A financially independent mentor once told me; there are three main areas to our financial life:
- Earning money
- Spending money
- Saving money
The key is to do all three well together to create financial momentum.
Many people believe if only they earn more, then they will be able to save money. I have seen people make hundred of thousands and even millions of dollars a year and spend every penny of it. Why? Because their “spending wheel” is not working with the earning and saving wheel. Also, you cannot out earn bad money programs. This is why there are lottery winners, celebrities, or sports figures that receive large amounts of money only to go back to being broke.
The opposite of this would be someone that has saved a great deal of a relatively small income. This person has lived well below their means because their spending wheel was in check with her saving wheel. This process, however, took decades of discipline because their earning wheel was not as strong as their spending and saving wheel.
How do you get all three wheels moving together to create financial momentum? First, you must know that all three of these areas of your financial life are run by a subconscious program. What are the programs that run how you earn, spend and save money? Begin working on the weakest area first and begin to take pointed action to learn and grow in ways that will help you to improve this area of your financial life. Then move to the next. As you begin to have more balance with these three areas you will see financial momentum begin!
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