Money Makes the World Go 'Round
I got to thinking about money after a meeting the other day. It
is probably the #1 worry people have. I would say health comes
first, but it only seems to outrank money if something is wrong,
rarely does it come first from a position of a holistic or
preventative mindset. Money has also been the main motivator in
too many stories to count - movies, books, theater, art, and in
real life. From the humorous to the dramatic, people will do
just about anything for it and they let their lives revolve
around it.
So if it is THAT important, why do people, especially women,
spend so little time really understanding it? While there are
exceptions, I would venture a guess that most people don't know
where their money goes or have a solid foundational financial
education. Money can be sexy and powerful, so why is it that
really understanding how it works and our attitudes towards it
don't make our priority list?
In my personal experience and in my work with clients, money
ranks right up there with "no time" as the #1 reason we use for
why we can't be, do, or have what we really want. So, what stops
us from getting the education, awareness, and support we need to
make money work for us and be an enabler for what we want versus
an anchor holding us back and keeping us tethered in place (or
sinking) as the case may be?
In a word, fear. Fear gets in our way of doing something
about it. And, the beliefs and attitudes we've been taught and
formed as we marched through the years of childhood up to and
including this morning keep us rooted in it. Some of the fears
my clients have shared include: - Not having enough money -
Having a lot money and being successful - Intimidated by
finances and afraid to learn - Afraid to ask spouse/significant
other because he controls the checkbook - So deeply in debt or
out of control and afraid to know the full extent of the
situation
Money is more than just money. It has power beyond dollars and
cents. The topic of money carries with it powerful emotions.
After all, people are driven to do insane things for money such
as staying in dead end jobs for decades, murdering, and stealing
for it. It is so powerful in fact that it is sometimes hard to
keep things in perspective and obey the golden rule - people
first, then money.
Where Do You Stand?
Our views and behaviors around money are as varied as we are.
I've personally known people at all ends of the scale from
bankrupt musicians to millionaires who tape the soles of their
shoes together so they don't have to spend money to buy new
shoes. There's nothing wrong with being frugal and there's
nothing wrong with spending money for enjoyment. The key is to
understand your beliefs about money and the ins and outs of what
you earn and what you spend.
Take some time to answer the following questions (Yes or No) so
you can get a handle on where you are right now.
- I know exactly what I earn. - I know where every last dollar I
spend goes and why. - I know my financial goals and have a plan
to reach them. - I have an independent financial professional
who works solely for my best interests to help me understand and
navigate the financial maze. - I spend less than I earn and save
at least 10-15% of my income. - I do not carry credit card
debit. I pay cash for everything or pay my balance in full each
month.
Now, explore your beliefs by journaling about the following
questions: - What were my family's attitudes towards money when
I was growing up? - When someone says the word "money" to me,
what is the first thing that comes to mind? - What do I think of
people who have a lot of money? What do I think of people who
have little money? - Complete this sentence: To me, money
means_______.
What You Can Do To Build a Solid Foundation
Dealing with money is a lifelong affair. There is no quick fix
solution or one size fits all. Even winning the lottery isn't a
solution because most lottery winners end up right back where
they were (or worse) because their beliefs and behaviors did not
change. However, the good news is that you are in charge of and
can take control of your financial future. You simply need to
take an active role in the process.
The top actions I recommend are:
Invest in your financial education.
You can never go wrong investing time and money in your own
education. With the amount of resources available on the
Internet and in print there are no excuses for going through
life with blinders on. Whether you read books like the ones I
recommend at the end of this newsletter, tap into money related
websites, or join a group like Savvy Ladies (http://www.savvyladies.com), information is
readily available for you regardless of your current level of
knowledge and income.
Take Control
The best activity I ever did was to keep track of every penny I
spent for several months. You can achieve the same result by
doing this activity for a typical month, but the longer you do
it, the better. Simply track every penny that comes in to your
life and every penny you spend. You will be amazed at what you
learn. Whether you take on this task with a pocket notebook that
you carry with you everywhere you go or take the high-tech
automated route with software like Quicken or Microsoft Money,
it is the #1 thing you can do to take charge of your finances.
Get Support
If you needed help with a physical ailment, you wouldn't dream
of buying a book and needle and operating on yourself. You'd go
to a trained medical professional. So, why fumble through the
financial maze alone? Hiring a trained financial professional is
a sound investment. Avoid people who make their money selling
you stuff, and opt instead for a fee based planner so you know
your best interests are at the forefront of their mind (not
their next sales commission). You can find fee-only planners
online via NAPFA (http://www.napfa.org/ ).
Remember that money isn't everything. It can never buy love,
happiness, or good health. It can however be a powerful tool to
help you achieve your goals and enjoy the journey.
(End)