By Vince Rogers
“There are
two ways of being happy: We may either diminish our wants or augment our means
— either will do — the result is the same; and it is for each man to decide for
himself, and do that which happens to be the easier. But if you are wise, you
will do both at the same time, young or old, rich or poor, sick or well; and if
you are very wise you will do both in such a way as to augment the general
happiness of society.” ~ Benjamin
Franklin
Basically, this quote is saying that
you can be happy without spending your money on stuff that you don’t need. Instead, you should pursue meaning and
purpose in your life. The whole world will also be a better off if you do. What
could be simpler? What could be better?
Defining Your Relationship with
Money
In order to transform your
relationship with money, you must ask yourself some very tough questions. More
importantly, you must be willing to provide honest answers. Are you Managing
your Relationship with Money, or are you Waiting for a Miracle?
Essentially, there are (4)
Money Relationship Styles:
1.
The Player
-
You’re a Player. Basically, you
spend every penny you can on having a ball. I think the young people call this
“Ballin’”.
2.
The Friend
-
You find yourself forever in the
“Friend Zone”. You’re nice to your money. You pay your bills. You may even have
a little left over at the end of the month. Nevertheless, you’re unsatisfied.
You yearn for more from your relationship with money.
3.
The
Companion -
You’re Good to your Money. You save
when you can. Maybe you even invest a little. You’re still not totally
“Committed” to “Managing” your Relationship with Money.
4.
The Partner -
You are
committed to managing your money. You’re creating
assets and multiple streams of income.
At the same time, you’re shedding
liabilities and ending your servitude
to debt.
Your Money Relationship History
What is
Your Money Relationship Track Record? Think
about how you’ve earned and spent your money in the past. People earn and spend
money in different ways.
These are the (3) different
ways that you can earn money:
- Earned
Income
- Portfolio
Income
- Passive
Income
These are essentially (4) different
ways that you can use money:
- Spend
it
- Save it
- Invest it
- Manage it
You’re Managing your Money when
you’re Spending Less; Saving More;
Investing Smart and Creating Multiple
Streams of Income.
Your Money Relationship Priorities
What Are
Your Future Intentions With Your Money? You’ve
had some time now to think about how you’ve earned and spent your money in the
past. Are you now committed to
transforming your relationship with money in the future? If so, the first thing
that you need to do is to set priorities.
Your priorities aren’t always
written down or formally regarded as such. Most often you exhibit your
priorities by your actions. Having Negative Priorities means
putting things that may make life easier ahead of things that make life more
fulfilling. Having Positive Priorities means putting things
that that make life more fulfilling before things that just make life easier.
Before you can create and stick to a financial budget – which is very
important, you need to create a “Priorities Budget” to
determine what is most important to you.
So what are the 5 Steps to
Transforming Your Relationship with Money????
Step 1) Taking Initiative – Proceed
and Be Bold!
As Dr.
Martin Luther King, Jr. once said that “Faith is taking the first
step even when you don't see the whole staircase.”
Step 2) Ending Materialism –
Transform Your Relationship with Things
What things are keeping you tied to
the world and further away from living the life that you want to live????
Step 3) Relieving Debt – Transform Your Relationship with
Credit
W.E.B
DuBois once said that “To whom you give your money, you give your
power."
Step 4) Financial Integrity – To Tell
the Truth
We have to
stop lying to ourselves about our relationship with money.
Step 5) Start Budgeting –
Understanding Assets vs. Liabilities
If you don’t have a budget to keep
track of what’s coming in and what’s going out, you’ll never have a clear
picture of what you need to do, to go where you want to go. Your budget is your
compass to finding the way to your financial destination. In order to achieve your
financial goals, you need to have an organized strategy for transforming your
ambitions into a series of purposeful actions. Your Budget is
the first tool you need to create a strategy for transforming your relationship
with money.
