#123 How to Money Management
Managing money is not something many of us are explicity taught how to do. We learn by observing what our parents do, what others do, and what society says we "should" do. We might get some direction instruction if we're lucky enough to have parents or people around us who are able to manage money well, and then teach us in a way that we understand.
For me, it was completely random, until I started on my own learning journey.
Following 10+ years of learning and experience, plus working with clients to help them manage their money better, here are what I believe are the 5 basics/fundamentals for money management (in order):
- Desire & Mindset - you need to want to learn how to manage your money better, and then have belief systems to support that (or at least be working on your money stories and beliefs to allow you to do something about your desire);
- Visibility - being able to see your money and know where your accounts are, what is going in and what is going out;
- Divide and Conquer - separately out your bank accounts - business and personal and then sub-accounts under each, to manage where your money needs to go;
- Every "dollar" has a purpose - regardless of what currency you are working with, each "dollar" needs to belong somewhere and have a purpose. If not, money will be spent on things you can't even name;
- Decide, Implement and stay Consistent - all of this is just theory unless you DO something. Take action. Decide what action, take the steps to implement it (i.e. set up your sub-accounts) and then consistently manage your money. Consistency can be your best friend when it comes to money.
Let me know if you have any questions!
