When people first come to Mindshift.money, they often have money blocks originating from family background and past experiences. Most often, they think they don’t have the capability, they feel money is too complicated and most of all, they’re afraid to manage their money themselves. The reality is, they just don’t understand money management basics.
So today, we’re calling #BS on not knowing money management basics! The reality is, money shouldn’t be scary. The wealthiest 4% of the population know this—and so can you. The basics of money management are actually quite simple. And we believe you can best master handling your finances by working with a coach, mastering the concepts and practicing your new skills.
Working With A Financial Coach
My family and I love spending time together outdoors. A few years ago, we took a family vacation to Whistler in British Columbia. My boys are experts at snowboarding, and I was definitely not. But I wanted to learn so I could spend more time with them doing something they enjoy.
Now, I could have tried to teach myself. But I would have spent most of the day face down in the snow. That doesn’t sound like my idea of fun. Instead, I hired a snowboarding instructor who helped me make measurable progress in a reasonable amount of time. I signed up for six hours of training over three days so I could quickly master the basics and focus on what was important to me—spending time with my boys.
In my experience, people are quick to hire someone to teach them a new skill like snowboarding, but hesitate to work with a coach to improve their finances. Why is that? I find this contradiction really interesting. Working with a financial coach helps you accelerate your progress toward Financial Freedom and gain control of your money. Ultimately, everything you find important in life will be improved when your finances are in order.
If you’re not a MindShift.money member, you’ve been muddling through on your own up until now. So let’s be honest. How well has that worked for your finances so far?
Don’t waste your time trying to master new skills on your own. Get a good coach to mentor you through the process of money management, and you’ll see your finances change dramatically.
Learning The Money Management Basics
The Four Money Principles we follow at Mindshift.money are fairly simple. Yet people often struggle with such simple concepts. (We’ll go more in-depth on these next week.)
- Pay Yourself First – You work far too hard to see your money constantly going out the door the minute it arrives. Work with a coach to help determine where you can find a surplus to help you accelerate on your path to Financial Freedom, and use this amount to Pay Yourself First.
- Live Within Your Means – Spend only what you allocate, and stop going into debt. If you’re in debt, work on getting out of debt as quickly as possible.
- Protect Yourself – Build a Security Buffer of at least three months’ expenses in place to protect your family. Should you face a health crisis or a job loss, the last thing on your mind should be how to replace your lost income.
- Make Your Money Work for You – Send your money out to work for you. Build your Freedom Generator—a collection of solid investments to fund your future Financial Freedom-and live the life you’ve always dreamed of.
Practice Makes Perfect
Snowboarding, like so many things in life, requires practicing the same basic skills over and over in order to achieve mastery. The same is true with your finances. You need to consistently practice managing your money until you get it right, until it becomes your new normal.
There are rewards for the work you’re doing that go beyond the financial benefits. Whether you realize it or not, your children are watching. They’ll follow your example of how to handle money, so make sure you’re sending a good message.
Mastering Your Money
As you can see, the basics of money management aren’t as complicated as you’ve been led to believe. I truly believe anyone can master them and transform their financial future. You can start today by:
- Working with a coach to help you make measurable progress in a reasonable amount of time. Watch your financial life transform faster than you thought possible.
- Live the Four Money Principles so one day you have the Freedom to live the life you want. Send your money to work for you rather than trading your time for money.
- Nothing is beyond you if you’re willing to work at it. Practice managing your money, and you’ll achieve mastery.
- Reject the money behavior of 96% of the population. Live like the 4% by mastering the money management basics.
Which one of these was the first step you took toward Financial Freedom? If you haven’t yet started on your journey, which can you take action on today?
image credit: Bigstock/AndreyCherkasov
Dr. Tony is the co-founder of MindShift.money and the best-selling author of three books on personal and business finances. Having achieved Financial Freedom at 27, Dr. Tony believes that through Financially Fit Bootcamp and Cash Flow Cure everyone can get there. He has made it his life’s mission to help others live a life where their money works for them—not the other way around.