Money Matters. Financial freedom.
Financial freedom is a result of effectively managing our finances, and the way we handle our finances is the way we handle our lives. Are you having difficulty managing your personal affairs? Do you feel lost and confused more often than you’d like? Do you feel like other people are in control of your life? Do you feel powerless? If your attention is glued to this post, I bet your money is also in a state of imbalance.
How do we get out of balance regarding our finances? By making poor choices over an extended period of time. It simply doesn’t happen overnight. We spend a little beyond our means and needs one day, then we do it again the next day. Before we know it, we’re in debt and can’t understand why.
What compels us to make poor choices? First, it’s our beliefs about money. Some of our beliefs about money include the following:
- Money is the root of all evil
- Money solves all problems
- Once in debt, always in debt
- Hard work gets you nowhere
- Money can buy you anything
- Looking good is everything
- We must keep up with the Joneses
FEAR Compels us to Make Bad Choices.
Second, fear compels us to make poor choices. We feel inadequate and afraid of what people will think of us. We want to keep up with the Joneses and look a certain way to impress others. We want to have the biggest and best house on the block, send our kids to the most prestigious school, drive the most awesome vehicle, and lay claim to the most incredible array of techno gadgets. Indeed, fear plays a major part in financial instability.
What about you? When the topic of money comes up, are you uncomfortable? Do you think, “I wish they’d change the subject?” Do you get defensive?
So how do we get past the belief system that obliges us to live irresponsibility? We take action, and lots of it. Here are a few suggestions:
- Pay yourself first. Stash 10 percent of your paycheck away; just save it. Don’t spend it. Don’t make it a rainy day fund. Just save it. Some of you might think, “I can’t afford to save 10 perfect.” Then save 5 percent or whatever you can.
- Spend less. Just because it’s there doesn’t mean you should buy it.
- Avoid debt. Pay it Down. Not a difficult concept to grasp, but one that eludes many people. In our buy-now-pay-later society, we’re encouraged to amass debt at whatever cost.
- If you are thinking about retiring in the next 5-10 years, now is the time to start planning.
I invite you to examine your behavior around money: how you spend it, why you spend so much of it, where you spend it, and what you need to do to manage your money and your life a little better.
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