The vast majority have no idea where their money goes. They earn it and they spend it.
That is fine if you want to live from multi week to another and are not concerned about your financial future. Anyway if you want to increase your wealth and have more options, action needs to be taken by you else you could wind up like the vast majority further down the track, totally reliant upon a pension.
Karen is the Marketing Manager for a notable organization. She’s 39 yrs old, single and earns more than $80k a year. She is paying off a mortgage and that is all the debt she has.
Karen purchases whatever she loves and says she has a sizable amount of money for her lifestyle…or so she thought. And that is a vital point – Karen ‘thought’ she had a lot of money to splash around yet she had no real idea of where it went.
She was at the stage where she wanted to achieve more in her life including taking charge of her financial future.
One of the activities I gave her to do was to sort all her financial statements – visa card, bank accounts and any cash receipts and show her income and consumption under specific headings i.e.: loans, clothing, utilities, food and so on Karen recorded everything that happened for the past 6 months . She nearly fainted when she saw how much money she had wasted and the amount she was overspending! She was going backwards fast and only realized it by doing this simple exercise and visit https://teenswannaknow.com/why-you-should-be-thinking-about-your-financial-future-now/.
In the past Karen had not put a high need on her financial prosperity as it was simply too hard. Being a marketing manager, her life was occupied busy working and she had a chaotic social life. She would not like to try doing something that was not exciting like working on her financial future. After all, she had a generously compensated work, is not that right?
Karen has now woken up and knows her actual financial situation. If she lost her employment, financially she was unable to afford to be off work for over a month. She realizes that she is responsible for her future.
The area of wealth creation had not been of great interest to Karen in the past. Now that she was undertaking coaching, she was not kidding to making a change. Before writing down where her money was going, Karen was totally shut to any suggestion to read more about how she can accelerate her wealth (or lack of it), so I did not seek after this with her. Her attitude had now changed so she was ready and willing to move to the following stage.