When it comes to money, we all want peace of mind, so how do we get it?
Whenever I initially meet with potential clients, most of them say they have a budget. When I ask them, especially couples, how often they compare their budget to their actual cash flow during the year, I usually get blank stares – which does not surprise me. Having a budget is one of those things in life that feels good to say. Who wants to say they do not have a budget? But as I am sure you can imagine, having a budget that you create only to put up on a shelf to collect dust is not the same or even close to knowing how your cash flow works and how to optimize it. Plus, instead of calling it a budget, let’s call it a spending plan. Budget is a loaded word and feels constricting. A spending plan is putting your money and your life in alignment with your values and is empowering.
Most of my clients know that I am a self-admitted cash flow nerd. I love modeling cash flow, creating what-if scenarios and being able to peer over the horizon with some pretty sophisticated financial planning software. When cash is flowing like champagne in Las Vegas, financial planners like me that specialize in analyzing cash flow take a reluctant back seat to the financial planners that mainly focus on investment returns. Who has time to care or analyze cash flow when there is money to be made in the stock market? Well, no schadenfreude on my end, (well, ok, maybe a little but that is a topic for another article).
Now is the time to know your numbers. How much is coming in each month, how much is going out, what is your game plan for the year in terms of cash flow and finally, who is in charge of cash flow and how often do you review your numbers. I would suggest, especially if you are feeling stressed about money, that you and your partner hold a financial planning meeting once a month, or at a minimum, once a quarter, and compare actual numbers to your spending plan and most importantly, express how you are feeling about money. Course correct when necessary and most importantly, design a cash flow plan that’s nimble and flexible.
Money is never just money, a tool to accomplish some of life’s goals. Money is love, power, happiness, security, control, dependency, independence, freedom and more. Money is so loaded a symbol that to unload it requires a new awareness around your relationship with money. Usually, when the button of money is pressed, deeper issues emerge that have long been neglected. As a result, money matters are a perfect vehicle for awareness and growth.
As we live through the worst economic crisis to hit our country since the Great Depression, remember how important it is to stay positive. Be the light. If you’re feeling the blues around your money, find something or someone that inspires you and raise your energy level. Be mindful of your thoughts and remember that what we think about most often is what manifests into our life. Think about abundance and feel abundant and you will attract abundance into your life. At the end of the day, it’s not about how hard we fall, but how quick we dust off and get up. Is the road ahead going to be challenging? You bet it is. Will we be tested like never before. If we work together as a country, stay hopeful and optimistic, can we make it through this economic crisis stronger than before. Yes We Can!
Spiritus Financial Planning was founded by Mark Zaifman in 2003 with the intention of bringing fee-only, values-based financial planning services not just to the wealthy, but to all of us.
Mark Zaifman is not your father’s financial planner. Using a holistic, values-based strategy, Mark helps people across social classes effectively manage their money. He has been hailed as a “new breed” of financial advisor by Natural Health magazine for his tenets of financial responsibility and sustainability and for his hands-on approach.