Big Bonus? Don't Ignore the Rainbow

I have been asked for suggestions on what to do with a nice fat bonus check (or a big pay day from a sales/legal win). It always depends on your particular situation. However, there are some high level things I would suggest thinking about. First, have a plan!! I would go into it with split among your goals, Eg: 20% - short term, 60% - mid/long term, 20% - fun.

Short term issues that alleviate worry:

1. Pay down any high interest debt - credit card, 2nd mortgage, school loans

2. Put new tires on your car

Short/mid term value that you can add to your family

1. Time to upgrade your 10 year old minivan?

2. Remodel the kids bathroom?

Mid/long term investment for your future self

1. Fund an IRA

2. Fund an investment account

3. Buy into a real estate deal

4. Fund your safety cash (3 months of family bills)

5. Fund the kids 529’s

Do something for your self! It’s a bonus, enjoy it.

1. Buy yourself something fancy

2. Buy a gift for your sweet heart

3. Go for a ridiculously expensive dinner/outing

4. Check off an item on your bucket list

5. Hop on a plane for a far away spot for a week

6. Put a down payment on a Tesla

The key points here are:

1. Take care of some short term issues, that keep you up at night.

2. Think about your future self … they will be knocking on your door soon

3. HAVE SOME FUN

Warning: Don’t let your “bonus” fund your life.

If you are counting on your bonus to pay your bills, or keep you afloat for the year … please, pretty please with a cherry on top, you need to reevaluate how you are allocating your monthly income. Use this next bonus check, to catch you up. And lets go ahead and set up a plan, moving forward, so that you are focusing your spending on the things that matter to you. And not throwing money at things that don’t. Schedule a quick call or coffee!!

Why You Need to Friend Your Future Self

Think about you!

Yes, you. Where do you live? Who do you live with? Where do you work? How do you spend your free time? Now picture yourself in 10 years. Where do you live?  Same place? Who do you live with? Are you working?... Do you have the same occupation? How do you spend your free time? 

In 2008, UCLA psychologist Hal Hershfield, Ph.D., conducted a study asking similar types of questions and found people commonly had two different neural patterns when thinking about the present versus the future:  The first neural pattern:  "I'm thinking about me".  The second neural pattern:  "I'm thinking about a stranger".

How you identify with your future self is called "self-continuity".  Because many of us are not well connected to our future selves, we make decisions that maximize our current selves, and leave our future selves in bad shape. Check out this short article from Men's Health for more.

An example of this sort of behavior: On Friday watched the Atlanta United game with friends.  As the game wound down, I ordered a parting drink.  I certainly did not need it, and I had already scheduled an xfit workout the following morning.  I failed to contemplate how my future self (only 8 hours into the future) was going to deal with waking up early and feeling crappy for my work out.

Get to know your future self and accomplishing your goals can be simpler than it seems.

Saving now, for either a short term goal such as a vacation, or a long term goal like retirement can seem vexing.  And it will require a short term sacrifice.  But your future self will appreciate it. 

Here are a few things to get in touch with your future self:

1.  Write a letter to your future self

2.  Take a picture of yourself and run it through agingbooth or faceapp

3.  Tap a surrogate, like your mom/dad, or someone with a similar job

4.  Schedule a time with me and let me help get you connected

YOUR FUTURE SELF IS LOOKING FORWARD TO MEETING YOU!!

Lets schedule a quick 20 minute call to work on getting you to acquainted.