Get On Top Of Things: Control Your Finances

It is either you controlling your finances or your finances controlling you, so find a way to be on top of your finances. It is somewhat difficult, this topic, money because you need to find it important, but you also need to learn how to be unattached to your finances. So this is our goal here, develop responsibility without fear.

Transcript

You live in a world where money influences almost all areas of your life.

This is a neutral statement.

It is just the way it is.

Now if the world is so heavily influenced by money,

Then it might be wise to truly understand money.

And I'm not talking about understanding how much you can spend.

I'm talking about understanding the concept of money and gaining a basic understanding of your financial system.

Because only with awareness can your relationship with money serve your life.

So today we're talking about money and how controlling your finances can serve you.

Our goal is to bring awareness to money without falling in love with or getting attached to it.

We want to become clear on what money means to you and how you can use it to your advantage.

Our goal is for you to control your finances and not your finances controlling you.

P.

T.

Barnum said,

Money is a terrible master but an excellent servant.

So let's make your money serve you.

First of all I would like to take a moment to check in on your relationship with an attitude towards money.

Do you have a healthy or unhealthy relationship with money currently?

Do you have an aversion towards money?

Or do you hate everyone with more money than you?

Or maybe you love money and dream of having endlessly more?

Or maybe you are already content with your money,

Act responsible and are neither averse nor overly attached to it.

I want you to check in with yourself because your mindset on money influences not only your financial stability but also your ability to develop as a human being.

The next point I want to make is that you will benefit from gaining a basic understanding of the financial systems that are in place in your country and also worldwide.

Gaining awareness of a system is the best tool to allow you to navigate within it.

If you don't understand your financial system you will feel insecure and you will be taken advantage of eventually.

So as much as you can try to understand your financial systems.

Now what do I actually mean by controlling your finances?

To break it down simply it means being completely aware and in control of your income,

Your assets,

Your liabilities and your spending.

If you have control and awareness of these four parts then you're very likely to be in control of your finances overall.

This is important not only because you can pay for your necessities like rent,

Food,

Transport.

Being in control also gives you a feeling of security and stability no matter how much money is in your bank account.

If you're not in control of your finances chances are likely you will have anxiety,

Anger or other emotional reactions towards money.

This frustration will then affect all other areas of your life and it will hold you back from growth and hold you back from experiencing happiness.

Now let's talk about making a plan and I'm not talking about a plan to become a millionaire but rather a plan to gain control.

Start by gaining awareness.

Gain awareness and control over your liabilities,

Your spending,

Your asset and your income.

What liabilities do you have?

Debt,

Mortgage,

Rent?

Then start bringing awareness to your spending.

What do you spend money on every week,

Every month?

Then become aware of how much money you make and what assets you have.

Assets are anything that holds value like a car,

A house,

Furniture,

Anything that holds monetary value.

Now once you're more aware of your liabilities,

Spending,

Assets and income you can start making a plan of what behavior you might want to change.

Do you want to increase your spending or increase your assets?

Do you want to decrease your liabilities or maybe your income?

What adjustments would serve you both in your immediate and distant future?

Make a plan and observe how changes could manifest practically.

Again I want to underline the importance of becoming more conscious.

Bringing more awareness to all areas of your finances will automatically make you go in the right direction by nature.

When something is conscious then the subconscious decision-making will slowly deteriorate because you cannot ignore making foolish decisions anymore.

Now another great effect of being in control of your finances is that you will be less likely to be manipulated by others.

There are a million people out there in this world ready to scam you and talk you into idiotic investments.

Being in control and aware of your money protects you from such people.

Now personally my favorite thing about being in control of money is that it can buy you time and time is the greatest asset of them all by far.

Money can buy you time in a lot of different ways.

You can pay someone to do something you are less skilled at.

You can also work fewer hours when in control of your finances.

There's plenty of time to be saved by controlling your money.

Next,

With control over money comes independence.

Having an awareness of your finances makes it unlikely that you're relying on other people to pay for your life.

Other people paying for your life is not fundamentally a bad thing but it is definitely a dependency.

So make yourself as independent as possible by controlling your finances.

And with the theme of dependency comes also the theme of financial support.

Being in control of your money means that you have the ability to temporarily support other people who are in need.

This is a great gift you can give to others,

Especially to your partner and family.

Next,

I want to mention that through financial awareness it is more likely you will be able to choose what you do with your life.

You're clear on what your abilities are worth and how and where you want to work.

You also understand exactly what new assets or new hobbies are within your reach.

Financial control will make you move towards realistic goals in your life and not let you dream of unreachable ones.

Now let us take a moment for some basic tips.

The first tip is to create assets as much as you can.

Creating assets means you're in possession of something that has value.

Ideally assets keep or increase their value over time but assets can also have a certain function and lose value over time.

Be aware of what assets you have and what assets you can create.

Even if it's just investing a hundred dollars into a startup,

You created an asset.

Don't underestimate the power this holds.

The next tip I want to give you is to create as little debt as possible.

Being in debt does not only mean that you're in the minus,

It also means that a sense of control is extremely hard to establish.

You will constantly have something in the back of your mind and it might hold you back from embracing money as a tool.

So money is an extraordinary tool that can serve your life when used correctly.

It is worth your time to raise your awareness of money and gain more control of it.

Now we have arrived at the practical part of today.

First of all I would like you to write down five thoughts you have about your relationship with money.

How do you feel about money?

What have you been taught to think about money growing up?

Investigate your relationship with finances.

Pause the course now,

Come back to it when you've written out your five points.

Next I would like you to write down what regular spendings you have that are not serving you.

You own a horse but hate riding.

You buy chewing gum but it gives you a stomachache.

You spend three dollars on a coffee that would cost thirty cents to make yourself.

Whatever it is,

Write down five spendings that don't serve you.

In another column write down five assets you want to create.

Would you like to buy a car,

Write a book or invest in a startup?

Write down five assets that would serve you and that you would enjoy owning.

Again pause the course now and come and write down five unnecessary spendings and five dream assets.

Over the next few days or during this week I would like you I would like to invite you to become aware of your relationship with money.

During your day pay attention to how money affects you in the bigger sense and the smaller sense.

How do you feel about earning it,

Talking about it and spending it?

Become conscious of how you feel about money.