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Are You Leaking Money?
By Sandra Reynolds, CFP
Money isn’t everything but it is necessary in our culture. If you find that you have more days at the end of the month than money, you are most likely leaking money. When you leak money, it means you can’t do all the things you had planned on doing and your cash flow limits your options.
Cash Flow – What is it and why is it important to know?
Cash flow is really nothing more than how much money comes in and how much money goes out. Oh, there are fancy words for all of this like income, fixed and variable expenses, and debits and credits but these things are just variations on cash flow and what it can do for you or to you.
Cash flow can allow you to realize your dreams and goals or make your life a nightmare! Your entire financial life can be traced back to your spending. Your numbers will tell you a story. There are many reasons that we spend money. Many times it’s because we have to BUT sometimes it is because of other less obvious reasons. Much of our spending is done in response to fear, sorrow, anger or the need for instant gratification due to a sense of deprivation. Discovering your reasons for spending will help you make conscious choices about where you want to spend your money, rather than unconscious choices that can leave you feeling less secure, less satisfied with life and more fearful of your future.
Values, Goals, Needs and Wants
The first step you need to take is to identify your values. Values are defined as the intangible things you care the most about. Happiness, freedom, and peace of mind are good examples of values. Goals are tangible expressions of your values. Goals might include travel, paying down debt, or starting a business. When a person achieves a goal (worldwide travel), she also experiences her values (freedom). If you say you value peace of mind BUT spend time worrying about money because you’ve racked up a lot of debt, then your actions (spending) have sabotaged your value (peace of mind). You can’t change your actions until you identify your values and understand why and how you are sabotaging them.
How can I do that?
There are a number of ways and products that can help you do this. Search the web for financial resources and you will find many websites that allow you to track your spending. Bookstores have a number of publications about budgeting, household spending and the like. If tracking spending is all it takes, why do so many people fail to correct their “money problems”?
If you are like a lot of people, you start with the book or website but lose interest in a short time and you’re back to square one. That’s because the books and websites don’t typically address the emotional aspects of money and don’t usually include an easy way for you to identify your values or “money history” that ultimately will show you what’s really happening in your “money life”.
Without addressing both parts of our “Money Life”, the financial facts and the emotional component, we keep repeating our pasts. If you want a new “Money Life”, you might want to consider attending a Cash Trakker™ Workshop.
I’ve never heard of the The Cash Trakker™ Workshop and Cash Trakker™ Module. Where can I find out more about them?
The workshop combines the Cash Trakker™ Module that enables you to see what’s happening in your financial life with a personalized approach to empowerment that helps you identify and change your relationship to money. The Cash Trakker™ Workshop and Cash Trakker™ Module help you identify where you want to stop “Leaking Money” and gives you the opportunity to make a new money history and to begin a new “Money Life”.
Visit www.ReynPlans.com and click on The Money Guide to learn more.
Sandra Reynolds, CFP
Sandra Reynolds, CFP® specializes in the financial issues affecting women and their loved ones.
Sandy has been a guest speaker and participant at the State Treasurers’ Money Matters Conference for Women in Massachusetts and Maine. She has also been quoted in articles for “Investment Advisor”, “Financial Planning”, and “The Journal of Financial Planning” magazines as well as appearing on WOMR 92.1 radio. She is a retired teacher and adjunct faculty for the College of Financial Planning.
Sandra Reynolds, CFP® welcomes clients from all walks of life with varying income and net worth levels. She offers clients a safe, relaxed and non-judgmental atmosphere where they can explore their values, goals and life plans.
Securities and Investment Advisory Services Provided through Capital Analysts Incorporated Member FINRA/SIPC.
Please feel free to contact Sandy at 508-636-6521 or visit www.reynplans.com
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