The Wealthy Person in You
Penelope S. Tzougros, PhD, ChFC, CLU
Are you handling your money like the wealthy person you are going
to be? Are you following the strategy of the wealthier you?
If not, let's tune into what that other you is saying. It is asking
you to focus on your dreams. It has a lot of advice and doesn't
want you to gag it with credit card receipts. Let's give a listen.
It is easy in the rush of events and the excitement of possibilities
to overspend. That's understandable and it's part of how we
experiment. But there are two dangers.
One is that overspending becomes
a habit. We are all familiar with this one, whether or not it's
our own problem. The ideal is to pay off the credit card in full each
month, and for sure not to hold a balance more than three months. If
this is a big challenge for you, keep reading. Remember you're trying
to hear the voice of your wealthier self.
The second danger is that the automatic spending has nothing to do
with you. Yes, you gave the merchant the cash or check, or credit card,
but you did not buy what you should have bought. I don't mean it
was the wrong size or color. I mean it doesn't reflect who you really
are. This isn't about taste and aesthetics; it's about discovering
who you are.
You may be hiding your special genius in the trends of today, in the
mindless activity of the crowd. You are unique-- your fingerprints,
your DNA, your thoughts prove that there is only one very special you.
How you spend your money should reflect that unique person. When it
does, we can say cash flow is character. The money flowing though your
wallet is in harmony with your real self, and actualizes your self.
Here are three questions to shift the way you think about your money
and check that your money is helping you be the best of you. These questions
have helped people gain control over their money and move them toward
their dreams.
Is there a difference between these statements?
- I need a vacation
- I need rent money
- I need a newly released CD
Are these all needs? Or are we using the word "need" loosely?
Are we agreed that the rent is a need and the music CD isn't? Is
food a need, a want or a luxury? Okay, that's a need, but what about
eating out? Where does that fit? Bottled water? A concert? A donation
to charity? A vacation? A car?
- 1. Before you make any purchase ask the first of
the questions for wealthy choices: "Is it a need, a want or a luxury?"
You can define the categories, but be consistent once you do that. Would
your friends agree with your definitions? If not, what does that tell
you?
- 2. The second question for wealth choices is "How
much of my life is this worth?" Suppose there's a really great
looking outfit on sale for $120. If your take home pay is $12 an hour,
that means it takes 10 hours of your life to pay for the outfit. Is
it worth that? Whether you are working in the mailroom or the operating
room, you have only 24 hours in the day. Time makes us all equal.
Since we can't make more hours in the day, don't say, "Oh,
but it was on sale." Ask instead whether it is worth that many
hours of life. Work is a temporary agreement in which we exchange our
talents, energy, creativity, etc. for a wage. We can improve our skills
and ask to be paid more. But whatever we are paid, we should divide
the hours worked into the pay. That hourly dollar amount is the gauge
for our spending.
Money is your stored up energy, talent, creativity, etc. So when you
spend your money, you are giving away you. This definitely does not
mean your human worth can be measured by your bank account, your income,
or any other monetary measure. Your human worth is a treasure beyond
calculation.
- 3. The third question is "If I spend this money
which of my goals is it advancing? Where is it getting me?" Money
spent on tuition can advance your career or help you retrain for work
that you like better. Look at everything you spent money on in the last
week, what did it do for you?
Suppose the list included: toothpaste, fashion magazines, a mystery
novel, a handbag, three lunches out, dinner and a movie. What do the
expenditures say about who you are and where you are going in your life?
Yes, it's your money; you earned it, but can you spend it without
thinking about the wealthier person you want to become? Set goals
for what you really want in your life and then spend money to advance
you toward those goals.
Ask yourself these three questions and let the wealthy person you
are becoming in control of your money.
* Adapted from the newly released audio program The Wealth You
Want in the Time You Have, which can be purchased through www.wealthychoices.com.
Dr. Tzougros is a registered representative offering securities
and additional Investment Advisory Services through WS Griffith Securities,
Inc. -- Member NASD/SIPC (781-893-0567)
