Lifewriting 5/23/15 NOTES: Finance

Steven Barnes’ Lifewriting: 5/23/15

Finances

Notes for the Show.  Remember: the key to mastery is to:

  1. Clarify your goal
  2. Identify an accurate map of action.
  3. Take small daily/weekly actions.
  4. Deal with the fear, conflicting values, false beliefs and negative emotions that will inevitably arise from making such a change.

Each of these has multiple layers and complexity as you learn.  The most basic way to gain mastery is:

 

1) Understand your current financial position.  Mint.com is an excellent, free tool for this.

2) Save 10% per week or from every check.

3) Build toward 1-6 months “emergency funds” in savings.

4) Study finance for at least an hour a week, investigating SAFE, NON-VOLATILE, LONG-TERM investments.   Completely avoid anything or anyone who promises returns above about 15%.  Avoid anything without at least a decade’s track record you can verify independently.   

 

Until you have 1-6 months “emergency funds”, you should consider an all-out crash program to accomplish this.   The steps might go:

  1. 1-6 months income in savings.
  2. Own your own home
  3. Pay off debt

The “Ancient Child” allows you to align your emotional states to protect your dreams and establish discipline.

  1. Child.  Your “child” self is the source of creativity and “aliveness.”  But unless you learned proper savings patterns AS a child, it cannot be trusted to guide your financial life.  It will convince you that you cannot afford to save 10% of your income, even if you are spending 25% on toys, coffee, snacks, and take-out meals.  Don’t trust your child to make adult decisions: instead, use your love for that child to motivate you to take control.   Your “child” deserves to be safe.  Only your “adult” can do this.
  2. Adult.  Must determine current net worth (assets minus all liabilities), set goals (long term and short term) and break those down into daily actions.  All goals must align with your deepest values.  Ideally, they align with your childhood dreams as well–you will NEED that kid-energy!

 

When you use the “Secret Formula”

GOAL X FAITH X ACTION X GRATITUDE = RESULTS

The results are amazing.

Examples: Goals – I want to pay off all my debt and buy a house. I will earn 120k a year, and transfer 10% every week/off the top of every paycheck into a savings/credit union/brokerage account.

Faith- I can do this, I am doing this, IT will be so.  I’ve accomplished terrific goals in the past, it will bring more pleasure than pain into my life.  I have friends who are financially stable/can find mentors who are genuine experts/have identified books and courses by people who know how to heal finances. These experts/books have worked for generations. They will work for me!

Action- 1 –figure out what my debts are, 2 what my assets are, 3 what is preventing my from buying house.   DAILY action: use Mint.com to check finances. WEEKLY action–transfer 10% of income/checking to a savings/brokerage account.

Gratitude – Thank you for taking care of yourself,  For another day of life, for health and love and opportunity.  For the strength to take action and the courage to do so.

Information:

http://www.financialsamurai.com/about/  website I enjoy reading and learning from

http://money.cnn.com/2015/05/21/pf/millennial-millionaire-prosperity-formula-romans/index.html?iid=Lead  -interesting article about creating wealth

http://www.pewresearch.org/fact-tank/2014/12/12/racial-wealth-gaps-great-recession/  I like PEW Research Center.  Usually very good with facts – interpretation is not always in agreement

Resources: Books

The Richest Man in Babylon by George S. Clason

Think and Grow Rich by Napoleon Hill (Read the original 1938 version.  Much about it is out of date, but it is the single best source of information on making money.  There are multiple versions and classes expanding or updating or adapting the principles, but you are best off reading the original, so that you can evaluate if the updaters are doing a good job!)

The Richest Man in Babylon by George S. Clason

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy  By Thomas Stanley and William Danko

The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach

The Ancient Child program

The LIFWRITING TEN WEEK Writing program

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s