My resolutions for 2015 are fairly simple: spend more time connecting with friends and family and fully cut sugar out of my diet.
Do you have any resolutions for 2015? Spending less is one resolution that many people make. Here’s a simple exercise to help you succeed.
Spend Less
Do you often wonder where all the money is going? Are you spending your money in a way that really supports your values? To answer these questions and follow through on your resolution to spend less in 2015, I suggest the following exercise.
First, automate your finances and begin tracking your spending by signing up for and using a website like Mint.com. Mint will show you where all the money is going, and you’ll need that for part two of this exercise. (If you have questions about using Mint, check out this blog post from my colleague Neela.)
Now that you know where your money is going, it’s time for one of my favorite “repeating question” exercises. Grab a pen and paper or a trusted friend and find a quiet and comfortable distraction-free space (i.e., turn off the smartphone and computer). Allow yourself a couple minutes to simply breathe and relax.
Once you feel that you have shifted into a more settled space, ask yourself (or have your friend ask you), “What do I want?”
Write down the first word or two that comes to mind and then immediately ask the same question again, once again writing down what arises. Repeat this process for a couple minutes.
It is perfectly OK to answer “I don’t know” or if the same answer comes to mind a number of times. Just write down whatever arises and ask again.
Match Your Spending with Your Values
Now it is time to compare your list of answers with where you’re actually spending money. Through the repeating-question exercise you may have come up with one or two themes that describe what you want or value in life. Compare these themes with a month’s expenses. Reflect on how each expense is either supporting or not supporting what you most value and desire. I think you know what you need to do with the expenses that don’t match up.
You are not alone in this task, as your Abacus advisor is always here to help. If this exercise has you rethinking your financial goals, schedule an appointment with your advisor to share your updated goals and ask for guidance on the best course of action.
Wishing you and yours a very happy, healthy and prosperous 2015.
