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I know a little bit about Shiny Object Syndrome. My accountability group and I just refer to it as SOS. I fell victim to it for years, in my life, in my business and in my personal finance.
It’s easy to keep getting distracted by the next big opportunity.
In your personal life it might be a new relationship, hobby, or social platform. In your business it might be a new business model, strategy, or piece of software. With personal finance it might be a new investment strategy, cryptocurrency, or wealth-creating ‘hack’.
In any area of life, bouncing from one thing to another is rarely your friend. And when some big new shiny object-type investment does pay off, it’s easy to use it to justify chasing the shiny stuff, rather than admitting that it was just one thing that paid off, and it most likely didn’t justify the time spent in countless other distractions that didn’t.
This year I completely revamped my online business. I got rid of websites, blogs, domain names, and online storefronts. I streamlined everything, including my daily, weekly and monthly activities. I set some crystal clear objectives, and then I focused exclusively on the strategies I needed to implement to meet those objectives.
Have I wavered sometimes? Of course. But mostly I’ve been turning a blind eye to anything and everything that isn’t a fit for me, given my fairly narrow objectives right now.
This has resulted in a lot of changes: a lot of subscriptions cancelled, a lot of emails ignored, and yes, perhaps some opportunities missed. I console myself for that last one with the certainty that they would have been opportunities half-heartedly approached and probably poorly executed.
The surprising thing is that once you narrow your focus in one area of life, it makes it easier to do it elsewhere. As I’ve streamlined my business model and my business finances, I’ve also streamlined my personal finances, and my life in general. I’m finally doing less, but better, and this is improving my health, wealth and happiness.
Here are my suggestions for those battling shiny object syndrome with their personal finances.
Take Stock
Where are you financially right now? What are your assets and liabilities? Where are your investments? What is your income and how does it look compared to your outgoings?
When you know all this it’s time to set goals. Where do you want to be a year from now? Or five? Or ten?
Tidy Up
SOS can lead to a diverse portfolio and multiple income streams, which we all know isn’t a bad thing. But are you over-diversified, and perhaps over-complicating things? Too many bank accounts or credit cards? Too many investments? Too many side hustles? No idea where some of your money is?
Pull all your financial ‘paperwork’ (most of which is probably digital) together and get organized. Use the 80/20 rule. Find the places where 80% of the benefits are coming from 20% of your efforts, or 80% of returns are coming from 20% of investments. See if you can tweak those situations in your favor, streamline your investments, accounts and credit cards. Get rid of what you don’t need.
Make a Plan
Now you’ve cleaned house, financially speaking, go back to those goals you set and make a clear plan to reach them. Make a list of daily, weekly and monthly activities you need to implement, whether that’s transferring 10% of each paycheck into an investment account, paying down 5% of your overall debt each month, or simply doing a weekly check-in with yourself on money earned, spent, and saved.
More importantly make a not-to-do list part of the plan. This is where you try and eliminate SOS. Things you will not do might be jumping into new investments, opening new accounts, buying new digital assets, starting new side hustles, adding new elements to your current business model, or investing in new software, trainings and courses.
Anything that tempts you should be looked at alongside that very specific set of goals you’ve devised and the plan you’ve drawn up. Does it fit? Will it help you meet your objectives? If the answer isn’t a very clear and obvious “Hell, yes,” then it’s a no. Pass on that one and continue to focus on the plan.
Can the plan change? Of course, but not on a whim, and not just because a shiny object flits into sight. Re-assess the plan once a quarter or even once a year, and tweak as necessary.
Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen
