CARE for your CASH
Notes:
In our relatively prosperous time and country, why do so many struggle?
The average American earns more than a MILLION DOLLARS in a lifetime, yet the money disappears to: - Landlords and mortgage companies
- Credit card interest
- Taxes
- Fees and commissions
- And additional spending on needs and wants
Too often, we spend unconsciously rather than INTENTIONALLY! We must treat our money with CARE!
5 "HACKS" THAT HELP!
1. Pay yourself first... and make it automatic!
This is what the IRS does when it takes money from a paycheck... Uncle Sam makes sure he gets paid FIRST!
How can you automate your savings? And do you STORE your savings where you are not tempted to spend it?
2. Have "rules" for your cash.
Dave Ramsey says to "tell your money where to go instead of wondering where it went!"
Examples of "rules" might be: - a "waiting period" for purchases over a certain amount
- automatically setting aside a percentage of income for business taxes
- Only using credit cards for true emergencies (unless you are benefitting from paying them off monthly).
What "money rules" might serve you?
3. Set aside a set amount or precentage of "fun money."
A strict budget is like a diet--and nobody likes dieting! Avoid feeling deprived by allowing yourself to splurge a little.
(This is especially useful for couples, to have an amount you can spend on what YOU want without explaining!)
4. Negotiate between your present and future self.
Research shows that people who contemplate their future, older selves save more! It helps us see money in the realm of self-care, not deprivation.
Rather than thinking of "savings" as money you can't spend, think of it as money your future self will get to spend!
5. Differentiate the PURPOSE of each expense.
Most of our spending falls into one of these categories: - needs
- wants
- conveniences
- dreams and true desires!
This is the difference between: - food from the grocery store
- dinner out at a restaurant
- picking up "to go" food
- and dining with a loved one at the Effeil Tower or overlooking the Mediterranean Sea!
The costs--and the rewards--are quite different!
When you reduce spending for "wants" and "conveniences" you will have MORE for "dreams and true desires" :-)
BONUS: Identify what "financial season" you are in.
It is not possible to be in "harvest mode" all the time. Sometimes it is planting season, growing season, or even winter rest.
Release yourself from the idea that something is "wrong" when you choose a season that is not geared for maximum profit. All seasons have their place!
THIS THURSDAY: Join me for our LAST session!
To review, The P.E.A.C.E. Principles are:
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