Posts Tagged ‘income’

How to Decide WHEN Regarding Setting Financial Goals?

In order for goals to be achieved they have to be able to be measured. When you set a fitness goal, for example, you wouldn’t say, “I want to be in better shape” because the term ‘better’ is subjective and not measurable. Instead you would say something like, “my goal is to weigh xx pounds, with xx percent body fat, and be able to run xx distance in xx time or less by xx date. When you fill in the ‘xx’s’ you have something concrete and measurable to work towards and a way of keeping score. If by the date you set, those specific targets have been met, then you will have reached your goal to be in better shape. This works because you determine what the ‘rules of the game’ are and how the game is won. This means that you will also be the one who will keep score during the time between setting the goal and the date you determine the game to be over.

Once you fill in any one of the measurable results that will ultimately determine whether you have reached your initial subjective goal of being in better shape, you start creating the foundation which will help you build towards the realization of your goal. Your initial idea starts to take shape as you get more specific on what the concept of ‘getting into shape’ actually looks like.

This is exactly what happens with money. The initial idea for most people is that they want to be able to live a life unencumbered by money. They don’t want to be inhibited in any way because of a lack of money to follow through on their desires. In actual fact, what they’re saying is that they don’t want to be limited in any way because of a ‘perceived’ lack of money. I say ‘perceived’ because until you know exactly how much money you’re looking for and when you require it by, the overall concept of more money starts will continue as a subjective idea.

Typically what people are after with this subjective concept of ‘more money’ is a sense of financial freedom. Financial freedom will be very different for everyone though. This is why it’s so important to start determining in dollars and cents what the criteria are for measuring what financial freedom is for you. My dollar figure will be different than your dollar figure because we have different values, beliefs, goals, and life circumstances. The strategy of measuring the different aspects of your goal is the same for everyone because this is how you determine what the rules of your game and how you play the game (the activities and income creating strategies you’ll apply), ultimately how you keep score and whether you win or keep playing.

In finance, the ultimate goal is financial independence, not just financial freedom. Financial freedom can actually be experienced at any time regardless of your financial circumstances because it’s essentially a state of mind. Financial independence, on the other hand, is specific and measurable because it’s the situation where your passive income exceeds the amount of your monthly expenses.

Passive income is of course, different than active income. With active income you are using your time in order to generate income to support your lifestyle. As you plan and implement your financial plans your objective in ‘playing the financial game’ is to use your active income to create assets which create passive income which enable you to create more assets which create more passive income etc. Passive income with eventually be generated from your assets in an amount that exceeds your lifestyle expenses.

This means that you have to know what your monthly expenses will be when you’re not actively earning income. The concept means you start by understanding exactly how much money you’re going to spend each month. This is not a subjective concept about living a sort of ‘magazine; lifestyle. How much exactly will it take for you to live whatever income you truly see living for yourself. In order to establish this you’ll have to do some research and develop some skills in order to be able to take a capital expense (a purchase such as a house or furnishings or car or clothing, etc) and turn it into a monthly income figure. When you do this you are now thinking financially, rather than subjectively or with simple math.

Financial math includes the factor of time. Simple math on the other hand, is not as dynamic and tends to involve only basic formulas for addition, subtraction, multiplication and division and percentages. The missing component necessary to take you subjective idea and be able to turn it into something that is measurable and manageable is time. This means that if you are starting today and you have defined the monthly passive income objective specifically, then you have to know ‘when’ you plan to have that income in order to discover and implement appropriate activities necessary to ‘win the game’.

In fitness sometimes there are calendar dates which assist in setting goals. Often these are personal such as birthdays, anniversaries, or special events. In fitness, if you plan to attend an organized event then dates are pre-determined. You just have to make sure you allow a reasonable amount of time for training. Without a specific date you might still get in better shape, but your activities are less likely to be as focused so reaching your target can happen whenever.

Because setting goals creates a gap between where you are and where you want be, this is why people find it easier to simply talk about goals from a subjective perspective if at all. Then if they do start to test the waters of goal setting they are cautious to make sure that what they’re doing is ‘realistic’. What this means is they’re afraid of being disappointed so they attempt to reduce the size of the goal to make it seem more likely. This can be a good strategy, however, it can also be limiting.

In my experience, the concept of setting a dollar goal is significant enough to cause stress enough that people don’t bother following through, so the idea of putting a date on their goal which provides the key to the overall strategy and therefore overall success is simply ignored or treated with the same subjective manner as the initial concept of ‘more money’ and ‘financial freedom’.
So how do you determine an appropriate date for the realization of your financial goals? The ‘easy way’ and ‘quick fix’ with a lump sum of money isn’t the answer since you’re looking for measurable activities you can do in order to create assets which create income – not windfalls. If along the way you happen to receive a windfall then consider it a bonus point. Your primary focus is to us your skills and expertise and all your resources in order to create passive income in an amount necessary to pay for your personal lifestyle expenses.

The following are some specific questions you can ask yourself to help you determine when your ideal monthly passive income budget will be reached:

1. Are there any life events that make a transition in your life such as getting married, having kids, kid graduating from school, turning 30, 40, 50, 60, 70, etc…

2. Are there any significant priorities or causes that need your time that you’re not able to devote the time you’d like to today because of financial constraints? How important are these issues to you? It’s one thing to say that something is really important to you and another thing entirely to be confident enough to follow through with the necessary activities. How much time on a daily, weekly, or monthly basis do you have to commit to implementing a strategy to create passive income for yourself without it interfering with your current priorities?

3. Is there anything in your life today that could create an obstacle to change that has to be dealt with first? Examples could be work or family commitments that have to be streamlined in order for you to have some more time and energy before being able to invest a significant amount of time into developing anything new. If there is then when will you be able to make the change to create the time and space to develop new projects and systems? Or, what has to happen before you will be able to dedicate any significant time towards anything new?

4. Are these ‘real obstacles’ or are they feelings of obligation or something you would feel guilty if you didn’t do?

5. Is there some amount of time in your schedule that you could devote to something different, but you’re hesitant because you’re afraid of not following through even with a little bit of energy directed towards change?

6. If you knew for certain that your income plans would succeed exactly as expected, and all you had to do was come up with the plan, then what date would you set for your goal to be realized?

7. Can your plans be multiplied? For example, if you would like to achieve the $5000 in passive monthly income in 2 years instead of 10, then could you identify an income producing project that provided you with the initial $100 then duplicate then seek to duplicate that effort through multiplication? For example, If you were able to set up a system to create recurring orders for a product you were marketing, could you do this for 5 products within that year? Or, what if you developed a strategy to invest in positive cash flow producing real estate and each property provided you with $100 per month in positive cash flow. If you wanted to accelerate your results, then your question would be, ‘how can you duplicate your effort’? The simple answer to the real estate example could be to purchase multi-unit buildings.

There are certainly other possibilities, the point is that it is the combination of all these personal things that come together to determine your plan: values, priorities, causes, desires, interests, money goal and TIME to fund your desired lifestyle. The plan and activities to bring it into reality is developed based on all these criteria.

The significant information that you need first is what your monthly income target is and what is the date you intend to have accomplished your goal? These 2 pieces of information are required before you can select the activities, not the other way around. Sorry, it just isn’t as effective. Our job is to do what we can with our goals set in stone and the plans in sand. This way, quite honestly, you have set up a foundation to connect God, money and real life so God can do what you can’t. It all just takes a shift in thinking, and certainly requires a commitment, to follow through regardless of delays, disappointments and uncertainties. But ultimately it’s your life. If you’re not willing to commit to following through, then that’s ok: just make sure you recognize that you’re playing a different game and don’t ‘try’ to win a game you’re not prepared to fully play. You don’t have to have all the specific plans mapped out as long as you know how the game is won; in finance that means the time and the money. The rest will fall into place as you pursue the activities taking you in that direction.

PS – There is also an expanded version of this article in the MoneyMinding mVillage online resource.  You can access this resource by registering for access to mVillage here.

(c) 2013 Tracy Piercy, CFP.  If you like this information and are interested in reprint information for your business please call me at 250-592-0457 (pacific)

What can you do with $10 in 10 days?

Greetings,

What can you do with $10 in 10 days? I just discovered I can write an entire book. A 52,000 word manuscript was started last Thursday and delivered today as a submission for a publishing contest with www.wordalivepress.ca . If you want to find out how you can start with $10 to create an infrastructure for ongoing and sustainable income then let me ask you what you’re doing for the next 3 months?

If you’d like to find out what and how you can create immediate and ongoing income within the context of a solid financial foundation for yourself over the next 3 months then let me invite you to join me starting the first week of July for the first ever Power Money Course.

In the last 3 months I’ve set up a website and ecommerce platform and have started working with 10 Project M Leaders and Participants on the development of their income projects and on the development of Project M to reach a wider audience. What would you like to establish for yourself as a foundation for creating income?

I’m getting ready to launch the first ever Power Money program to run this summer. In the 3 months from July to September I’ll share all the specific information, strategies and plans for you to develop your own income plans starting with $10.

The Power Money course covers the entire Project M blueprint. Project M is the year long program to start with $10 and double it each month so that over the year your income target is over $40,000. The course provides training on:
· Developing a wealthy mindset,
· Implementing solid money management skills, and
· Creating sustainable income.

Here’s how you can get involved:
1. Take the Power Money Course. The first session is 50% off what it will be this . The program starts the first week of July so don’t wait! All the sessions are recorded so you won’t miss anything if you’ve already got summer vacations planned AND you’ll have everything you need to implement your own Project M blueprint. Plus, you’ll get personal attention from myself and the Project M Leader Apprentices! An amazing value!

For this introductory program the group size will be limited so it will be just right for support as well as masterminding and networking with other like-minded people.

Information and registration for Power Money here.

2. Join me and the other special group of Project M Leader Apprentices and Participants to fully implement a Project M into your own life this year! If you’re a financial professional, life or business coach who works with people and their money, being able to integrate the Project M and Power Money courses into your practice will give you a unique program to offer your clients!

I have room for 2 people only for this one time only opportunity. One time only, because as you can tell Project M and the various components are being developed for distribution on a larger scale. Participants and Leader Apprentices are invited to share in the rewards from the development on an ongoing basis. This program is unique, it’s powerful, it’s not theory, and it’s not linked to any specific investments or businesses. AND until July 1st ONLY 2 more people have the opportunity to participate in the development and have the additional opportunity to earn ongoing royalties for their participation!

Email or call me directly about this special opportunity – just don’t wait because its summer! We can work around summer holiday’s and busy schedules, July 1st is the last opportunity to participate in ongoing potential royalties from development though!

3. Help Support the MoneyMinding Foundaton and Increasing Financial Capacity by becoming a $10 member. When you do, you get access to mVillage which give you among other things, The Death by Money Report introducing the concepts and this powerful blueprint for creating income for today and tomorrow, all within the context of a solid financial foundation.

Information and registration for mVillage here.

Blessings,
Tracy

PS – There is so much to share in the weeks ahead. If you follow me on social media you’ll be first to know and have early bird opportunities for and upcoming contest and new program!!

How to Create Unlimited Income Starting with $10

This FREE Webinar was / is available now through The MoneyMinding Foundation.  There was a huge response which really isn’t a huge surprise given the message so incase you missed it – you can access the recording here.  Below is the information on the event that I promise is packed with information and isn’t just a gimmick to get you sign up for some investment or business strategy.

____________________________________________________________

Waaaayyy too many people don’t even take the first step because they simply don’t believe. They don’t have faith. They just can’t see how it’s even possible, so they immediately dismiss the whole idea as a scam, or deceitful tact attempting to then swoop in with some sort ‘get rich quick’ scheme. They say things like, ‘what’s the catch?’ and assume there must be a product or business strategy going to be pitched.

UUGGHH! Yes, there is wayyy too much of that and for too many years people have got their hopes up only to be disappointed so now they’re jaded. Honestly, this is Tracy speaking from her heart here, “I have been so badly burned and disappointed myself over the years, that the saddest part of what I do is to listen to the naysayers who are looking for something different and are just too tired, stressed, or beat up to keep looking.

Unlimited Income is a FREE webinar. I promise you it won’t try to sneak anything funny into the process. This program is designed to give you an introduction to the question that everyone wants to have answered, “how can I do that?”. It’s your perfect opportunity to find out more about the paradigm shift that MoneyMinding presents in personal finance, AND, what that means to you – today.

My intention is to provide valuable information that you can act on immediately if you want. I’d also like to invite you take further steps in your new money journey and this event will help you figure out where and how to begin.

Click here for dates, times, and / or recordings to register!

Looking forward to sharing the ‘how’ with you!!

Thinking and Doing

Have you ever started a project then found out you were missing a key piece of information, a required tool, or important ingredient? Typically when you set out to build something you organize your plans, set aside the time, gather your materials and with eager anticipation you begin. I’m sure we’ve all experienced that sinking feeling when you reach for something you’re sure you have, or that you know was working a minute ago – and – at the moment you’re ready to move forward – nothing. It won’t start, it’s missing, it just can’t be found.

Financially, this situation can occur in many ways, often when you’re looking for a receipt to return something to the store or at tax time. It might also show up when you’re sure you transferred money, paid a bill or sent a notice to change something in your financial portfolio, and based on your belief that that transaction had been completed, you set out to do something else only to discover that there wasn’t sufficient funds, or the bill didn’t get paid and you were charged fees, or your transaction wasn’t completed.

Whatever the situation is, the result is lost time, lost money, lost opportunity and stress. Unfortunately, these situations occur regularly and because our lives are bombarded with increasing amounts of information and ‘to do’s’ the day-to-day stress of handling even basic financial transactions can leave you overwhelmed, exhausted and intimidated to take on anything different.

Think about it: finding someone to talk to, making an appointment, completing the paperwork, filing the paperwork, getting set up to access, monitor and track the new account, strategy, or system, making sure there is proper paper and electronic bookkeeping for tax purposes, passwords, yearly accounting, perhaps record keeping for estate purposes, plus ongoing marketing information that comes in the statements and by email, and making sure you have proper security because it seems that someone, somehow will find a way to try to defraud you of your identity and your money. All this and that doesn’t include the overwhelming volume of choices to make in the first place

Let me tell you a story before you jump to conclusions that this message is just going to be another one of those pieces of information strategically designed to add to your stress, or full of empty promises.

A few weeks ago the newly launched MoneyMinding Foundation finally has its online programs ready to go live. Maybe you were one of the people who got excited about our mVillage and Project M home study program. Well, it turns out we (and about a dozen other companies) fell through a ‘corporate crack’ with 2 of the companies who were key ‘ingredients’ to our launch suddenly not supporting each other. We are a start up non-profit so didn’t have a lot of options except to find other solutions. Unfortunately those solutions don’t happen over night. This means our program launch has been more or less ‘on hold’ while we respond to your questions by email and phone and set up new systems.

All this is an important principle that has been put into practice during these past few weeks. That principle involves both thinking and doing. Actually, it’s more accurate to say it involves ‘not thinking’, and doing because of the significant connection between our thoughts and our actions which ultimately determine our outcome. This is likely not new information for anyone reading today, but perhaps the concept of ‘not thinking’ might be.

Our situation occurred after plans and strategies and resources were put in place and tested. This is different, than jumping out of the gate before preparing. Sometimes moving forward happens before all the specific plans and strategies are in place and that is part of the overall plan. Sometimes certain pieces are required and you will put a lot of time and energy and money into getting them ready before you move forward. Having a plan and rolling it out, to come up against an unexpected ‘curve ball’ is one thing. Not having a plan or strategy and jumping ahead and running into unexpected challenges is another thing. The latter situation will likely require you to go back to planning and strategizing. The former requires faith, patience and perseverance.

When you’re hit with a ‘curve ball’ in your plans, especially when you’re already cramming a lot of activity into a short period of time and you have expectations for a certain result to happen a certain way, at a certain time, your stress response is triggered by your thoughts being upset at the unexpected ‘problem’ that has to be resolved. The natural instinct is to immediately turn our thoughts towards finding a solution. When this happens it creates a distraction from all the enthusiasm, peace, hope, and enjoyment that the original plan or activity held.

This diversion away from the excitement will unfortunately create a pattern of thought that determines a pattern of behaviour and ultimately the results we experience. The original positive experience has now been turned into a problem solving process where we are taken out of the good while you work to regain control of the situation. The problem with problem solving like this is that ultimately you are constantly thinking while under stress which means that the solutions you come up with will be influenced by your need to remove the stress and regain control, not necessarily to achieve the original outcome.

Back to my story: our situation had obvious financial consequences in terms of time and money. The immediate response is to ‘solve the problem fast’. However, that thought process led to a full array of possibilities each with a variety of consequences and outcomes. This in turn led to overwhelm, which led to a state best described as analysis paralysis. I’m sure you know what I mean: too many options, not enough time, big consequences of making a “wrong” choice.

The answer ultimately is to STOP, breathe, pray, write, and wait, yet keep moving. The ultimate solution is to do what you can, when you can, with what you can – essentially to stop thinking, yet keep doing. Because the process of pushing through and searching endlessly for a ‘quick fix’ to get you back on track to get the results means you’re reinforcing thought patterns that ultimately are not conducive to experiencing those results we’re all looking for – financial or otherwise.

With all this actually still going on in the life of The MoneyMinding Foundation, I thought it valuable to share the situation with you. This is a real life situation that will show up in one way or another for all of us that can easily send us into a downward spiral of stress and keep us stuck if we don’t STOP the cycle of trying to control all the circumstances instead of staying calm and staying the course.

Producing Abundance Despite Apparent Lack

47 During the seven plentiful years the earth produced abundantly, 48 and he gathered up all the food of these seven years, which occurred in the land of Egypt, and put the food in the cities. He put in every city the food from the fields around it. 49 And Joseph stored up grain in great abundance, like the sand of the sea, until he ceased to measure it, for it could not be measured.

53 The seven years of plenty that occurred in the land of Egypt came to an end, 54 and the seven years of famine began to come, as Joseph had said. There was famine in all lands, but in all the land of Egypt there was bread. 55 When all the land of Egypt was famished, the people cried to Pharaoh for bread. Pharaoh said to all the Egyptians, “Go to Joseph. What he says to you, do.”

56 So when the famine had spread over all the land, Joseph opened all the storehouses and sold to the Egyptians, for the famine was severe in the land of Egypt.57 Moreover, all the earth came to Egypt to Joseph to buy grain, because the famine was severe over all the earth.  Genesis 41:47-49,53-57

The story of Joseph has been told so many times and offers so many lessons that sometimes it’s easy to think we know the story and that’s that.  However, when you stop learning you become complacent and ineffective and self-centred – not exactly qualities of following God’s will.

A couple of years ago I was asking the Lord for some insight to why the commonly accepted financial wisdom was to accumulate money for the future (not that this is bad, it’s the emphasis on it for retirement that is perplexing)  He lead me to the story of Joseph and revealed some interesting principles that address so many financial issues that cause uncertainty for people today.

Typically the interpretation of what Joseph put in place in Egypt after interpreting Pharoph’s dream of 7 years of prosperity followed by 7 years of famine is that the Egyptians saved up the food during the good years so they wouldn’t starve to death during the famine.  It’s interesting to note that the passage doesn’t mention any fear running out or not having enough, nor does it mention storing the food just for the Egyptians.

What the passage actually says is that the Egyptians produced the food from the land and it was collected and stored in the cities throughout the country.  When the famine came, the Egyptians sold the food locally and to people who came from abroad.  Producing the food from the land, meant they processed it in some way and selling it meant they created income from their efforts.  In this way, what they created was a sustainable economy.

It seems to me that God provided fruitful land from which the Egyptians could work together at the local level to use their talents to produce goods that benefited them and others.  Because the produced food was available in cities throughout the country they had a distribution network so the produce was accessible to and beneficial to many people.

Today to produce abundance means despite an apparent lack or gap I resources, means you have to first focus on the prosperity that you do have available, then find a way to produce something of value to others; particularly something that is essential and consumable.  Then work with others to create a system to sell your goods.  This is the entrepreneurial spirit of infinite possibilities that creates abundance, rather than stockpiling for personal survival with a concern that you might not have enough or might run out.  Your plan doesn’t have to be huge with a worldwide audience, it just has to start with a mindset of creating a sustainable income in your personal economy by considering the needs of others as well as yourself.

You can read more about the consequences of our current thinking around personal finance following the accumulation model in The Death by Money Report available at www.deathbymoney.com

Debt Won’t Sabotage Your Retirement (and our economy), but how you view it will.

In the past few days I’ve received a few related articles on the impact of debt on retirement and the stress it causes.  Here are a couple of the recent ones:  Majority of Retirees Carry Debt and Boomers will Retire in Debt.

Before I carry on though, it’s important that you understand that this discussion is not to be interpreted as advocating reckless spending.  I have to begin with this disclaimer because money and debt have such strong connections to negative emotions that it’s critical to pre-empt any mention of anything slightly unconventional with the caveat that there are proper strategies for all of this and that money isn’t something that most adults received a foundation of knowledge in.  Dealing with financial matters requires good communication with financial professionals, but professionals are not money counsellors, or teachers, and most of this isn’t part of the standard financial curriculum in any case. You need to do your part in understanding your options and work with professionals to implement the plans!

What is so upsetting about this emphasis on debt reduction in favour of asset accumulation is the seemingly absent recognition that consumer spending and consumer confidence fuel our economy.  The continuous emphasis on ‘get out of debt’ so you can save a big pot of gold so then you’ll have more money to spend is only a half truth.

We actually don’t need savings – we need an ongoing source of income to provide for our basic lifestyle needs and other opportunities and emergencies that come up along the way.  The fuel for spending is income.  Income can be generated in many ways, yet the conventionally accepted view is that income is a more or less static variable in the financial planning process and that providing for financial needs after work will come from selling off assets (the accumulated pot of gold).

I am not aware of anything more stressful and unsettling than to life day in and day out with a nagging voice of doubt that maybe you shouldn’t be spending money on this or that because you have to get rid of the debt and add to your savings.

This commonly accepted view not only creates uncertainty, it also creates an environment where the scarcity mentality it feeds is prone to inappropriate financial decisions, bad investmenst, and isn’t generous towards others and social causes.

The lessons we’re teaching our young people who are watching their ‘retiring parents’ is that its perhaps better to not even ‘try’ to do something significant because the cost to get there is going to be too high and they ‘won’t be able to afford it’.  (check out the CBC report on ‘Olympic Dreams and Olympic Debt’).  Instead of pursuing worthwhile dreams, many people simply resort to a life of silent bitterness or resentment where they slowly become more and more self-centred and fearful of running out of money and not being able to support themselves.

This self-centredness becomes a distraction for a whole range of social issues because people go looking for an outlet – hmm, look at how sex has become so commonly accepted in mainstream media.  People look for a way to manifest their desires somehow. Unfortunately, we are fed a constant stream of enticing images and messages about how to fuel some sort of desire we might have forgotten about or not realized we had with some kind of material good.  Of course, the fulfilment of desires through possessions has an economic advantage to the business selling the goods and on some level will fulfil needs and desires of the person purchasing so there is certainly some benefit to the marketing information – until, however, the reality sets in and guilt and fear occupy thoughts with no end in sight other than further denial.  It’s a cycle that isn’t good for the individual, for the family, for our communities and for our entire economy.

So what’s the answer if it’s not go ‘cut back spending, to get out of debt, and to save a bigger pot of gold for the fairyland called retirement’? 

The answer actually isn’t rocket science but seems to be a huge struggle for many people because they have grown up in this culture of self-centred financial support which focuses on getting a good education so you can get a good job, then learn to manage your money on your own once you’ve got the job.

It seems that conventional teaching has completely left out the fuel for the entire plan which is the creation of income.   There are many many ways to create sustainable incomes besides a job or two or three.  It doesn’t take a big pot of gold for you to be able to retire and create more income from your investments, it takes independent thinking that knows the difference between earning less than you spend, and spending less than you earn.  It also takes financial confidence to know how to maximize the effectiveness of your finances so you are ‘leveraging’ all your assets including access to credit, to create sustainable income that creates wealth that creates further income and so and so on.

We have to realize that getting out of debt by cutting back spending will actually reduce our freedoms, lower our standard of living and NOT provide the peace of mind or independent thinking that will assist in creating the extra funds for the additional spending money you’re looking for to satisfy your personal interests, desires and higher causes.

Remember, I didn’t say to continue to spend recklessly and to hold on to high interest non-deductible debt or to just spend on selfish desires.  I’m saying that the way to win the war on debt and to create financial independence that will enable you to choose to leave work if you want (ie enable you to retire) is to learn how to earn sustainable income, to manage that income and all your other financial resources effectively (not just by looking at interest rates and rates of returns), so you can maintain your personal economy, while also helping others and ultimately our entire society!

To find out more about how a $10 solution can save your financial life, visit www.deathbymoney.com to order The Death by Money Report.  To Read my specific responses to these and other similar media articles become an mVillage member to read and respond and comment on this important issue.  To find out about live, personal and one-on-one MoneyMinding Mentoring please contact me directly at tracy@moneyminding.com to see if this exciting new concept is right for you!

 

Why Getting Out of Debt Can Sabotage Your Financial Success

Contrary to conventional wisdom, financial freedom doesn’t happen when you have no debt.  In fact, the road to debt freedom and the process of maintaining it will actually halt your progress.  That’s not to say that you should run out and rack up your credit cards and abandon your debt – that’s just irresponsible.  It’s to say that the missing key to financial success; to reducing financial uncertainty; to experiencing financial peace – doesn’t happen when you have no debt.

When you have access to credit you have access to an incredibly powerful wealth building tool.  If you use it incorrectly, you don’t get the results you’re looking for.  When you appreciate it for what it can do, and you take the time to know how to use it effectively, you can experience its full potential in ways you didn’t previously know existed or were too fearful to act on.

The problem is that this powerful tool called credit has been provided easily without adequate instructions.  Sure, there are the basic operations such as how to make purchases and payments, and what the interest charges are and the consequences of not making payments.  These are the just the basics.  Unfortunately because the more advanced operational instructions haven’t been taught, or have been misused, we have millions of people using the tool who don’t even know that they don’t know that there are better ways of using what they already have.

Think about it. Do wealthy billionaire tycoons like Donald Trump make financial decisions about how to pay off the mortgages on their skyscrapers?  Not likely.  They have learned to use credit to acquire an asset that creates income which pays for the expenses of the building as well as the credit that was used to make the purchase in the first place.

The bigger problem we have with this focus on getting out of debt is that far too many people have been given access to credit and have used it to acquire the lifestyle they want, rather than using it to earn that lifestyle.  They know how to work for a living and how to access credit, but then they listen to scarcity minded teachers who haven’t fully grasped the concept of how our economy operates.  For some strange reason, many people seem to think that by taking money out of the economy by stopping spending so they can get rid of debt that they have been told is ‘bad’ that somehow they’re going to be able to live happily ever after.  This is partly because they haven’t received the proper instructions on how to maximize the tool they have in the form of credit but also because they have lost the ability to understand how to create income.

Haven’t we heard from some great success teachers about the concept of ‘what you focus on expands’?  If you focus on what you don’t want then aren’t you really telling yourself that you’re not worthy of the desires you have been acquiring with this tool called credit?  Does negative reinforcement really inspire confidence to learn and to develop new skills?  Does cutting back and denying your interests ultimately help you learn how much money you really want to earn so you can live the lifestyle you really want to live?  There is a balance that happens naturally when you are committed to your vision.

When you focus on getting out of debt you are actually reinforcing lack, scarcity, fear and unworthiness.  Sure, some non-deductible debt with high interest rates is better gone – but the way to get rid of it is to focus on creating income. You have to find ways to earn the lifestyle you desire, rather than acquiring it with plastic cards.  And when you can master that skill, the income will be sufficient to look after the debt and your desires, and then we can all live happily ever after!

Visit www.deathbymoney.com to find out more about how to practically apply this concept in real-life.