Have you ever noticed that no matter how much money you or your friends make, it seems like there is never enough? I know people who are living on a few hundred dollars a month and are able to pay all the bills but are basically broke, and I know people who are making several thousand a month but after paying all the bills are basically broke. There is an order of magnitude difference between the two income levels, and yet both people are just as broke at the end of the month.

This month I’d like to talk about money-management. While this is just the tip of the iceberg, I think it’s important for everyone to pay attention to their financial picture and understand it fully, and you’ve gotta start somewhere.

Right off the bat, if you aren’t taking an active interest in managing your finances on a regular basis (weekly at the very least, daily is better), then your financial future will be chaotic and dismal. Avoiding your finances just delays the inevitable problems down the road, and those problems will be huge. Avoidance and denial are not acceptable… suck it up and dig in!

There are many good approaches to money-management, but as with your physical health, the approach that is best for you is, first and foremost, the one you will actually implement and follow. Since it can take a while to figure it all out, I’ll start you with a few tips that work well for me:

• Operate cash only for a few months, for everything. Pay your bills, your rent, everything, in-person and with cash. Get a feel for the money coming in and going out in the most tangible possible way. Let the money enter and leave your pocket at each step of the way. That means for your mortgage payment (even if it’s at the same bank your checking account is at), withdraw the money, hold it, smell it even, and then make the payment.
• Review your finances every morning for about 10 minutes. See how much you have allocated for each category, think about how it will be used over the remainder of the week, and pay attention to the flow of money in your life.
• Separate your money at the start of the week into envelopes for major categories of use: survival (rent, utilities, groceries, transportation to/from work); fun (dining out, movies, drinking, …); and obligations (minimum payment on mortgage, credit cards, and loans, other legal obligations to others). Make sure you only use money from the appropriate envelope for the expenses you have… no cheating by using your grocery money to see a movie, even if there is some extra left at the end of the week.

While that list is only a rough outline, it should be enough to help you get started. Beyond that, I recommend you start learning:

• Read books like Rich Dad, Poor Dad, Secrets of the Millionaire Mind, or one of the other million or so books on the subject. While they all suggest slightly different approaches, they all share the desired goal of helping you find a strategy that will work for you. Read; try; repeat as necessary.
• Attend courses and workshops like the Millionaire Mind Intensive. Decide it’s worth it to spend a days in order to make the long-term changes that will enhance your life for years to come.
• Seek advice from mentors who are both trustworthy and who actually get the kind of results you are trying to achieve (not Joe on the next barstool). Just remember: most people are in the same boat you are… you need to be seeking help from people whose results you can model and repeat for your own case.
• Hire a life coach (me, for instance), who will help you set goals and hold you accountable to yourself to get the results you want.

Your money and financial situation shouldn’t scare you, and with some work now you can get it all straightened out and working for you. It might seem like too big a project to tackle, but not taking the first step could be the biggest mistake you will ever make. Take a step now towards getting your money under control!

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Quote for the week

Happiness is nothing more than good health and a bad memory. - Albert Schweitzer

From the editor

Well, it seems the switchover to the new server is complete. It didn’t exactly go off without a hitch, but it did go off, and now the new site is fully implemented and rolling right along as desired. Hooray!

Spring in Korea reminds me of spring in Seattle: it will be warm for a few days, convincing me that it’s really spring, and then WHAM!, it’s barely above freezing and windy. I want my warm weather! Ugh.

This week I’d like to make another request for article ideas… if there’s anything you’d like to read about in upcoming articles, please let me know!

Healthy thoughts,
Jeff