"It is in spending oneself that one becomes rich".
- Sandra Bernhardt
Issue 6 : Spending money
2010 was the year I became financially free. I was on a mission to heal my own money fears, my insecurities and my worries. I was stuck around some old money stories that in turn effected my business, my clients and my peace of mind. So I decided to do something about it. I hired one of the best coaches in the world and paid him $25,000 to coach me on how to be financially fearless.
Spending this much money on a coach was a bold move and a scary one but I knew that it was the right first step towards healing my own money issues. Through the process of working with my coach I got a better understanding to what it meant for me to be financially free and how to show up in the world from that place. Spending that money was one of the best investments I've ever made in my life as it paid for itself ten fold very quickly.
I learned that my happiness is not dependent on how much money I have. There is an abundance of money in the world, enough for everyone. If I need money, I go create some. What I also learned is that most of us don't really know how to spend their money well. we learn how to make money but when it comes to spending it, we often don't put as much thought and energy into it.
In this issue of Pomegranate we will focus on how to spend your money and how your spending habits reflect the way your life and your business look.
One of the main reasons that people come to me for coaching is that they want to learn how to make money. But rarely does anyone ever ask how to spend money.
But here’s the thing: the way you spend your money has a direct effect on how you make money. Think of selling and spending as two sides of a coin; they don't exist without each other. Like black and white, dark and light, feminine and masculine. As we make money we spend time. And when we spend time we part with a piece of ourselves. If your spending honors the work you did to make the money you will feel joy; if you spend carelessly, you may feel the opposite.
Many of us are simply afraid to spend money. Holding on to it gives us a sense of security. We keep hearing how much we should save for retirement but then worry we could lose it all in a bad economy. How can we enjoy making money if we’re afraid to spend it and afraid to save it?
You can’t change what you don’t measure. Want to change your money mood? Start measuring the way you spend your money.In order to get a perspective on making money, I challenge you to begin by observing the way you spend money.
I ask my coaching clients to write down every dollar they spend for thirty days and to pay attention to how they feel when they do so. Most of them report an eye-opening experience as they start noticing that tracking their spending urges them to make new and different choices with their money. Before they spend they pause and ask themselves "Do I really value this thing I’m about to pay for? What am I investing in with this payment?”
Every dollar you spend has a value decision attached to it. The more you value something the more you will pay for it. Every spending decision is an investment in something you value.
Paying for food invests in your health. Paying the mortgage invests in your real estate (home, security, comfort, identity – and also your future). Paying for the latest technology invests in your quality of life. When you invest you place your heart on growing something. You give focused attention to where your money is going. Conversely, when you don't pay you don't value.
The same goes for your business. The more you invest in your business the more your business will grow and give good returns. And of course if you invest in the wrong things (bad employees for example) or in things you don’t really value, your investment isn’t going to perform.
During my first four years of my business I barely paid myself. Not because there were no profits, but because every dollar I made I spent right back into my business. I didn't mind being the lowest paid employee in my company or living a very modest lifestyle. That was also part of my investment.
I invested in talented employees, the latest computers, a business coach, a welcoming office space and ongoing marketing and self-promotion. Because I spent on my values, spending money gave me joy. Because I spent as investments, I knew that every dollar was a drop of water gobbled up by a thirsty plant storing up energy to give me back the best fruit ever.
Make spending your money intentional and related to a desire and a goal. Be mindful of where your money goes. You get what you focus on so start paying attention to what you value most. Then watch as what you spend your money on (values and investments) becomes the generator for making money – the opposite side of the same coin.
If you want your business to bring in x amount of money within the next year focus on how you are investing in your business right now. Maybe you need to spend money on marketing yourself better or hiring a business development person or hiring someone to coach you how to develop your business yourself. If you value your business, invest in it (with love and nurture) and your business will pay returns, organically.
Spend wisely. Spend with intention. Spend on the right things.
Jessica Jackley: Poverty, money — and love
Kiva.org’s founder opens up about how her changing views regarding poverty inspired her to launch a nonprofit dedicated to offering microloans to enterprising individuals in economically deprived areas. Learn about the organization’s powerful accomplishments here and find out exactly how far $25 can go in the pocket of a wise entrepreneur.