...Don't Let it Run You.
How can you go from amateur to pro with your money?
Let me tell you the process is not for the weak willed or minded.
It will take persistence + effort + falling down.
Take it from someone who knows so many sides of money.
The "CPA" make others 7-9 figures + overspend your own massively.
The "Overgiver" who wants to save the world + realizes she needs to save herself first.
The "Taken for Granted" client who aligns to coaches who overcharge + deliver old content >5 years + little value + want you to prepay a year!
The "Frugalist" counting every dime + being afraid to trust herself + invest again.
The "Beat Yourself Up for Being in Debt" story + afraid to do / spend anything.
The "Co-Creator" trusting in gratitude + faith everything is all coming together.
+ much much more.
Are you running your money, or you letting it run you? How do you know?
Are you running out of money before the end of the month?
Are you past due on credit cards or maxed out?
Are you giving time or money to those less fortunate?
Are you investing in learning?
Are you creating or expanding new streams of income?
Are you saving and building a cushion?
Are you trading time for money?
You are not alone.
Let's face it. We are not taught how to manage health, wealth, and business in school.
We are taught to absorb facts from books picked for us.
We are taught how to work for someone else.
We are taught the basics, and maybe (if we are lucky) someone instilled in us a desire to learn more about health, wealth, business and creating a life and business we love.
So, what do I mean by running your money? I mean all around having a healthy relationship with your money.
I understand the struggle! Without it, there is no strength… and no victory!
When my money was running me, I was:
1) Spending >150% of income
2) Creating six figures + building others 7-9 figures
3) Leveraging + learning consistently
4) Depending on others for creating money
5) Giving <2%
6) Saving <2% overall + 401K > 10%
You may see where many of the behaviors were healthy, but many unhealthy and conflicting. Some of what I grew up with included my dad, who was a heavy spender growing up and very generous. He was also a serial entrepreneur while I was in elementary and middle school. Later, he got a steady job in the engineering and machining world and became much more frugal. Although, he always did and still does take a lot of risk in the stock market.
In comparison, my mom always held a steady job, supported risk taking but shied away from doing it, and managed money extremely well. She was overly mindful of managing money. Similar to many women, found a lot security in money.
Perhaps, you resonate? When you look back at your childhood you recognize contrasting behaviors with wealth in your household? Perhaps, a lightbulb is going off? Fast forward to my late 20's, when I realized (like many other things in life), I yo yo'd with my wealth. I would go from spending a lot to spending nothing. The same with saving, creating, investing, leverage, and giving.
What was even more baffling to me is how could I generate and keep 7-9 figures for others, yet constantly went up and down with my own money?
Now I run my money:
1) Spending <40% of income
2) Creating six - nine figures for self + others
3) Leveraging + learning consistently
4) Depending on myself for creating money
5) Giving >10%
6) Saving <5%
You may see where my mindset and money behaviors are much more aligned. I still have a ways to go and paying off debt from past choices, but there is massive progress. It is important to celebrate every victory no matter how small. This then keeps growing into more and more progress.
So what exactly are the nutrients to run money? Part of my background is a CPA. However, nothing and no one whether from childhood or the certification explained to me simply how I could get a handle of money. As I began to take on full responsibility for my life, I realized how to not only run my money, but six pack it (like abs), and teach others!
The Six Pack of Wealth
So, lets break down how to self assess how you are doing.
You may already have some "feelings" as you read some of these words and said oh oh, I see why I don't have a six pack of money.
Did you know that over 75% of people live paycheck to paycheck?
Did you know most people in the U.S. are 1-2 paychecks from being homeless?
That may be the level you are training at now. The Six Pack of Wealth may seem very distant.
It isn't. It starts with daily behaviors and builds momentum to massive results.
It is TIME. TIME to Six Pack Your Wealth
To Never Be Broke Again.
The big idea of Six Pack of Wealth or Wallet was born step by step.
First, I began to tackle my spending in 2011. I was hit in the face with this (quite literally) when I started my own business and money wasn't yet flowing like what I had been used to for years up to a six figure salary. I began to face some serious ingrained habits in my mind, and character issues.
I had the talent to create the money, but I didn't have the habits or character to run it, like I did for others.
Similar to a set of six pack abs, a Six Pack of Wealth takes a bit of art and science. I had the science down with my CPA and proven results for others. However, I had mental blocks and habits that sabotaged my Six Pack of Wealth.
As I began to slow down and face what it would take to create a six pack of money, I realized they were nutrients just like with health!
So, how do you apply the Six Pack of Wealth to get RESULTS?
Nutrient #1: Spending. Run It. Don't Let it Run YOU.
According to consumer affairs, the average household (especially if you use a debit or credit card), spends over 17% more simply by using plastic, and is >$15,000 in credit card debt.
So, what is the tool I used to build the muscle of getting my spending on track.
My absolute favorite tool is MINT!
It is FREE and allows you STEP by STEP to integrate your debit card, credit cards, and set a budget up.
If you are serious about making massive changes in your money, go Register NOW.
Spending is no different than overeating, take it step by step and cut back gradually.
Pick 1-2 areas to focus on each 30 - 90 days. Get better. Rinse and Repeat.
I went from spending >150% of my income in 2011 when I sat down and faced it to now spending <40% of the same income level.
This was a PROCESS from 2011-2013 and is a DAILY conscious effort.
Will it take time? YES. All things that are worth fighting for, do.
START. Crawl. Walk. Run.
1) Download Mint App
2) Focus Next 30-90 Days
3) Focus on 1-2 Categories
In the next post on trends, I will give insight on one of the other parts of the six pack of wealth.
Take Action. Celebrate. You Are On Your Way to a Six Pack.