According to Fidelity Investments, "Retirees in America are living longer, thanks in part to medical advances." The Social Security Administration reports, a man who reaches age 65 will live on average until age 84. A 65-year old woman will live to an average age of 86. One out of every four 65-year olds today will live past age 90, and one out of ten will live past age 95. While living longer, healthier lives is wonderful, a longer life expectancy means you must accrue enoug
Nelson Mandela said, " It always seems impossible until it's done." Many of the people I work with think they can't afford to save until they create a "values based" spending plan. By shifting perspective and re-allocating funds, they begin to see that it really is possible to save something. I shared a statistic in Money Mindset Challenge Day 6, that 38% of adults with incomes below $75,000.00 have no money saved for emergencies. This means when an unexpected event like; a j
"Values Based Spending" is all about making financial decisions based upon what matters most to you and leads to financial security and well-being. As you are creating your plan consider your "Why" as we discussed last time and then take a look at the areas where you need to re-allocate funds so the way you live each month is aligned with your core values. Expenses: 1. Fixed Expenses- Examples: Mortgage/Rent, Car Payment, Utilities, *Consider making Savings a fixed expense. W
It's been said, " if you fail to plan, you are planning to fail." Create a soulful spending plan that is guided by your core beliefs and core values around earning, spending, saving, giving and investing money. When you consciously make financial decisions based upon what matters most to you, you will experience more peace and fulfillment regardless of how much money you have.
We have been talking about the building blocks to financial security-understanding your core beliefs, core values and financial habits. Now, the next step is to define why having money is important to you beyond paying bills and meeting your daily needs. Money is a tool and a resource, how will you use it as an expression of your values?
Scarcity is the belief there is not enough. This belief creates competition and in competitions someone has to lose, right? Think about how the childhood game musical chairs plants the seed of scarcity. The game begins with a deficit- “more people than chairs”, which triggers an emotional response that is then followed by a behavior, in this case competition for a limited resource. Now, consider how this form of scarcity thinking can impact when and how you make financial dec
Habits are formed when you do something repeatedly without thinking about it. This is beneficial when it yields positive results like automatically contributing to savings and retirement. But when the habit threatens your financial security, there are three things you may want to look for: your cue or trigger, a routine, which is a particular behavior, and a reward. You can become triggered by anything like; a particular scent, tone of voice, a location, and other people. Usu
The first step toward building financial security is to identify your core beliefs and values about money. Core beliefs are the essence of how you see yourself, others and the world around you. They are formed in early childhood and are a result of positive and/or negative and traumatic experiences. Core values are deeply held beliefs about the usefulness or significance of something important to you. Both your core beliefs and core values influence behavior. This is importan
What does financial security mean to you? It is common to believe income and material possessions determine financial security. However, a person with a high income might be living paycheck to paycheck because of financial decisions that limit their ability to accumulate wealth. Having financial security means you have the knowledge and skills to navigate the financial system; you have enough income to meet your needs both now and in the future and that you have systems in pl
According to Underearners Anonymous, "underearning is many things, not all of which are about money. While the most visible consequence is the inability to provide for one's needs, including future needs, underearning is also about the inability to fully acknowledge and express our capabilities and competencies. It is about underachieving or under-being, no matter how much money we make." Some examples of underearning include: Idea Deflection-compulsively reject ideas that c