Guest blog by Don Campbell
Managing your money is a key step in being successful. Here I am not talking about how much money you have. Money may or may not be a sign of success. I have had the good fortune to know many successful people. Some had lots of money, others had very little. The amount of money was not related to their level of success. What I want to discuss here is how to use our money wisely.
Money is much like time as we all have a limited amount. Knowing that our money is being spent in line with our deepest desires and values goes a long way to helping create success. Once again our goal can give us guidance. Spending money in line with our goal helps us avoid all the latest gimmicks and fads. It may be new and trendy but if it doesn’t fit with my goals why would I buy it?
My personal experience has been that one of the easiest ways to feel successful financially is to limit your wants. No one can have it all. If we have the discipline to say “I have enough” we are well on the road to success.
The key steps to Holistic Financial Planning are:
- Annual Review—do you have a logjam that you must address this year or adverse factors that are holding back your operation as a whole?
- Determine your current net worth.
- Plan a year’s income (a gross profit analysis for each enterprise is a great way to determine your income).
- Plan the profit you desire or need.
- Define the weak link of each enterprise so you can improve the gross profit from each enterprise.
- Plan and sort your expenses so you can free up money for investing rather than just maintaining the status quo.
- Do a cash flow.
- Determine your ending net worth to measure your progress.
- Monitor, control and replan.
Do the Necessary Thinking and Planning
Before making any major decision or change it is vital to “work it out on paper.” If you can’t make it work on paper, chances are it won’t work in the real world. If it works on paper, chances are it will work in the real world. When making a change I suggest planning out for a minimum of one year. If you are making a major change projecting out for three years would be even better.
Points to Consider
If you are feeling poor, you might want to consider these ideas:
- You are rich. Someday you may have money (Kenny Campbell).
- Being born in North America is like winning the lottery.
- The healthiest person is the richest person.
“For he is not poor who has little; Only he who desires much.
True security lies not in the things one has but in the things one can do without.” Anonymous
If you would like help creating your value-based financial plan, contact me, HMI, or one of HMI’s Certified Educators to help you take the next step.
Don Campbell is a Holistic Management practitioner and Certified Educator in Meadow Lake, Saskatchewan, Canada and can be reached at: [email protected]