Sun, 14 June 2020
"Being in touch with [the essence] of ourselves as we make financial decisions is as good as it gets. Money is a store of life energy, and when we can channel that life energy into an expression of what is most dear to our soul, an exciting alignment takes place between our financial and spiritual lives . . . more than just having enough, our essence is deeply loving, contented, and grateful, not from any effort but as its most natural expression . . . In fact, when we are identified with that part of us that already has enough, that has arrived, that feels efficiency rather than scarcity, impulses of love and generosity arise naturally and without effort." —Brent Kessel, author of It's Not About the Money
Money can seem to be the fix for everything or the curse, but it need not be either, and can be in our control, largely when we shift how we approach our view and role of money in our life.
Today I would like to share with you key insights I discovered after reading Brent Kessel's book It's Not About the Money in which he dives into the unconscious emotional psychological nature money plays in our lives and how and why we make the decisions we make - for better or worse.
1.Understand how your emotions are related to your relationship with money
What is your Core Story when it comes to your relationship with money? When you understand this inner dialogue that is unconsciously being told and accepted, thus guiding your decisions when it comes to what you believe will make you happy, you begin to take control of your relationship with money and improve the quality of your life. Why? Because you are now living consciously, and your decision making improves as it aligns with your true essence as Brent Kessel describes - your true self, what will make you feel truly content, outside of what society has impressed upon you. Below are a couple of the questions to begin asking yourself to get to the truth of what your Core Story actually is:
While we need to live in the present to live well, understanding the past events of our lives and how they have scripted our thinking about money is vital. The Core Story is accepted Kessel writes because "whatever the content, with the unconscious hope that if we follow it, we'll be protected from feeling difficult or painful emotions."
Simply understanding what your Core Story is not going to improve your relationship with money. Rather, it is an ongoing job that begins with awareness, but then is followed up with "skill, intention, and perseverance to lessen the hold of our unconscious condition . . . we must keep working to identify and retain the healthiest parts of our story's message - [for example, the good saving habits, the on-time bill paying, etc.] - while at the same time letting go of the extreme and unhealthy behaviors and attitudes it has engendered in us."
2. Do the necessary work within to achieve the outer results you seek
"Though outer wealth rarely leads to inner wealth, inner wealth often does lead to outer wealth."
Kessel speaks of the Middle Way being the chosen path to take in order to have a healthy relationship with money and our understanding of wealth. In other words, "true freedom lies neither in self-indulgence nor in austere asceticism". When we choose to do the inner work that is necessary, it requires of each of us to use our mind, and think critically, which means that we must think well and not rely on defaults and habits that are unproductive to our goal of cultivating "healthy wealth".
I especially appreciated the author's sharing of his conversation with the Dalai Lama when he [the Dalai Lama] responded to the question about a method for happiness for Americans. "When there's too much stress or too much worry, look inward! Read more. Think. Trying to find the answer from outside yourself is nonsense! Think more." What thinking exactly though, are we talking about? Start with #1, understand your Core Story, deepen your awareness, and begin asking the "why"s - Why do you feel this decision would reduce your stress or increase your happiness? Why do you feel owning [fill in the blank what you are considering purchasing/paying for] will be a smart decision for you life? Why do you feel [insert negative emotion] when certain things in your life are happening? Why do you feel [insert positive emotion] when certain things are happening in your life? And continue asking and exploring - the four "W" questions are part of thinking well - Who, What, When, Where, Why.
"When we are caught in extreme thoughts, beliefs, and conditioning, we sow the seeds of financial discontent."
3. Become fluent in the language of the Wanting Mind
"The Wanting Mind continually takes us out of the present moment in its attempts to make us happy in some better tomorrow." —Brent Kessel
True contentment requires that we remain present in our daily lives. The Wanting Minds requires that we live in the future.
A clear conflict. If we are content, we are not wanting, and if we are wanting we cannot be content.
True freedom from "want" is knowledge of how it works. Whenever an impulse to buy anything arises, a croissant, a clothing item online, anything large or small, "look sincerely at the root of the behaviors your mind has always told you would make you happy". Social conditioning has been happening our entire lives and will not end, but when we are aware of the attempt to social condition, and become clear about whether it is helpful or hindering, we can respond rather than react to the impulses of wanting when they arrive, thus making the best decision in that moment to cultivate a healthy approach to wealth and our financial situation.
4. Trust your innate financial wisdom: financial planning and great investment advice is not enough
"When you are listening to your innate wisdom, you can feel a very deep part of you relax and let go. It will feel pleasing, calming and wholehearted. There will be an absence of pressure."
Kessel has readers in his book return to their 4-year-old self, such a young age that we don't have a clue what investing in the stock market is, what a pension is, compound interest, debt, etc. The reason he encourages readers to return to our young self is to try to discover or be reminded of our most true self. What is it that sincerely brings us joy? What delights us? Sparks our curiosity? Prompts us to lose all track of time?
Each of us will have our own answers, and even if, like me, you cannot fully remember what you thought at that age, you can remember where you were in your life - where you lived, with whom, etc. - and at least for me, I know how I felt. Whether I was secure or fearful? Was I completely oblivious to the world and didn't have a care in the world or was I full of anxiety? Thankfully, my memories are all positive and I am drawing from this insight to guide my money decisions and investment and savings moving forward more consciously.
To address the idea of seeking out a financial advisor. It is absolutely a worthwhile idea to find a financial advisor you trust as they are the experts in the business of the financial business sector. They can be our teacher to better understand how investing works and what our options are, but once you have that information and can ask more questions when they arise, you need to return to your innate voice. What would make you feel truly content? For myself, when I purchased my home, I didn't seek permission from my financial advisor at the time as to whether I should take certain funds and use them for my down payment. I just knew I could and did it. I knew what would bring me contentment. I knew what investments were worth it to me and the life I wanted to live, but I am grateful for her expertise so that I knew the financial rules/laws, etc..
5. Be still and just be
A common piece of advice when it comes to making a purchase that we are not sure about, or that is significant enough that it will change our lives in some way, is to wait or sleep on it for 24-hours. This is good advice, but Kessel suggests doing something additionally and possibly most importantly - examine why you are really wanting to make the purchase. Do you feel it will bring you freedom, more peace, less headaches? What are the overarching beliefs derived from your Core Story and/or societal conditioning that have taught you these beliefs? Do you fully accept them or does something within not feel settled?
In other words, again, respond rather than react. Think and be still, rather than blindly doing.
Money is a fundamental component of our lives whether we want it to be or not. It moves the world, lack of it can halt the world, but understanding our relationship to it and with it is what will elevate our personal world and thus improve the quality of our lives. Our minds need and can achieve peace of mind when it comes to money. After all, when our minds are relaxed and unstressed, they make better decisions, see things more clearly and think well. It is understanding the psychology and the emotional mentality that money provokes within us that will give us the driver's seat so that we can make the best decisions for the life we want to live.
SIMILAR POSTS/EPISODES YOU MIGHT ENJOY:
Money: How to Know If You Have Enough, episode #138
~Starring Tracee Ellis Ross and Dakota Johnson
~Listen to the title track of the soundtrack - Love Myself, sung by Tracee Ellis Ross (purchase it here)
~The Simple Sophisticate, episode #284
~Subscribe to The Simple Sophisticate: iTunes | Stitcher | iHeartRadio | YouTube | Spotify
Mon, 16 January 2017
~The Simple Sophisticate, episode #138
~Subscribe to The Simple Sophisticate: iTunes | Stitcher | iHeartRadio
"Enough is the quality of having everything you need and want but nothing in excess, nothing that burdens you." —Vicki Robin, author of Your Money or Your Life
While numerically, there isn't a magic number equated to having enough money due to a myriad of variables, it may seem at first impossible to answer the question at all. However, there are fundamental questions to ask yourself and habits to bring into your daily living that will help you inch ever closer to the number that is right for you.
1. Let go of comparisons
"Comparing ourselves to others is essentially a coping mechanism for our own insecurities." —Rachel Cruze of Love Your Life, Not Theirs: 7 Money Habits for Living the Life You Want
Now more than ever as we live in a world where lives of anyone from anywhere are displayed on social media, refraining from comparing our lives to others' is a mental exercise in willpower. And as we know willpower is finite. A dependable way to combat comparison is to become clear about your own life's path. Become clear about what excites you, what you want to improve upon and create a vision for your life. And then become courageous. Read more about how you can live courageously and the benefits, including eliminating the need for comparison, doing so will invite into your life.
2. Debt is eliminated (within reason)
Debt is a broad term. Many of us, if we own a house, will have a mortgage, and business debt is necessary at different periods of a venture. However, personal credit card debt should be at zero. If you can look at your balances and know you can pay them off in full each month without denting your monthly living budget, your finances are in great order.
3. Live within your means
A quote that upon first reading has ever since been part of my vocabulary and approach to money was shared by Suze Orman, "I think the nicest thing you can say about a woman is that she lives well, and she lives below her means." And as we know our means will shift, change and hopefully grow from year to year. As was discussed in last week's Why Not . . . ? post, conducting a financial check-in each year is a great way to determine if you are spending too much or not enough in certain parts of your budget in order to live the life you want.
4. Monthly savings goal exceeds expectations
Currently I am saving for a down payment, and with this goal in mind, I have designated that a certain amount will be put into my money market account each month. When I am able to exceed my target amount, I cannot help but do a little dance. According to financial experts, this is a good sign that you are on your way to having enough money.
5. Spending wisely
Take a moment and check your current spending habits with habits from five years ago. Are you spending more? Spending less? Spending more wisely? Staying within your budget? The key reason to reflect regularly is to spend consciously. If you see that your spending has increased, ask yourself why. Then ask yourself, is it necessary? Am I able to spend more? Living well is not a bad thing to do. The key is to make sure you can afford to do so.
6. Proper attention is being paid to retirement savings
While there is no magic formula for retirement savings, the one thing that won't work is doing nothing. The first thing to do is begin saving yesterday. I know that may be unnecessary to say, but begin now if you haven't already. Then sit down and examine how much you will indeed need to retire so that you can have a goal and then create a plan to make it happen. I have shared many money and specifically retirement savings related posts here in TSLL "Money" archives, be sure to have a look here.
7. Adherence to a monthly budget that supports the life you want to build and live
Massachusetts senator and former Harvard bankruptcy law professor Elizabeth Warren suggested organizing one's monthly budget around these percentages: "Spend 50 percent on needs, 30 percent on wants and 20 percent on savings" (NYTimes). Now you may have to dip into your wants for your needs from time to time depending upon where you live and during different periods of your life, but saving 15-20 percent for retirement, emergency, dreams & vacations is a must for peace of mind and the ability to respond to life's unexpected hurdles and adventures. Similarly, diligently keeping your housing payment (rent or mortgage) to 33% is quite savvy. (Click here to view a simple budget spreadsheet to organize both mandatory and discretionary spending.)
It has been debated that we, as humans have a tendency to move away unconsciously from achieving "enough" rather than towards it (Tim Maurer Simple Money). However, I would argue that it is a choice, it is an appreciation for what moving towards having enough cultivate in our lives which will then make it all the more attractive once we arrive at our destination. The essential premise to making the shift is understanding the essential questions and the necessary answers to those questions, as well as the habits we need to incorporate into our lives, and it really is quite simple as shared above. Thank you for stopping by and may 2017 be your most financially secure year yet.
~SIMILAR POSTS FROM THE ARCHIVES YOU MIGHT ENJOY:
~La La Land
~winner of the record setting seven Golden Globes this year: Best Musical/Comedy, Best Actor, Best Actress, Original Song, Score, Director and Screenplay ~View and listen to the award winning original song, City of Stars here I will profess honestly, I am not someone who gravitates towards musicals, and as Refinery29 frankly reminds that's because La La Land isn't a true musical, which might be why I thoroughly enjoyed sitting down for two hours to absorb the colorful sets, simple and thoughtful love story and a reminder to never cease the journey to reach your dreams. However, respectfully, it is a musical. It is a modern musical. Some have compared it to a long list of musicals from the mid-twentieth century, and while particular aspects and scenes were undoubtedly inspired by revered musicals in the past, La La Land is a 21st century musical. It harkens back to the past with coupled song and dance numbers, but it grabs the future with technology's magic and whimsy. The argument from some is that Emma Stone did not know how to dance, but we must keep in mind neither did Debbie Reynolds when she was cast for Singing in the Rain; however, Reynolds worked her tail off to keep up with an impossibly high talent - Gene Kelly - and executed her role exquisitely. Similar to Stone, it was Reynolds' star power, her authentic joie de vivre and spark that grabbed the audience. Had any dancer been paired with Kelly simply because they could dance, the movie would not have been balanced or as engaging. The woman, who she is, what she exudes, matters as much as her dance steps. Stone holds her own with the dancing, but much like Reynolds, it is her charisma, her youthfulness and her tenacity that bring her character Mia to life. Ryan Gosling is Ryan Gosling. Movie producers what to sell tickets, and in order to sell tickets there must be chemistry on the screen. Stone and Gosling, paired together for the third time, have undeniable chemistry, and it worked to tell the tale of two passionate individuals enamored with each other but also their dreams to realize what they were ardently passionate about. I recommend highly that you watch this film in the theater for the reasons New Yorker film critic Anthony Lane suggests: the full effect of the scenery, colors and sets as well as the sound system. Let yourself escape. ~Note: In the taped episode, I incorrectly misspoke and called Gene Kelly Fred Astaire. https://youtu.be/je0aAf2f8XQ
Sun, 1 March 2015
Understanding the power of money and becoming the master of it is crucial to a life full of contentment. In today's podcast, the definition of true wealth will be shared along with both monetary and monetary ways to attain it.
Sun, 7 September 2014
At the foundation of a contented life that instills peace of mind regardless of life's events is financial security. As one of the pillars of a simply luxurious life, this podcast will dive into the essential 6 steps, share tips, strategies and tools on how to create a strong financial foundation regardless of your paycheck.