Take Control Of Your Money
| Category: Entrepreneurship | Date: 2003-04-25 |
Do you know where your money goes each month? Many people complain they don’t have enough or they need to make more. Yet ask them how much money they really need to live on and many will have no answer. These people have no idea how much money they need to cover their bills and expenses. They also have no idea where their money goes and may easily be living beyond their means. If this rings true for you as well, then it’s time to take control of your money!
You might often do things out of habit without considering alternatives or examining your choices. Working with a coach involves becoming fully aware and taking personal responsibility for all areas of your life. Are you ready to take responsibility for your money?
Where’s the money going?
Keep a running list of every dollar you spend. You will need to do this for a few months to get an accurate picture of your spending habits. Include your bills and regular expenses on the list. You will want to list quarterly and yearly expenses as well, dividing them into monthly parts. There are many expenses that come up at certain times of the year such as birthday parties for the kids and day care/camp costs, holiday gift expenses, car expenses including inspection, and taxes. You want to include on your list everything you typically spend broken down into monthly totals. Keep your receipts, all of them, cash and credit cards. This will help at the end of the month identify where your money is being spent.
There are only two ways to put more money in your pocket: increase your income and reduce your expenses. If you are underutilizing your skills, then find a job that pays you what you’re worth; or find a way to make passive income. It is more difficult to increase your income; it is fairly easy to reduce your expenses. My clients have found from $200 to $2000 a month in unnecessary expenses!
Plug the faucet
Examine every item on your expenditure list. For each item, identify whether it is a need or a want. See if there are hidden expenses that you can eliminate. Make a game of it and see how much money you can find in a month. Can you find $100 a week that you can put back in your pocket? $100 a week is over $5000 a year. Let that sink in a moment as you look over each expense.
Look for patterns in your spending. Do you purchase coffee in the morning or can you make it at home or work? Do you pack your lunch at least sometimes or do you go out every day? How much money are you spending on food each week? Examine how you spend at the market – do you market with a grocery list? Or do you just peruse the aisles for what you think you need? Do you look for sale items? Do you use coupons? Are you using your coupons wisely, or are you buying something just because you have a coupon? How much are you spending on cable television? What about your phone bill, how many options do you really need? You get the picture.
Identify the difference between need-to-have vs. nice-to-have. Not only are luxuries expensive, they make our lives complicated. As new discoveries occur and new products invented, they are marketed as necessities. Decide for yourself whether each new product and feature is necessary for you or just nice to have.
Do you spend money because it is filling a personal need? In other words, does it make you feel good to spend money? This can get expensive. By doing this you live a lifestyle rather than a life; in essence, you live a lie. Be truthful. The answers you seek are within you, and cannot be found outside of you. If you need to be loved, you won’t find it with money. You will never get enough of what you don’t need to make you happy. Learn to have your needs met elsewhere.
Are you an impulsive spender? Learn to hold onto the item for at least 15 minutes before making the purchase. If you do decide to purchase the item, you may find once you get it home that you don’t need it. Respect yourself and your hard earned money by returning it. Then you can take the money and place it in your savings account.
The wealth within
Examine your feelings about money. Is there anything that prevents you from living an abundant life? Your perceptions about money may be negatively influencing you and how you treat money. Start noticing your beliefs about money. Reexamine them to determine whether you need to update your belief system. You are a millionaire waiting to happen!
Take responsibility for your money and how you spend it. There is great power when you are fully aware. When you start noticing your motivations behind making purchases, you can make choices that are congruent with your priorities. When you identify the extra money you have been wasting, save it. Save 10-20% of your income. Saving paves the way for financial independence and the accumulation of wealth. You may wish to consult a financial advisor to help you invest appropriately.
Don’t go through life with blinders on. Be fully aware and live life by design!
About the author.
Julie Fuimano, MBA, BSN, RN is a personal and professional development consultant and author of “101 Tips For Developing The Leader In You!” Her passion is coaching executives, managers, entrepreneurs and professionals to manage their time, set priorities and stay focused so they can grow their business, develop their teams, make more money and experience greater personal fulfillment in their lives and career. For your free consultation, visit Julie at nurturingyoursuccess.com, write to her, or call her directly at (484) 530-5024.
julie@nurturingyoursuccess.com
http://nurturingyoursuccess.com
You might often do things out of habit without considering alternatives or examining your choices. Working with a coach involves becoming fully aware and taking personal responsibility for all areas of your life. Are you ready to take responsibility for your money?
Where’s the money going?
Keep a running list of every dollar you spend. You will need to do this for a few months to get an accurate picture of your spending habits. Include your bills and regular expenses on the list. You will want to list quarterly and yearly expenses as well, dividing them into monthly parts. There are many expenses that come up at certain times of the year such as birthday parties for the kids and day care/camp costs, holiday gift expenses, car expenses including inspection, and taxes. You want to include on your list everything you typically spend broken down into monthly totals. Keep your receipts, all of them, cash and credit cards. This will help at the end of the month identify where your money is being spent.
There are only two ways to put more money in your pocket: increase your income and reduce your expenses. If you are underutilizing your skills, then find a job that pays you what you’re worth; or find a way to make passive income. It is more difficult to increase your income; it is fairly easy to reduce your expenses. My clients have found from $200 to $2000 a month in unnecessary expenses!
Plug the faucet
Examine every item on your expenditure list. For each item, identify whether it is a need or a want. See if there are hidden expenses that you can eliminate. Make a game of it and see how much money you can find in a month. Can you find $100 a week that you can put back in your pocket? $100 a week is over $5000 a year. Let that sink in a moment as you look over each expense.
Look for patterns in your spending. Do you purchase coffee in the morning or can you make it at home or work? Do you pack your lunch at least sometimes or do you go out every day? How much money are you spending on food each week? Examine how you spend at the market – do you market with a grocery list? Or do you just peruse the aisles for what you think you need? Do you look for sale items? Do you use coupons? Are you using your coupons wisely, or are you buying something just because you have a coupon? How much are you spending on cable television? What about your phone bill, how many options do you really need? You get the picture.
Identify the difference between need-to-have vs. nice-to-have. Not only are luxuries expensive, they make our lives complicated. As new discoveries occur and new products invented, they are marketed as necessities. Decide for yourself whether each new product and feature is necessary for you or just nice to have.
Do you spend money because it is filling a personal need? In other words, does it make you feel good to spend money? This can get expensive. By doing this you live a lifestyle rather than a life; in essence, you live a lie. Be truthful. The answers you seek are within you, and cannot be found outside of you. If you need to be loved, you won’t find it with money. You will never get enough of what you don’t need to make you happy. Learn to have your needs met elsewhere.
Are you an impulsive spender? Learn to hold onto the item for at least 15 minutes before making the purchase. If you do decide to purchase the item, you may find once you get it home that you don’t need it. Respect yourself and your hard earned money by returning it. Then you can take the money and place it in your savings account.
The wealth within
Examine your feelings about money. Is there anything that prevents you from living an abundant life? Your perceptions about money may be negatively influencing you and how you treat money. Start noticing your beliefs about money. Reexamine them to determine whether you need to update your belief system. You are a millionaire waiting to happen!
Take responsibility for your money and how you spend it. There is great power when you are fully aware. When you start noticing your motivations behind making purchases, you can make choices that are congruent with your priorities. When you identify the extra money you have been wasting, save it. Save 10-20% of your income. Saving paves the way for financial independence and the accumulation of wealth. You may wish to consult a financial advisor to help you invest appropriately.
Don’t go through life with blinders on. Be fully aware and live life by design!
About the author.
Julie Fuimano, MBA, BSN, RN is a personal and professional development consultant and author of “101 Tips For Developing The Leader In You!” Her passion is coaching executives, managers, entrepreneurs and professionals to manage their time, set priorities and stay focused so they can grow their business, develop their teams, make more money and experience greater personal fulfillment in their lives and career. For your free consultation, visit Julie at nurturingyoursuccess.com, write to her, or call her directly at (484) 530-5024.
julie@nurturingyoursuccess.com
http://nurturingyoursuccess.com
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