This isn’t really a case study, but CNN Money. did such a terrific – dare I say, elegant – job in coming up with 20 timeless money rules, that we’ll hold off on the case study til next week, in favour of this. Note it’s not the usual stuff. The various rules are by the likes of Cervantes, Confusius, Coco Chanel and Augustine.
For example, here’s rule #14 based on a principle of Eleanor Roosevelt:
14. Just do it
It takes as much energy to wish as it does to plan.–Eleanor Roosevelt
Financial planning is an unnatural act. The brain is wired to make us undervalue long-term goals and exaggerate the cost of short-term sacrifice. Yet studies show that people who do even a little retirement planning had twice the savings of those who did almost none. Heed the words attributed to Mrs. Roosevelt by doing the following:
Set concrete, attainable goals. “I’ll pay an extra $100 a month on my credit card” is more likely to succeed than “I’m going to get my act together.”
Then commit. Tell someone your plan and agree to a penalty–you’ll do your spouse’s chores for a month if you haven’t saved $10,000 extra by June.
(and if you want some help on keeping your financial goals, send me an e-mail at nancy at your money by design dot com)
For the rest of the rules, visit 20 timeless money rules.