- practical - what is it that you practically need to accomplish? retirement, pay off debt, save for education, etc
- intuition - what feels good to you? Ask yourself how you want to feel?
- Similar to the ketogenic / low carb lifestyle or any lifestyle you follow for weight loss, set a target that you are excited to when you meet, but not so far that it seems unattainable
- Saving a million dollars is an arbitrary goal. It won't solve all your problems.
Is it important to identify your money values?
- Yes, but what's the definition of a value?
- is being a spender or a saver a money value? no, it's a behaviour
- values link to behaviours
- I value security which is why I'd like to have a buffer in my savings account. I value adventure which is why I value saving for travel. You can also value security but like to travel!
- it's like keto, do what works for you! if something doesn't feel good to you, don't do it!
how do you have an effective conversation about money with your partner? (how do you fight about money, what if you have different values) how do you find common ground?
- Build the trust muscle
- We have each other's back, we are on the same team
- If talking about money is difficult, start with something easier where you can find more common ground
Is budgeting important?
- It depends on your goal
- similar to dieting, instead of using the word diet, we use the word lifestyle. keto diet vs keto lifestyle, vegan diet vs a vegan lifestyle, paleo diet vs paleo lifestyle, AIP diet vs auto immune protocol (lifestyle)
- better words - money plan, financial plan
- you have your macros in a keto lifestyle and you have your macros in a money plan
- financial planning is like meal planning
- 20% of your after tax income to spend on savings and debt repayment
- 50% on needs - housing, food, wifi, cellphone,
- 30% on wants - wine, lattes, travel
Is it important to save for retirement?
- put on your oxygen mask before helping others analogy
- prioritize your health first and then you can help others
- save for your retirement first, before saving for your child's education
- time is the biggest leverage for retirement savings - majority of retirement savings is from the compounding effect - i.e., interest and returns ON the interest and returns
- retirement saving - it's not about the $ you are saving but that you are building a habit of saving
- most people get stressed thinking about tax season
- mindset - if you pay income tax, you have income! you are blessed and lucky! if you pay a lot of tax, you have a lot of income!
- scavenger hunt - ,make a list of everything you need (T4s, donations, receipts). do it one item at a time and check it off!
What does Lisa's self care look like right now? as a new mom and as a new business owner?
- it's okay to put yourself first
- that might mean 20 minutes of yoga at home 3x / week
- it may mean turning down a social engagement and not seeing friends
- self care looks different at different points in your life and on different days
- The value of my gift does not equate to my love for you
- Understanding that buying your family member, your friend, something that is out of your budget, is not necessary for you to express your love for them
- make a list of family members, professional acquaintances, friends and gifts. having a prepared list and $ gifts and a budget will help you stay within your budget
- for big families or at workplaces, secret santa can work really well, where you are assigned one family member or team member to buy for and you can focus all your time and budget on that one gift and that one person!