Do not interpret the assertion contained in the title in the sense that might come to mind on first reading. Nothing is more difficult for the energetic person that I am than to relax and place my feet on the pouf! During spring break, it’s even more difficult. Its time horizon is not favorable to the financial services sector, and the entrepreneur hat increases the daily challenge of balancing work and family. Spring break represents for me a bittersweet mix between the desire to take care of my children and the respect of my commitment to my clients.
If relaxing wasn’t part of my plans this year, it’s clear that I almost let go of something else: my principles! Indeed, I firmly believe that children need to be “bored” during the holidays, to recharge their batteries rather than to respect a tight schedule of scheduled activities (and often paid, it goes without saying). Yet when I scoured social media and saw all these families enjoying lots of activities and trips, that damned feeling of maternal guilt this year triggered a slight questioning in me.
Suddenly, I was ready to do anything for my children to spend a week off cool them too: cinema outings, lunch at the restaurant, bowling with the neighbours. Why not go join the grandparents in Florida for a few days? Everything to make them happy! Piecemeal, those choices didn’t cost too much, but when you add up all those little unplanned impulses, Spring Break suddenly demanded a bigger budget.
I resisted. The plan for the week has been maintained. My children played outside for hours with friends and we enjoyed the magical conditions of the cross-country ski trails as a family. In addition to this free happiness in the outdoors, the routine was broken by laying in sleep in pajamas, discovering a film that mom liked when she was younger and editing a little spy film inspired by their imagination by downloading a free application. Then, we must not underestimate the joy aroused by the privilege of eating sugary cereals or preparing poke bowls as a family. Spring break will have finally cost $100, since I offered them dinner at the restaurant of their choice when I returned from one of my professional obligations.
Choosing not to deviate from my spring break budget allowed me to maintain an ongoing savings goal for a family trip in 2024, when the current price craze subsides (I’m optimistic, remember?) . Spring break is just one of the many occasions when financial ambitions can slacken and expenses increase emotionally and unconsciously.
For financial planners, as for you, the challenge of sound financial management is the same. So here are some of my tips for encouraging the required discipline.
Think in pre-tax dollars. By calculating how much gross income actually had to be earned to fund an expense, you’ll break the unplanned emotional momentum. Personally, it reminds me that I have to work very hard to earn this money and it motivates me to put it to better use.
Make a very detailed and realistic budget. For a goal to be achievable, it must be realistic. For example, if you have always spent heavily in a sector, you are unlikely to succeed if your ambition is to eliminate it entirely. A gradual reduction in expenses will likely increase your success rate. In addition, monthly budget monitoring is more effective with a budget whose expenditure items are detailed.
Assess the costs. Take a few moments to assess the long-term projected value of an investment equal to the annual amount of all those unplanned expenses: lunch drive-thru, trip down south booked on a whim , the purchase of the latest technological device while the old one is still working… This calculation helps to assess the real long-term cost of a short-term lack of courage.
Involve children in family budget choices. Without passing on your financial worries to them, it is quite possible to explain to them that all adults have budget choices to make. As parents, you sometimes cross off your wish list while remaining happy, even if you earn a good living! Your children will benefit from having as role models people who have a definition of pleasure that is not always associated with consumption.
Make a list of activities or meals you want for your family vacation. Life goes by at a crazy pace, and it is difficult on a daily basis to take the time for certain activities or cooked meals that please everyone in the household. Making a list in advance to display will remind you, when the next holiday comes, that you have several possibilities for free activities and sweet family moments in the bank!