Comments on: Revising and Reworking a Failed Financial Plan

By: K

Thu, 05 Nov 2009 16:14:38 +0000

I think there’s another factor that is sometimes at work here, which is the idea of celebrating your small successes. So often we will continue to flog ourselves with guilt over the things we didn’t do, and don’t take the time to recognize the little victories that we’ve worked hard to achieve.

Celebrating the steps you take on the way to a goal creates momentum towards continued efforts.

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Thu, 05 Nov 2009 15:56:06 +0000

Claudia (9), that was brilliant! I’ve worked in credit much of my career and what you say about “I’ll be in debt forever, so why bother let’s spend” is right on the money.

People can’t see immediate improvement from small efforts so they abandon the plan entirely and find ways to cope with the debt rather than to eliminate it. But unless you come into a windfall, slow and steady will be the only way.

By: Claudia

Claudia — Thu, 05 Nov 2009 13:07:12 +0000

Having a goal of being debt free in say 3 years sounds great, but the first thing you need to do is divide your debt with estimated interest by 36 months and see if it is even doable. If paying that debt down means not enough money left to pay your necessities it is obviously not going to work. So, you fail and give up. One also needs to budget in a few fun dollars each month or one tends to get the mind-frame, “Oh well, I’ll be in debt forever, so why bother, let’s spend.”
When my goal was to be debt-free, I did not put a time frame on it, I committed a dollar amount (above my actual payments)each month to paying off debt, I estimated how long it would take, but that was not firm. I also realized that some months, other needs may arise so that I could not utilize the money toward debt reduction.
We were debt free until we moved 3 years ago, but our house will be paid off, and we will be debt free,in 5 years or less depending on how many months I can increase the extra principal payment I have allotted.

By: GayleRN

GayleRN — Thu, 05 Nov 2009 12:56:55 +0000

I have collected a few aphorisms about this subject. I don’t remember where they came from but they are posted where I will see them.

Be not ashamed of mistakes and thus make them crimes.

Failure is the opportunity to begin again more intelligently.

Genius is nothing but continued attention.

By: Tyler

Tyler — Wed, 04 Nov 2009 23:44:48 +0000

“Ask yourself if the big goal was something you really wanted in the first place.”

This is a great question for someone who is saving too MUCH money to ask themselves. You can be just as miserable trying to save too much as you can saving not enough.

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Wed, 04 Nov 2009 21:47:20 +0000

Tahlia (4)–How true!(the January effect)

Trent, your analysis of the mechanics of why the plan didn’t work and how to get back up and running are perfect.

Short term comfort is a compelling draw for most of us, and it usually takes just a little push to move us back into old, bad habits. It’s amazing how much effort has to be expended just to overcome something so simple, but that hurdle has to be factored into the equation any time we make plans to move out of our comfort zones.

Getting comfortable with the concept of change itself seems to be a task worthy of our full efforts. Until we’re settleed in the change, we’re just reciting good intentions to ourselves.

By: Cambo

Cambo — Wed, 04 Nov 2009 21:04:04 +0000

Root cause and asking why 5 times… sounds very Kaizen!

By: Tahlia42

Tahlia42 — Wed, 04 Nov 2009 20:48:41 +0000

This would have been a perfect end of January post to help everyone who’d already broken their New Year’s resolutions!

By: Anne KD

Anne KD — Wed, 04 Nov 2009 20:39:35 +0000

This happens with losing weight, too. Like having health issues crop up out of nowhere, in addition to getting bored with a specific way of managing a diet.

Financially, I had to turn saving money into a game for myself. I have a certain amount of money to work with every month, and anything I can save from one area (groceries, for instance) I can put into my ‘play money’ pile. I have plans for that play money. Calling it ‘play money’ helps me to not take myself so seriously and it helps build my personal savings. Money saved from our joint finances is going towards paying down some debt that we picked up over the summer in the midst of doing a refi.

By: Vicky

Vicky — Wed, 04 Nov 2009 20:32:57 +0000

Oh, what a great post.

I have things that crop up all the time that must be dealt with. I have credit card debt (not a ton, but enough that it will take time to pay down) – but I have pets, too.

Their health comes way before my debts, so if something comes up, I will take care of it. Often this pushes back my dates for when I want my goals paid off.

Like you suggest – instead of blaming myself and giving up, I step back, re-evaluate, and re-adjust.

By: frank b

frank b — Wed, 04 Nov 2009 20:12:57 +0000

regarding banks—one of the things i’ve noticed on a frequent flier forum is that some banks are now offering miles for their debit (not credit) cards—would like to know more specifics as you work with online banks—beneficial since many folks trying to rebuild their life may have difficulties getting credit cards but should not have a problem in most cases with a debit card tied to their bank

and frequent flier miles add up and can be of benefit to us poor folks—i keep aquiring alaska miles everytime i shop at safeway through their club card program—-after five years i actually got a one way flight for my daughter visiting from the south—had to pay $$ for the flight home but saved me $160 simply because i shop for some (not all) of my food items at safeway