Focus on the positives AND the negatives

Getting out of debt is SIMPLE.

Losing weight is SIMPLE.

Quitting smoking is SIMPLE.

All this stuff IS simple but certainly not always
easy.

Losing weight is math. Burn more calories than
you take in and you'll lose weight. Simple.

Getting out of debt is math. Don't take on
new debt that you can't pay off within the
month and put as much as you can on the
old debt. Simple.

You get the idea.

Where we all fall down is on our focus.

We forget our "powerful whys" as my
friend Donna Krech likes to call them.

Why do you want to get out of debt?

Why do you want to lose weight?

Why do you want to quit smoking?

We all know our "whys" when we start
down a road of change but at some
point those "whys" fly out the window
and we forget them.

So for every goal you have trouble with
I'd like to suggest formulating two
lists.

One list for WHY you want to accomplish
something and one list for what the
consequences are for not accomplishing
your goal.

Sometimes the WHYS are not nearly as
motivating as the CONSEQUENCES.

Trouble is we forget about both when we
don't focus on them.

So once you have your lists, put them
where they'll do the most good...meaning
where you'll see them most often.

Review your lists 3x daily, morning, noon
and night.

If weight is the issue, review your list before
each meal.

If it's money related, review your list before
you spend money.

Your list doesn't have to be on paper.

If you have one of the new fangled phones with
all sorts of bells and whistles you probably
have some notepad function. Or if you check
your email using your phone, email your lists
to yourself and read them there.

Program your phone to remind you three
times a day to review your lists. Ding ding.

Record your lists and get the recording on your
ipod or MP3 player. LISTEN to yourself
three times a day or...

If you are trying to stop smoking, for instance,
do you think you'd stay motivated if three
times a day you heard a recording of your
daughter's voice saying "daddy, please
quit smoking so you can walk me down the aisle
when I get married some day" or

"mommy, please lose weight so you can play with me
at the beach next Summer"

or

"mommy, I don't want to have to pay for your
nursing home in 40 years so could you make
good money decisions today?"

Just checking to see if you are paying attention. :>)

Checking out your lists three times a day
and when you find your resolve weakening,
doesn't have to take a long time.

A quick glance to refocus will usually be enough
and in the long run you'll be very happy you
took the time.

The Mind Game of Money

Money really is a mind game.

A University of Maryland study examined the “denomination effect”.

The study found that if you carry around big bills ($50s and $100s) you’ll spend them slower than smaller bills.

Would you break a $50 or $100 to buy a pack of gum or a cup of coffee? Even if you would, my guess is you’d think about it just a bit longer than if you had to break a $5 or $10. It might even “hurt” you to break a big bill.

And here is the most interesting part of the study: People who break big bills ultimately end up spending that money faster than people who started out spending smaller bills.

Setpoint.

Merriam-Webster defines setpoint as: “the level or point at which a variable physiological state (as body temperature or weight) tends to stabilize.”

I would argue that there is a big psychological aspect to “setpoint” as well.

That 5’5” guy who has been 250lbs for many years will probably find a lot of success when he first gets serious about diet and exercise.

At some point though, his brain will point out to him that he USED to be 250lbs. “That one extra box of donuts won’t matter….it’ll be a nice reward for losing so much weight”

And before he knows it, his weight is creeping back up to where he was “comfortable”.

The same can be said for money and debt.

According to a Sports Illustrated story , 78% of former NFL players are bankrupt or under financial stress within two years of retirement, and 60 percent of former NBA players are broke within five years of retirement.

Many lottery winners are in a similar position just a few years after their big win.

Why?

Books have been written on the subject but part of the answer comes down to their psychological “setpoint” about money.

Years and years of carrying the same credit card debt can make someone very comfortable with a certain amount.

It’s the most common thing I hear from students. “I invested in “How To Own Your Paycheck Again!” and I was doing so well…”

You’ve chipped away at your debt and 40% is now gone. You’re justifiably proud of yourself. That big screen TV would only add 10% to your debt and your deserve a reward.

Since that 10% would keep you under your original debt “setpoint” you go for it. And before you know it, your debt has crept up back to your comfort level.

So how can you develop a new setpoint?

Prepare for challenges.

You’ve lived with yourself for awhile now. Where do you usually stumble?

Take a small percentage of the amount you were putting toward paying off your debt and start a couple savings accounts. One for long-term saving and one for that “reward” you so justifiably deserve….whatever that may be.

Think about the long-term repercussions of NOT lowering your debt setpoint. You can see them all around you these days. Debt-free people are weathering these financial times much better than the deeply in debt.