Who are you financially? Are you a money consumer, a maker of income and a spender of the same? Are you a money planner? Do you consider yourself a good money manager? Are you one who argues with your partner about money? Are you money confident and secure? Do you have financial questions for which you cannot find answers? Do you get confusing/conflicting advice from family, friends and associates? In short, WHO ARE YOU FINANCIALLY?
Everyone should know their financial profile. You need to know what your basic financial concerns and ambitions are. You need to understand and appreciate the fact that money is the basis of everyday living. Even the smallest activities require money. Even something as simple as washing your face costs money, i.e. it requires a washcloth, soap and water, each of which is paid for with money. Access to you own money or the lack thereof, pervades every aspect of your daily life.
Ask yourself the following 3 questions in order to create your own financial profile:
- What 3 things do I want financially but currently don’t have?
- What are at least 2 reasons why I don’t have what I want right now?
- Is doing what I am doing now getting me where I financially want to go?
If the answer to #3 is yes, then you don’t need to change what you are doing. If the answer to #3 is no, then realize that you need to make permanent changes in how you process (manage) your money. In other words, don’t continue doing the same things over and over while expecting different results — after all, this is the definition of madness!
If you want to change what you are doing, ask yourself how motivated to make changes you are by using a scale of 0 to 10, where 10 is being totally motivated to make permanent changes.
Now you know your profile, what actions should you take? My experience coaching hundreds of people using the Money Mastery Personal Financial System suggests that you should take the following actions:
- Control spending (see Money Mastery Principle 2)
- Eliminate bad debt (see Money Mastery Principle 4)
- Minimize taxes (see Money Mastery Principle 9)
- Maximize emergency savings and retirement savings (see Money Mastery Principles 3 and 10)
Your financial efficiency and eventual success really begin when you know that these items listed above (spending, debt, taxes, and savings) are all interdependent and must work together harmoniously. This means that they are like a puzzle – you have the pieces for sure, but they are “in a pile” on your kitchen table. They will only make a pretty picture when fitted together. Since you may know how to control spending, perhaps, but are still in debt for example, then the puzzle isn’t coming together very well. If you have retirement savings, but don’t know how to pay the right amount of taxes, your savings is likely to be eaten up by unnecessary taxes — in this case, your pieces are not coming together very well. If you don’t know how to make all the pieces of the puzzle fit together then you need a mentor who can help you become acquainted with the tools and techniques that will help you make sense of the puzzle and create a magnificent picture of hope, growth, and opportunity!
With a clear view of your own financial profile, you can take action to make changes, which then puts you well on your way to financial freedom…and that’s a mighty fine place to be!
For more information on solving your puzzle, contact email@example.com, 801-292-1099.