Relationship with Money: Here is a new approach to new year’s financial resolutions. Yes, there is the classic “save more”, “spend less”, “pay down debt”. All important aspirations. But often times reality sets in. So instead of resolutions, here are 5 key personal finance questions to ask yourself. And here is the trick, you are just asking yourself so you can be honest.
Questions lead to answers which lead too…
Sometimes asking questions leads to answers. Even if there is no immediate answer, sometimes an answer comes with time, thought and meditation. This can be more powerful than just reading about what someone says you “should” do.
Winning is not a what it seems
Winning at the game of life and money is not always what it seems. Remember, money is first and foremost a tool and energy. We can use it to express our highest values, create a sense of security and to build new things.
Relationship with Money, Question 1: How would you feel if you managed money well?
I am not talking about some pie in the sky fantasy. I am talking about realistically having sound money management down solid. Here are some examples of what I am talking about:
- You have a basic budget that you stick to.
- You know where your money is coming from and going each month.
- You have automated systems in place that are getting you out of your own way to wealth building.
- You have a basic understanding of investing and the various investment vehicles.
- You understand your personal risk tolerance.
Relationship with Money, Question 2: Are you conscious spender?
Are you thoughtful when you spend money? Do you have a sense of your budget? Do you have a clear picture of needs vs. wants?
Relationship with Money, Question 3: Are you automated for success?
This is about getting our short term “monkey brain” out of the way of our long term success. We need automated systems to avoid being tempted by the current moment of spending and quick fixes.
Relationship with Money, Question 4: What money relationship did you see modeled as a child and growing up?
Have you given some thought to how you were raised in terms of money? Do you spend more now out of an experience of poverty? Do you save too much due to this?