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Financial Wellness

Financial Tips

Tip #1

 

Becoming financially successful has less to do with how much money you make and way more to do with the principle of wisdom. Instead of starting with spreadsheets and a money plan, begin by deciding what type of life you want to live. Ask yourself (and your spouse, if you are married), "what are my/our main priorities in life? What guiding principles (e.g., freedom, peace, wisdom, integrity, discipline, etc.) shall I/we use when making decisions? When my mortal life is concluding in the future, will I be able to say that I used my financial resources to live a life full of meaning and goodness, or vain ambition?" Put first things first. We naturally tend to fund our priorities.

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Tip #2

 There is only one tool you have to make financial progress, and it’s called “Cashflow,” which is the money you have left over after paying all your bills. The more Cashflow you create, the greater the tool and capacity for financial progress. Spend the necessary time to (phase 2) develop plans to increase your monthly income and decrease your monthly expenses, both within the context of wisdom. Contemplate turning a hobby into a source of income or picking up some extra hours or responsibility with increased pay, and go through each monthly expense to determine if it’s the best option and best deal. After creating effective plans, you should have significantly more Cashflow each month than you did before. What should you do with the monthly Cashflow that you create? Focus on one thing at a time. Usually, we are pitifully ineffective if we try saving money, investing, and paying off debt all at once. Instead, consider (phase 3) starting with putting all of your Cashflow into a savings account until you have enough money that you could survive for one month on your emergency savings. After completing this phase, consider (phase 4) using all of your Cashflow to pay off all of your debts ASAP! It’s very difficult to make progress if the banks own your Cashflow, so pay them back ASAP! You will find that putting all of your Cashflow toward one objective at a time creates focus and power that brings hope-filled momentum. Once you are completely out of consumer debt, (car loans, credit cards, student loans, etc.) your Cashflow will be significantly higher and you can continue to more advanced phases with serious power! It takes discipline and patience, but it feels incredible to have financial freedom and peace.

 

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Tip #3

 

Most individuals and families who have financial problems really have life problems that are compounded by debt commitments. You were probably raised with your parents telling you that it’s wise to avoid debt, but why is that? When you borrow money and sign the debt contract, you are obviously telling the bank that you will pay them back in the future. There are two things to consider. First, you probably use your personal time and energy (i.e., YOUR LIFE) to make money. So, the banks own a share of your future time and energy, or a portion of your life. That’s why debt is called bondage. Secondly, you probably don’t know what your future looks like. Therefore, if you have a debt contract, you signed an agreement so that the bank owns a portion of your future life and you don’t even know what your future life looks like! That truly is unwise! It’s best to avoid debt and pay off existing debt as fast as possible. In addition, if your future income is going to the bank, then you can’t use that future income to build wealth, donate to the poor, or any other desirable or noble financial desire that is functionally incompatible. You’ll have a difficult time finding someone who is debt free with serious money problems. Find any adult that you know who is completely debt free (including no more mortgage) and ask them about how it feels. Ask them about the freedom and added peace that they enjoy. You might also want to ask them if they’re wealthy because they probably are. Most wealthy people paid off their debts long ago, and that gave them the opportunity to become wealthy. 

 

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Tip #4

 

How do you develop personal motivation to create a better financial future?

 

Everything begins with hope, and all things are created twice. 

 

You increase in hope when you discover and ponder all the options available to you. There are always options and, therefore, reasons to hope! Use this hope and understanding of your options to engage in the first creation, the mental/emotional/spiritual creation, by envisioning what might be in store for you. This first mental/emotional/spiritual creation is often called "vision." With increased vision always comes increased motivation (also known as action or faith). Vision and motivation are sisters and always found together. When you can envision and expect what might be, and you like it, you're bound to produce some effort to achieve it. This is the second creation. It is working to bring your hope and vision into physical reality. 

 

Invest some time crafting a vision of what might be in your life. You can do this on your own if you're single, but if you're married and want to stay married, it's best to create a shared vision so that you progress in the same direction! While you work to fulfill your vision and see the fruits of your labor, your hope will begin to substantiate, resulting in a more solid vision with her tag-along sister, motivation/action/faith. 

 

What might your financial future look like five years from now, 20 years from now, and so on? If you can see what might be, and it's good and beautiful, then go and make it so. If you still need to see what might be, find a good mentor who knows you and can help you discover your options and fill you with hope. Hope is where it all begins.