Read Time: 4-minutes
Happy Saturday,
Here is this week’s edition of 6-Point Saturday — financial insights to help you make smarter money decisions.
Table of Contents*
*Clickable in the online version.
Point #1 — Your Money and “98% Commitment”
Clayton Christensen built one of the most respected careers in business as a Harvard professor, BCG consultant, author of The Innovator's Dilemma. He was also someone who refused to work weekends.
This is the story of how that played out in his first month on the job, and why he said it was one of the most important decisions he ever made.
“When I got my MBA, I got a job with the Boston Consulting Group. After I'd been there about a month, the project manager came to me and said, ‘Clay, we need to meet on Sunday at 2 p.m. because we have a big client presentation on Monday. We've got to be sure everything is in place.’
And I said, ‘Oh gosh, Mike, I forgot to tell you, I'm a religious guy and I just made a commitment that I wouldn't work on Sunday.’
And he just went bonkers…
‘Everybody here works on Sunday!’
And I said, ‘Well, I made a commitment that I wouldn't.’
And he said, ‘Look, I don't know anything about your church, but my church, if I need to do something that's a little bit shady, I just do it and then I find a priest and confess that I did it and promise never to do it again. Doesn't your church have some kind of escape clause or whatever?’
And I said, ‘I've been looking for that out for a long time and I don't think they have it.’
[Laughter]
‘That's right. So I just, I can't do it. I'm sorry.’
So he blustered away, and an hour later he came back and said,
‘Look Clay, I talked to everybody, it's fine. We'll meet on Saturday at 2 p.m.’
And I said, ‘Oh man, I forgot to tell you, I made a commitment to my wife that I wouldn't work on Saturday.’
And Mark was just even more bonkers about it…
He said, ‘Look Clay, whatever commitment you made to your wife about Saturday, just this once, in this particular extenuating circumstance, isn't it going to be okay to do it just this once?’
And I said, ‘Mike, I am not on this earth to make the partners at BCG richer. I really want to be a good husband and a good father, and if I spend my Saturdays here at BCG, I will be implementing a strategy that I don't intend to pursue.’
He was really mad at that. So then he came back an hour later and said, ‘Look, I talked to the team, do you happen to work on Friday, by any chance?’
[Laughter]
But you know, it turns out that decision is one of the most important decisions I ever made. Because it turns out that my whole life has been filled with an unending stream of extenuating circumstances. And if I had said ‘just this once,’ the next time it occurred it would be easier, and the next time easier still.
I decided that it is easier to hold to our principles 100% of the time than it is 98% of the time.”
What a counterintuitive lesson.
This type of situation can be incredibly difficult, given an employer’s power dynamic (especially in the current job market). You might think it would be easier to give in “just this once” to ease the pressure.
But “giving in” can set a precedent that makes it harder to live by your values over the long run. A trade-off worth serious consideration before you make it.
And a trade-off that shows up constantly in your personal finances:
A friend invites you to a pricey, spontaneous vacation. You decide to go “just this once.”
You tell yourself you’ll start saving next month. Next month becomes the month after.
You dip into your emergency fund for something that doesn’t actually qualify as an emergency.
The problem with exceptions is that they always feel like one-offs in the moment. But never in the long run.
So, let's look at 4 tactics to make it easier to stick to your financial commitments, especially when it's difficult.
Point #2 — The 4 Tactics to Stick to Your Financial Goals
1. Identify your non-negotiables.
These are the financial actions that reflect what you actually value. A few to consider:
Peace of mind toward your retirement: monthly contribution to your 401k
Stability for when inevitable unexpected expenses pop up: monthly transfer to build your emergency fund
Something exciting to look forward to: monthly savings to a dedicated account for your next vacation
2. Automate them.
Automation is probably the easiest way to protect your non-negotiables. You're not negotiating with yourself each month about whether to save or spend. The transfer happens. The decision was already made. Practical tip: set your transfers to happen soon after payday, before the money has a chance to “disappear.”
You could argue the next two tactics are just variations of automation’s underlying principle: deciding in advance so you don't have to decide in the moment.
3. Turn your priorities into policies.
Instead of saying "I can't afford that" or "I'm trying to save," say: "I don't do that."
Like Christensen's weekend commitments, these function as an official personal policy, something people tend to respect rather than negotiate around. Research from Vanessa Patrick at the University of Houston confirms this: "I don't" language is significantly more effective than "I can't" at helping people maintain commitments and resist social pressure.
For example, if an acquaintance invites you to take another trip to Las Vegas: "I don't do Vegas more than once a year." Reasonable. Clear. No negotiation needed.
4. Schedule standing plans with the people you value.
One reason it's hard to decline certain invitations is guilt: you don't want people to think you don't care about the relationship. A standing coffee, lunch, or group get together solves this: it signals that you continue to value the relationship. For work colleagues, this might look like: "I'm looking forward to catching up at the conference next month."
Your Move: Consider one financial “non-negotiable” you’ve been negotiating around. How could you phrase it so it becomes a “personal policy?”
Point #3 — “House-strapped” for over 10 Years
This Reddit user shares a hard-won success story:
"…I have been spending about 60% of my net income on housing alone, before utilities. Early on this was due to having a low income and living in HCOL areas. Later on, this was due to making poor decisions on purchasing homes where the mortgage was 60% of my net income. I have been not quite house "poor" but house-strapped for the past several years. I lived paycheck to paycheck just to pay my huge mortgage.
Well I've sold my house and today I signed a rental lease on a tiny apartment; it may be tiny but it is actually within my budget. For the first time in over 10 years, I will be able to save significant amounts of money each month. Hurray!!!”
It’s great to see someone finally make the hard call. Sold the home. Downsized to an apartment. Got their housing spending within budget (more on this in Point #4).
You can imagine the breathing room this creates mentally, emotionally, and financially.
The long-term impact is just as big. Cash flow that was going into home costs now can build savings and compound in a retirement account.
That’s what it looks like to adopt a 100% commitment to a non-negotiable.
How you spend this month is how you’ll spend every month. Until you decide it isn’t.
Point #4 — Housing Costs Guidelines
The Reddit poster above was blowing past some well-established housing guidelines. Guidelines that you can also use to check your own spend:
For renters, the standard guideline is to keep housing costs at or below 30% of your gross income. What counts: rent, renter's insurance, and utilities. You might push this down to 25% to give yourself more room to save and invest.
For homeowners, the benchmark is the 28/36 rule. Keep your total monthly housing costs below 28% of gross monthly income. That includes your mortgage principal and interest, property taxes, homeowner's insurance, and HOA dues if applicable. The 36 covers your total debt load: housing plus car payments, student loans, credit cards, and anything else.
In very high-cost areas, your numbers can sit outside these bands a bit. You just need to make sure the rest of your spending plan aligns with your other financial goals.
So, if you're a renter, pull up last month's rent. Add utilities and renter's insurance. Divide by your gross monthly income. If you're a homeowner, add up your mortgage, taxes, insurance, and HOA. Figure out where you actually stand.
Point #5 — Quotes of the Week
Which of these quotes resonates most with you?
“No more excuses. No more: ‘I’ll start tomorrow.’ No more: ‘Just this once.’”
“Take a simple idea, and take it seriously.”
Point #6 — My Question of the Week
What financial commitment have you been meaning to start, but keep delaying until “next month?” What would your finances look like if this month were every month?
Reply to let me know! I read every response.
Thanks for reading — I hope you found a helpful idea or two.
I’ll see you next Saturday with more.
Have a great weekend,
Benjamin Daniel, CFP®
Founder, Money Wisdom
P.S. Want to take control of your money, stop stressing about your expenses, & feel confident about your financial future? There are 2 ways I can help you:
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Disclaimer:
This material is not investment or tax advice. No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading this material can be accepted by the publisher.
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