{"id":1005,"date":"2013-08-26T21:35:40","date_gmt":"2013-08-26T21:35:40","guid":{"rendered":"http:\/\/vhfinancialmanagement.com\/?p=1005"},"modified":"2013-08-26T21:35:40","modified_gmt":"2013-08-26T21:35:40","slug":"dont-go-big-go-small","status":"publish","type":"post","link":"https:\/\/vhfinancialmanagement.com\/2013\/08\/26\/dont-go-big-go-small","title":{"rendered":"Don’t go big: Go small!"},"content":{"rendered":"
Tweet<\/a><\/div>\n

How many times have we heard not to put all of our eggs in one basket?\u00a0 We’ve been taught that idea since we were children, even if we didn’t know it.\u00a0 Don\u2019t play just one sport, have many friends, and focus on many subjects in school.\u00a0 \u00a0Most often this strategy is sound.\u00a0 Especially as adults, we know that this certainly is true when it comes to investing. We need diversification.<\/p>\n

But, I would like to present a challenge to you today and turn this mantra up-side-down.\u00a0 I want you to put all of your eggs in one basket. \u00a0I would like to show you how focusing on one thing (going small) can help sharpen your focus and lead you towards financial success.<\/p>\n

I recently read a wonderful book called \u201cThe One Thing. \u201d \u00a0This book, written by Gary Keller and Jay Papasan,\u00a0 challenges our multi-tasked way of life. \u00a0The authors state that we lose productivity, and ultimately suffer, when we multi-task ( or at least from too much multi-tasking).<\/p>\n

As a holistic, fee-only advisor, this may sound counter-intuitive to my approach, but it really isn’t. While I\u2019m always looking at the big picture for my clients, we have to focus on certain areas that allow us to succeed.<\/p>\n

The authors\u2019 idea is to create focus. Their mantra of \u201c what\u2019s the one thing I can do such by doing it everything else will be easier or unnecessary\u201d is a great tool in our financial planning world. If we can focus on the one thing to help us reach our goal, while still staying in tact with the big picture, we will increase our chance of success.<\/p>\n

For example, if you want to save $1000 in 4 months, you will need to save $250 a month. Simply savings the $250 a month might be your one thing. \u00a0Do whatever you need to do first to save $250 a month. While this simple example may sound petty to some, it\u2019s the concept that matters. \u00a0This is also a very simple example, and most folk\u2019s financial plan is very complex. \u00a0I will caution you that finding your one thing may be difficult.\u00a0 It\u2019s also important to make sure your one thing is the right one thing.\u00a0 I often see prospective clients who have been asking the wrong questions and focusing on the wrong areas\u2026.they are focusing on the wrong \u201cone thing.\u201d<\/p>\n

I should also note that Mr. Keller and Mr Papasan do feel that the one thing can apply to many different areas.\u00a0 In their book they apply the concept to career, health, faith, family and friends, as examples.<\/p>\n

Remember, I\u2019m a firm believer in the idea that there are three things we can control that ultimately lead us to financial success: how much we spend, how much we save, and how much we pay in taxes.\u00a0 We could take \u201cThe One Thing\u201d concept to each of these items.\u00a0\u00a0 This may really sharpen our focus and accelerate our success.<\/p>\n

The next time you get the urge to go big I would encourage you to shift your focus and go small.\u00a0 Ask yourself if you are focusing on the right \u201cone thing.\u201d\u00a0 This is a great conversation to have with your advisor, as well.\u00a0 So, go ahead and putt all your eggs in your \u201cone thing\u201d basket.\u00a0 Give it a try, and let me know how it works for you.<\/p>\n

<\/div>