Are You Allocating Your Money to all 5 S.I.D.E.S.?

What S.I.D.E.S. of money are you favoring? In the second of three levels of our Money Focus program, we ask the question: “What sides of money do you use and which do you favor?”  We ask this so people can determine how they currently attend to what we call The 5 S.I.D.E.S. of Money©. Theses 5 S.I.D.E.S. are:

Saving

Investing

Donating

Earning

Spending

 

Most people find that the sides they use the most are spend and earn. A big drop off occurs before I see either saving or investing as the next sides people attend to with investing and saving last.

 

Where does donating fit? Surprisingly, it is not last. It comes before investing. The World Giving Index found, that as a percentage of population, the U.S. ranked ninth in 2014 among approximately 140 countries. This index found that about 68% of the U.S. population donates money. The Gallup Poll found that as of April 12, 2015, 55% of adults have money invested.   USA Today, in March of 2015, found that 66% of the population saves but 47% reporting that they only have enough to cover living expenses for 90 days or less.

That is important information which illustrates how fragile and tenuous people’s financial lives are.

How do you address money at home so these sides are attended to in ratios that sustain a healthy lifestyle? What S.I.D.E.S. do you attend to and in what percentages?

Research has found that many of the top earners have their money allocated to the 5 S.I.D.E.S but they don’t share healthy stories or teach their children or grandchildren about productive money habits. The next tier of earners, tend to allocate money to earning, investing, spending and donating, with only extra money, when it comes, allocated to saving. They don’t teach their children or grandchildren much about money either.

Below these thresholds, people skew their financial allocations towards spending, earning and donating only if there is extra. Saving is rarely attended to. This oversight can lead to lifestyle upheavals should a disability or loss of income occur.

When children are not exposed to all of these buckets early they tend to give them scant attention as adults. The cycle of poor financial habits is reinforced and passed on to another generation.  You can end this by mindfully allocating your money to each of the 5 S.I.D.E.S. of Money© deliberately, purposefully, and continually.

What S.I.D.E.S of Money© allocation do you exhibit and in what percentages? How is this compromising unforeseen financial challenge such as illness or loss of income?

Tell me how you allocate your finances to the 5 S.I.D.E.S. of Money© and what risks you are subjecting your financial wellbeing to.

 

I would love to hear from you.

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