How are we going to achieve life balance in money and personal finances? [mini-course: part 3]

How are we going to achieve life balance in money and personal finances?

Part 3

In the Life Enrichment Matrix© we attempt to create awareness of the importance of balancing our life as we pursue financial resources in the financial and career fitness dimension.

Balance in Money & Personal Finances

Previously we investigated the balance of finances, work and career dimension, and the responsibility and accountability within our lives. Following this, in episode 3 of achieving Life Balance, we contemplate ‘money’ - the most controversial-, most contentious-, taboo subject that brings about the most anxiety, tension and stress in people’s lives, but the word that people have come to love more than life.

Money and finances can result in much turmoil and conflict in families. The attitude with what people pursue money and at whatever cost it will take is what could bring on an imbalance in their lives. No wonder it has been referred to as the root of all evil!

Society has created a “status” which is embedded within the amount of money people have, and this has resulted in people assessing their self-worth, from the basis of the amount of wealth and money they possess. Robert Kiyosaki suggested “Money is a great barometer of people’s integrity. Money often reveals who we really are!” However wisdom and counsel is worth more than money!

Many people are searching for efficient ways to work with their money. Other than Robert Morris’s “The Principle of First” that gives insight to how to manage your money generously (refer https://gatewaypeople.com/series/the-blessed-life?sermon=the-principle-of-first-2020), I would like to touch lightly on Craig Hill’s powerful book wherein he shares a few secrets to wealth.

The 5 wealth secrets of dealing with your money:-

1. Segregate your money into categories or jars, and intentionally prioritize these jars.

96% of people focus on what they earn, while 4% focus on how they use what they earn.

- Jar 1: Tithing (10% of your income).

- Jar 2: Offerings.

- Jar 3: Savings.

- Jar 4: Investing (in multiplication).

- Jar 5: Spending.

Note:

Human nature dictates that we will spend 100% of whatever is in our "spending" jar.

2. Focus on vision, not on the provision.

Focus your life on fulfilling a calling and vision. To accomplish any purpose, you can either use vision or use money. Discover your purpose and calling, and choose your career or profession according to your calling not according to money. Then pursue your calling and vision with all your heart and expect provision to naturally follow the vision.

3. Part 1 - Invest in multiplication.

Invest your resources only in things that multiply. Never borrow money to purchase a depreciating asset or to invest in something that doesn't increase the value of the asset or cash flow significantly more than the cost of the interest you must pay to borrow the money. Live a lifestyle of meekness, and walk with margins in the significant areas of your life.

A meek person is one who has great power or resources but voluntarily limits oneself to use only a percentage of that resource or power. Take care of who is the "master" in your financial life.

Part 2 - Invest in Multipliers.

Invest your time and energy in people who multiply. In people who are faithful and are multipliers. Judge these candidates by their actions, not by their words or good intentions. The desire and ability to multiply are qualities of leadership. Do not invest time, money, or energy in those who fail the qualification tests or do not respond to the opportunity given.

4. The economy flows in cycles - therefore anticipate and prepare for each new phase in the cycle.

The economy is cyclical and not linear. Learn how to prosper equally when the economy is contracting as you do when the economy is expanding. You need to prosper equally in times of economic expansion, recession or even depression.

5. Prepare and leave an inheritance for at least two subsequent generations.

Plan to leave an inheritance to your children's children.

Design and implement a strategy to ensure that neither your grandchildren nor any future generations in your family will ever need to borrow money from a bank and pay interest for a house.

With recognition to Craig Hill (Family Foundations International (Colorado) ©2012.

Monetary behaviour and children

Many of our money habits are shaped in our childhood, we often adopt how our parents worked and treated money. Therefore it is presumed that our environments and the modelling of our parental behaviour could influence our monetary behaviour. If one of your parents spends money unrealistically by making debt to provide and give in excessive kindness to children, for example, birthday gifts or other luxury items and needs that the family had such as medicine or clothing, the supposition could be that you too will follow the lead.

Much impulsive and compulsive buying could be ascribed to individuals making up for what they did not have as children. If you had a cautious parent, who saved and applied the family finances diligently and with wisdom, you could follow that lead too, but caution should be exercised on perhaps reflecting an adverse behaviour to spending money and adopting a lack of generosity.

As can be seen, the intricacy of dealing with money in the household is complex and sensitive.

We model our parent's behaviour and adopt their qualities and mistakes with learnt behaviour, therefore we should practice due diligence as we set examples for children, since they are our legacy and will carry over this pattern to their children, and their children’s children.

Money and self-worth

The notion where people rather concentrate their time and priorities in the workplace, instead of balancing it throughout the whole of their life (The Life Enrichment Matrix©), often occurs because individuals attempt to compensate for other areas of their life that lack significance and meaning to them, such as an exaggerated pursuit to make money. As mentioned earlier some people relate their financial worth (the amount of money and wealth they have and make) to their self-worth. Self-esteem is built on the foundation of self-worth, and having a lot of money is not going to secure grounded good self-esteem. It may give you a fleeting moment of happiness, but the superficiality thereof could kill you inside. We must have a good strong sense of self-worth, wherein we diligently exercise self-love. Loving yourself encompasses acceptance of your strengths and weaknesses, and also practicing self-kindness; self-compassion (being gentle with yourself); self-care (taking care of your needs); and allowing love into your life.

Considering that money and fleeting happiness is but momentary and not a fixed assurance of worth, knowing who you are and that you are of much value, you are lovable, necessary to this life, and of incomprehensible worth - is much more concrete, substantial and based on foundational truth. A good self-worth guarantees fulfillment, money is but fleeting happiness. The value of self-acceptance far surpasses perishable wealth and riches!

Attaining a balanced outlook on money and how it is defined in our lives, will contribute to living a balanced life. Treating money with respect and cultivating good attitudes around money and the position it has in our lives can bring about creating good relationships with the notion of money and family.

We have a sole responsibility to pursue further improvement in our education, careers and work. We develop skills, ability and competence between the ages of 6 and 12 years, in our psychosocial stage of Industry vs. Inferiority according to Erikson (1968; 1994). Therein we learn Industry or develop the crisis of Inferiority, in the pursuit to attain the virtue of Competence.

Other than the negative attributes of money mentioned earlier, we cannot live without it and we do reap many benefits from it:

· Money sustains our life – daily living

· It fulfills basic needs

· Money creates opportunities and possibilities in the world

· It allows education

· Money leaves heritage for the next generations

Concerning your finances, it is crucial to live within your means and not overextend. Focus on working with your money responsibly and through wisdom. This responsibility is ours to work and provide for ourselves and our families:

· Responsibility towards money in our attitudes

· Responsibility working fόr money and being productive

· Responsibility to provide money for our self and our family

But ultimately the responsibility to ourselves, how we attain our money with integrity and how we spend it with responsibility. Our attitude towards money will shape that of generations going forward.

A most responsible principle is Suze Orman’s quotation wherein she maintains that if you look after your cents, you will look after your rands! She furthermore advises on eight qualities that can create a life of wealth, however practicing balance in your life remains crucial - by standing on your two feet ensures you are immovable, should one be imbalanced you can easily fall over.

Suze Orman’s Eight qualities that can create a life of wealth:

1 – Harmony – be in harmony with your thoughts, feelings & actions - they create or destroy.

2 – Balance – stand with both feet on the ground so that you are balanced in work, family, etc.

3 – Courage – to be yourself & stand up for what is right rather than what is easy.

4 – Generosity – not referring to just gifting others - but also yourself by not incurring unnecessary debt.

5 – Happiness - When you are happy – you have energy! When you have energy – you have power!

6 – Cleanliness - Wealth cannot dwell in filth! It’s essential to have order & live a clean life both inside & out.

7 – Beauty - When people see you they must see something radiate from you - that they would like to possess.

8 – Wisdom - When exercising the former qualities, then you will be capable of making wise choices, what to do with your money, to know when to say no, when to say yes, to actually become the master of your own financial destiny.

With recognition to Suze Orman: https://www.podbean.com/media/share/dir-2p6r2-87a7dbc?utm_campaign=w_share_ep&utm_medium=dlink&utm_source=w_share

The following questions are aimed at assessing balance in the dimension of money & personal finances.

These questions are part of your personal growth, designed to enlighten a different way of thinking and emphasizing areas where you could improve balance in your life.

Rate these questions between 1-10 (where 1 is not good and 10 is very good) – are you balancing your work and the other dimensions of your life?

Balance in Money & Personal finances Questionnaire

How do I feel when I think about money?

Being competent with finances is very important to me

I am satisfied with my current financial performance

I have enough money to accommodate my current desires

I have enough money to accommodate my current needs

I always know how much money I have in my/our bank account/s

Being generous to other people is important to me

I am satisfied with my generosity to other people

I am satisfied with how much I give to other people

Charitable donations and contributions are very important to me

I am satisfied with how charitable I currently am towards other people or organisations

I am willing to step out of my comfort zone & take new risks to generate more income

I worry about my current financial situation very much

I know what my monthly expenses are

Do I follow a plan for monthly expenses such as a monthly budget?

Do I follow an annual plan for yearly expenses such as scheduling annual payments?

Do I have jars or pockets that include and distinguish tithing, spending, saving and investments?

Do I have a short and long savings or investment plan?

Did I grow up in a house that lived well financially, or did our household struggle to keep ends met?

Did my parents set a good example for me about money and finances?

Do I think I am following my parent’s example in managing money and finances?

Do I have positive feelings over my current financial situation?

Do I have a positive attitude towards my finances and money?

How happy am I with the overall quality of how I manage my money?

If I died today, would I be happy with the inheritance I leave behind?

Consider your personal vision statement about about an area/s in your personal finances that you would like to improve on. Note a date in your calendar about 30 days from instituting the personal finances vision statement, in order to facilitate accountability.

If you have challenges in balancing personal finances in your life, and the questions have revealed imbalance and points that you would like to work on and grow in – you can aspire to cultivate a new mindset of taking responsibility of your money and balance your life in such a way that you are joyful, healthy and live a fulfilled life.

Contemplate restructuring money and personal finances in your life to balance your life. Take responsibility in how you manage your money, be attentive to your attitude towards your money, deal with money from integrity, and always be aware of the future legacy YOU are shaping!

Reverting to what Robert Kiyosaki said “…Money often reveals who we really are” – therefor I challenge you with the question - who are you really?

For any further assistance or a chat on your personal money and finances, please contact JustLive or book a free 30 minute online session.

Jacques

JustLive Coach

jacques@justlive.co.za

“Better is a poor man who walks in his integrity, than a rich man who is crooked in his ways.”