Remember all of those New Year’s Resolutions you made to yourself last year?  You know the ones.  This next year was going to be different and you were going to get the year started off on the right foot.  Some of these resolutions you knew were going to be pretty tough to do, but you thought maybe this was the year that you could do it.

Chances are many of them are not yet finished or even implemented.  As you read this you have about 31 more days to get them finished.

We all have made our list of resolutions.  We start out the year with the best of intentions, but something always gets in the way.  There are other priorities that pop up along the way.  We think about the changes we want to make, we plan for them and then when it comes time to execute, something comes up and we set our plans and intentions aside.  They end up in the same spot last year’s resolutions went.  More important priorities we tell ourselves, but we know better.

There are a couple of reasons why we struggle with these resolutions.  First of all they require a change in our behavior.  Maybe we are trying to change spending habits, maybe it means sticking to a budget.  No matter what it is, in order for improvement to occur our behavior must change.

Ideas and inspirations exist in our minds.  When we think about them it easy to become excited and energized.  We can see the changes occurring and we like what we see, but the more we think about them, the enthusiasm begins to wane.  As we go through the process of putting the plans into action and moving on them, we begin to have conversations with ourselves.  And our excitement begins to fade.

There is a border that lies between our thoughts and our actions.  As we move closer to that border, as we contemplate the action we are about to take, the plans begin to fall apart.  We begin to see faults in our plan.It doesn’t look as good on paper as it did when we were thinking and getting excited about our plan.

The primary reason we struggle is pretty simple.  There is a little “voice” inside of you that gets louder and louder as you move closer to the border.  That “voice” does not want you to implement those plans, because in doing so you are taking control.  You are taking control over the “voice” and when you do that your behavior begins to change, usually for the better.  But the “voice” doesn’t want you to change.  It likes you the way you are and the “voice” will do anything it can to keep you in your old, safe, comfortable ways.

Successful people ignore this “voice.”  It still talks to them and as they approach the border between action and complacency, their “voice” gets just as loud as your “voice” does when it talks to you.  But successful people just keep on going and they smash through the border and leave the “voice” behind.  They know it is useless to debate the “voice” because it eventually will win out.  So they simply choose not to listen.

In the movie A Beautiful Mind with Russell Crowe, John Nash knew that if he was going to overcome his mental illness, he had to ignore those “people” who kept following him and begging him to talk to them and to stay with them.  Their voices kept calling to him, but he worked hard to ignore them.  Eventually he was able to take control of his life and as a result he accomplished great things.

You can do the same.

In the next few weeks think about those actions you had planned to take last year, but didn’t.  Don’t worry about too many of the details in implementing the plan.  They will just bog you down.  Anxiety about taking action is nothing more than the “voice” talking to you.

To be successful you have to race past the “voice” and crash through the border between your inspirations and the actions necessary to implement them.

You probably remember most of the things you wanted to accomplish last year.  As a boost here is a short list of financial issues that you should be thinking about.  Taking action on them will greatly improve your financial health and well-being.

Make sure you are participating in your company’s savings programs.  Whether it is a 401(k), 403(b), or 457 plan, make an appointment with the human resource department  and learn about your choices and how the plan works.  If the company offers a match, you should be contributing up to that level at the very least.  All of these plans offer substantial advantages in that they grow on a tax-deferred basis.

If you can, begin the year by making contributions to your 2003 IRA or Roth IRA.   Even better get started on your 2004 contributions.   The new tax laws allow you to put $3,000 per year into these tax favored investment vehicles.  If you can’t do a lump sum, then start saving on a systematic
basis.  To max the contribution you only need to put away $250 per month.  If you are over 50 years old, you have a catch up provision that allows you to put away $3,500 per year.  That is only $291.67 per month.

If you have young children set up a 529 plan.  The specifics of these tax-advantaged college savings vehicles were covered in the August and September editions of this column.  Currently the State of Oregon is evaluating new fund managers for their plan after firing the Strong Family
of Funds who were involved in the recent scandal in the mutual fund industry.   By the way don’t let that scandal deter you from investing.  It is only that “voice” trying to stop you from being successful.

A final suggestion for you is to meet with an attorney and either review your current will or have one written.  Nobody likes to think about death or facing mortality, but you will feel a tremendous sense of relief when you take the time to put your final instructions down on paper.

You may be even contemplating a living trust.  Whatever the case may be, stop thinking about it and start doing something about it.  Some people are crazy enough to think that they will live forever and death won’t happen to them because they are too young, too healthy, too poor, too
wealthy….whatever the case may be.  The reality is that it can happen and it does happen everyday where someone dies without having written up their own will.

Wills aren’t for the dying, they are for the living and if you leave this world without proper planning, you are doing a great disservice to the surviving members of your family.

That list should get you thinking and hopefully taking action.

As you contemplate your list, be on guard.  The “voice” will be there.  It never goes away.

Take solace in this simple fact: the louder it gets, the better off you will be for making the change in your behavior.
 
 

Contact Mark Neil at:
Northwest Wealth Advisors, Inc 
0605 SW Taylors Ferry Road
Portland, OR 97219
Office: (503) 478-6632 
Fax: (503) 595-1863 
Email: mneil@nwwealtadvisors.com 

© 2003 Mark Neil