Are You Financially Well? Your Mind Over Your Money!
What’s Up Beautiful People! Thanks for visiting DrxJoy Your Prescription For Total Wellness Blog!
We have an interesting post on some characteristics of being financially well. Practical advice you can use TODAY…before you read this make sure you take three deep breaths: Clear your mind….
INHALE……….EXHALE
INHALE……….EXHALE
INHALE……….EXHALE (How do your feel?) I feel great!
Let’s Get This Party Started with a question: Do you think a person that earns more money is in a better financial position than a person that earns less? Many would answer YES, but the correct answer is…..IT Depends….It depends because it’s not how much money YOU make BUT what You Do With Your Money and How Much You Keep! That’s a Fact!
Are You Financially Well? I hope so….A simple calculation will give You the answer…Ready….
Test: Are you Living Within or Below Your Means? Do the following calculations to determine your answer:
- a. Write down your ANNUAL gross revenue/salary from ALL streams of income at the top of the page (yep, I said ALL….I hope you are not putting ALL of your eggs in one basket with that one gig)
- b. Calculate 30% (your tax contribution) and subtract from your total gross revenue.
- c. You have 70% remaining…sounds good? Now, take another 20% and designate this as your savings! Yes, YOUR savings! You are going to SAVE SAVE SAVE first…Always pay yourself FIRST…remember this is about you!
- d. The remaining amount is for your EXPENSES.
????????? Are you able to cover ALL of your EXPENSES with the last number on the page? If so, great! Congratulations, You are Financially Well!
If not, that’s ok, YOU have some work to do and guess what, YOU can get started today! Here we go…this may be a sensitive subject but it warrants some attention when it comes to HOW you spend your money.
Are your friends making you overspend? Are you trying to keep up with the Joneses? Don’t act as though you have no idea about what you are reading here…. Be honest with yourself – Do you want what your friends or neighbors have: The multiple luxury vacations, larger home, new car, planning an excessively expensive wedding, or any other material possessions? Let me just say this and yes it is common sense: “Keeping Up with the Joneses can be very costly”. It is better to Stay In YOUR Own Lane and focus on your priorities! Be happy for your friends and more importantly, Gracious for Your situation, as “it” could always be worse.
A recent Harvard study conducted by Professor Nicholas Chritakis has shown that YOUR friends can affect all of YOUR habits including spending. His research shows that if YOU surround yourself with big spenders, YOU are more likely to spend, even though you know you shouldn’t. His research basically concludes – humans do not have the will power to control their lives. Do you really think this is the case? If so, we need to make a paradigm shift regarding spending habits.
Overspending Leads To Stress – Stress Prevents YOU From Achieving Total Wellness – Period End Of Story!
Some advice to help You Mind Your Money –
Live Below Your Means, Pay Yourself First – SAVE (there is that “S” word) 20% of Your Gross Revenue
Create a “Wish” list for the items that you want and SAVE small amounts towards those items
Set Your Priorities Needs vs Wants – Needs first then wants…
Set Clear Family Money Rules – For the parents out there, by saying NO and sticking to the family budget will teach your children about your family values and most importantly living below your means. I know this may be a challenge for some especially if/when your children will complain everyone else has “IT”…for sure you as a parent will hear this comment from your kids…check this out, to shut down the conversation, Explain your reasons, period, and DO Not Give In! Your children will eventually thank you later in life. My husband and I are proud parents of two grown sons and this has worked for us.
Cut back on your expenses – this is easy to accomplish especially if you pay CASH for all purchases…yes CASH…if you do not have the CASH to for “IT”, then DO NOT Buy “IT” until you do!
Find a FBF (Financial Best Friend) – If you have a friend that is great at saving, recruit them to be your FBF. The next time you feel the need to make a purchase, ask them to help you stick to your budget.
Focus on the “plenty” in YOUR Life! – Remember those in need. Give what you can to help – your time will certainly make a positive difference.
Take Charge of Your Finances – develop a plan to pay off debts, make a power payment on debts to reduce interest charges, and once that debt is cleared apply the payment amount to the next debt or SAVE IT!
Keeping up with the Joneses is dangerous and mentally unhealthy. I encourage you to Stay In Your Own Lane and Focus on Your Priorities!
Be Blessed, Stay Healthy!
See ya!
Dr. Joy
