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Have you heard about the blue ocean strategy? Don’t you know
that this is not only applicable to companies and businesses? In fact, you can
be also be able to implement such strategy in your finances. Take for instance
their ERRC Grid or the Eliminate, Raise, Reduce, Create Grid.
According to the Blue Ocean Strategy Site, the ERRC Grid compliments
the Four Actions Framework. It pushes companies not only to ask the questions
posed in the Four Actions framework but also to act on all four to create a new
value curve, which is essential to unlocking a new blue ocean. By driving
companies to fill in the grid with the actions of eliminating and reducing as
well as raising and creating, the grid gives companies immediate benefits.
So how can we connect the ERRC grid to our finances?
Give yourself time to assess the things that you can
eliminate, raise, reduce and create that will surely help keep your money.
When I was given this task before, it took me a good two days
to really define the things that I want to eliminate, raise, reduce and create.
To help you with your own personal assessment, allow me to expand the ERRC
grid.
Eliminate
Which factors or items can you eliminate that will surely
help your finances? What are the unnecessary things that you spent on that you
can live without. What expensive items do you spend on that you can just get
rid of?
Raise
Which items do you personally think that you can rise up to
help you with your finances? Should you raise your income? Should you raise
your knowledge in order to help you with your financial situation?
Reduce
What factors or current things you do that you can perhaps
reduce that can directly affect your money? Should you reduce your expensive
coffee trips? Or maybe you can reduce your shopping spree.
Create
What factors or items can you create to help you with your
money or your finances? Should you create a new business or perhaps create a
new investment scheme.
Truly the ERRC Grid is one good way for us to revisit our expenses,
our income and our finances. It would be wise that you be honest in your
personal investment so that in the end, you would be able to maximize your
money and your income. Having this as a guide will truly set everything into
stone. Whatever your money goal is, you can always insert this model to help
you out. So what are the things you can eliminate, raise, reduce and create?
P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 17 already! Did you deposit the next amount yet?
P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.