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MONEYMINDING® PHILOSOPHIES
I have developed some core MoneyMinding® messages that are developed throughout the MoneyMinding® programs and materials. While you might not agree or understand all of these ideas, it is important to recognize your reaction to them and to be open minded about what they could mean to you in your life today!
- Chose your lifestyle first, then the financial vehicles.
- Where are you going? What are you committed to? What are your real life priorities?
- It's about financial independence – not retirement.
- Financial success is horizontal continuation of income – not just vertical growth of a pool of money because we live on monthly income and day-to-day transactions – large sums are not tangible.
- Don't try, do.
- Can, not can't.
- Will, not should.
- There is a hierarchical process to assist in making effective, supportive financial decisions.
- Multiple streams of income are an integral component to financial success. For example:
- Business – network marketing, franchise, corporation
- Insurance
- Investments
- Pensions – personal, government, corporate
- Real estate – home equity, rental
- Royalties – licenses versus selling
- Referrals
- We can learn to develop supportive financial habits. For example, when money comes in, the first transactions documented are for self and for giving even if those funds are later needed for monthly commitments. Also, goals must be in writing.
- We all have non-financial assets and resources that we can learn how to capitalize from.
- Every financial decision needs to include an exit strategy.
- Most losses can be controlled when emotional decision-making is reduced.
- Future tax implications need to be considered in all planning regardless of current financial circumstances. For example, are assets jointly held, where are they to be held, retirement savings plan premise, source or funds, deductions and credits. These are issues that can be more important than the advertised rate of return on your money.
- We receive advice from many sources – media, neighbours and relatives, past experience, school and advisors; and therefore, we need to become aware of our own values and also the values of those people offering the information (their background).
- First, know yourself, then know your advisor, and finally know your investment or financial product.
- You build your financial plan from where you are, beginning with a base, then developing confidence and habits to expand.
- Always get professional advice.
- Always know your expectations for a transaction, why and what, the potential consequences of failure might be.
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