Regardless of where you fall on the income or economic spectrum, very broadly,
there are 4 things that you can do with your money. Earn it. Save it. Invest it. Spend it.
Her job is to look at people's behavior with money, their choices, and their motivations behind those behaviors and choices. She helps people unpack that and help them to understand that you don't manage money. You manage your choices around money.
When you look at the pattern of how you're spending your money, how much of that is going towards a goal or several goals? How much of that is going towards helping you to build wealth now and generational wealth?
Most of us have been conditioned to approach our money, where we make decisions about saving, investing and spending, based upon how much we earn.
"Living by design" (preferred method):
How much do I want to save? Why is that important to me? How do I want to invest my money? Look at these questions holistically, not just in terms of the stock market, real estate, or having a business. Look at the people and the causes that are important to you. What is the lifestyle that you want to have? And THEN ask, what is the amount of money that I need to earn to make that happen?
1) Track your money. Not for the purpose of creating a budget, but for the purpose of objectively identifying what is your pattern of behavior. What are you buying? When are you buying it? Why are you buying it? Is it something that you need or want? Is it something that was planned or unplanned? In what way is it feeding you emotionally?
How much will you save? How much will you spend? How will you invest your money?
3) Always understand the financial aspect of every goal that you have.
That is important because:
a) you have to feed your goals with the cash flow that you currently have. If you don't know what the financial component of it is, then you don't know what trade-offs you need to make.
b) you need to understand how to invest that money that you're setting aside for that goal.
4) Don't confuse access with insight.
Everything is digital now. When you get the notification about your statement, review it.
Our financial institutions and the merchants with whom we do business with, know more about our behavior with money than we do. Karen: "Be present. It's your money!"
Tells her teachers that they are doing 1 or 2 things when they open their mouth.
You're helping a kid get to the next level or you're killing them with what you say.