Our relationship with our finances will literally dictate the number of opportunities we have to explore our passions, our patience, and the true self that lives in all of us.
The way I see it we’re usually in one of three places:
#1. You have debt and you’re doing what you can to get out of it as quickly as possible.
#2. You are debt free and looking to make some moves or build financial security.
#3. You’re out of debt and you are thriving. You have extra money to take risks, to spend, to invest, to re invest.
Whichever of these three places that you are in, without the proper habits circumstances can change pretty quickly.
It’s not about where you are right now. It’s about where you’ve been, where you are now, and where you want to be in your relationship with money.
I like to study where I’ve been with my relationship with money. I found that when I was young I thought spending money would bring me a ton of pleasure but it never did. I realized around the age of 33 or so that doing what I love is so much more important than doing what I have to do in order to pay off my debts for things I don’t care that much about.
How much money is enough money for you? How much money do you need? Do you want to retire? What type of experiences would you like to have?
Whatever you wrote down to answer these questions, you’ll have to manage two simple factors when it comes to money: Money coming in and money going out. Whether it’s Mint or Quickbooks or a paper money tracker, track your income and track your expenses. It’s the only way to get a real look at what your relationship with money really looks like.