How to Think About Money Management

 

 

 

 

 

 

 

 

There’s More Than One Way to Skin a Cat

 

Happy New Year! If you have been following along on our Facebook page, you saw all the fantastic pictures of The Dollar Lama on holiday in the U.K. We were lucky enough to kick off 2017 in the beautiful city of Cambridge, England. What a well earned treat!

If there’s one thing that traveling away from home does, it’s give you perspective. Travel opens your eyes to the truth that the world is shrinking, thanks to quantum leaps in technology, and growing every minute of every day, thanks to moonlight and Axe Body Spray. When you travel and see that there are people who are different than you, who live differently than you do, you begin to realize that truthfully, there is more than one right way to do things.
This fits with our (The Dollar Lama and I), philosophy about personal money management. In terms of how to think about money management, one size does not fit all. This idea, in my opinion, is central to living a life of abundance, happiness and peace. After all, not everyone has the same goals and priorities, that should be obvious. Not only is that okay, it’s actually a very good thing! We would be doomed as a species if everyone was trying to whack the same mole!

Of course, there are some basic things we should all be striving for, since not striving for them burdens others and can cause you to lose your freedom. These things include trying to be debt free by the time you’re 60. Also, building a nest egg so that if you can’t work, you can still pay your bills.
This list also includes building an emergency fund, which is different from a nest egg, let’s be very clear on this point. An emergency fund is exactly what it sounds like. A fund for when you have an emergency, not for when you want to retire. You need an emergency fund for lots of different reasons. Things happen in life, period. For example, you or a loved one might get sick or have to fix a car. You could unexpectedly lose a job (which does happen, believe me). Or maybe you find the deal of the century and need cash to invest. No matter what, an emergency fund is very important. Start one today, with just $1.00, if that’s all you have.

So, how does all this fit with the “more than one way to skin a cat” philosophy of money management and what is the point of this blog? Well, I recently read something in a blog somewhere that basically went said, “when it comes to financial problems, we need to stop trying to push everyone into the same financial pigeonholes and start addressing it from the individual level.” This struck a chord with me because I have believed that for a long time now. I know from personal experience that the 50/30/20 rule does not work for everyone.
Not everyone wants 2.5 kids, a house in the suburbs and a 9 to 5 with a company car. And that’s okay. As long as you have a plan that takes care of your needs and does not burden others, while hopefully contributing to society and the overall advancement of humanity, that’s all anyone can ask of you. Taking a more personal approach to day to day money management is critical to living a satisfying life, you know why? Because money isn’t everything to everyone! Shocking, I know!

This is why I push the idea of “finding your magic number.” You find it by getting your priorities in line and then managing your money to serve those priorities. To do that, you have to inventory your priorities and your income and expenses. Then, you have to figure out how to adjust things so that your money serves your priorities in a way that you can feel comfortable with. You know what this is doing? Addressing personal finance at the individual level, rather than using a one size fits all template designed to push the ideas of traditional hallmarks of success like accumulating as much wealth and as many material possessions as possible.

Having planted the seed of a new way to think about your personal finances into your collective brain, I’m going to let the idea soak it in and let you think on it a little while. Before I go, I do want to leave you with one final thought. You know, there is another huge benefit to travelling outside your own fishbowl. That extra benefit is that it can make it you so much more grateful for what you already have. I’m a true believer that absence really does make the heart grow fonder. The Dollar Lama and I were thrilled to spend time in such a wonderful place as the U.K. We loved Ireland and England! So beautiful with so much history. I would go back in a heartbeat! Having said that, I was never more happy to crawl into my own bed and drive on the right side of the road. On that note, happy pondering my friends!

Sincerely,
Joy Alford-Brand

Your Dollar Lama

P.S.  For more info on how newcashview.com can help you get your personal finances on track, check out our online courses by clicking here!