Research indicates that one of the best ways to stick with
goals (e.g., New Year’s resolutions) is to set boundaries. In other words, draw
a “line in the sand” and develop personal policies to help say “no,” resist
temptation, and stay on course.
How
can people set boundaries?Consider this
analogy from the world of NASCAR Motor Sports. Ever since a car wreck nearly
killed hundreds of spectators in the grandstands at Talladega in 1987, when a
speeding car went airborne, races at Daytona International Speedway in Florida
and Talladega Super Speedway in Alabama have required drivers to use
“restrictor plates.”According to the
official definition on www.nascar.com, a restrictor plate is “A flat device with holes
drilled into it designed to limit the amount of air that enters the
engine.This effectively limits the
horsepower of the engine and slows the cars down.”
Like
Talladega race cars, people also need “restrictors” to slow them down so they
can stick to their financial goals.In
other words, cues to limit spending because they’ve “had enough.”Individuals need to develop, and enforce,
their own restrictors.If someone tries
to restrict another person, they will usually resent it and rebel.
Looking
for some specific ideas?Consider the
following examples of financial restrictions:
§Spending no more
than $500 on holiday gifts and parties.
§Charging no more
than $300 per month on a credit card for new purchases.
§Spending no more
than $100 a week at the supermarket.
§Buying a “new
used” car, instead of a new car, to reduce the cost.
§Depositing 5% of
gross income in a 401(k) or 403(b) plan via payroll deduction (to “restrict”
income)
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