Money – Are You Reacting Or Responding?

Money doesn’t rule you. Perhaps, it’s your impulses and emotions that are ruling you causing you to blame money. Our world persuades us to want what we don’t really need. We are encouraged to want instant financial gratification. The only way to gain control is to become educated and aware of how to quit reacting and decide our powerful response. If we don’t prepare ahead of time, we fall prey to our emotions. You maintain control when you don’t let your emotions run your life. To gain control, you must notice the emotion and not let it rule your actions. As you notice emotions powering you to want instant financial gratification reaching for the credit card, stop and allow the logical side of your brain to think. As you delay the emotional response and suspend reaction, you can train yourself to become a powerful responder and stay focused on your goals. Stressful pressures leave us with a well worn out response to ourselves and our children: “No, we don’t have the money for that!” The world answers for us if we are not careful with, “Just charge it!  Put it on one of your credit cards!” Many adults seem to have forgotten how credit cards work and fallen into a financial trap that is hard to overcome. Falling prey to “just charge it” impulses, we become victims and behaviorally teach our children the wrong message. 94% of young people surveyed say they learn their financial habits from their parents (that’s us). So let’s stop for a minute and have a little reality check. After all, it’s more powerful to show your children so they can follow rather than try to convince them to do as you say not as you do.

What do YOU believe about money?

Where does YOUR money come from and where does it go?

Where does YOUR money grow?

Take Action Now: You can contemplate each of the questions above to begin raising your awareness of your current financial situation. Your belief will set your limits. Knowing where your money comes from  will help guide your focus. Detailing and being honest about where your money goes will identify holes in your financial bucket that may need to be patched. And lastly, but most importantly, tending to the financial garden and knowing where your money grows will allow you to get money working for you instead of you always working for money. When your next credit card bill comes in, review it completely. Think about what it felt like when you bought something on the bill. Are you still enjoying it? Do you still have it? Did you really need it immediately or could you have planned to save the money and purchased the item fully instead of charging it? Examine the bill to be certain of what you purchased. You may be surprised to find that there are automatic charges for products you don’t have a clue as to what they are. You may have thought they were cancelled and they weren’t. Identify holes in your financial bucket and repair them quickly! How much might you be losing in a month? How does it feel to pay for something AFTER the fact?  Is it as much fun paying for it as it was buying it? Could you plan for upcoming purchases and then carry no debt? Could you see making fewer purchases for a month, six months, or even a year? Study the buying and paying sides of your own life and share this experience to educate your children about both sides of the money equation—buying and paying. Knowledge is power. And as you act on the knowledge you create freedom for yourself to respond powerfully. Pay Your Family First is a company dedicated to providing financial education for families. Our goal is to ignite the entrepreneurial spirit and a love for learning. Join us! www.payyourfamilyfirst.com. – – – – – – Sharon Lechter CEO – Pay Your Family First Co-author of Three Feet From Gold and Rich Dad Poor Dad Member of the President’s Advisory Council on Financial Literacy Member of the National CPA’s Commission on Financial Literacy of the AICPA.