I was recently one of three finalists for the New Yorker magazine caption contest. Each week, over 5,000 entrants are submitted for an uncaptioned cartoon, and they cull the list down to three. I was really excited to be a finalist, and when the winner was announced … I didn't win. But whenever something doesn't go the way I had hoped, I always say to my wife, "Well, at least I'll get a column out of it." So here is how my caption contest experience relates to financial planning.
Mind map. When the contest cartoon appears in the magazine, I go in many directions for the caption. One of the ways I approach it is by writing down several concepts that could work and then picking the angle that I like the most. I encourage you to use this in your planning. For example, if you are thinking of moving, take a piece of paper and write in the middle of it: home. Then draw branches for everything that the concept of home brings up for you.
It may trigger a variety of options ranging from community to fireplace to backyard to bedrooms. There may be branches off each of those options. Backyard may have gardens or fence. When you have completed this, carefully look it over and determine which characteristics matter the most to you, and only look at homes that share those characteristics. This will help you avoid falling in love with a great home that doesn't match your objectives. Mind mapping lets you broaden your thinking before narrowing it, creating a range of possibilities before limiting them.
Sacrifice. I probably entered the caption contest 50 times before finally becoming a finalist. Now that I didn't win, I'll probably enter another 50 times to see if I can.
My wife had a children's book published several years ago. Many people come up to her with their idea for a children's book and want to know how she got hers published. She still has copies of the rejection letters she received from her efforts to get published. We often see the results without the effort.
The act of saving is a sacrifice. You are denying yourself something today so that you can have a better shot at what you want tomorrow. More importantly, by limiting your needs, you will require less money in the future because you are used to spending less. We know that spending on stuff does not bring as much satisfaction as spending on experiences. But spending can create some excitement.
One of the ways that you can substitute that feeling is this: When you avoid buying something that you don't need, write a check to your investment account, charity or vacation fund. The money was going to be gone anyway, but now it is serving a long-term purpose.
No regrets. When I found out I was a finalist, I posted a link to voting on my Facebook, Twitter and LinkedIn accounts. Not only did I get reinforcement from friends and peers for my efforts, but I wanted to give myself the best possible chance of winning. Even though I lost, I went down swinging. How many times do we stop ourselves from doing something because we are afraid of being disappointed, or, maybe worse, embarrassed?
