We all want to make the most of the money we have - right? So, if that's true we need to have good money management habits in order to experience greater wealth. Today I'm sharing an exercise with you that will help you narrow down your negative spending habits and hopefully put you on the path to abundance. Grab a pen and paper and let's examine your money management style. Before we go any further, I want you to brutally honest. No one but you is going to see what you write down (unless you want them to of course). You need to be honest with yourself during this exercise in order to overcome the hurdles that stand between you and the monetary abundance in which you seek. Let's start with your spending habits over the last five years. What things have you spent the bulk of your money on? Start writing things down as they come to mind. Your list should contain everything from your rent or mortgage to your daily newspaper or cup of coffee. Once you have a comprehensive list which includes everything you can think of from gifts and travel to clothing and accessories then highlight the top three areas you have spent the most in. Don't worry about actual dollar amounts a general estimate will suffice. Have your spending habits changed over the years? For instance, did you spend more on material possessions 4 or 5 years ago than you do now that you have children? Or have your spending habits stayed pretty much the same? Our spending habits are often indicative of our priorities. Would you say your priorities and your spending habits go hand in hand? Do you feel that the money spent in each of your top areas was worth it? Are you happy with the money decisions you made? And, are you satisfied with what you have to show for those decisions? Were the items or the things you spent money on useful or important to you at the time or were they more of an impulse buy? Do you still derive some joy from the items or has the pleasure long since vanished? If you could spend the money all over again, would you change anything? Now that you've answered the above questions, take some time to reflect on your answers. Your answers should give you a clearer picture of the changes you need to make in order to become a better money manager. For instance, if you're overspending in areas that aren't really important to you how can you ever expect to make any real financial gains? Now is the perfect time to consider more positive ways you can use the money you have for a better outcome. Re-examine your priorities and explore how closely your spending habits are tied to what's important to you. If you want that waterfront cottage what are you going to do to make it a reality? What type of spending habits will get your closer to your dreams and what type of spending habits will continue to put roadblocks in front of you? |
