mission statement, it is important to involve every family member rather than just announcing it. If kids take part in forming it, they are more likely to support it. Parents should guide the conversation, but include kids’ inputs whenever possible. It’s also important to value everyone’s thoughts, even if you don’t agree with or share them.

The dinner table is a great place to discuss your statement. It can take several discussions to touch on everything you want to include. Don’t rush it. Your statement will evolve over time, until you find that you are left with something that concisely represents your family unit.

Questions for dialogue include:
• How money should be saved and spent
• Goals for education, career and using special talents
• How the family will help others and themselves
• Best use of the family’s time

A Sample Family Mission Statement*
The mission of our family is...
to create a place of order, truth, love, happiness, and relaxation; and...
to provide opportunities for each person to become
responsibly independent and effectively interdependent,...
in order to achieve worthwhile purposes.
Our Family Mission
To love each other...
To help each other...
To believe in each other...
To wisely use our time, talents, and resources to bless others...
To worship together...
Forever.
*From the "Personal Leadership Application Workbook" for
Stephen Covey’s The Seven Habits of Highly Effective People

Now that you’ve formed your statement, the next step is to keep in a place where it will be seen often. Don’t just write it and forget it -- to truly put it into practice, it needs to be in the forefront of everyone’s mind. Post it on the fridge, a bulletin board, or wherever it will be seen on a daily basis.

Resource: The 7 Habits of Highly Effective Families by Stephen Covey

Day Four Check In

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Dream Your Ideal Life

If you had the ability to wave a magic wand to create your ideal life in every possible way, what would it look like? How would things be different than they are now? Are there certain things you’d like to experience or accomplish? Are there certain things you’d like to be? With the FTJ program, it’s not just important to know where you are right now, you need to figure out you’d like to go.

When we were children, our dreams had no limit. However, as we grew older and made career choices, family choices, financial choices, some of our dreams had to take a back seat to more practical matters. Don’t let your current financial situation limit your dreams and goals. Your life right now is a product of the decisions and mindset you’ve had thus far in life; your future will be a result of the dreams and actions you take from this point forward. Don’t let the past limit your future.

Many of us walk through life spinning our wheels without having something to really inspire us. Keeping your dreams in the forefront of your mind and revisiting them frequently can act as a motivator and help you accomplish them. Sometimes Forgetting the Joneses means putting your own dreams ahead of more immediately “gratifying” things like the Target endcaps and Frappucinos at Starbucks. It also means prioritizing the way you spend your time so that you can make progress towards your goals instead of logging too many hours on Facebook, or getting sucked into yet another reality TV show on Bravo. Which, by the way, are good things in moderation – just don’t let them consume your life.

During this phase of the dreams exercise, I simply want to you to write down as many of your dreams and goals as you can. They should encompass all areas of your life: personal, professional, financial, spiritual, and so on. What would you like to learn? What kind of person do you want to become? What can you do to improve the relationships with those around you? What do you want for yourself and for your family? Don’t just write down the things you want to do or experience, think of the person you’d like to be. How do you see yourself in five, ten or twenty years?

The more you write down, the better. In fact – shoot for 100. Include long-range plans and things you’d like to make happen this year, or even this month. Don’t worry if you don’t think you will ever have enough wherewithal to make them happen, if it’s a dream, write it down. There is nothing too extravagant or too illogical. After all, isn’t that what dreaming is about?

Write it in the Positive Form
When you’re writing down your dreams, write them out in the positive form. Visualize what you want to achieve instead of what you want to avoid. For example, instead of writing “getting out of debt” write down “being financially stable”. Stating what you want to achieve creates a mental blueprint in your subconscious about what to strive for.

Make it Personal
When my husband took a look at my list last year, he laughed. After that reaction I was embarrassed to let him see some of the ambitious and downright bizarre things I was striving for. Then he explained that he wasn’t laughing at the list itself, but rather the fact that only I could have come up with it. If your list looks in any way generic, it might be a good idea to refine your list.

But I'm Happy the Way I Am!
Contentment is great, and dreams can only enhance that. However, without dreams you stop growing as a person. You'd never tell your child, "I love you so much the way you are that I want you to stop learning and evolving," so don't do that to yourself either.

Let's also suppose that whatever you put on the list you were guaranteed to achieve. Better relationships? More security? Would you say, "No thanks, I'm fine"? A lot of us don't allow ourselves to dream anymore because we don't see our dreams as feasible. Or, maybe it's a protective mechanism because we don't want to get our hopes up about something only to have them not happen and be let down. Try to break past those psychological barriers and allow yourself to fantasize about what you would do if you have unlimited funds and unlimited ability.

If you can get your spouse to do this, you’ll get even more out of this exercise. It’s a great conversation to have whether they’re on board with the FTJ project or not.

Assignment: Come up with a list of 100 Dreams. If you use a spreadsheet, you’ll be one step ahead of the game. In days six and seven we’ll be analyzing, prioritizing and organizing the list.

Day Five Check In Thread
Day Five Check In Thread

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Day Six: Analyzing Your Dreams

Don't go any further with the Forget the Joneses Project unless you have completed your dreams list. If you only thought about your dreams, and they exist somewhere in your head (but not on paper), stop immediately. It’s not so much having the dreams but writing them down that is the crucial element in your success. You won’t be able to complete the next assigments without it.

What do Your Dreams Say About You?
In looking at your list, you may notice some common themes. Do you love a certain hobby? Are you philanthropic? Do you want a makeover? Your list may also give you some insight into what is currently lacking in your life. If 50% of your list is comprised places you want to travel, it might be time for a vacation.

What Do You Really Want?
Your dreams can provide some valuable personal insight. With each dream you’ve written down, ask yourself these questions:
• Why do you want it?
• What will it provide for you?
• Is this something that society says is important, or one that you personally value?
• Is it consistent with your values, as stated in your Family Mission Statement?
• Would you want this if nobody saw or heard about it?
• Do any of your goals contradict each other?

Finding Contentment Today
Let’s analyze the traveling example again. What do you get out of traveling? Is it a break from routine? Is it uninterrupted time with your family? Or, do you like to experience new cultures? Is there any way you can replicate those feelings without leaving your city (or even your home)?

Analyzing why you want these things will help you find contentment in the here and now. If traveling gives you time with your family where you’re unburdened by the demands of daily life, you may be able to replicate that simply by getting a hotel room in a nearby city vs. going on an expensive vacation. If you’re into new cultures and experiences, simply going to more ethnic eateries in your own town can help satisfy those cravings. If it’s your dream to write a book one day, start by keeping a journal. Doing some of the little things today that provide you with what you’re really searching for can help you peacefully pursue your dreams.

In her book Quantum Success, Sandra Anne Taylor defines the Law of Paradoxical Intent:

“The Law of Paradoxical Intent points out the underlying paradox of personal achievement: You can get what you want by knowing that you don’t need it to be happy! It forces you to shift your focus from a desperate intention to a peaceful pursuit. Never send out energy that you’re willing to wait to be happy – just that you’re willing to wait for the goal. Needing a particular achievement before you can live with peace and joy creates a desperate energy that’s absolute poison to the resonance of success, so be clear about your intentions and fearless in your motivations. Pursue your goals because you want them to enhance an already happy life, not because you’ll be miserable without them.”

Think of goals and dreams as seeds you’re planting for the future. By writing them down, finding ways to implement progress into your daily life and nurturing them, you’re helping them to grow. But, just like a seed - you can't rush things. If a gardener gets impatient waiting for her flowers to bloom, she could kill her crop by overwatering or overfertilizing. The same thing can be said for getting impatient with your goals. You have to happily go about tending your garden, knowing that one day you'll be able to harvest your crop when the time is right. Living too much in the future can spoil what you have today.

Assignment: With the insight that you've gathered, what do you think the essence of your dreams really is? What feelings are you really searching for? Think of ways to get what you want out of life today, without spending money or leaving your own town. Write down some of your ideas.

Day Six Check In Thread

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Day Seven: Turning Dreams into Goals

Now that you have your list of dreams, it’s time to get down to work. Organizing your list is the next step and will help you narrow your focus on which dreams to tackle first. If you are familiar with Excel, doing this in spreadsheet form can help simplify the process even more. Having your list in spreadsheet form will allow you to sort your dreams by category, timeline, and importance.

Categorize
Assign various categories to your dreams: leisure, relationships, health, personal, financial, career, and so on. Aim for about 5-7 categories.

Assign Timelines
Beside every dream that you have, write down a target date about when you’d like to achieve it. Or, to make things even simpler, write down one of the following abbreviations next to each dream.

ST = Short Term (something you’d like to accomplish within the year)
MT = Medium Term (something you’d like to accomplish in the next 1-5 years)
LT = Long Term (something you’d like to accomplish in 5+ years)

Prioritize
Which dreams are you most passionate about? Are there some that you simply MUST accomplish? Which dreams are your “take-it-or-leave it” dreams, the things that would be great, but you’d be fine without them? Assign the following categories of importance:

HI = High Importance
MI = Medium Importance
LI = Low Importance

For example: For me, funding my retirement is highly important. Although I’d like to travel, these are the dreams I’m willing to let go in favor of other things. Most of my travel dreams fall under the Medium or Low Importance categories.

Once you’ve labeled your dreams, sort them according to category first, then by priority and timeline. In doing this, you’ll be able to see which dreams mean the most to you. (In my spreadsheet, I also color-coded the High Importance items red so they would stand out)


Plan of Action

A Goal is a Dream with a Plan
You have to name it to claim it, but you also have to be prepared to come up with plan and do the work to see it through. Cliches aside, that’s the big difference between dreams and goals. Studies show that that those who write out their goals not only end up achieving them, but have higher incomes and overall success and life satisfaction as well. If you didn’t write down your goals in the previous step, go back and do it.

Consider this:
The Harvard Business School conducted a study which drew a high correlation between writing down goals and overall success. In 1979, MBA students were asked, “Have you set clear, written goals for your future and made plans to accomplish them?”
Only 3 percent of respondents had clearly stated goals and actionable steps to achieve them. Ten years later in 1989, that same 3 percent were earning over 10 times as much as the other 97 percent combined.
Source: What They Don't Teach You At Harvard Business School

There is a big difference between simply having general goals and writing them down. There is an even bigger difference between writing them down and creating actionable steps to achieve them. Those steps are your blueprint to achieve your dreams.

Be Specific
The more specifically you state your dream, the more clarity it has. Instead of saying you’d like to develop a better relationship with your sister, you need to identify what that really means to you. Does it mean seeing her more frequently? Does it mean going beyond the small talk to allow for conversations with deeper meaning? What exactly does it mean?

Identify the Action Steps
What are the steps you’ll need to take to realize your dreams? Write them down. In doing so, you’re turning your dream into an actual GOAL. If you dream of building a house, you’ll need to: save for a down payment, buy land, decide on a blueprint, and so on. The more specific and detailed you can be with these steps, the better.

Dream: Build a house in the country
Goal: Build a 2,500 square ft. mission-style home on 2+ acres of land within 5 miles of our town.
Steps to achieve:
1. Estimate cost of project
2. Save XXXX amount for down payment
3. Locate building lot
4. Locate contractor
5. Have design/floor plan ideas ready

The more you can break your goals down into smaller segments the more successful you will be at achieving them. Write down your plan and post it in a place that’s visible. Revisit it frequently in order to stay on track.

Remember, more money isn’t always the only step in achieving your goals. Even though it can sometimes be an important component – it’s not the only thing. With traveling, for example, it’s fun to learn more about the places you want to go. Remember to keep planting your seeds and watering them – one day they will bear fruit.

Assignment: Further organize and clarify your goals by determining their importance and timeline. Now, pick the Top 25 goals to work on in 2009. They will most likely be the ones that are highest up on the importance list, and also some that are time-sensitive short-range goals. Come up with a list of concrete action steps to carry out to achieve the Top 25. Post your list somewhere you can see it frequently – on a bulletin board, refrigerator, etc.

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Plan Ahead!

Sometimes the key to saving money and enjoying yourself on a budget is to plan ahead. With frugal fatigue beginning to set in for some of you and the weekend coming up, this is a great time to get some frugal events on the calendar for the next six weeks. With things planned out, you’re less likely to stray from your budget or spend money needlessly.

Really take a look at your list of goals, values and priorities to see if there are ways you can incorporate the things and activities that mean the most to you in how you’re using your time. Here are some suggestions:

• Check out your interlibrary loan and holds system online so that you have a steady stream of DVDs and books available to you at no cost.

• Investigate free entertainment in your area. Check websites of local museums, libraries, universities, etc.

• Instead of waiting for friends to ask you to do something expensive, head them off by inviting them to do something frugal. Invite another family over for a potluck dinner. No babysitters required, just fun for everyone without spending much cash.

• Institute a family “game night.” Devote a couple hours to your children exclusively with no outside interruptions.

• Is there a hobby or skill on your dreams list that you want to learn more about? Investigate free or low-cost classes. Or, is there someone who can teach you? Invite him/her over for some pointers! Or, find a way to get the family involved. If you'd like to be a better photographer, why not take your kids on a "photo safari" or "photo scavenger hunt" this weekend?

• Create a getaway without going anywhere. Is there somewhere on your dream list you’d like to visit? Check out a book from the library (or read online) about their food customs and recipes. Plan a meal based on what looks good to you and what you have on hand already.

Assignment: Plan free or low-cost activities for the remaining weekends (or other times when you're tempted to spend money) of the FTJ Boot Camp. Try to incorporate your dreams/goals as much as possible.

Day Eight Check In Thread

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Calculate Your Cost of Living

Before creating a budget, it’s important to know what your current cost of living is. This will serve as a starting point when you decide the areas you feel like you need to trim; or let you know which areas you have a good handle on.

First, gather all the financial information you have access to that will shed light on where your money is going: Credit card receipts, check registers, bank statements, store receipts, spending logs, etc. The more data you have, the better. It's a good idea to go back six months or even more. This way, you can create more accurate monthly averages.

Use the financial information you collected in step to get a six-month average of spending to determine your average cost of living. If you don’t have six months of data, do the best with what you have in calculating your averages but try to be as realistic as possible.

Segment spending into general categories: clothing, eating out, auto repair and maintenance, gas, groceries, entertainment, phone/internet, utilities, mortgage, and so on. Avoid common mistakes like not including everything you spend money on and forgetting about categories that may not be mentioned. If you use a lot of cash, your expenditures may be harder to track. The more accurate you can be with this step, the better picture you’ll get of what your spending actually looks like.

For example, this may be what your gift expenditures look like:

Gift Expenditures
August 2007 $0
September 2007 $100
October 2007 $100
November 2007 $50
December 2007 $500
January 2007 $50
TOTAL = $800
AVERAGE: $134/month

Once you complete this assignment, you’ll see how expensive your life really is. In the days/weeks remaining in the project, we'll be helping you trim key areas without sacrificing your quality of life.

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