I don’t know about you, but the end of the summer is always a bit of a bittersweet moment for me. The (somewhat) sweet and lazy days of summer, peppered with kids’ chaos, traveling snafus and fridges emptying at the speed of the light, quickly give room to bitter and busier days, along with more intense work, business and school schedules. What it also spells for many, if not most working women and moms, is a serious financial wake-up call.
As a result, most working women and moms find themselves running on empty at the end of the summer, needing to financially recover for the last three months of pay cuts, expensive vacations and outrageous childcare and camp options. Here are a few tips and strategies that may help in the process, and lay the foundation for future financial balance and success:
Pause to reflect and realign financially
Reflect and Reevaluate Your Financial Goals
Before going into panic mode or jumping into financial recovery mode, pause and take some time for reflection and realignment around your summer spending and financial goals:
What were the financial goals you set at the beginning of the year, if any?
Did your summer spending get out of control during your vacation?
Or did you manage to stick to your budget?
What is your financial vision going forward?
Assessing your finances against your goals will not only help you understand where you are financially; it will also help you understand your spending habits and identify areas for improvement.
2.Realign Your Budget for Success
Now that you’ve reflected on your spending and your goals, it’s time to get into financial realignment mode:
What discretionary expenses can be trimmed down?
Can the reduced expenses be allocated towards your financial goals, to build an emergency fund, pay off debt, or investing?
Building a budget will help guide your recovery journey and realign yourself financially. Tools like Mint, YNAB (You Need A Budget), and PocketGuard empower you to track your expenses, set financial goals, and monitor your progress. These apps sync with your bank accounts, categorize your spending, and provide insights into areas where you can cut back. This approach allows you to regain control of your finances and allocate funds towards recovery.
3. Navigate Work-Life Integration during the back-to-school season
Effectively integrating your career and family life is crucial for both your family and personal well-being and your financial well-being. This is where the back-to-school season is a great opportunity to create a structured routine that allows you to manage your work commitments, be present with your family and reduce your expenses through better planning and time management.
Take financial action!
4. Strategically tackle your debt!
TransUnion’s 2023 Spring and Summer 2023 Travel Report shows 57% of survey respondents planned to use credit card debt to travel. If you’re among those who accumulated debt over the summer, it’s time to take action:
Prioritize paying off high-interest debt to save money in the long run.
Consider consolidating your debt!
Negotiate with creditors to make your debt more manageable.
Freeing yourself from debt is one of the most important steps you can take towards thriving financially.
5. Explore New Income Streams!
It’s one thing to tackle your debt and cut expenses as part of realigning your budget. It’s also about increasing your income through diversifying your income streams. As a working woman and mom, tapping into your formal and informal skills is invaluable, from freelancing, consulting, or starting a side hustle.
6. Revamp Your Savings Strategy
As summer fades, it’s an ideal time to revisit your savings strategy:
Have a clear purpose for your savings so you can motivate to continue setting money aside.
Consider setting up automatic transfers to your savings accounts to make saving a habit.
Create specific savings goals, whether it’s for a family vacation, education funds, or retirement.
Grow forward!
7. Invest in Your Financial Education
Financial education will not only allow you to get out of the summer financial pit you may be in. It will also help you empower yourself to grow your financial wealth:
Take advantage of resources such as online courses, books, and workshops to enhance your financial literacy. Websites like Udemy, Coursera, and LinkedIn Learning provide a range of courses suitable for various skill levels. Equipping yourself with the knowledge and tools to make informed financial decisions is an integral part of post-summer financial recovery.
Learn about investments, savings vehicles, and tax strategies will help you make informed decisions that align with your long-term goals.
8. Cultivate mindfulness and self-care.
Financial recovery can be a journey of ups and downs. Practicing mindfulness and self-care is essential to maintaining a positive mindset throughout the process. Engage in activities that bring you joy and reduce stress, whether it’s yoga, meditation, or spending quality time with loved ones.
9. Network and Support
Connect with other working women and moms who are also on the path to financial thriving. Join online communities, attend networking events, and share your experiences. The support and insights you gain from like-minded individuals can be invaluable in staying motivated and accountable.
All in all, transitioning from vacation vibes to financial thrive might seem intimidating and impossible to achieve. However, with the right strategies and mindset, you can make significant strides towards your financial goals. Remember, post-summer financial recovery is a journey, and each step you take brings you closer to a more secure and empowered future as a successful working woman and mom.
Now your turn, what strategies are you using to recover financially from the summer months?
If you’ve ever thought of taking control of your finances as a working woman and mom, Suze Orman’s “Women and Money” book is a must-read. This revised and improved edition from her 2007 original masterpiece certainly does not disappoint when it comes to establishing, or re-establishing for that matter, a healthy relationship with your money. I know it certainly helped me…
I’ve had the earlier version of this book on my shelf for many years, and have only recently decided to dig into it, especially when starting the new year. As my word for the year is “consistency”, I resolved to apply more consistency to all the areas of my life, including my finances. When I noted this “oldie but goodie” book had been recently revised and edited, I couldn’t help but order it. What I discovered as I perused its pages in just a few days was nothing short of a financial eye opener…
As a working woman and mom, with training in accounting at that, I’ve always known, in theory, how important it is to have a good handle on your money. As much as I could, I practiced applying sensible rules to managing my money, from budgeting to saving and even dabbling intoinvesting. What I didn’t do as much of, is to take some time to pause and reflect on my relationship, past, present and future, with money. And this is exactly what this book made me do…
In the book, Suze, who in my head I picture as my financial big sis, first starts by discussing how we have been relating to money as women since the dawn of times. She accurately points to the fact that so many of us, even as educated and professionally successful as we may be, seem to experience an inner resistance to dealing with our own money. This ties back to the fact that for the longest time, women have been conditioned to defer money matters to the male figures around them, from parental figures to spouses. As a result, there has been a dissociation between women’s mindsets and money.
Reading this, and even though I was raised by a single mom, I could identify with this inner resistance, this sense that even as an educated, ambitious woman, I tend to experience a lack of closeness to and clarity about my money. The more I turned the pages of this book, the more I could relate my own experience with money to the fear that many, if not most of us, experience when it comes to being free and decisive about our personal and financial futures. Instead, we often end up treating our money as we treat ourselves, with the same fear to displease others, the same fear to not belong or fit in, or that to be rejected…It’s also the same fear that prompts us to not ask for a raise at work, sell our services for less than they’re worth, and allow our significant others to mismanage and abuse our own money… It’s the same fear that basically, as Suze puts it, prompts us to put “ourselves for sale”…
Confirming that, like so many women, I need to take a good look at my relationship with money, opened my eyes, especially as a woman in my 40’s. What this book also allowed me to realize is how important it is to use time and knowledge to our advantage to build a secure financial, and ultimately, personal future. Tips such as living below our means in order to boost our retirement savings, investing in life insurance, preparing to support kids in college through 529 plans, and setting up key documents such as wills and revocable trusts, are a much-needed wake-up call for all women and mothers. The importance of planning our financial futures early, not only for ourselves, but most importantly for our loved ones, is often ignored at the expense of pleasing others and surviving. What we often do not realize is that not taking care of our financial health does not only impact us, but our families and communities in the long run.
Overall, this is a book I highly recommend and consider a must-read for all women. More than financial tips, it urges us to revisit our relationship with ourselves and money, and set ourselves and loved ones for success. If anything, taking care of our money is a gift to ourselves and others around us.
As the coronavirus crisis is affecting the market in quite negative ways, many of us are wondering what will happen to our 401K accounts. Many are also wondering if we can actually use our 401k savings in case of emergency during the crisis.
My $0.05:
Here are a few guidelines you may want to consider:
If you’re able, keep contributing to your 401k:
If your employer matches your contributions, it’s basically free money that you would pass up if you stopped contributing.
While the stock market may have experienced many losses in the past few days, this also means there are opportunities to buy some shares of stock on sale. If your 401k contributions are going towards building a diversified portfolio, you should be able to see positive returns in the long term
Emergencies can definitely happen in a crisis, especially considering this is a largely unexpected one. However, tapping into your emergency fund first before tapping into your 401K may be best. If you really need to tap into your 401k funds in this period, you are in luck!The Coronavirus Aid, Relief and Economic Security Act now allows you as a retirement account participant to withdraw up to $100,000 for coronavirus-related expenses. Loan limits on your 401k have also been increased to 100% of the vested balance, up to $100,000. Individuals taking the coronavirus emergency also have the option of reimbursing themselves at any point
In addition, the related income tax due on such withdrawals can be paid over three (3) years.The contribution deadline for the 2019 IRA contributions has also now been pushed to July 15, 2020.
Last but not least, retirees over 72 years old now have the option of delaying taking their minimum distributions as required in 2020.
I have a soft spot for single moms, as I was raised by one. If you ask me, single moms are right up there with the best of superheroes. In addition to being mom and dad, they hold down and businesses, while keeping a roof over their heads and raising kids on their own. Which means they also can be under financial pressure as they strive to bear the financial burden of being a single parent. This is where single moms can use tax credits and deductions to help…
If you’re a single mom, you know all too well what the financial burden of raising kids on your own is. What you also must know is that you have access to tax tools and tips to ease the weight. Here are 4 things you must know when filing your taxes:
You might want to file as head of household
As a single mom, you can get a lower tax rate by picking the head of household filing status rather than filing single or married. The head of household filing status requires you to be unmarried as of the last day of the tax year. Another condition to file under this status is that your children must live with you for more than 6 months of the year. Additionally, you must pay more than 50% of the expenses to support your home.
You must show that your children qualify as dependents
In order to get tax credits and deductions related to your children, you must show that they qualify as dependents. If your child resides with you, you may be able to claim him/her as such, according to the IRS’ custodial residency test.
However, the father may be able to claim the child as a dependent even if said child does not reside with him if:
The child’s father and yourself are legally separated or divorced, or you lived separately for the last 6 months of the year
The child’s father and you have legal custody of said child
Half of the support of the child was provided by the parents for at least 6 months of the year
You provide a written agreement not to claim the child as a dependent or there is a legal agreement made before 1984 allowing the father to claim the child as a dependent.
All the above conditions must apply for the child’s father to claim the child as a dependent.
You can deduct your childcare expenses…
Is your dependent child 12 years or older? Do you pay for daycare so you can go to work or look for a job? Do you have an income, are a full-time student, or are unable to care for yourself? In this case, if you answer yes to all these questions, you may be able to claim the childcare tax credit, as long the care provider is over 19 years old, is not the child’s parent, and is shown on your tax return. However, if your employer helped pay for any of these expenses, their contribution must be deducted from your expenses.
Don’t forget to include the child tax credit
After 2017, if you’re a single mom filing as head of household and you make less than $75,000, you can now claim a child tax credit of $2,000 for each child. This amount used to be $1,000 for tax years before 2018. However, this credit caps at incomes of $200,000 and beyond for single or head of household filers.
Keep in mind that your child must be 16 years old or younger to qualify. He/she must eb your dependent and can be your son, daughter, brother, sister, stepchild, stepbrother, stepsister, niece, nephew, grandchild, or legally adopted. Additionally, he/she must have resided with you for at least 6 months, be a US citizen, US national or resident alien. Lastly, he/she must have received more than half of his/her support from you.
Ask a CPA is a column I write as a Certified Public Accountant to share accounting, business and tax knowledge to readers of The Corporate Sister.
As a working parent, you know how precious your kids are. You also know how expensive raising them can be. From the astronomical cost of childcare to medical bills, and the prospect of college education, the costs of being a parent keep increasing each and every year. Which is why most of us welcome any breaks we can get to help lighten the modern financial weight of parenting. Especially when it comes to tax breaks…
These tax breaks come in handy for working families at tax time. Some of these breaks come in the form of deductions, which reduce your taxable income, or the amount you’re being taxed on. Some examples of deductions include college tuition and fees for instance. Other tax breaks come in the form of credits, which are subtracted from your tax bill dollar for dollar or are added to your refund. An example of tax credit is the child-tax credit. However, both of these are subject to income limits.
If you’re wondering about these, here are 6 tax breaks you can get as a working parent:
The student loan interest deduction
For working parents needing to borrow money for their child’s college education, the student loan interest deduction provides some relief. As a parent, you can write off up to $2,500 in student loan interest. However, if you’re a married filer with a Adjusted Gross Income (AGI) between $135,000 and $165,000, the deduction starts phasing out. If you’re single, the same restriction applies if your AGI falls between $65,000 and $80,000.
The child-tax credit
As a result of the Tax Cuts and Job Act, for 2018 through 2025, this credit amounts to $2,000 per child as a federal income tax credit. There are no limits to how many children can qualify within a household. However, there is an income limit here, as with most tax credits. It starts to phase out for married-filing-joint couples with modified Adjusted Gross Incomes (AGI) over $400,000. For unmarried people, the phase-put starts at $200,000 of AGI.
The child and dependent care credit
If you’re a working parent in a household with two incomes or are looking for a job with children under the age of 13, you may qualify for this credit. If you’re a student or a disabled parent, you may also qualify.
Basically, this credit allows you to claim a credit of 20 to 35% on childcare expenses up to $3,000 for one child. For two (2) or more children, this credit is up to $6,000. Here as well, there is an income limit for parents earning more than $43,000, for whom the credit will begin to shrink.
American Opportunity Higher Education Credit
This credit helps with the cost of undergraduate college education. If your child is in their first four years of college, he or she may qualify for up to $2,500 a year worth of credit. The number of children to qualify in a household is not limited here.
However, there are income restrictions for married joint filers whose modified AGI is between $160,000 and $180,000. If you’re a single parent, then the credit phases out if your modified AGI is between $80,000 and $90,000.
Lifetime Learning Higher Education Credit
This second higher education credit applies to students who have more than four (4) years of college credit under their belt. It also applies to any other family members also taking classes. One major restriction of this credit is that it cannot be claimed more than once on any given tax return.
With this credit, you can claim 20% of tuition and other qualified expenses, up to $10,000 worth of expenses. The maximum credit you can then claim is $2,000. If you’re marrying filing jointly with your partner, this credit is phased out if your modified AGI is between $114,000 and $134,000. As a single parent, the same restriction applies if your modified AGI is between $57,000 and $67,000.
The adoption credit
If you’ve adopted a child, you may be able to claim an adoption credit to help with the related expenses. For 2018, this credit is up to $13,810. If you’ve adopted a special-needs child, you may take the entirety of the credit, even if your actual expenses are less than the credit. The income restriction is for parents with modified AGIs in excess of $207,140. Beyond $247,140 as a modified AGI, this credit is completely phased out.
You may have heard this saying before: ” The average millionaire has seven streams of income“. This means that most high-worth people do not rely on one single source of income to survive, and even better, thrive. As a matter of fact, most individuals who are well-established financially tend to have varied and diversified sources of income.
The concept of multiple streams of income has always fascinated me. Raised in a middle-class, single-parent family in Senegal, West Africa, I was always concerned about financial security. As I progressed in life, this concern turned into a growing interest for the many ways in which people can establish and set their financial security and legacy in the long-term. I’ve always looked at high net worth individuals, the likes of the Oprah Winfreys and the Warren Buffett’s of this world as examples and indirect mentors I could look up to. I’ve always admired people, whether of celebrity status or not, who could make wonders out of scraps, especially in the financial arena. As I evolved in the corporate world, and started dabbling in the business world with a side hustle at first, and growing a business later on, I got increasingly interested in answering the question: “How can you diversify your income?”
As I found out and am still learning, there are many ways in which people like you and I can identify and implement various streams of income. Here are seven of them to begin with:
Get a job!
Although there seems to be a cult of entrepreneurship all throughout social media and in popular opinion as well, getting a job is still a pretty effective way to establish financial security. As tempting as the images of yacht cruises and work lunches in fancy restaurant patios outside may be. being an entrepreneur is not all there is to personal and financial success.
Many people have established their own as well as their children’s financial security and legacy through regular 9-to-5’s. The trick here is to remember to allow your job to work for your financial security, and not the other way around. This means setting up automatic systems and processes to save and invest, while working to boost your career in ways that are both personally, professionally and financially fulfilling to you. I like to think of it as using your job to fund your life dreams.
Start a side hustle!
Side hustles are the new job security. They are also great ways to add an additional source of income to your existing 9-to-5 or business. Side hustles are basically jobs that you can tackle on a part-time (or less) basis, in addition to regular employment or business. It could be as easy as freelancing on the side, consulting a few clients on your free time, or even working as an Uber or Lyft driver to supplement your income.
In the age of social media and technology, it’s become even easier to start and grow your side hustle. You can easily market your products and services on free platforms such as Facebook, Twitter or Snapchat. It’s also easier to monetize your side gigs, as a majority of business activities are conducted virtually and online.
One profitable way that you can use your regular 9-to-5, business or side hustle, to fund your dreams is through investments. Setting some money aside every pay period to invest in stocks and bonds, or other financial instruments of your choice, is a powerful vehicle to multiply your earnings.
One of the main limitations that keeps many people, especially women, from investing their money, is lack of financial education. There is a widespread perception that one must be financially savvy in order to start investing profitably. However, hiring the right financial experts and getting informed on your best financial options can go a long way towards helping you grow your confidence as an investor.
Start Freelancing!
Freelancing may very well be one of the oldest side hustles ever. I didn’t start thinking about starting my own business until after I had been freelancing for a while. Freelancing allows you to use your natural talents, abilities, and/or acquired skills to render services or create products for profit.
As an example, I have been freelance writing for a while. You could freelance around providing IT services, legal or accounting services, depending on your area of expertise or particular talents.
Get Into Affiliate Marketing!
Affiliate marketing is all about marketing products or services created by other businesses or individuals. Basically, you promote a product or service someone else created and get compensated for it. You may get a certain percentage of the sales price of the item you’re promoting or a fixed commission according to the agreement you entered into.
This is a great way to diversify your income as it doesn’t require you to create anything yourself. As a blogger, I have promoted many products and services that I believe, which has allowed me to create passive income as well.
Create your own products!
This may require more time and work. However, it’s also a great way create an additional stream of income. This can be as easy as printing out T-shirts or branded merchandise. It can also involve manufacturing products from scratch, such as greeting cards for instance. It can also be creating digital products such as web applications or e-books.
Today’s technology allows you to create your own products without too much hassle. With the existence of online and virtual services such as Fiverr, and the ease to use social media, it has become increasingly convenient and cost-effective to make your own products.
Start a blog!
Blogging is also a profitable way to diversify your income, while catering to your passions and interests through your blog. From advertising revenue to affiliate marketing, and promoting your own products and services, as well as your expertise, blogging offers various opportunities to earn additional revenue.
Setting up a blog is also a cost-effective and simple process. While it may take some time to ramp up your blogging earnings, consistency and hard work do pay off in the long run.
All in all, there are many ways for you to diversify your income. You don’t have to limit yourself to a monthly salary or periodic revenue. Instead, you can enlarge your financial landscape by expanding your sources of revenue and securing your financial future.
Now your turn: what are your favorite way diversify your income?
Growing up in a single-parent household led by a single mom, my family wasn’t exactly wealthy. We had food on the table, and in many ways, I was very fortunate to be given a wonderful education and opportunities. However, when it came to money, the underlying messages were clear: “We need to be very careful about money” and “There’s never enough money!”
As for me, this cautionary message turned into a scarcity mindset that made me fearful of never having enough money for the longest time. There was no amount of savings that would be enough. To say that I became financially conservative and risk-adverse was an understatement, despite my past (pretty serious) shoe and cheese collector habits.
You may also be facing constant money worries, even if your financial situation is stable. Or you may be living paycheck to paycheck, praying to the gods of Visa and Mastercard every time you tender your debit or credit card. Better yet, you may be holding on to a job you hate, or delaying your career and life dreams, as a result of your money fears.
It took me a long time to even begin detaching from my financial fears, and actually stop compulsively looking at every price tag. It’s still a process, one through which I’ve learnt to be more financially confident. In turn, it has actually helped me set up a better financial foundation, despite (or maybe as a result of) taking more risks, being more fulfilled, and being less obsessed with price tags.
If you’re dealing with financial fears, whether you’re compulsively checking your bank accounts, staring at your lofty balances, or incurring overdraft fee after overdraft fee, there are a few steps you can take:
Ditch the scarcity mindset
The most important money lesson I’ve learnt over time is that money is first and foremost a mindset! Not a bank balance, a budget, or even the sum of your net worth. It’s how you think about yourself, and what you’re allowing yourself to possess and enjoy!
One of the books that started my mindset shift when it comes to money is “Think and Grow Rich” by Napoleon Hill. What it taught me is to stop thinking in terms of scarcity and instead adopt a mindset of abundance and openness to the infinite possibilities that surround us. Before you start thinking this is all woo-woo theory, consider the types of expenses you incur when you’re in a negative mindset as opposed to a positive one. Do you see how a simple shift of your thoughts can help you attract better opportunities while making less financial mistakes?
Ask yourself if you’ve been having a scarcity mindset. Do you feel like you can never have enough money? Have you watched your parents struggle with money and as a result, believed that you also would struggle with money? Do you not consider yourself worthy to deserve and have everything you desire? If so, you may be suffering, like I was, of acute “Scarcity Mindset” syndrome. Thankfully, it can be cured.
Start with simple thoughts and affirmations of abundance, such as: “Money comes to me easily”. Start believing that with hard work, dedication and faith, you can have as much money as you need and beyond. And watch your money fears diminish and pretty soon stop, being instead replaced with more confidence in your financial future.
Re-evaluate your budget
Your budget is a like a compass for your financial health. It helps you understand and pick the right direction to take in your financial journey. However, many times, we fail to have realistic budgets that reflect who we are and how we live, as opposed to how others want us to live.
You can follow a gazillion finance gurus, read a million money blogs, and have the best budgeting apps on your smartphone. If your budget is not realistic enough to paint a picture of what your life really is and where you intend to take it, you’re wasting your time.
Instead of building hypothetical budgets, be as honest as possible about what your expenses and revenues look like. I used to build budgets that reflected my own financial fears and worries, in which I would underestimate my expenses and overestimate my savings. The result? Added stress and frustration, in addition to hardly ever meeting my financial goals. Today, I have what I call a “real” budget. It’s simpler, more efficient, but also more honest.
Take a look at your budget and ask yourself if it really represents your personality and lifestyle. If it doesn’t, it’s ok to scratch it and start fresh. From an honest and authentic foundation, you can re-direct it towards what you really want out of your finances.
Live below your means
Most millionaires (at least those who stand a chance to remain so) live below their means. Warren Buffett is said to drive the same car for years, and has lived in the same house for the longest time. In a society where the Fear of Missing Out (FOMO) and social media comparisons rage among us, we can be tempted to book the latest hot vacation spot, buy the fancy car, or score the best name brands. Which in turn digs our financial graves deeper and deeper…
Although I was struggling with a scarcity mindset earlier on, there was a time when I still wanted the latest, most fashionable things. Despite being able to afford them, what I didn’t realize then was that every time I allocated money on a high-ticket item, I also missed out on opportunities to save and invest for the future.
This is not to say that you shouldn’t splurge and treat yo’self every now and then. However, living below your means gives you the option of leveraging the accumulation factor. This is where you accumulate your savings, investments, and other financial safeguards to help you and your family afford the lifestyle you want in the short and long-term. Besides, I’d rather sleep well at night knowing I have coins in the bank in case of emergency, than live fearful of anything dreadful happening.
When I made the decision to meet with a financial advisor to discuss my short and long-term financial goals, I was a bit skeptical. However, I knew enough to know that the more you can get professional financial advice, the better off you’ll be. The meeting did not disappoint. I was fortunate to deal with an extremely knowledgeable and kind-hearted individual, which also helped.
Yet, what I valued most was the amazing knowledge and power this gave me over my finances. There are so many options that most of us don’t realize and avail ourselves of for lack of education in certain areas. It’s normal, since we’re not experts in every field.
Consulting with a financial advisor helped me get an honest and clear picture of my financial situation, goals, and possibilities. As I continue on this journey, it’s also opening up a wealth of options as to how I can better manage my money and resources to afford a lifestyle that fulfills my family and I. Besides, it’s a great way to put your financial worries aside and instead have a plan to tackle your financial present and future.
It’s one thing to have a few months’ savings for emergencies. It’s another to think about what you want your life to look like in the next five or ten years, or even after retirement. How about what would happen to your family and loved ones if you were to suddenly disappear? What would occur if you or your spouse were hurt or unable to work? These are all difficult questions to ponder. It’s also why most of us avoid thinking about them. That is, until something irreversible occurs…
One of the events of my youth that marked me the most was the disappearance of my grand-parents on both sides of my family. Their passing not only brought pain to our families, but also great financial worries due to lack of adequate advance planning. I never knew the details, yet I could sense the distance and grief this created.
As you’re thinking about money, have you thought about making a long-term plan? Have you considered life insurance, possibly a will, and other financial arrangements that would set a secure financial foundation for yourself and your loved ones? While these can be daunting to think about, they can also help ease your financial concerns as you commit to building a solid financial base for you and yours.
Give your money a purpose
You know what they say, that “money is the root of all evil”. Right? Wrong! Money is only evil if used for the wrong purpose. When used for legitimate reasons, it can actually be a source of positive impact in your life and others’. With the right purpose, your money can help you accomplish your dreams, live the lifestyle you desire, and help others do the same.
Yet it starts with giving your coins a WHY! This is a personal process that begins with understanding yourself and what you’re about. What is the WHY behind your money? Is it to build a legacy, care for your children, assure your retirement? It can be a medley of various reasons and motives, which is more than ok. However, being clear about it can make the difference between not having a strategy for your money, and moving intentionally and clearly forward with your financial goals.
As for me, I like security and being able to say yes to my family when financial needs arise. Building a legacy and leaving a fruitful financial basis for my loved ones is part of my goals. What are yours?
Last but not least, be kind to yourself. When it comes to money, we all have some level or another of financial concerns. None of us can predict what’s going to happen tomorrow. The market can crash, we can incur losses, and we may be out of a job. Or all three combined, all at once, as you also deal with a sudden onset of teenage acne in our 30’s.
Life simply happens, and it also goes on. Which means that since we’ll never have 100% control over circumstances and events, we might as well take a deep breath and enjoy the moment. Money matters, but it’s not everything.
Make a plan, do your best, and enjoy the things that truly matter in life. For me, it’s my relationship with God, my family and loved ones, my work, people in general, and a good Brie on some delicious, hot French bread! What matters to you, and how can money help you create the lifestyle you desire?
Bonus tip: Surround yourself with like-minded people
You truly are the sum of the people you surround yourself with, especially when it comes to your money. If your four friends are broke and living paycheck to paycheck, chances are you’re well on your way to becoming the fifth. Which also means you must be careful who you hang around with.
This is not about being or feeling better than anyone else. Rather it’s about seeking to improve yourself, starting with your relationships. Look around you. Who are your friends and acquaintances? Do you share money goals, or any goals in general? Can they help you better your financial situation? Can you help them? What do you talk about when you’re together? Relationships are supposed to make us better, in all areas of our lives. If they’re setting us back, they it may be time to re-consider.
All in all, your financial worries or concerns don’t make you an exception. Neither do they make you a victim. However, they’re a strong reminder to take charge of your financial situation, while still reminding yourself what your priorities and your WHY are. Aligning your money with who you are and what you desire is the most powerful way to increase your net worth and create the life and work you deserve! So why not get started today?
Now your turn: How do you face your financial fears?
