Financial Literacy Is Illusive Until…

Success with money is highly correlated to what you want your money to do for you.

 

Think about it, until you know what you want your money to do for you, you are most likely to treat it casually: part with it impulsively, hoard it because you don’t know what else to do with it, overspend.

 

According to a survey conducted in 2013, Bankrate found, that across all income ranges:

76% of Americans are living paycheck to paycheck.

50% have less than a three month emergency fund

27% have no savings at all.

 

For many of us, it’s not because we can’t, it’s because we don’t. We have already prioritized other places for our money to go.  We spend our money before it even comes in.

 

And it’s easy to justify our behaviors, especially today in the subscription business model we bind ourselves to.  Smart phones, internet, Cloud, utilities, leases…we live on the monthly plan and we keep adding just one more subscription, one at a time, until it crushes us.

 

And we can’t seem to find a way to extricate ourselves from these. We’re too busy to clean so we hire house cleaners. We are too busy to cook so we order out or buy pre made offerings. We are too busy to ____________________so we______________________ (fill in your own blank) all in the name of making life easier while keeping ourselves tied to a lifestyle that owns us. We can’t let go.

 

What happened?

The further we are from what we really want our money to do for us the more we spend or hoard.

 

It’s time to specifically define what that seeming illusive financial standard means to our lives us, build a fence around that definition and follow it.

 

Let’s step aside and ask these two question: “Wait, what is it that I really want money to do for me?” Answer that clearly before moving on to the next question: “What am I willing to shift and sustain to get what I want and make that happen?”

 

Keep in mind that a business needs to make money. A big job of theirs is to convince you, somehow, to exchange your cash for their product. It’s easier to be seduced by this when you don’t know what you want your money to do for you.

 

Take hold of your life with your money by defining and following what want your money to do for you. That illusive sense of financial literacy will be yours.

 

Where is money a problem in your life? What first step can you take to getting control over this? Let me know your thoughts. I’d love to hear them.

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