If you are interested in getting your financial life in order, you might have never considered the fact that money is not the real issue. Every year, hundreds of personal finance products and courses are created in order to help people get control of their money using conventional tools such as budgeting, financial calculators, investment guides and debt consolidation formulas. However, a lot of these methods are applied for a few weeks or even days, and quickly abandoned. If you have ever wondered why this is, you are about to find out how financial success has a lot less to do with getting your money in order than you think…
The Three Dimensions of Your Financial Life
Effective management of money involves three basic dimensions: management of income, management of outgoing expenses and management of investments/savings. No matter how complicated some might make it sound, having success in these three dimensions is really pretty basic. In fact, just about any average person with an income knows of at least one strategy which they can apply in each of these three areas to increase their level of financial success. The questions is: why aren’t people using the things which they already know will make them financially successful?
The X Factor: The Human Dynamic
There is actually a fourth dynamic of your financial life which the majority of us never consider when it comes to the effective management of income, outgoing expenses and investing. That hidden dynamic is the human emotional drive. It is our emotions, not our reasoning, which controls our decision making. If the reasoning mind was in control, there would be no such thing as people logically “knowing” what to do in order to become more financially successful, but failing to apply it. For better or worse, all of the financial strategies which you are aware of are at the mercy of your emotional conditioning.
No matter how logically informed you are about the management of income, outgoing expenses or investing, you will only act upon the information which you become emotionally involved in. This is the primary reason why financial success eludes so many people….even intelligent people. So what can be done about this?
The Management of the Emotions
The major difference between the way that you manage your emotions and the way that you manage your money is that emotions must be nurtured the same way that a living thing is nurtured. For example, you can force money to flow in one direction or another by the simple application of financial formulas or strategies. However, the emotions cannot be forced, they must be allowed to grow and to mature at their own pace. This management of the emotions requires an understanding of the human emotional drive, which is based on the fulfillment of the emotional needs. If these needs are not properly nurtured or if they are neglected, they will seek out fulfillment in other parts of your life.
For example, there is a basic human need to have a sense of excitement and fulfillment in our lives. If this need for fulfillment is being starved by spending the majority of your time at a job that you hate, it will seek out fulfillment elsewhere. This is usually what causes people to overspend on things like eating out, taking expensive vacations, splurging on expensive electronic gadgets or other types of excessive spending. While it may seem to such a person that the problem is a lack of the ability to manage spending, the true issue is a deficit in the need for excitement and fulfillment.
So What Can You Do Now?
Sit down and look at all the areas of your life: health, relationships, money, career, spiritual, recreational etc. Looking at these areas, find out what needs you have been neglecting: security, happiness, excitement, connection, significance etc. Next, develop a plan for managing your life which will fulfill your emotional needs in ALL these areas of your life. This will make the management of the emotions much easier and pave the way for using the financial strategies which you already know will make you a success.
So what is holding back your financial success?
If you find that earning more income is one area you need to work on then consider working online with us with one of our online income generating programs.
John and Linda