Do you have money or does money have YOU?
Do you have money, or does money have you?
One of the significant areas that can mess with people is MONEY. I’ve worked with individuals facing massive debt with only $30.00 in their bank accounts, as well as those with tens of millions of dollars. Honestly, I can attest that the root cause of their challenges is not solely related to the dollar amount; it’s about their relationship with money, plain and simple.
I’ve discovered the following steps to be highly effective when seeking to transform your relationship from money having control over you to you having control over your money.
- Clarify Your Actual Financial Situation: Get clear about how much money you genuinely have. Examine every bank account, 401k, and other financial assets to determine the accurate dollar amount.
- Calculate Your Income: Gain clarity on how much money you earn. Review the last six months, and if your income comes from multiple sources, calculate an average. This includes interest from bank accounts, dividends from stock ownership, salary, etc.
- Understand Your Expenditure: Develop a clear understanding of your spending habits. This may involve conducting a six-month audit of your credit card bills, cash withdrawals, etc. Alternatively, you can maintain a money tracking audit sheet (see attached below) to identify where and when you are spending your money.
- Define Your Financial Goals: Once you are grounded in the reality of the numbers, clarify what you genuinely want. Whether it’s doubling your income, reducing spending by 20%, or alleviating worries about money, be specific about your financial goals.
- Identify Five Actionable Steps: Ask yourself, “What are five actions I can take to achieve what I desire?” List these concrete steps that align with your financial goals.
- Take Daily Action: Execute the actions you’ve identified. Consistency is key, so make a commitment to repeat this process daily.
- Revisit and Refine: Repeat steps 4-6 daily. Regularly revisit and refine your financial goals and action steps to ensure ongoing progress.
By following these steps, you’ll shift from a position where money has you to one where you have the say over your relationship to money.