Out of my many annual rituals that I engage in right after the New Year, one of my all time favorites is listening to the classic Stephen Covey book: The Seven Habits of Highly Effective People.
In particular, Habit 7 has always been my favorite. Habit 7 is: Sharpening Your Saw. If you haven’t read or listened to the book, here’s a brief summary of what Covey means by this phrase.
He illustrates his point by describing a person that’s been sawing wood all morning. This person’s neighbor walks by and sees him hard at work. The neighbor can’t help but notice how dull the blade on the saw has become.
So he politely recommends to his neighbor that if he were to take a short break and sharpen his saw, he would be able to finish the rest of his work in half the time with half the effort. The person sawing looks up at him and says in response; I’m too busy working to sharpen my saw.
And how does this relate to money?
One of the most common excuses I hear from potential clients that are reluctant to engage in financial planning is that they are too busy working to sharpen their 'financial saw'. When work is demanding, along with personal and family obligations needing your attention, I absolutely understand how another project could feel overwhelming.
Yet, if in this busy, crazy world we live in you’re able to stop for a brief respite, calm your mind and think clearly, I have zero doubt you would realize how powerfully beneficial having a financial plan could be in your life.
To stick with this metaphor just a little longer, how dull has your financial saw become? When was the last time you invested time and energy into planning your future? When was the last time you checked to see if your investments are aligned with your financial goals? When was the last time you felt highly confident about your future retirement plans? If it’s been a long time or in some cases a very long time, there’s a very good chance your “financial saw” is dull.
Having a “dull saw” is not a productive or highly effective way to reach personal and financial success. Dull saws usually lead to working longer and harder than needed, increased stress levels, uncertainty about your personal finances and remaining in a low level, constant state of reaction and worry.
Invest the Time and Reap the Rewards
Lots of us like to work on our personal finance just after the New Year. My hope is this blog will inspire you to make the time to plan strategically for your future and sharpen your financial saw.
My recommendation; head out of Dodge, plan a financial summit with your significant other or just yourself, and really start to think about what you want to accomplish this year and the steps you’re going to implement to reach your goals. If you’re new to planning, give yourself small baby steps to reach. It doesn’t matter how large or small the goal is, it’s the little but consistent wins that lead to an increased level of financial self-worth.