Looking to take the first, or next, step in winning with YOUR money? Do these three things!
BELIEVE-I’ve met with many people who simply do not believe that they have what it takes to be financially free. Some of this is rooted in past events beyond their control (growing up in unstable financial circumstances, being influenced by parents or other adults who made unwise decisions with money, etc.), while others have gotten into such a mess that they cannot see the light at the end of the tunnel. I would say that personally I have been affected by a combination of those. There were situations growing up where my folks were not setting themselves or me up for the future (I participated in the student loan crisis), and as an adult I suffered from “poor teacher syndrome” where I thought I was just stuck because teachers can’t get ahead. Fortunately, I discovered the debt snowball method, and within two years was able to pay off $50,000. According to Zippia, 8.8% Of US Adults Are Millionaires. I believe that if I continue to do the next two B’s (keep reading!!), I will be one of them.
BUDGET-When doing a finance coaching consultation with prospective clients, one of the first questions I ask is “Do you have a monthly budget?” I ask this because it is virtually impossible to win with money if you are not taking some time to establish monthly spending and saving goals based on that month’s expected take-home pay. Per debt.com, it was shared that only 32% of Americans maintain a household budget, and only 30% have a long-term financial plan that includes savings and investment goals. My advice is to go against the grain and set one up now! Bonus tip: When starting out, try to avoid becoming frustrated if you struggle to get the budget to work perfectly. Just like any new skill or task you want to master, budgeting takes time! Michael Jordan famously didn’t make varsity basketball one year in high school, and he didn’t let that setback stop him from winning. Start with the four pillars (shelter, food, utilities, transportation), work in the rest of the budget items that you can, give yourself grace when you have to make adjustments, and keep going!
BEHAVE-The real secret to winning with money is not being a math genius, predicting the stock market, or borrowing up to your eyeballs to invest in a “once in a lifetime opportunity”. It is getting to a place where you are debt-free so that YOUR money stays in your pocket, spending less than you make each month, and allowing for some of that spending to be savings/investments. I’ve gotten to a point where a portion of the behavior is automatic, as I operate an excel budget that takes about 15 minutes a week to monitor if every dollar is going where it should. It also takes will power and sacrifice. We have plenty of fun and enjoy the occasional nice vacation, yet sometimes we also say no to new clothes (my wife makes fun of my belt that probably needs to be replaced, but it still holds the trousers up), eating out/delivery, rounds of golf, and other things that couldn’t make the budget that month. We are not going to buy or do things we don’t need at the expense of our Emergency Fund upkeep, retirement, or children’s college funds. We laid the foundation of success with the budget, but if we misbehave and don’t follow the plan, it is just like any other tool-useless unless put to work.
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