Fail to Plan, Plan to Fail

Last night while discussing an annual off-site strategy meeting for my business, it occurred to me that individuals could benefit from doing something similar for their financial planning. Taking time out and outside of the box (i.e., moving to a different location to stimulate creativity) to brainstorm and formulate a strategic plan is a familiar tactic for successful businesses. So how does a LMF4HMW reader use an off-site strategy meeting to enhance her financial position? Below are some simple steps:

1. Take it seriously. Put an hour appointment on your calendar to plan the meeting. In this hour, you'll decide on topics for discussion (if it's a family plan -- i.e., you and a spouse or significant other) or further thought (if it's solo mission). These might include cash management/budgeting, debt service/payment plans, wealth building strategies, goal setting, evaluation of 2008's performance, etc. At this point you're merely deciding on the topics, not tackling them -- that's for the off-site.

2. Create an agenda. Decide where you'll go, perhaps to a night away or a more simple location such as a quiet restaurant. Plan your time given the topics above. How long will you tackle each topic? How will you record your thoughts? (I love using colored markers and big white sticky "Post it" style notes -- buy them at an office supply store.) I suggest that you divide the topics into separate sessions if possible to avoid burn-out. Gather any notes or files you'll need.

3. Mix in some fun. Maybe you're going to a spa hotel? If so, be sure to book an appointment -- businesses always blend some relaxation or fun into the equation which helps stimulate the creative thought process. If you're dining out for the day, perhaps drive to a different town and combine the trip with an invigorating hike.

4. During the meeting, employ the "Happy Tree". No fair using blaming or negativity. This off-site is a chance to brainstorm in the "happy tree" (think Will Ferrel and his new bride in the therapist's office during Old School). I'm not suggesting that you ignore any failed moves or mistakes from the past, only that you don't use blame or negative words during the discussion. If yours is a group, appoint a mediator and a note taker. If it's a solo mission, write out your "rules" beforehand and be sure to take notes.

5. Follow up! Don't let all of your hard work go to waste. One of the most important steps you can take post meeting is creating a plan for implementation. Again, pick an hour to write a formal plan for attack. During this time, check with your accountant to see if it's a deductible expense -- if you're discussing any side business you might have, it should be. So save those receipts!

6. Check in on your progress. Put a 30 minute quarterly review appointment on your calendar to assess your performance. Get yourself back on track if you fall of the wagon. Or reward yourself if you're progressing well.

This commitment to your financial strategy for 2009 means that you're much more likely to succeed. And if you achieve your goals beyond your expectations, the 2010 planning meeting can add a little more fun!