December 18, 2024 • 21 mins
Ever find yourself panic-purchasing business tools at 2 AM during the holiday season? Or maybe you're wondering if that end-of-year equipment purchase is really about growth – or just about taxes? In this episode, we dive deep into the psychology behind those year-end money decisions that can make (or break) your business's financial future.
Key Quote: "Sometimes the most powerful move is deciding not to spend, even when it feels like everyone else is."
In this episode, you'll discover:
- The truth about December 31st deadlines (and which ones you can safely ignore)
- Why January 1st feels like such a powerful reset button (and how to use this psychology to your advantage)
- How holiday stress can trigger "doom spending" in your business
- A practical 72-hour rule for making better financial decisions during the festive season
- The "December Decision Framework" that transformed one client's year-end planning
Plus, learn how to distinguish between real deadlines and artificial pressure during the busiest season of the year.
Perfect for listening while wrapping those client gifts or planning your year-end strategy. Join us to transform your December money moves from reactive to strategic.
00:00 Introduction: Year-End Financial Pressure
00:57 Welcome to Wealth Wisdom Financial Podcast
01:34 Understanding Year-End Financial Moves
03:11 Psychological Triggers: December Deadline Effect
06:51 Psychological Triggers: Clean Slate Syndrome
11:33 Psychological Triggers: Social Comparison Search
15:22 Creating a December Decision Framework
20:03 Join the Wealth Wisdom Financial Community
21:34 Conclusion and Final Thoughts
Next steps: Ready to make intentional money moves in 2025? Join our Wealth Wisdom Financial Community for just $97/year. Get access to our complete library of financial resources, monthly group coaching sessions, and our success dashboard mini-course. Join at wealthwisdomfp.com/community.
Coming up next week: "The Ultimate 2024 Recap: Looking Back at the Year" – tune in for insights on maximizing your year-end review process.
Watch on YouTube: https://youtu.be/J23X36gUSDg
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:01):
We're in those final weeks of the year
when every financial article is screaming
do this before December 31st.
But here's what they're not telling you
the psychology behind why we make
certain money moves at the year end. And
more importantly, how to make sure
those moves align with your actual
(00:23):
goals, not just what everyone else
says you should do. Especially you
business owners, you're the most
vulnerable to making some poor decisions
over the next couple weeks. So listen all
the way to the end to get to know the
traps and how to avoid them
in a world where chaos seems to reign
(00:44):
supreme, where uncertainty lurks
around every corner and financial
markets are now more unpredictable than
ever. There's one place you can turn to
to find clarity and control.
Welcome to the Wealth Wisdom Financial
Podcast. Hey, I'm Brandon. And I'm
Amanda. Join us as we dive deep in the
(01:04):
world of personal and business finance
to assist you in navigating through the
chaos and building the financial future
you deserve. We believe when conventional
financial thinking doesn't get you where
you want to go, you need wealth
wisdom. So if you're ready to take
control of your financial destiny. Tune
in to the Wealth Wisdom Financial Podcast
(01:26):
because in a chaotic world, your
money shouldn't be. Subscribe now
and never miss an episode.
So if you're listening to this,
chances are you're feeling that familiar
year-end pressure. Maybe you're wondering
if you should be making last-minute tax
moves, maxing out retirement
accounts, giving to charity,
(01:46):
doing backdoor Ross before the year
closes. Maybe you're
reviewing your profit margins,
wondering about Section 179
deductions, or trying to decide if
you should invest in that new equipment
or buy that new vehicle before December
31st. Today, we're going to explore
not just what to do, but why we
(02:07):
do it, and how to make sure your
year-end money moves serve your
long-term financial well-being.
Let's be honest. Between holiday
parties, client gifts, and that
endless supply of office treats, your
gut instinct might be a little
sugar-coated right now. I'm serious. Did
you know that your digestive system
(02:29):
has its own neural network?
Scientists call it the second brain with
over 100 million neurons in your
gut, which explains why so many
business owners feel like their decisions
are gut instinct. So here's the
thing, between the holiday cookies in
the break room and the endless cups of
eggnog, or you know, all all
(02:50):
those fun things we like to eat around
this time of year, candy canes and
cookies galore. Our trusty second
brain might be running a little bit
slower than usual. So don't worry though.
Today we're going to engage both
brains to make a better year-end money
moves, cause psychology isn't just
about what's going on in your head,
it's about your body as well. So.
(03:13):
There are prominently 3 psychological
triggers that drive this year and
money decision extravaganza,
and understanding them could help us make
better choices both personally and in our
businesses. So we're going to go through
these big three. The first one is the
December deadline effect. We
(03:34):
tend to overvalue arbitrary
deadlines. Like December 31st. It's
actually a clever trick. If you want to
use it in the positive, keep delaying
something, give yourself a
deadline, and that you'll experience
this deadline effect. It creates this
kind of artificial pressure that can lead
to rust decisions, however,
right? You give yourself that deadline.
(03:54):
If you don't do anything up until the day
before that deadline, you're going to
rush to make the decision right away.
Now, there are some real
deadlines, like for tax
deductions, but many are
self-imposed. Let's talk about how to
distinguish real deadlines from
artificial pressure, because this
time of year, everything can feel
urgent. First, there are
(04:15):
genuine December 31st
deadlines, tax deductions, most
retirement contributions, equipment
purchases you want to write off this
year. For us business owners, that
Section 179 expensing really
is a use it or lose it situation.
Same goes for maxing out most of your tax
advantage retirement counts or doing Roth
(04:36):
conversions or making those charitable
deductions that you want to deduct this
year, right? I get so many emails
from charities on December 31st that I'd
need to give by midnight for it to count.
But then there's what I like to call a
manufactured urgency.
You know what I mean, especially if
you're in sales. Those end-of-year
(04:56):
special pricing emails from vendors,
that pressure to close out strong even
when your business naturally just cycles
differently. The rush to spend your whole
budget so you don't lose it next year.
We've all been in those kind of
artificial manufactured urgency kind of
situations. So here's a quick way to
(05:17):
sort real from artificial
deadlines. Three questions. Will this
opportunity truly disappear on January
1st? If it's a tax advantage,
maybe, probably, yes, right?
If it's a vendor's special offer,
probably not. Second question,
what's the cost of waiting? Sometimes
(05:39):
waiting means losing a tax deduction,
sure. Other times, waiting gives you
clarity and better cash flow.
Actually, and if I believe that my
future is better than my past and I'm
actually going to make more money next
year, would that tax deduction be
better next year or this year? What's the
cost of waiting or
advantage of waiting? And then third
(06:00):
question, am I making this decision
from a place of strategy or
scarcity? Year-end equipment
purchases are great if they fit into your
business plan. But if you're buying just
to save on taxes, you might be
letting the tax tail wag the business
dog. We don't want that, right? So is
this strategy or is this out of scarcity?
(06:22):
Remember, every dollar you spend to
quote unquote save on taxes still
means spending money you might need for
other things. That new piece of equipment
might save you 30% on your tax bill,
but you're still spending 70% of your
real money. Make sure that
fits with your actual business
strategy, not just your tax strategy.
(06:45):
OK, so there's the first one. We have
to go against this deadline effect and
this December deadline effect. The second
one is the clean slate syndrome. Try to
say that 10 times fast. The clean
slate syndrome. Our brains desire fresh
starts and clean breaks, right? This
is more about January 1st than December
31st. But why does January
(07:06):
1st seem like this powerful reset
button, especially for entrepreneurs
and business owners? There's actually
fascinating psychology behind this.
You know that feeling when you start a
fresh notebook? I'm a paper nerd. I
love like I got a new journal. I've
actually have a new planner. It's like
December and I haven't started writing in
it yet. 'cause I'm looking forward to
(07:27):
that crisp, blank pages or you know
prefilled kind of pages and outlines that
I can start to fill in, and
everything seems possible at this moment.
January 1st is just like that, but
for your whole business, not just
your nerdy planner awesomeness, which
if you wanna know what mine is, reach
out to me. But our brains are wired to
love these temporal landmarks,
(07:49):
moments that feel like naturally new
beginnings. And society has made January
1st the mother of all fresh starts for
us. But here's the really interesting
thing. This fresh start effect
isn't just a feeling. Research shows that
we're actually more likely to take action
toward our goals after these kind of
temporal landmarks. That's why gym
(08:10):
memberships go up in January, and why
so many business owners choose January
1st to launch new initiatives or change
their pricing. The problem is,
We often put too much pressure on this
arbitrary date. We tell ourselves,
everything will be different when the
calendar turns. But just because the
clock, you know, counted down to
(08:31):
midnight and then turned to the new
year, doesn't mean anything's gonna
change. And yet we create these
massive business plans that would
challenge a Fortune 500 company, let
alone our growing businesses. I've
done that, right? Like a lot of us
still do that. I still struggle to make
sure I don't do that. We basically try to
like Marie Kondo our entire business in
(08:52):
one sweep, right? Like in one week
leading up to the January 1st or one week
after January 1st. Instead of
falling into this all or nothing
thinking, let's talk about how to
harness this psychological reset in a
healthy way. I've got a
few ideas. Maybe you use the fresh start
energy of this, you know, new
(09:13):
notebook, new page in your life
story, and a new chapter beginning in
your business journey to reflect,
plan, but don't expect overnight
transformation. So take the good,
right, without the pressure and the
expectation and trying to do too much.
One way you could do that is maybe break
some of those 2025 goals into
(09:36):
quarterly milestones. rather than trying
to change everything day one,
right, January 1st of the year.
Also make sure you're keeping what's
actually working from 2024. You don't
need to throw out all your systems just
because the calendar changed. And
also maybe think of, this is actually
my favorite. So if you drafted away,
come back now. I got you on this one.
(09:57):
Think of January 1st as a start of a new
chapter, not a whole new book.
I love like I have a planner for each
year. I get a whole new planner for each
year, but your life is not a planner.
You're starting a new chapter, not a
whole book. Remember, your business
didn't get to where it is overnight,
and it won't transform overnight either.
(10:20):
The real power of January 1st isn't in
the date itself. It is using that natural
momentum to get to set sustainable
changes in motion, right?To take
those micro adjustments, a
Kaizen, the 1% right that you've been
doing all year long and give them a
boost, get some extra motivation,
get some extra excitement around them and
then keep them going throughout the whole
(10:41):
new year. So to summarize this one
with the this clean
slate syndrome, it's not
about new year, new me, right?
Exit that out from your vocabulary,
but more like new year, new chapter.
Or new year, new level, whichever
one you like, right? Emphasize that
(11:02):
you you're taking your current story,
your current game, and you're
continuing on to new and better stages of
that story. In that game, you don't
restart, right? If you're playing a
video game, you don't want to go back
to the beginning again and restart the
whole thing. You just want to go to the
next level, right? That's that's how
you and your business evolve. I don't
want to start my a book either from the
(11:24):
beginning. I want to go to the next
chapter. That's what we're looking at
here, OK?So we got the
December deadline effect and the
clean slate syndrome. The third one I
want to talk about today is the social
comparison surge. If you missed the last
episode, we talked a little bit about
comparisonitis and whatnot. This is a
little bit different. It's not just that
(11:46):
feeling bad when others succeed. It's
about how those feelings drive us to
spend money we don't have on
things we don't need. No
judgment here, but let me explain
what I mean. You're scrolling through
social media and you see a competitor's
elaborate client appreciation gifts,
and suddenly your thoughtfully chosen
(12:06):
gift cards feel inadequate. Or maybe you
notice another business owner's fancy
holiday party photos while you're
planning a very modest team lunch.
Before you know it, you're pricing
out catering services that you didn't
budget for. This time of year,
we see everyone's highlight reel as
business of of business success. The new
(12:28):
office spaces, the team expansion
announcements, the fancy tech
upgrades, and something interesting
happens. What starts as an
inspiration can quickly turn
into panic purchasing. You
might find yourself thinking,
well, if they're investing in new
equipment, maybe I should too,
even if that's not the right time for
(12:49):
your business to do the the same thing as
their business, right?Here's where it
gets really fascinating and maybe a
little bit scary. When we feel
behind or inadequate,
some of us fall into what's called doomed
spending. It's like stress
eating, but with your credit card.
You know that feeling when you think,
(13:10):
well, I'm already over budget,
might as well go all in. That's doomed
spending in action. Maybe you upgrade
your office furniture because of one
chair needs replacing. Or you buy the
premium version of every software
subscription because you're feeling like
you're falling behind. You know, new
tech, new, you know,
innovations. Let's drive, drive,
drive, right? Like, spend,
(13:31):
spend, spend. And what
really drives this is comparison and
stress. They drive gym
spending on the personal side too,
with, you know, shopping spree
for gifts for your family or for
yourself, and to make up for those
feelings of inadequacy in your business.
So instead of getting caught in this
spending spiral, try this.
(13:53):
Create a December's desire list,
right? Where you just write down a piece
of paper, open a note on your
phone, write down everything you feel
pressured to buy or upgrade right now.
Then let it sit for at least 72
hours, if not longer. Like, make
it a challenge. How long can you let that
list sit?You'll be surprised how
many things you thought were urgent feel
(14:14):
less crucial after a three-day cooling
period, or maybe even a week, if
you want to take that up that challenge.
Remember, true business growth isn't
about matching someone else's spending.
It's about strategic investments and what
makes sense for your unique situation and
for your unique business. Sometimes the
most powerful move is deciding not to
(14:36):
spend, even when it feels like
everyone else is.
Also, there are more healthy ways to
manage your stress and build your
confidence and, you know, make
sure that you're not feeling
inadequate, but that you're embracing
your true self and putting that out in
the world in a very confident way. My
favorite is to get moving, like
literally exercise, but find your
way. And remember, some of the best
(14:57):
stress relief and confidence building
things don't cost a dime. Got it.
OK, now my
skeptics that are listening. I love you.
I'm a skeptic too. You might be
thinking, but there's probably some
money making moves that I need to do at
year end. And yeah, I'd say
absolutely. The key is making intentional
(15:18):
decisions rather than reactive ones. Let
me tell you a story about Nan.
Not a real, not, you know, a
real client, more of a composite of
various things I've done with a few
different clients of ours.
Nan used to panic every December,
rushing to make tax advantage investments
(15:39):
and charitable contributions without a
clear strategy. After working
together, we created what we call a
December decision framework, and
here's how it goes. First,
we want to do a strategic assessment.
We want to review our actual tax
situation with a professional, a
tax professional, CPR enrolled agent
(16:01):
long before or at least by November 1st.
Now you're listening to this in December.
You might not have done that. If you can
get that in, good. But if you can't
do that this year, no pressure. Make
sure you do it next year. Now tax
professionals are typically really good
at coming up with ways that you can save
taxes this year. So they
might even hand you a list, right?
(16:22):
Give you some ideas and you might think
of some more, right? Go back and
forth with them and make sure you
know, like, is this a real
deadline December 31st? What happens if I
wait till January 1st? All those kind of
things. And make sure you know,
OK, what are my true December 31st
deadlines and identify which kind of
moves can move to Q1. So now we've got
the strategic assessment. We know our tax
(16:43):
situation, we know what's a true
deadline and what can wait till next
year. Then we do an emotional
check-in, asking,
am I making this decision from a place of
pressure or purpose?
Considering if this move aligns with my
long-term financial strategy. Sure,
it might save me taxes now, but am I
(17:04):
gonna have to end up paying more taxes
later because I made this move,
right? Does it align? And then
evaluate if you're trying to keep up with
others or serve your own goals,
right? So we did the head thinking with
the CPA or enrolled agent and then
afterward. We did the emotional check in
and long-term financial check in,
which might be a little heady too. And
then we move forward with our action
(17:24):
plan, create a calendar of necessary
year-end moves, building in buffer
time for unexpected opportunities and
including time for reflection and
planning. I set aside a whole day in
November just to reflect and plan for the
next year. It's one of my favorite day of
the year. You might not be able to put it
to a whole day together. Try a
little bit of time, as much as you
(17:46):
can have, maybe a little bit spread
out over a little while, but more
reflection, more planning, more
intentionality. Love that.
I want to go back to one thing I kind of
went quickly through, which is the
buffer time. The fascinating thing I've
seen happen too many times is that people
have year end tax moves and then they
wait and they try to do it within the
(18:07):
last two weeks of the year and
especially if they involve moving
money. From someone who does not
want you to move their money from
them, that can get really tricky,
especially cause you know, like your
business, people want time off around
the holidays. And so the place you're
trying to move money from or to, they
(18:27):
also have employees out and things take
longer. And so there's been
people that have tried to do things by
December 31st that cause themselves a lot
of stress to try, you know,
because they waited too long to do it or
they. Like,
miss the deadline, right? So this
podcast is coming out December 18th. Is
(18:50):
that right? Yeah, December 18th. Make
your deadline tomorrow or the next day.
Try to get it done before the last couple
weeks of the year and make sure that you
move forward as soon as possible. If you
do have some things you want to do,
again, not a false urgency. Don't
move things forward that aren't actually
true. But if you need to have a
(19:10):
conversation with your CPA, you need
to have a conversation with your
long-term financial planner. You need to
contact people to move money that might
take some time. The sooner the better.
OK, as we wrap up today's
episode, remember that the best
year-end money moves are the ones
that align with your personal financial
(19:32):
journey. Don't let the December rush push
you into decisions that don't serve your
long-term goals. You might be feeling
like, oh, I wish you would have
published this episode months ago,
and I feel you, I wish I would have
too. But we also have this really cool
place where we publish things like this
all throughout the year, where we
have tax things right, anytime you
(19:54):
want all this kind of juiciness, and
we help people make intentional money
moves. Five days a week,
really, rather than reactive ones. So I
want to personally invite you to join the
Wealth Wisdom financial community. It's
exactly all about that, making
intentional money moves rather than
reactive ones. I know
navigating business finances and personal
(20:15):
finances, they they're complicated,
but they don't have to be a solo journey.
Inside our community, you'll find
entrepreneurs just like you who are
committed to making strategic financial
decisions. Not just December, but all
year long. So for just $97
for the entire year, less than your
(20:36):
monthly coffee budget, you'll get
access to our complete library of money
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guides, and our success dashboard mini
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group coaching sessions where we dive
deep into topics just like we covered
today. This isn't just another community.
(20:58):
It's your strategic, intentional partner
for 2025. So head over to
wealthwisdomfp.com/community to
join us. Let's make 2025 the
year you stop reacting to financial
pressure and start proactively
building the business you envision.
The doors are open now. I'd love to see
(21:19):
you inside. It's community. We've been
doing it for a couple of years and we'd
love to see you in there.
Again, it's only $97.00 for the entire
year and we have a 30 day money back
guarantee. So if you get in like actually
this is what I thought it was going to
be, we'll give you your money back. OK,
that's it for today. Thanks for joining
us. Hit that subscribe button and live
long and profit. The topics
(21:41):
presented in this podcast are for general
information only and not for the purposes
of providing legal, accounting or
investment advice. On such matters,
please consult a professional who knows
your specific situation.
We're in those final weeks of the year
when every financial article is screaming
do this before December 31st.
But here's what they're not telling you
the psychology behind why we make
certain money moves at the year end. And
more importantly, how to make sure
those moves align with your actual
(00:23):
goals, not just what everyone else
says you should do. Especially you
business owners, you're the most
vulnerable to making some poor decisions
over the next couple weeks. So listen all
the way to the end to get to know the
traps and how to avoid them
in a world where chaos seems to reign
(00:44):
supreme, where uncertainty lurks
around every corner and financial
markets are now more unpredictable than
ever. There's one place you can turn to
to find clarity and control.
Welcome to the Wealth Wisdom Financial
Podcast. Hey, I'm Brandon. And I'm
Amanda. Join us as we dive deep in the
(01:04):
world of personal and business finance
to assist you in navigating through the
chaos and building the financial future
you deserve. We believe when conventional
financial thinking doesn't get you where
you want to go, you need wealth
wisdom. So if you're ready to take
control of your financial destiny. Tune
in to the Wealth Wisdom Financial Podcast
(01:26):
because in a chaotic world, your
money shouldn't be. Subscribe now
and never miss an episode.
So if you're listening to this,
chances are you're feeling that familiar
year-end pressure. Maybe you're wondering
if you should be making last-minute tax
moves, maxing out retirement
accounts, giving to charity,
(01:46):
doing backdoor Ross before the year
closes. Maybe you're
reviewing your profit margins,
wondering about Section 179
deductions, or trying to decide if
you should invest in that new equipment
or buy that new vehicle before December
31st. Today, we're going to explore
not just what to do, but why we
(02:07):
do it, and how to make sure your
year-end money moves serve your
long-term financial well-being.
Let's be honest. Between holiday
parties, client gifts, and that
endless supply of office treats, your
gut instinct might be a little
sugar-coated right now. I'm serious. Did
you know that your digestive system
(02:29):
has its own neural network?
Scientists call it the second brain with
over 100 million neurons in your
gut, which explains why so many
business owners feel like their decisions
are gut instinct. So here's the
thing, between the holiday cookies in
the break room and the endless cups of
eggnog, or you know, all all
(02:50):
those fun things we like to eat around
this time of year, candy canes and
cookies galore. Our trusty second
brain might be running a little bit
slower than usual. So don't worry though.
Today we're going to engage both
brains to make a better year-end money
moves, cause psychology isn't just
about what's going on in your head,
it's about your body as well. So.
(03:13):
There are prominently 3 psychological
triggers that drive this year and
money decision extravaganza,
and understanding them could help us make
better choices both personally and in our
businesses. So we're going to go through
these big three. The first one is the
December deadline effect. We
(03:34):
tend to overvalue arbitrary
deadlines. Like December 31st. It's
actually a clever trick. If you want to
use it in the positive, keep delaying
something, give yourself a
deadline, and that you'll experience
this deadline effect. It creates this
kind of artificial pressure that can lead
to rust decisions, however,
right? You give yourself that deadline.
(03:54):
If you don't do anything up until the day
before that deadline, you're going to
rush to make the decision right away.
Now, there are some real
deadlines, like for tax
deductions, but many are
self-imposed. Let's talk about how to
distinguish real deadlines from
artificial pressure, because this
time of year, everything can feel
urgent. First, there are
(04:15):
genuine December 31st
deadlines, tax deductions, most
retirement contributions, equipment
purchases you want to write off this
year. For us business owners, that
Section 179 expensing really
is a use it or lose it situation.
Same goes for maxing out most of your tax
advantage retirement counts or doing Roth
(04:36):
conversions or making those charitable
deductions that you want to deduct this
year, right? I get so many emails
from charities on December 31st that I'd
need to give by midnight for it to count.
But then there's what I like to call a
manufactured urgency.
You know what I mean, especially if
you're in sales. Those end-of-year
(04:56):
special pricing emails from vendors,
that pressure to close out strong even
when your business naturally just cycles
differently. The rush to spend your whole
budget so you don't lose it next year.
We've all been in those kind of
artificial manufactured urgency kind of
situations. So here's a quick way to
(05:17):
sort real from artificial
deadlines. Three questions. Will this
opportunity truly disappear on January
1st? If it's a tax advantage,
maybe, probably, yes, right?
If it's a vendor's special offer,
probably not. Second question,
what's the cost of waiting? Sometimes
(05:39):
waiting means losing a tax deduction,
sure. Other times, waiting gives you
clarity and better cash flow.
Actually, and if I believe that my
future is better than my past and I'm
actually going to make more money next
year, would that tax deduction be
better next year or this year? What's the
cost of waiting or
advantage of waiting? And then third
(06:00):
question, am I making this decision
from a place of strategy or
scarcity? Year-end equipment
purchases are great if they fit into your
business plan. But if you're buying just
to save on taxes, you might be
letting the tax tail wag the business
dog. We don't want that, right? So is
this strategy or is this out of scarcity?
(06:22):
Remember, every dollar you spend to
quote unquote save on taxes still
means spending money you might need for
other things. That new piece of equipment
might save you 30% on your tax bill,
but you're still spending 70% of your
real money. Make sure that
fits with your actual business
strategy, not just your tax strategy.
(06:45):
OK, so there's the first one. We have
to go against this deadline effect and
this December deadline effect. The second
one is the clean slate syndrome. Try to
say that 10 times fast. The clean
slate syndrome. Our brains desire fresh
starts and clean breaks, right? This
is more about January 1st than December
31st. But why does January
(07:06):
1st seem like this powerful reset
button, especially for entrepreneurs
and business owners? There's actually
fascinating psychology behind this.
You know that feeling when you start a
fresh notebook? I'm a paper nerd. I
love like I got a new journal. I've
actually have a new planner. It's like
December and I haven't started writing in
it yet. 'cause I'm looking forward to
(07:27):
that crisp, blank pages or you know
prefilled kind of pages and outlines that
I can start to fill in, and
everything seems possible at this moment.
January 1st is just like that, but
for your whole business, not just
your nerdy planner awesomeness, which
if you wanna know what mine is, reach
out to me. But our brains are wired to
love these temporal landmarks,
(07:49):
moments that feel like naturally new
beginnings. And society has made January
1st the mother of all fresh starts for
us. But here's the really interesting
thing. This fresh start effect
isn't just a feeling. Research shows that
we're actually more likely to take action
toward our goals after these kind of
temporal landmarks. That's why gym
(08:10):
memberships go up in January, and why
so many business owners choose January
1st to launch new initiatives or change
their pricing. The problem is,
We often put too much pressure on this
arbitrary date. We tell ourselves,
everything will be different when the
calendar turns. But just because the
clock, you know, counted down to
(08:31):
midnight and then turned to the new
year, doesn't mean anything's gonna
change. And yet we create these
massive business plans that would
challenge a Fortune 500 company, let
alone our growing businesses. I've
done that, right? Like a lot of us
still do that. I still struggle to make
sure I don't do that. We basically try to
like Marie Kondo our entire business in
(08:52):
one sweep, right? Like in one week
leading up to the January 1st or one week
after January 1st. Instead of
falling into this all or nothing
thinking, let's talk about how to
harness this psychological reset in a
healthy way. I've got a
few ideas. Maybe you use the fresh start
energy of this, you know, new
(09:13):
notebook, new page in your life
story, and a new chapter beginning in
your business journey to reflect,
plan, but don't expect overnight
transformation. So take the good,
right, without the pressure and the
expectation and trying to do too much.
One way you could do that is maybe break
some of those 2025 goals into
(09:36):
quarterly milestones. rather than trying
to change everything day one,
right, January 1st of the year.
Also make sure you're keeping what's
actually working from 2024. You don't
need to throw out all your systems just
because the calendar changed. And
also maybe think of, this is actually
my favorite. So if you drafted away,
come back now. I got you on this one.
(09:57):
Think of January 1st as a start of a new
chapter, not a whole new book.
I love like I have a planner for each
year. I get a whole new planner for each
year, but your life is not a planner.
You're starting a new chapter, not a
whole book. Remember, your business
didn't get to where it is overnight,
and it won't transform overnight either.
(10:20):
The real power of January 1st isn't in
the date itself. It is using that natural
momentum to get to set sustainable
changes in motion, right?To take
those micro adjustments, a
Kaizen, the 1% right that you've been
doing all year long and give them a
boost, get some extra motivation,
get some extra excitement around them and
then keep them going throughout the whole
(10:41):
new year. So to summarize this one
with the this clean
slate syndrome, it's not
about new year, new me, right?
Exit that out from your vocabulary,
but more like new year, new chapter.
Or new year, new level, whichever
one you like, right? Emphasize that
(11:02):
you you're taking your current story,
your current game, and you're
continuing on to new and better stages of
that story. In that game, you don't
restart, right? If you're playing a
video game, you don't want to go back
to the beginning again and restart the
whole thing. You just want to go to the
next level, right? That's that's how
you and your business evolve. I don't
want to start my a book either from the
(11:24):
beginning. I want to go to the next
chapter. That's what we're looking at
here, OK?So we got the
December deadline effect and the
clean slate syndrome. The third one I
want to talk about today is the social
comparison surge. If you missed the last
episode, we talked a little bit about
comparisonitis and whatnot. This is a
little bit different. It's not just that
(11:46):
feeling bad when others succeed. It's
about how those feelings drive us to
spend money we don't have on
things we don't need. No
judgment here, but let me explain
what I mean. You're scrolling through
social media and you see a competitor's
elaborate client appreciation gifts,
and suddenly your thoughtfully chosen
(12:06):
gift cards feel inadequate. Or maybe you
notice another business owner's fancy
holiday party photos while you're
planning a very modest team lunch.
Before you know it, you're pricing
out catering services that you didn't
budget for. This time of year,
we see everyone's highlight reel as
business of of business success. The new
(12:28):
office spaces, the team expansion
announcements, the fancy tech
upgrades, and something interesting
happens. What starts as an
inspiration can quickly turn
into panic purchasing. You
might find yourself thinking,
well, if they're investing in new
equipment, maybe I should too,
even if that's not the right time for
(12:49):
your business to do the the same thing as
their business, right?Here's where it
gets really fascinating and maybe a
little bit scary. When we feel
behind or inadequate,
some of us fall into what's called doomed
spending. It's like stress
eating, but with your credit card.
You know that feeling when you think,
(13:10):
well, I'm already over budget,
might as well go all in. That's doomed
spending in action. Maybe you upgrade
your office furniture because of one
chair needs replacing. Or you buy the
premium version of every software
subscription because you're feeling like
you're falling behind. You know, new
tech, new, you know,
innovations. Let's drive, drive,
drive, right? Like, spend,
(13:31):
spend, spend. And what
really drives this is comparison and
stress. They drive gym
spending on the personal side too,
with, you know, shopping spree
for gifts for your family or for
yourself, and to make up for those
feelings of inadequacy in your business.
So instead of getting caught in this
spending spiral, try this.
(13:53):
Create a December's desire list,
right? Where you just write down a piece
of paper, open a note on your
phone, write down everything you feel
pressured to buy or upgrade right now.
Then let it sit for at least 72
hours, if not longer. Like, make
it a challenge. How long can you let that
list sit?You'll be surprised how
many things you thought were urgent feel
(14:14):
less crucial after a three-day cooling
period, or maybe even a week, if
you want to take that up that challenge.
Remember, true business growth isn't
about matching someone else's spending.
It's about strategic investments and what
makes sense for your unique situation and
for your unique business. Sometimes the
most powerful move is deciding not to
(14:36):
spend, even when it feels like
everyone else is.
Also, there are more healthy ways to
manage your stress and build your
confidence and, you know, make
sure that you're not feeling
inadequate, but that you're embracing
your true self and putting that out in
the world in a very confident way. My
favorite is to get moving, like
literally exercise, but find your
way. And remember, some of the best
(14:57):
stress relief and confidence building
things don't cost a dime. Got it.
OK, now my
skeptics that are listening. I love you.
I'm a skeptic too. You might be
thinking, but there's probably some
money making moves that I need to do at
year end. And yeah, I'd say
absolutely. The key is making intentional
(15:18):
decisions rather than reactive ones. Let
me tell you a story about Nan.
Not a real, not, you know, a
real client, more of a composite of
various things I've done with a few
different clients of ours.
Nan used to panic every December,
rushing to make tax advantage investments
(15:39):
and charitable contributions without a
clear strategy. After working
together, we created what we call a
December decision framework, and
here's how it goes. First,
we want to do a strategic assessment.
We want to review our actual tax
situation with a professional, a
tax professional, CPR enrolled agent
(16:01):
long before or at least by November 1st.
Now you're listening to this in December.
You might not have done that. If you can
get that in, good. But if you can't
do that this year, no pressure. Make
sure you do it next year. Now tax
professionals are typically really good
at coming up with ways that you can save
taxes this year. So they
might even hand you a list, right?
(16:22):
Give you some ideas and you might think
of some more, right? Go back and
forth with them and make sure you
know, like, is this a real
deadline December 31st? What happens if I
wait till January 1st? All those kind of
things. And make sure you know,
OK, what are my true December 31st
deadlines and identify which kind of
moves can move to Q1. So now we've got
the strategic assessment. We know our tax
(16:43):
situation, we know what's a true
deadline and what can wait till next
year. Then we do an emotional
check-in, asking,
am I making this decision from a place of
pressure or purpose?
Considering if this move aligns with my
long-term financial strategy. Sure,
it might save me taxes now, but am I
(17:04):
gonna have to end up paying more taxes
later because I made this move,
right? Does it align? And then
evaluate if you're trying to keep up with
others or serve your own goals,
right? So we did the head thinking with
the CPA or enrolled agent and then
afterward. We did the emotional check in
and long-term financial check in,
which might be a little heady too. And
then we move forward with our action
(17:24):
plan, create a calendar of necessary
year-end moves, building in buffer
time for unexpected opportunities and
including time for reflection and
planning. I set aside a whole day in
November just to reflect and plan for the
next year. It's one of my favorite day of
the year. You might not be able to put it
to a whole day together. Try a
little bit of time, as much as you
(17:46):
can have, maybe a little bit spread
out over a little while, but more
reflection, more planning, more
intentionality. Love that.
I want to go back to one thing I kind of
went quickly through, which is the
buffer time. The fascinating thing I've
seen happen too many times is that people
have year end tax moves and then they
wait and they try to do it within the
(18:07):
last two weeks of the year and
especially if they involve moving
money. From someone who does not
want you to move their money from
them, that can get really tricky,
especially cause you know, like your
business, people want time off around
the holidays. And so the place you're
trying to move money from or to, they
(18:27):
also have employees out and things take
longer. And so there's been
people that have tried to do things by
December 31st that cause themselves a lot
of stress to try, you know,
because they waited too long to do it or
they. Like,
miss the deadline, right? So this
podcast is coming out December 18th. Is
(18:50):
that right? Yeah, December 18th. Make
your deadline tomorrow or the next day.
Try to get it done before the last couple
weeks of the year and make sure that you
move forward as soon as possible. If you
do have some things you want to do,
again, not a false urgency. Don't
move things forward that aren't actually
true. But if you need to have a
(19:10):
conversation with your CPA, you need
to have a conversation with your
long-term financial planner. You need to
contact people to move money that might
take some time. The sooner the better.
OK, as we wrap up today's
episode, remember that the best
year-end money moves are the ones
that align with your personal financial
(19:32):
journey. Don't let the December rush push
you into decisions that don't serve your
long-term goals. You might be feeling
like, oh, I wish you would have
published this episode months ago,
and I feel you, I wish I would have
too. But we also have this really cool
place where we publish things like this
all throughout the year, where we
have tax things right, anytime you
(19:54):
want all this kind of juiciness, and
we help people make intentional money
moves. Five days a week,
really, rather than reactive ones. So I
want to personally invite you to join the
Wealth Wisdom financial community. It's
exactly all about that, making
intentional money moves rather than
reactive ones. I know
navigating business finances and personal
(20:15):
finances, they they're complicated,
but they don't have to be a solo journey.
Inside our community, you'll find
entrepreneurs just like you who are
committed to making strategic financial
decisions. Not just December, but all
year long. So for just $97
for the entire year, less than your
(20:36):
monthly coffee budget, you'll get
access to our complete library of money
mindset resources, practical how to
guides, and our success dashboard mini
course. Plus, you'll join our monthly
group coaching sessions where we dive
deep into topics just like we covered
today. This isn't just another community.
(20:58):
It's your strategic, intentional partner
for 2025. So head over to
wealthwisdomfp.com/community to
join us. Let's make 2025 the
year you stop reacting to financial
pressure and start proactively
building the business you envision.
The doors are open now. I'd love to see
(21:19):
you inside. It's community. We've been
doing it for a couple of years and we'd
love to see you in there.
Again, it's only $97.00 for the entire
year and we have a 30 day money back
guarantee. So if you get in like actually
this is what I thought it was going to
be, we'll give you your money back. OK,
that's it for today. Thanks for joining
us. Hit that subscribe button and live
long and profit. The topics
(21:41):
presented in this podcast are for general
information only and not for the purposes
of providing legal, accounting or
investment advice. On such matters,
please consult a professional who knows
your specific situation.
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