Where you at?! Where do you wanna be?!
You can’t move forward on your feeling about money if you don’t know where you stand, just like everything else! You write it down! How do you feel about money? Get clear on what your feelings are around the craziness regarding money. Because we all know that it’s crazy! Whether you have it or you don’t, money makes people crazy!
In the same way you did your Life Evaluation, take a second and evaluate your financial situation.
- Where are you at? Do you have debt? Okay - how much?
- Where do you want to be? Okay, what do you have to be making on a yearly and monthly basis to get there?
Don't get overwhelmed or discouraged by this process! Trust me, I've experienced credit card debt and I know how scary it can be. But if you don't take these steps, you won't be able to develop a game plan for not only how to get out of debt, but ultimately how to get where you want to go.
Take a moment to do that. To get a picture of where you're at and where you're going and create a plan for how you're going to get there!
Material vs. Experiential – What do you need it for?
Face it – we all need money! We need to eat, we need to buy clothes, we need to pay rent and mortgages, pay for water, medicine, etc. It’s called basics needs. But, we also spend our money on a lot of material things that we just don't need. We don't need all those clothes. We don't need all that stuff around our house. I'm not saying skimp on creating an environment that inspires and empower you - that's an important thing that we're going to talk about in the Environment step. But, what I am saying is be reasonable. So many of us have piles and piles of unnecessary and unused stuff that we just hold onto, sometimes spilling over into storage units.
On the contrary, some of us have very defined financial priorities, spending our money on experiences instead of things. Personally, I think that's the way to go the vast majority of the time. But ultimately, this isn't about my opinions. This is about defining for you what you want to spend your money on and what you're okay spending your money on.
So in this activity that's what you're going to do. I want you to take a moment and go ahead and do the following.
- Define what you you want to do with money when you have.
- What kind of costs do you want to prioritize – material things that will provide security and comfort in your life, or pay for experiences.
- If you are okay with investing in material things, what material things fall into this category. This doesn't have to be an all-encompassing list, but it should be defined enough that it keeps you from being frivolous.
- In terms of experiences, what experiential things fall into this category. Again, we're trying to prevent frivolous spending.
Bottom line, if it’s important it’s important to you. You just need to define it.
Cultivate an Abundance Mindset & a Positive money mindset
Let me ask you – what if your favorite musician never spent money on that guitar or recording equipment? What if your favorite author never bought a new laptop after the last one blue-screened? What if your favorite business never made the investment to develop their first product?
Why be abundant? Well, because I'm a quotes person, we're going to turn to a quote here:
I love this because so many of us associate having money with icky feelings, guilty, a lot of really negative emotions. But, if we want to impact the world in the way that we desire, we have to have the financial situation and the financial backing to support that. I love what Tony Robbins says below in the video below - "Money is nothing but a representation, a means to measure the exchange of value between people." It's nothing but that objective. And yet so many of us struggle. So take a second and think about, what's your mindset around money? Do conversations about money leave you with a positive state of mind or a negative one? Why? Where does that state come from?
Getting a handle on our mindset around money is a HUGE step in getting a handle on our financial mindset.
Check out this video by tony robbins about a money mindset
Getting Over Guilt when it comes to money or making money
Knowing your Worth
Money on its own has no meaning. It’s just paper or metal! Jen Sincero says that “nothing has any value other than the value we put on it.” An expensive boutique can charge a hundred bucks for the same shirt as a department store because they value it at more. You can do the same with your time.
One of the biggest problems, entrepreneurs, self-employed persons and those in the service industry struggle with is that they're under-charging for their services. Perhaps this stems from the guilt and impostor syndrome talked about above.
Ultimately, you need to ask yourself the following:
- What did you invest to learn and create the knowledge that you have that you're providing to your customers? Time? Money? Etc.?
- If you could assign a value to that, what would that value be?
- If you would assign that value to your service/product, why wouldn't your customers?
Resources: The End of Poverty by Jeffrey Sachs
We’ve talked about the fact that money on it’s own has no value. And it won’t have any value until you attach some to it. But I’m not talking attaching all the crazy, panicked, paranoid emotions that we attach to money. I’m talking the good emotions. We can attach meaning and inspiration to money, and not all the craziness.
I want you to write a mantra – yup a mantra – that you can recite to help you envision what you desire.
- "Getting Money Means Giving Joy"
- "I deserve to be paid for my skills, time and knowledge"
- "I have the power to create the success and build the wealth I desire"
Write one out for you! It should make you feel invincible – maybe even stir some intense emotions in you! Whatever it is for you, want you read it over and over, day in and day out. Don’t make it lame or vague, because if you do then the kind of life you’ll live will be lame as well. Make it intense and awe-inspiring! Knock it out of the park! That’s the only way your world and your mind can know exactly what it is you’re shooting for!
Learn from the Masters:
- Think & Grow Rich - Napoleon Hill - Purchase here
- Money: Master the Game - Tony Robbins - Purchase here
- Unshakeable: Your Financial Freedome Playbook - Tony Robbins - Purchase here
- You are a Badass at Making Money - Jen Sincero - Purchase here
- Financially Fearless - Alexa Von Tobel - Purchase here
- Money: A Love Story - Kate Northrup - Purchase Here