Financial Fitness

Like physical fitness, financial fitness requires your attention. Think of overspending as overeating. It simply isn’t necessary and is usually done for all the wrong reasons. You can live a very enriching life with less stuff. And if you do, the added benefit will probably be more in the bank. You can shift your focus to what it is you really want from life. You can shift from struggle to success.

Less is more when it is a choice. It shows strong qualities like self control and confidence. Physical fitness provides opportunity because when you feel great you have more choices in life. Financial fitness does the same thing. You are financially fit when you have money to pay for things you want verses going in debt. Plus spending money you do not have causes stress which then can lead to physical decline.

People over spend and over eat to fill unmet needs and unfortunately this does not work because the need does not get satisfied. That is why you keep coming back for more. There is only momentary satisfaction. It’s like an addiction; and for many it actually is an addiction.

So first let’s explore what core values and needs are.

• Core values are things that are very important to you. Core values are those things that when you are not living in alignment with them you feel unhappy. A few examples are family, knowledge, accomplishment, success, beauty, comfort, integrity, honor, respect, and adventure. Not all of us have the same core values. Some people have strong family values and some do not. Some people feel very peaceful in beautiful surroundings and others would barely notice them. Understanding your core values allows you to understand what motivates you most.
• Needs range from basic needs like food and water to things like needing attention or to appear successful. People will do what they have to in order to satisfy a need. Obviously if you are hungry you will seek out food and focus on nothing else. But if your need is something like appearing successful then you may do things that can actually lead you away from real success. Misdirected needs must be identified and redirected.

Here’s an example as it relates to financial fitness (or lack there-of). Let’s say you value accomplishment, or success, and that you perceive high-end material things to be a sign of your success. This is where your beliefs come into play. If you believe these material items represent success, then you will need them (versus want them which is a big distinction). You will need these things because of your belief. But can you change your belief to come up with a better way to stay in alignment with your value? Maybe your belief can be that the true measure of accomplishment is confidence, or maybe the size of your bank account. Simply changing your belief can then lead you to accomplishing your goal of financial fitness.

If you are into status symbols, that is fine. Just understand why. Is it because you really want the Rolex or Lexus, or are you sold by the image portrayed through advertising, which is the need to feel successful? If you have the money saved and really want these things then of course buy them and love them. But having nice things doesn’t necessarily equate to happiness or success. And if you are buying things you cannot afford and are in debt, then you are probably feeling deficient in both of these areas. Understand the difference between looking accomplished (need) and being accomplished (value). Know what your needs are and how to best satisfy them. You may need a watch or a car. But you may be better served to make affordable choices.

Financial fitness is the cornerstone to success in all areas of your life, so make this a priority. And the following steps can be used for any goals you may have in addition to financial fitness. Here are the steps:

1. Write your goal down on paper. You are more likely to succeed by simply doing this.
2. Make sure the wording of your goal focuses on what you want, not what you do not want. Poor goal wording would be “Stop spending”. What you focus on is what you get. Here’s an example. If you hear the words “ice cream” then what do you think about? And if you like ice cream you may now want some when before you did not. So what do you want? Think back to your core values and use them to support and motivate you. How about “Saving money is success”, or “Pay cash or save”, or “Abundant success”.
3. Create beliefs to support your goal. As illustrated in the example above you can create beliefs that will move you in the direction you choose to go in.
4. Understand your needs and how to best satisfy them. As mentioned above, clearly distinguish between your needs and wants. Do you need a car? Or are you trying to satisfy the need of appearing successful? Or do you simply want a fancy car? Wants are things that can wait. And waiting to buy the car until you have saved the money is satisfying because you are anticipating its arrival.
5. Create a plan. A plan is like a road map. It helps you to visualize how to get where you want to go. Do you need (or want) to get there as quickly as possible? If so your plan will be more aggressive. Or do you want to go the scenic route, or in other words live with the old car for another year or so?
6. Go for it! Steps 1-5 will be a waste of time if you do not set your plan into action. Create action items, which detail each step and its completion date. Then complete them.
7. Working with a life coach can provide a valuable return on investment because “the devil is in the details”. Yes plans can change and that is fine. But if you have a big picture, or vision in mind, then that is less likely to happen. A clear vision and a well thought out plan can save you time, money and frustration. And your coach will hold you accountable to the commitments you’ve made.

If after reading this you are thinking “this seems like a lot of work”, first understand this is a belief and examine it closely. Then ask yourself if you believe that being financially unfit is effortless? The truth is that being financially unfit will probably be more work and a harder life for you in the long run. So give financial fitness a try. If you do you may someday look back and realize you are living a life that has exceeded all your expectations.