How a Journal Gave Me a New Perspective on Money
March 25, 2015A few months ago, I started to keep a journal so that I could capture my thoughts about life and record them for the benefit of my children. I figure I work all day long and don’t really have much time to teach them some of the important lessons that I’ve learned along the way. My hope is that one day they will pick up my journal and hear my voice as I speak to them about what is really important. In the same way, there are some things that are just more important than others when it comes to our finances. Here’s how journaling has helped me deal with this concern:
I have to write it down.
When I teach our money management course, I ask the participants if they track their spending. Most people say they do, but when I ask how they do it, I usually get some that use spreadsheets, some that use financial programs, and some that use mobile apps. Rarely, do I have someone say they write it down.
Personally, I think writing it down in the form of a spending journal is a very good exercise. When I use technology, it’s usually because I’m infatuated with it. For example, when I first used Mint.com, I thought it was so cool to aggregate ALL of my financial accounts. Over the next several weeks, I’d log in to see all of the cool charts and graphs and track my spending behavior, but after a while, it started to lose some of its appeal.
Pretty soon, I was only checking it every few months, and today I rarely check in at all. Don’t get me wrong. The tool is great but my heart just isn’t in it anymore.
On the other hand, when I use a physical journal, it becomes a much different experience. Now I have a pencil and notebook, and with each transaction, I’m able to record how much I spent in the moment. Then, at the end of the week, I can go through and actually see what my spending behavior looked like for that week. It slows me down and forces me to be more thoughtful about what I’m doing. If technology works for you, then by all means keep using it, but if you’ve lost that loving feeling toward it, maybe a spending journal can renew that spark.
I have to consider what’s most important
When I write things down in my journal, I must consider what is the most important thing I want to convey to my kids. Not everything we face in life is of equal importance. Things like having an emergency fund, paying off high interest debt, and setting aside money for college and retirement are all very important and should be a higher priority than the bigger flat screen, the latest video game, or the sports package my satellite TV provider offers. I want my kids to know that they are important to me, and I want to do all that I can to improve their lives. Spending time with them, helping them have opportunities to grow and develop, and not having to work so long that I can’t treat them to family vacations after retirement are important goals for me, and I want to make sure that each financial decision I make supports those goals.
I have to slow down
I can’t write nearly as fast as I type and certainly not as fast as I can talk so journaling helps me to slow down and to think about my decisions before and after I make them. All too often, we react in the moment and make a decision based on an impulse, a sudden need, or because of a good sales pitch, but journaling requires patience and reflection. Keeping a journal requires introspection and a need to think not only about the moment, but beyond the moment.
In the same way, it is important to learn delayed gratification. Just chasing whims or not having a plan is a sure way to find yourself in financial trouble down the road. Instead, take time to consider where you are and where you would like to go.
I have to look outside of myself
Lastly, journaling requires me to think outside of myself. How are my attitudes, emotions and decisions effecting other people? When I realize the influence I have on my wife, my children, my friends, and my coworkers, I start to care more about them and less about myself. In the same way, when I look at how I spend money, what does that say about me?
The Bible says that where your treasure is, there your heart will be also. Am I spending money on indulging my pleasures or investing in my future? Am I using money to build a wall or to build a bridge? I want my financial decisions to align with my personal values and that means looking outside at the world around me and choosing to use my finances to make it a better place.
It seems simple, yet I look around and see so much time, energy and money spent on things that seem to have little value. Maybe it’s time to take a notebook, a pencil, and a cup of tea and to write out who and what is important to you. You may just discover a whole new perspective on how you manage your money.