Believe it or not, a lot of people stop themselves from learning because they think “I should know this by now”. In case you haven’t met before, that voice in your head is named guilt.
Most people learn about money as adults. They didn’t teach money management in school. Your parents may or may not have passed on good financial habits. (More than likely, they spent more time teaching you to ride your bike than to manage your money.) And friends don’t tend to compare financial notes. So if you don’t know something – don’t punish yourself by living in the dark. You can learn it now.
Not knowing costs you money
50% of Canadian households spend more than they earn. There could be many reasons for this but in my work I see two major issues:
1) Cash Flow If you don’t know, or don’t want to know, how your money comes in and goes out, you have no basis for making empowered financial decisions. Learning to manage your cash flow will have more long-term value than anything you can invest in, buy or sell.
2) Direction If you don’t have a plan to get what you want out of life, you are drifting. And drifting costs. A lot of people overspend because they don’t have a compelling reason not to. When people learn to set achievable goals, they are more likely to keep a watchful eye on their finances to make sure they are on track for their goals.
Do you have a plan? Do you know what happens to your money every month? You can. Set your goals and figure out
where your money goes each month. Are you putting your money where your goals are?
Learning to take control is fun
Learning to take control of your finances my not sound like fun but a lot of my clients report that it is. One fellow said to me,
“I’m having fun tracking my money. It’s quite remarkable how you can cut your spending without changing your lifestyle very much. Just watching the money helps.”
He added, “ Sometimes it isn’t that we aren’t going to buy something, it’s just that we are going to wait until the money is in the account – I don’t feel deprived because I’ll get it soon, just not today. It’s something to look forward to."
“And there’s a whole world of deals out there! This week I realized that just by shopping around, I can get four shirts for what I used to pay for one!”
Knowledge has more value than cash.
Ok more money might be nice, but if you don’t know where your money goes now, and you get more money, where do you think it will go? Without financial know-how and a plan for success, any extra money you make is likely to be absorbed into your day to day cash flow.
When you learn to control your finances, you will feel more confident that all aspects of your life (your family, your retirement, your goals) are taken care of.
Make financial decisions that work for you.
There are a lot of people pulling at your pocket and countless pressures on your life. Knowing what you want and what financial resources you have at your disposal empowers you to set your own agenda for your finances and your life.
FYI: Goal setting and cash flow are central to my coaching and to the money management workshops I teach. As a result, my clients are actually reversing national financial trends.
90% of women in the general population admit to feeling financially insecure
100% of women who complete the Build Your Own Plan workshops report feeling in control of their money by the end of the course.
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