Are You Living a Financial Groundhog Day?

I don’t care to see a lot of movies a second or third time. If I have already seen it, I know the plot, I understand where it is going, and I typically don’t care to go on that ride again. Been there, seen that, move on. That said, I love the movie Groundhog Day.

Bill Murray is great as the frustrated weatherman trying desperately to get out of the rinse and repeat cycle of Groundhog Day. I love Bill’s character Phil, who thinks more of himself than he should (he refers to himself as “the talent”). I love the naive Rita played by Andie McDowell who presents a puzzle for Phil to solve. I love Chris Elliott playing Larry who knows that Phil is full of himself but has to cater to him because he wants to keep his job. And I really love insurance salesman Ned Ryerson played in a wonderfully over the top manner by the great character actor Stephen Tobolowsky.

I have seen the movie five or six times, and each time I am delighted by the way Phil works through the stages of his temporary immortality as gluten, do-gooder, and eventually as a man who needs to be more authentic. It is a fun look at humanity and how we might react if given Phil’s opportunity to live the same day on repeat.

Breaking Out of Your Financial Rut

The movie is also an excellent reminder that you may be doing things in your financial life again and again that are just not getting you the desired results. Personal finance is more about behavior than math, and we tend to get into ruts when it comes to behavior patterns. Take today, February 2nd — Groundhog Day for goodness sake — to take stock of your financial situation. What action do you need to take? Do you feel you should invest more money? What is holding you back? Are you uncertain how to begin? Do you lack the extra money to invest?

Actionable Examples for Getting Unstuck

It’s easy for me to throw a bunch of questions at you, so let’s walk through a couple specific examples to help you get unstuck. This is a pattern that can be follow no matter what challenge you are facing: Assess the situation, evaluate options, and take action.

I Make Plenty, But Never Have Money to Invest

This is a common scenario for families today. We all face increasing pressure on our bank account from rising prices and more consumer options. If you know you already make good money, then it comes down to how you prioritize using the money you make. There are several tools you have at your disposal that you may not be employing.

1. Your Budget – Yes, this is the flossing of the financial world. Just like flossing your teeth, you know you need to do it, but… If you are not making a monthly budget, tracking spending against it, and then reviewing it at the end of the month, you are missing the biggest opportunity to free up money to save and invest. If creating a budget seems a little daunting, read this article to get started. Most people I have worked with who create their budget can find between $1-2K per month that they can redirect toward their goals. If you haven’t done a budget in a while, I bet you’ll be shocked at how much you spend on restaurant food.
2. Sinking Fund – If you are in the boat where you feel like you are getting ahead, then you get hit by an insurance premium or your property tax payment (directly or via an increase in your monthly mortgage payment), you need a sinking fund. A sinking fund allows you to save in advance of the need. This article goes into more detail on using a sinking fund. Here’s a hot tip – sinking fund pair well with budgets.
3. Cost Compare for Your Services – Service options and prices frequently fluctuate, yet many people tend to “set it and forget it” with things like mobile phone plans, electricity, and car insurance. Taking time once a year to see if you are getting a good deal on your services can help your bottom line. Read this article about How I Save $2,965 in 6 Hours shopping for commons services, and it may give you some ideas on how to price shop for your services to maximize your savings.

I Need To Make More So I Can Invest

Maybe your challenge is needing to make more money. Sometimes we hang on to a job for fear of putting ourselves out there. Maybe we are convinced that our current job is bad, but not bad enough to do anything about it. After all it is stable.

Being stable and miserable is no way to live. We spend too many hours at work to do something we hate with a third of our daily hours. Maybe it’s time to stretch and try something new. I personally worked through a career crisis years ago that was not as much about money as it was feeling stuck in a low growth position. No matter the motivation, I highly recommend working through the book 48 Days To the Work You Love by Dan Miller. He breaks down the process of career change into bite-sized pieces through daily exercises in thoughtful and easy to consume way. I worked through this book, and it brought clarity to my path through action. Ken Coleman also has an insightful and practical book on how to pivot to an exciting new role incrementally in From Paycheck to Purpose. This is a good read for those looking to forge a path to your dream job while recognizing your still have bills to pay now.

For those with more time than money, the answer might be a second job or a side hustle to bring in more income for a season. Take the first step by evaluating the time you have available, determining the extra income you need, and then looking critically at options to get there. Many businesses, from big corporations to small local shops, hire part-time workers. Those evening or weekend hours may be what you need for a season to help you hit your goals.

Commit to Action

Use today to evaluate how to go from stuck to forward motion. Even small steps can pay off for you over time. That’s the entire concept behind investing and compound growth. Squirrelling away a little money consistently over a long period of time will compound into something significant. One step is the start to getting unstuck, so use today – Groundhog Day – to commit to getting unstuck. February 2nd will come around next year, and when it does, where do you want to be?

DISCLAIMER – I may receive an affiliate commission if you purchase from the Amazon links provided. As a matter of integrity, I only recommend products I have personally used or tried from sources I trust.