planning

With the year closing out, it's time for me to take a little time and review the past year.

I do this type of reflection twice per year in different ways. My Spring review is about the big picture, and my end of the year review is more about the details. I go over my projects, my finances, my career progress, and my personal progress to see what I did right, what didn't go as I planned, and why things either worked out or didn't.

It's fascinating to look at. A year is a large enough block of time to see changes, trends, and progress. It also puts all the holes in my plans on display for me to pick at and think about.

So I make new plans, adjust and tinker, and set out again.

What are you reflecting on as the year comes to an end?

I've been on a quest for the perfect sleeping bag and tent.

Like any product or service, I had to consider qualities in different areas and decide what's most important to me. I could buy the lightest one person tent out there, which would cost over $400. If I'm willing to buy one that weighs just under a pound more I could spend as little as $90. Would I be comfortable every night in that $90 tent? Not really.

After a few hours of research I decided I liked a particular tent, as shaving extra weight tends to cause the price to skyrocket. Then I picked a sleeping bag on a new set of criteria. Done.

In the end, I stayed away from the latest and greatest ultralight gear while finding some fantastic items. I go camping a handful of times each year, with just once or twice being times when weight matters.

At the end of all this, I realize this is who I am and this is not what the world is.Read more

Has something unexpected ever oh-so rudely interrupted your life and caused you to fall behind on less important tasks?

Last Tuesday I stayed home from work with a cold. I’ve noticed a lot people have been sick already this year, and I tend to catch something when it starts to get cold in November and December. Today is the first day I’m feeling around 100% again. I have energy, I am smiling, I feel focused… and I am way behind on e-mail, reading blogs, going through mail, and doing all the little things I tend to stay on top of.

I have a hunch you’ve been there yourself.

What happened? My balanced life got tipped over in a way. I go through most of my e-mail and blog subscriptions in the morning and when I take mental breaks during the work day. I take part of an evening every week to stay on top of mail. On top of that it was my birthday so friends and family wanted to see me. Making sure I’m on top of work and cooking dinner are much higher priorities, so that’s what I focus on.Read more

Have you ever given a little extra push when preparing and had it pay off?

Lots of successful people talk about working hard. Most of them talk about working smart, too. Yet I’m sure you know someone who is a hard worker, or someone who comes up with lots of fantastic solutions, and neither seems to ever get ahead even though they want to. How do we work hard and smart AND get ahead?

The key is not in the hard, or the smart - it’s in why you’re doing what you do.

I want to make it clear that you do need to work hard and smart if you want to get ahead. There is no way around those two. Keep that in mind.

Take working hard and smart and add a why. I’m talking about a purpose here, not some mere goal. People who have purpose get more accomplished, as in things they want to do, for two reasons.Read more

For everyone not born filthy stinkin’ rich, which is just about everyone, we have to trade our time to do things so we live or we die (like earn money to pay for food, clothes, shelter, and on and on).

Let’s say we’re using time to make money, and this is a natural part of life. My point was if someone offered me more time or more money I’d take the time. Trent Hamm’s comment got me thinking about trading time and money and the parallel between trying to accumulate more time/money.

A lot of people look at earning more money as an important aspect of life. It is to a certain point, no doubt. Here’s what I ask you: what are you willing to pay for all this money? There’s a cost associated with everything in life, and even if you’re willing to pay the price there’s no guarantee you’ll reach your goal. The few who accumulate all that money get to reap the rewards of it.Read more

Think of life as a marathon for a moment. I bet you the people who make it to the finish line with a smile on their face have one thing in common: their priorities were in order.

One of their top priorities is their health. How well would you run a marathon if you’re in poor health? Not well. So the marathoners ate right, exercised, and rested to regain energy.

Another top priority is having the running gear. You don’t need fancy stuff to run, just proper clothing and shoes which aren’t worn out.

Knowing what’s likely ahead is important, both about the runner and the course. Knowing where there are hills and flat sections matters. Heck, just knowing there are hills matters. Also, each runner knows what will slow him down and wear him out. It will not be smooth sailing the entire time.Read more

If there is one book I wish I could have read in 2004, when I graduated from college, it’s Ramit Sethi’s recently published I Will Teach You To Be Rich. Boy would I have screwed up a lot less if I had his advice then.

Of course, like most people my age I fully expect to start a fantastic business which will make me filthy stinkin’ rich by my 40’s. Money will be flowing from my pockets. Now, if I expect that scenario, why would I recommend a book on money management if I’m going to be filthy stinkin’ rich in 15 years?

Because it may not happen.

Or if you believe the experts, the odds are stacked against me. Big time.

I have a soon-to-be wife to think about, and the children we’re going to have are going to depend on me. If I want to do everything I can for them and myself financially, then I should have a plan. Sethi’s book gave me some excellent insight into further developing my plan.Read more

Having a core set of beliefs, a personal philosophy, is crucial if any of us want to have a direction in life.

The problem is that many people stop once they have the philosophy.

This conversation came up with one of my friends on the topic of money. We were taught fundamental ideas on money, a simple philosophy for what we earned. Spend less than you earn, save, invest as early as possible, take your employer up on their 401(k) match, and all will turn out well. It’s excellent advice.

It also lacks the details.

In college I had a course on personal finance and accounting. While it expanded on the fundamental ideas my parents taught me, we did not learn about how to start a Roth IRA with as little as $50 per month or how to negotiate fees with banks and lenders. The professor did not warn us to stay away from people who live a lifestyle we could not afford, because odds are we’d get start spending more as well. Heck, no one really went over how to properly manage the money we earned.Read more

Tomorrow is my annual self assessment.

If you’re not sure what I’m talking about, it’s the day I reflect on the past year and figure out what I want to focus my efforts on. I recommend scheduling a self assessment day every year. I chose Memorial Day weekend because two years ago around Memorial Day I finished Bolle’s “What Color is Your Parachute?” and had a clear vision of the direction I wanted to take in life. Last year I used the Friday before Memorial Day for this, and I’m doing the same this year.

Here’s what I do:Read more

Have you ever thought, “I wish I had made an offer for that instead of walking away” as you continued on your way somewhere else?

Me too.

A lot of people have told me they do not like to negotiate. Most of the time negotiating is a waste of effort. I’m not going to walk into the supermarket and start haggling over the price of grapefruit. They’re $1.50 apiece and I buy 2 or 3 each week, so there’s no point.

On the other hand, there are two key times when being prepared to negotiate is important: when you have a strong option to walk away, and when it’s a life-altering decision. Let’s look at why and what to do in each situation.Read more