Well, it's a new year. Again. Hopefully the haze from your holiday hangover has cleared, and you can start to take stock of things. Did you make more money last year? Did you give away more money last year? Did you save more money last year? Did you fulfill more of your life purpose last year? If you answered no to any of these questions, you've got some work to do on....MONEY.
As a creative person, I have always enjoyed "making things up"! I like variety, and the process of inventing something new. But with money I have learned, there are basic laws which are unchanging. In a way, knowing these structures is stabilizing for me as a creative entrepreneur. Before I knew and applied these laws, I was at sea with money, floating this way and that based on my creative whim.
Now that I know these laws, I apply them for my clients, and they provide security, and yes, WEALTH! In my own household we used these laws to up our net worth by $150,000 in 3 years. My clients use these laws to get rid of debt, give and save as regular habits, and build their nest egg. Are you ready to master the spiritual & practical laws of money?
Well, then let's dive in!
1. Make money.
The #1 law with money is that is okay to make some. One of my mentors Toni Stone always said, "Money will come when you are doing the right thing." And I have found this to be true. When I am following my heart and my purpose, the right jobs and chance to serve for me have materialized. And when I give and serve, money comes. And as I continue to ask "how can I serve better?" more money comes!
Some people have an aversion to making money, thinking it is not "spiritual". The path of an ascetic monk is a valid path, just not for everyone! Most of us are householders, raising children and doing work in our communities. For us money is a useful tool. We can be just as "spiritual" if we make money as if we don't. I have been a tither for 13 years, giving away 10% of my income. So I feel pretty dang spiritual, even as a prosperous money-maker.
Are you in action with your life purpose to serve others? Are you charging a good rate for your services or product? Some people believe they can pray money into existence. And yes, prayer and intention are useful. But you also need to be in ACTION. So if we need to work, and act, let's act for whatever brings us joy, and brings us the most income! And money comes as a result. And more money continues to flow, as we continue to serve in bigger and better ways.
Once we make money, then we can start to give.
2. Give money
The #2 law of money is that once we have an income, we have a responsibility to give. Giving, or tithing, a percentage of our money is an ancient practice invented by the Babylonians, then passed to the Hebrews, who then passed it to the Christians. To give is to affirm that "we have it to give", which affirms our own prosperity. When I started tithing I found my income grew steadily, because I was affirming the infinite flow each time I gave. I began to have a spiritual assurance of the flow of money.
And then giving also benefits and supports spiritual work and allows it to continue to help the world. Giving 10% is the traditional amount. And then you create your lifestyle from the 90% that is left over. "If you cannot live on 90% you are not a good money manager," says Dave Ramsey, another money mentor of mine. Using your monthly budget, or tracking system, allows you to give in balance with all your other needs.
Where should I give? Traditionally tithing was done to a temple, then a synagogue, then a church. In modern culture many people receive spiritual guidance from many sources. So tithing can be distributed to any place or places that inspire you spiritually: spiritual centers, temples/churches, counselors, coaches, artists that inspire, etc. Tithing is a personal decision and should never be coerced.
When we give, we have an assurance of prosperity.
3. Save money
The #3 law of money is to save some. Just like giving, saving is a spiritual practice and a practical habit. When we save some of our money, it creates reserves for security and for greater wealth-building. Just as the Babylonians and Hebrews saved grain for lean times, we can save for emergencies, large purchases, assets & investments which will produce income for our elder years.
Dave Ramsey recommends saving 15% of your gross income every month. Once again, use your monthly budget, or tracking system, to manage this. If you give 10% and save 15%, then you can live on 75%. This does mean that you have to have discipline and not allow your lifestyle to get out of control. Millionaires exercise this kind of self-control by eliminating debt and consistently saving money over many years, note Thomas J. Stanley & William D. Danko in The Millionaire Next Door.
Are you in debt? Debt is a sign you have not been saving, and you need to get rid of it first before you begin to save. Apply the 15% you would save, or more if you can, to getting rid of debt. Then when you are done with it(sometimes this takes a few years) start saving as you would normally. Over the course of a working lifetime most people can build a nest egg of 1 million dollars by saving 15%. If you are starting later in life, you will need to save a bigger percentage of your income.
When we save, we automatically build wealth.
4. Track money
Money loves to be paid attention to. It tends to grow in the presence of attention. When we do not pay attention to money, it disappears. How are you going to pay more attention to your money? One way millionaires grow their nest eggs is by using a monthly budget. This is a tracking system that is different every month based on your changing needs over time. You can use a paper budget or an online system, whichever you are more comfortable with.
Are you uncomfortable with budgeting? Another way to track your money with a budget is to get a money coach. Having accountability from a trained professional helps you to stay in touch with your numbers. A coach can help you meet your goals, whether that be starting a giving or saving practice, paying off debt, increasing income, or acquiring assets.
A final way to track your money is to be in a class where others are practicing tracking their money. The culture of a group can support you to learn the new habit of tracking, or budgeting. Be aware it takes 90 days to learn a new habit. So it is common when we work on our own to abandon budgeting after just one month. That is why my basic class, The Money Makeover, is a 3-month group. In this class, the average household pays off debt/saves an extra $5000!
When we track, we meet our money goals.
If you work on these 4 laws of money, I guarantee you will get results. My private clients and students have been building wealth with these principles since 2005. My hope is that you will start or deepen your own practice of these 4 laws. Good luck and let us know how things go with your wealth-building!
Kathy Kali, Coach, Speaker, Author & Teacher has been helping people make more money and build wealth with it for the last 13 years. Kathy holds degrees in Women's Studies, Certified Master Financial Coaching & New Thought Prosperity Teaching. Kathy’s mission is to help heart-centered professionals build wealth to fulfill their purpose.