Dr. Don Deems, the Dentist's Coach - Free Newsletter: Money and YOU

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Money and YOU
May 01, 2010

Being totally honest, we all struggle with money, at least to some degree. And just so you know, I'm not here to act as if money isn't important or necessary. It is!

Whether it's our business or our personal life, whether we're worth $20 million or $20,000, whether we "have" a financial plan or not, money stays on our mind because it IS the currency of our life. (No pun intended!) Handling money properly in our lives is not only part of being responsible and living with integrity, it's necessary for many things in our life.

What is it about our struggle with money? To what degree you feel affected by it? How do you make decisions around money? How many of the following do you notice about your "money habits"?

• Pay bills late
• Eagerly looking forward to your paycheck
• Feel inordinate relief when paying routine bills on time
• Buys a lot
• Credit cards at maximum
• Taxes late or unpaid
• Money conversation is embarrassing or uncomfortable
• Money controls lifestyle, choices, energy
• "Make money, lose money" cycle
• Talk about how you "used to" have money
• Debt is increasing
• No regular savings or investing program

The more of the above items you can relate to, the more likely it is you're ready for a change in the way you view, handle, and use money. So, what's behind these money choices? I would ask you to consider these possible sources:

Resistance to Responsibility
Some people avoid money and savings because they still want to be taken care of, or just plain saved by someone/something else. They've yet to understand that no one will likely do that, and if they do it, will cost the person too much emotionally.

Bad Habit
Over-spending or not saving may just be an old, bad habit that won't take much to change.

Adrenaline Producer
Concern and panic over money is a guaranteed way to get energy, although it is not healthy or sustainable.

Self-Esteem Lacking
We have what we feel we deserve; we don't have what we don't think we deserve.

Spending is a Medicament/Therapy
When the going gets tough, the tough go shopping! Spending money or buying things makes one feel temporarily better about themselves, their life, situation, or problem. It changes the focus.

Inadequate Income
If you're not paying yourself properly, start now. If the money isn't there for you to pay yourself, get going! Time to make changes!

Excessive Expenses
We think we spend what we need or deserve, rather than spend what we truly need. Or, we'll spend in anticipation of future earnings.

Entrepreneur/Optimist
Over-investing in new projects or just knowing that they'll make a lot of money - just around the corner!

Passive Spirituality
You'll hear "Oh, God will take care of me financially because I am a good person."

So what CAN we do about our money habits? What are some good starting points? Consider these ...

• Pay Yourself FIRST
Every payday, write yourself a check first. If you find yourself short at the end of the month, go out and earn more money! Want even more of stretch? Write a check for TWICE what you think you can afford.
• Hide the Credit Cards.
If you can't control how you use them, cancel them, burn them, or cut them up.
• Become More Aware
Not having money is doing something for you, whether you see it or not. So, it's worthwhile to discuss and explore how it works quite well for you not to have money.
• Install a Savings/Spending Structure
Use an automatic savings plan at work, or even better, get on the company pension plan and contribute to your legal maximum, if your financial advisor agrees. Also, put yourself on a weekly personal cash allowance and manage your spending by how much money is left in your pocket. Or, hire a personal bookkeeper or financial planner to help you pace and manage your spending.
• Monitor Your Net Worth
Buy and use a program like Quicken. Just focusing on your Net Worth often increases it because it becomes a great game to play versus the game of avoiding the game!
• Take on a Big Financial Obligation
Sometimes, buying a great home, new car, or other big ticket item is enough to wake you up! Caution: it can also be a "trap" if you're not ready!
• Cut Expenses Dramatically
Start saving at least 10% of your income. Make it uncomfortable in such a way that you can see you don't need to spend what you thought you needed to spend.
• Moonlight/Add another course of income
Gives you more savable income . . . and less time to spend it!
• Invest in Your Skills
The more you invest in yourself, your skills, and your knowledge, the more you'll be able to increase your income. Make yourself more valuable to your clients/patients with your new skills!
• Change Jobs, Careers
OK, this is a big one, especially if you're a professional whose dedicated so much time, energy, effort, and money into your career. And, just because you are a professional doesn't mean that you shouldn't consider it. Your current work might just be holding you back!

Even if you feel you have a good handle of money and how money affects you, there still might be some room for making money even more abundant, plentiful, and easy in your life. If you want or feel you need some professional help, hire a coach, financial advisor, and/or bookkeeper, work with one. It can do wonders to get you on a track for financial independence, economic freedom, and a healthy and easy relationship with money.

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