Five Steps to Stop Emotional Instability and Win Big with Your Money! 

achievement, Blog Entries, debt

Financial well being is emotional not logical!  I know, I know the savvy investor has logarithms, newsletters and spreadsheets to logically pour over data to snag the best stock pick of the day.  BUT, one emotional slip up busts a budget and robs one of any capital with which to invest.  The bottom line is small holes sink great ships as do small leaks in financial plans.  So while logically spending less than you make is the key to financial progress, emotional outbursts (or passive aggressive ones) riddle our financial plans with holes.

Personality, upbringing, mood and marketing contribute to our spending habits.  Everywhere you turn messages suggest that happiness, fulfillment, prestige and even elegance can all be purchased.  Logically we may not buy this, but our subconscious mind (the storage center that houses all images, commercials, scripting, family modeling, etc.) IS the driving force behind our ultimate actions.  My point in this short article is not to establish the science behind this, but to provoke you to act differently.  For example, simply stating that I am going to spend less than I make this month is like trying to turn a cruise ship (the subconscious mind) with a row boat (your worthy intention or conscious mind).  That of course would be an exercise in futility and so is the goal of spending less than you make if the record reveals regularly falling short of that goal.

 

Here are five tips on getting things lined up for financial victory:  

 

  1. Invest in your thinking.  Benjamin Franklin said, “An investment in knowledge pays the best interest.”  Warren Buffet declared that knowledge compounds like interest. He therefore has a habit of reading not just financial but personal development material for hours every day. A habit of reprogramming just a few minutes a day is the foundation to securing your budget.  Read everything from classics like How to Win Friends and Influence People to The Richest Man in Babylon as well as studying programs like Financial Fitness.  Add positive affirmations daily (i.e. I am master of my finances and accumulate wealth for security, enjoyment and making a difference) and you are now intentionally programming your “subconscious” mind for success.
  2. Track everything you spend in a written notebook (it can be digital) for 30 days.  If you buy a gumball from a machine write it down.  This is important.
  3. Interrupt your daily patterns.  Bring a sack lunch instead of eating out.  Listen to a personal development audio or podcast instead of talk radio, music or sports.  Avoid commercials for awhile.  Unplug from the daily programming that bombards us.  I am not talking about becoming a monk; I am emphasizing the importance of taking control of the inputs so the outputs are intentionally what you really want.
  4. Pay yourself first.  When you treat investing in you and your savings account like you treat paying your mortgage, the “needle” will move.
  5. Utilize tools to help manage your money.  The internet has allowed disruptive innovators to create apps, business tools and personal resources in abundance.  Barriers to entry into business, investing and financial planning are lower than ever.  From free apps like Good Budget, which my wife and I have personally used, to tools like FeeX that will analyze your investments for ways to save on fees, it’s never been easier to become smart about your own money.  In fact, I recently read an article on CNN Money that highlighted 10 top apps to help the everyday investor become efficient in their quest for financial success.  If you are ready to move beyond financial fitness, check out this article and discover some amazing resources available to you.  Before you do though, I recommend you spend at least 30 days with the first three suggestions in this article.  Get the foundation right or you could very well end up compounding your financial woes.

 

Now go forward, fix the subconscious, fill it with information that will send you on a path to financial well being.  With this new way of being you are empowered to truly pay yourself first.  As you do so and see your accounts grow rather than shrink you’ll be thrilled you intentionally chose financial fitness.  In fact you might just celebrate on the beaches of the world.

 

The Virtue of Money and the Value of Today’s Resolutions

achievement, attitude, Blog Entries, money, resolutions, Success, Uncategorized, virtue

Why do we wait for the New Year for “new resolutions,” when in reality most of those goals are just old resolutions resurrected under a different time and title?  Why don’t more of us resolve to fix our work, health and financial habits right now when we are feeling the pain?  In fact, why not resolve today to adjust just one habit that can improve your relationships or increase your sales or grow company profits?  Because just being engaged in the right activity consistently brings rewards.  Let me provide a couple of illustrations.

In a cause I have worked with for years, one of our sales reps I’ll call Bob shared with me an experience he had while cold calling on businesses for support.  During a drop in call, a customer of that business after hearing his introduction walked up to Bob and warmly said, “its good to see you out beating the streets.  I used to be a supporter of your organization before I retired and I want to support you again.”  He then pulled out his checkbook without another word and wrote him a decent sized check.  You see, he wanted to reward effort, diligence and important work.  Now, if Bob hadn’t maintained the daily habit of being out in the field he would have missed that “easy” sale.

For the next example, I turn to the author Ayn Rand.  In her controversial book Atlas Shrugged, she creates a scene which emphasizes the merit of dedicated work.  The scene is set at a party where a wealthy industrialist responds to an intellectual who proclaimed that, “money is the root of all evil:”

 

“…So you think that money is the root of all evil? Have you ever asked what is the root of money? Money is  a tool of exchange, which can’t exist unless there are goods produced and men able to produce them.          Money is the material shape of the principle that men who wish to deal with one another must deal by  trade and give value for value.  … Money is made possible only by the men who produce.  Is this what you  consider evil?

“When you accept money in payment for your effort, you do so only on the conviction that you will  exchange it for the product of the effort of others.  It is not the moochers or the looters who give value to  money.  Not an ocean of tears nor all the guns in the world can transform those pieces of paper in your  wallet into the bread you will need to survive tomorrow.  [Money is],…, a token of honor—your claim upon  the energy of the men who produce.  Your wallet is your statement of hope that somewhere in the world  around you there are men who will not default on that moral principle which is the root of money…

To trade by means of money is the code of the men of good will.  Money rests on the axiom that every man  is the owner of his mind and his effort.  Money allows no power to prescribe the value of your effort except  the voluntary choice of the man who is willing to trade you his effort in return…”

 

Thomas Jefferson put it this way, “It is not to the moderation and justice of others we are to trust for fair and equal access to market our productions… but our own means of independence, and the firm will to use them.”

So what does all this have to do with resolutions? Well, I believe most resolutions stem from a desire to be happier.  One thing that keeps us from enjoying happiness is a lack of resolve to get engaged in meaningful work and worthwhile goals.  Unfortunately, society has allowed “moochers and looters,” as Ayn Rand puts it,  to manipulate the supply and flow of money to reward special interest as opposed to value added.  The more we allow this the more it affects our ability to produce fairly and enjoy wider happiness. This goes for the welfare recipient who is fully capable of working to the politician who uses his position to get something for nothing.  Happiness won’t be found that way and society certainly has no value added in both cases.  As more people buy into this “something for nothing mentality” economies slow.  Individuals then become fearful and hold on tightly to the few remaining dollars and freedom for all diminishes.

So the next time you decide to skip making your daily sales calls, or stay in bed, or avoid work or that uncomfortable conversation you must have with an associate, or skip breakfast, or burn up your savings, or stop investing, or watch TV instead of reading that book  or listen to the tabloid talk shows instead of personal development audios or stay up late playing video games instead of taking your wife on a date or whatever productive task we drop because idleness is easier, resolve to look squarely at the habits that lead to the results you know down deep that you want and ask, am “I willing to make my resolution now to produce?”  In other words, will you put forth an effort that is worthy of the honest trade of another man’s money.  Because when you do, that willing exchange will not only make you wealthy and free, but your nation as well.  And that can only happen now not on January 1st!