Lesson Four – Telling My Money Where to Go
Hey Hey Future Home Owners!
How was yesterday’s lesson? Were you able to log all of your information? It’s truly eye-opening but you can’t fix what you don’t know, so don’t get discouraged.
Today we’re going to talk about How to Tell Your Money Where to Go.
Interestingly enough, when I teach this in person, people will automatically tell me: “I already know where it’s supposed to go, B-I-L-L-S!”
Umm, NO! lol
Telling your money where to go involves actually sitting down to determine “What do I truly want?” – both in the near future (i.e. a house) and long-term (i.e. retiring in the Caribbean); and then ensuring that your day-to-day, week-to-week, month-to-month, year-to-year money habits support that.
I would be lying to you if I told you that it was easy, especially in the beginning. IT’S NOT! It’s going to take you 3-6mths to get the hang of it and it’ll definitely have it’s frustrating/restrictive moments, so be prepared. Keep in mind that as long as you’re alive you’re going to need some type of currency to survive, so it’s best to learn to obtain and properly manage it now, versus wondering ‘Where did all my money go?”
So, where do you start?
Setting Strategic Goals!
Assignment – Create Strategic Goals with Your Family
(If you’re single, this will be an easy assignment 😊)
For this assignment, I want you to gather your household family members together and schedule a family chat. Inform them that you are serious about purchasing a home and ensuring that your family goals are being met on a continuous basis, but to do this, you need to ensure that you:
- Take their goals into consideration, and
- Ensure the family spending is in alignment with those goals.
Have an assigned note taker so that you can have notes to review after your family meeting has concluded.
Have a designated object to pass to the person that has the ‘floor’ to speak if you have a larger family, otherwise as excitement takes over, people will begin to over talk each other. Keep it organized.
Make it light! The best time for my family to talk is over sweets or snacks. If I bake a cake, cookies or pop some popcorn, they’re more apt to relax and be open to any conversation I bring to the table (food has a way of chilling people out, right? LOL)
Remember to allow everyone to express their ideas. I used to think that budgeting decisions were based on whomever brings home the paycheck, but you’d be surprised how many fun and insightful ideas kids can come up with. Don’t rule them out.
During family budget chats, I’ve found out I could save on baseball fees because my son didn’t like it, he wanted to take a fun drawing and robotics class instead, which was much cheaper and what he truly wanted to do. I learned my youngest wanted to go on a boat, and I love going on cruises and had never taken them before – it was awesome! Everyone had an amazing time. And I learned that they love my cooking over eating out (go figure 😊), although I don’t like cooking every day, I did start planning my meals more, so that they can have a nutritious balanced meal on a daily basis, which cut our eating out budget by half, which meant more to save and to put towards goals that truly gratified us.
The result? We closed on our home over 800 miles away and couldn’t be happier.
Is everything perfect? HECK NO! Everything from familial illnesses, income reduction, to unplanned expenses popped up at every turn! The good thing is that we have gotten so accustomed to living on a tight budget and bringing in extra income for any extras we want to do, that we didn’t skip a beat!
We have months of mortgage payments saved up, haven’t had cable in years, and using the ‘we’re canceling’ method, have significantly reduced our cell phone, insurance and internet charges per month.
See why goal setting, budgeting and preparing for home ownership is so important? No telling what the heck will happen!
Now, here are some tips for goal setting:
- Even if you are stressed after completing yesterday’s assignment, don’t transfer that energy over to the rest of the family, especially the kids. If you don’t think you can sit down with them until you have a chat with your partner, by all means do so. Kids pick up on stress and it truly affects them behaviorally as well.
- Make them realistic. Allow room for change. If there’s one thing my experience has taught me is that several events can happen in a short period of time that can change or alter your goals, so be flexible.
- Write them down. If you fail to do this you might as well get up and start banging your head against the wall, because the chances of you accomplishing everything you discussed is likely not going to happen. That can be super frustrating. Don’t waste your, or your family’s time like that.
- Be specific in writing your goals. Make sure all family members understand the goal in a clear and concise manner, and put a date on it! Most are afraid to put a date on it in case they miss it, but what if you do hit it? What if you complete it early? What if you complete it 6 months later? Will that take away the gratification? HECK NO! So slap a date on it.
- No judging, criticizing or laughing at anyone’s suggestions, you’ll shut them down! The purpose of this meeting is to talk about your dreams, don’t put a limitation on that.
- Since we’re talking home ownership, if you haven’t already done so, write the projected Month/Year you’d like to be in your new home. Get the entire family on board and excited about those Keys!
NOTE: You may want to have family budget meetings on a regular basis to check in and see how you’re doing and get crystal clear on how your household’s money is spent. It’s a great money lesson and when kids know how much money is coming in and going out on basic necessities it decreases their begging for non-necessities (I didn’t say eliminate, lbvs) and teaches them to budget as well. Learn together. How many of you would have liked to be taught about money growing up? How do you think that would have affected your money lessons as an adult? See my point? Make this a regular, consistent practice.
Okay, are you ready to start setting some goals?! For some this will be totally up their alley, they’ll start making vision boards and posting their goals in their car, bathrooms and on the fridge… For others, you may be a bit stumped. Goal setting may be new to you and thus intimidating. No worries, that’s what our community is for! Post your concerns and we will be sure to help you through them, after all, that’s what Partners are for, right?
I’d love for you to post at least one of your goals discussed, AND something new you learned that either your partner or children brought to light in The Prosperity Club :).
If you are in the Intensive, you have a SMART Goal worksheet to log your answers in. Make sure to write down your questions in your workbook so that we can address them in our Live Lesson.
Next, we’re going to learn about my secret to accomplishing ALL of my goals.
See you tomorrow at 10 am!
Your Partner in Prosperity,
#EachOneTeachOne -> Know someone that could benefit from this awesome info we’re learning? SHARE! Here’s the link to give them: bit.ly/ClaimMyKeys