The Key to Success with Personal Finance
There are no wrong roads when it comes to money.
How does the above statement sit with you?
Does it rankle you?
Do you find yourself in total agreement?
Or are you somewhere in between, perhaps in the land of intrigued?
If you were to ask me what kind of money coach I am I would tell you its simple. I coach you to be you with your money.
I will not tell you what to do.
I will not make you use my budget or my system.
I will not sell you my simple 7 step process that if you adhere to it you will get out debt, make a million dollars and be the happiest you have been in your whole life.
Because it doesn’t work that way.
None of it does.
Personal finance is called personal for a reason.
The mindset is more important than the method.
Because money is powerful energy.
Someone else’s “how” might not work for you and someone else’s “why” definitely won’t.
I don’t give specific money “formulas” because many that have gone before me (Dave Ramsey or Suze Orman to name a few) have created many workable systems.
But today I will tell you two specific examples and give you the one key principle to personal financial success.
A friend reached out to me recently with a sizeable “surprise” nest egg of $12,000 dollars. That is a nice little bit of money you did not know about, right? She wanted some guidance on what to do with it, given that they had some debts and were running two self-employed businesses.
I hope she wasn’t let down.
I did not tell her specifically what to do. You phrase it like: “here is what I would do…”
Instead, I guided her through what has been most beneficial for me around money and money decisions.
And more importantly, her thoughts around money.
I gave her a bit of information (from my perspective) and asked 3 important questions I use before making any money decision.
How do you feel about the nest egg (or money to be used/spent)? – be specific. (example: It is mine. I get the final say in how best to use it.)
Which decision will make you feel the most powerful and at peace?
What thoughts do you need/want to have about money BEFORE making the decision?
Now some people just want to be told what to do with their money. And that is fine. But that is not what I am about.
My second example to illustrate the key principle with money is from our personal experience.
When we sold one of our real estate properties that had a sizable gain and our 1031 exchange failed, we had to bite the “bullet” as they say, and pay a chunk in taxes. We also used some of the proceeds to pay off some larger and lingering debts.
Now other investors would have a.) moved heaven and earth to not have a failed 1031 but there are rules that not bendable so once it fails it fails (our second time around we did successfully use that tool, by the way).
And other investors would have b.) not paid off debt but rather used the proceeds to leverage into cash flowing assets again (we have also done this and do have good quality assets on our balance sheet).
Here in lies what I am saying: You make your money choices for YOU.
Then you move forward with power. Because you are happy with your choice.
Seek all the advice and consultations you want. But if you are not empowered (i.e. feeling powerful and knowledgeable) when you make the decision but rather are just delegating or abdicating it to a “professional” you really aren’t become any stronger, wiser or better, now are you?
So here is the key principle: there are (almost) no wrong roads with money when you decide you are happy with your choice.
I say almost because if you are choosing to steal money, that is wrong. If you are choosing to gamble or risk money, that is not necessarily wrong, many may call it foolish, but again, it is a personal choice.
Money success starts with your thoughts and feelings around money.
Trust that you are good with money. Trust that more money is coming. Money is not finite. Trust that if you would somehow lose all your money, you could make more.
Because you made it the first time, right?
And now you are a stronger, better, and wiser version of your past self.
Tell me - what thought around money has had the most impact on your recently?