Going For Broke: How To Be A Money Magnet
“Abundance is not something we acquire. It is something we tune into.” ~Wayne Dyer
[dropcap]D[/dropcap]o you often wonder, Where the hell is all my money going? Are you “livin’ la vida broka”? If you answered yes to one (or ALL) of these questions, it’s time to pull it together and become a money magnet. “How am I going to do that?!” you holler. Settle down, Comrade, it’s easier than you think . . . it just takes some sacrifice.
All you need is less. A lot less. Of everything.
Y’see, Brokahontas, I know the routine. Your whole paycheck goes to paying bills and having fun. And then you’re left with nothing. What you can’t afford to pay cash for ends up on your credit cards. That sweet ride you’re driving is draining your bank account . . . but hey, at least you look cool. (I’m shaking my head). And all of these expenses are starting to add up, right? Next thing you know, you’re up to your ass in alligators!
I recently read a simple financial book that was filled with good old common sense. Debt is bad, savings is good. In The Total Money Makeover, Dave Ramsey walks us through—in a super-reasonable, orderly way—how we can pull ourselves out of debt and obtain financial freedom.
Dave’s financial plan includes 7 steps, but today I want to focus on the first three:
1. $1,000 to start an Emergency Fund
2. Pay off all debt using the “Debt Snowball”
3.Three to six months of expenses in savings
You have to save. No questions asked. Once you gather together $1,000, sock it away and DON’T touch it (i.e., it’s for emergencies, which does NOT mean pull from it when you need that new Marc Jacobs clutch). Shit happens and if you aren’t prepared now, you’re going to pay later. Your “emergency” will end up on your credit card and your sinkhole will just get deeper.
Paying off your debt is next on the list. I recommend tackling this issue with everything you’ve got. Get a second job, have a garage sale, stop going out to dinner three nights a week -- whatever you need to do to start the ball rolling toward getting yourself out of the shackling binds of debt.
The Total Money Makeover
A Proven Plan for Financial Fitness- by Dave Ramsey “You must walk to the beat of a different drummer. The same beat that the wealthy hear. If the beat sounds normal, evacuate the dance floor immediately! The goal is to not be normal, because as my radio listeners know, normal is broke.”
He suggests you make a list of your debts, starting with your smallest one at the top and proceeding all the way down to the biggest chunk you owe at the bottom. Pay the bare minimum on your larger debts and throw down larger chunks of cash on your lesser amounts. The feeling of accomplishment you get when you cross a debt off your list is rewarding and will keep you going.
The bottom line, from my point of view is: Managing your money is a state of being.
We’re often “told” (especially by the sheer volume of credit card commercials) that a little debt never hurt anyone . . . but the fact of the matter is: it does.
Money is energy—like everything else—and when you’re carrying around debt (or any other money issues), you’re sending “lack,” “scarcity” and “shortage” energy into the universe. And what we put our attention on grows.
Certainly, we all want to be comfortable and successful, but carrying a financial elephant on your back is not they way to get there. When your money is out of control, you and your life are out of control.
I like my money where I can see it . . . HANGING IN MY CLOSET.” ~Carrie Bradshaw,
Sex In The City
Sorry to disappoint you, but Carrie Bradshaw had it all backwards. Having a closet full of clothes and zero dollars in savings doesn’t make you cool . . . it makes you a dummy.
You want to start making a change in your debt consciousness? Close your eyes for a minute or two to get yourself “centered” (meditate, pray, align yourself with your deepest, truest sense of yourself, whatever). Now, in that more centered state, imagine being debt-free, having no car payment, 3-6 months of savings and getting to keep your entire paycheck…
How would you feel? (Bask in that for a bit.)
How would your life be different? (Allow yourself a minute or two to really go there.)
My strong hunch is you would feel truly amazing and quite liberated. You’d be enjoying a newfound sense of control of your finances and a righteous state of independence.
That’s what I’m talkin’ about.
Start today, y’all! Use this simple approach to make a plan and begin tackling your money woes. I’m not telling you it will be easy . . . I’m just saying it will be oh-so worth it
[bctt tweet="Managing your money is a state of being."] P.S.: People, let me know how it goes . . . and for anyone out there who’s experienced in such matters, I’d love to know, once you’ve gotten out of debt, how do you stay on top of your debt?