Finance

Welcome to another series here on the wildly popular I Was Broke. Now I’m Not. website. We’re passionate about helping YOU win with your money. In this series, we are going to be talking about a practical, step-by-step plan that you can use to take your finances to the stratosphere!

How To Win With Money

1.  Set Goals

Suppose I told you to run a race, but I did not tell you where to run. You could do a lot of running and still not end up at the ultimate goal – the finish line! Now suppose I challenged you to run a race, and at the same time I provided you a detailed map of the race course, a GPS, and a personal guide. The chances that you will end up at the finish line will have increased exponentially!

There is nothing like the power of a clear goal to spur one to take action. While a person might be able to make progress with their life without having clear goals, the process of establishing and tracking goals makes their achievement more likely. This is especially true when it comes to money and money management. One rarely stumbles upon wealth. Facts support this. Most wealthy people achieve their success through a series of focused decisions that are inspired by their goals.

Your money decisions should be driven by your goals for life! Many people make the mistake of allowing their current financial situation to dictate their goals. They make “broke thinking” statements such as, “I can’t afford that” or “I’ll never be able to do that.” This is a money lie that can create paralysis in all areas of life.

Establish life goals that mirror your plans, hopes, and dreams. Refuse to let the high costs frighten you away from establishing each goal because each one can be fully funded by following this plan.

Take some time in the near future (why not right now?) to write down some of your goals. Here are some good questions to ask yourself to fire up your dreams again:

1. What opportunities do I want to provide to my children?
2. What trips do I want to take?
3. Who do I want to bless? What do I want to bless them with?
4. What type of house do I want to live in?
5. Where do I want to live?
6. When do I want to retire?
7. What career(s) do I want to pursue?

Here’s a “MY LIFE GOALS” form you can use to write your goals.

Read the entire series (available after 4/20/2013)

I believe that the Bible is the best money book ever written, and I really want to take some time this week to share a money lesson I have learned from the Word.

Proverbs 13:22  A good man leaves an inheritance for his children’s children, but a sinner’s wealth is stored up for the righteous.

There are two distinct parts to this verse.  Let’s focus on each part separately.

“A good man leaves an inheritance for his children’s children”

This is a very challenging statement.  It forces us to understand that we are not just supposed to look at the “here & now”, but also to the future.  Here are some key things I take from this:

• It’s not all about me
• I’m supposed to bless my children and my grandchildren
• The way I live my life will affect my descendents
• Blessings are generational

“but a sinner’s wealth is stored up for the righteous”

What an interesting statement to follow the first portion of the verse with!  This part is making an observation that God will bless the righteous and that those who ignore Him and His commands will have their wealth transferred to those who will pursue Him.

Question: If you keep managing money the way you are currently managing it, will you leave an inheritance for your children’s children?

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“I’ve declared bankruptcy. Now what?”

This is a combination “statement – question” that millions of people have made over the past few years. According to the United States Courts website (HERE), 1,221,091 individuals and companies declared bankruptcy in the U.S. in 2012 alone. We’re launching this series to help people who have went through bankruptcy so they never go back and so they can prosper!

Part Three Fix the root cause.

Identifying the root cause is very important, but fixing it is even more important. Statistics indicate that nearly half of all individuals who declare bankruptcy will declare it again at some point in their life. You can ensure that this statistic is lowered by ensuring that you address the root cause and prevent it from leading to bankruptcy again.

Did a pile of medical bills incurred while you were without medical insurance send you into the financial ditch? Address the root cause (not having medical insurance) by ensuring that you never again allow medical insurance to lapse.

Did you get laid off from the job you held for years and a lack of savings sent you into a downward financial spiral? Address the root cause (not making savings a top priority) by ensuring that you save money every time you are paid money in the future. It is a bill you owe to yourself!

Maybe you entered into a business partnership based solely on trust and your partner left you holding all of the bills. Address the root cause (failing to seal a handshake agreement with a contract that clearly identifies ownership, roles, responsibilities, privileges, and liabilities) by never again entering into an agreement without a rock solid contract.

Perhaps poor spending behavior and impulsiveness finally caught up with you and left you with an overwhelming pile of debt. Address the root cause (failing to have a monthly budget that prioritized giving, saving, and investing) by submitting yourself to a financial coach who will hold you accountable to living and operating by a budget every month.

Changing behavior is rarely fun, but it is so worth it!

Read the entire series (available after 3/25/2013)

Read recent posts

“I’ve declared bankruptcy. Now what?”

This is a combination “statement – question” that millions of people have made over the past few years. According to the United States Courts website (HERE), 1,221,091 individuals and companies declared bankruptcy in the U.S. in 2012 alone. We’re launching this series to help people who have went through bankruptcy so they never go back and so they can prosper!

Part Two Identify the root cause of what resulted in bankruptcy.

In your quest to move forward financially and to never again have to declare bankruptcy, it is vitally important that you conduct a detailed autopsy on what resulted in the death of your finances. What were the underlying real issues that created the financial mess? This can be a difficult process because you may have to sift through some painful memories, but this is what can help you never return to being totally broke.

The root cause is the real reason that bankruptcy occurred. If one is not really searching to fix the issue, they might say that the root cause of bankruptcy was that “they just felt overwhelmed.” Being overwhelmed is not the root cause. It is a feeling created by a deeper issue. For example, suppose this individual had purchased a new car and a new house, and then lost their job two months later. This situation certainly can create feelings of being overwhelmed, but we now have identified a contributing factor: job loss.

But the job loss is not the real root cause either! The REAL root cause is the fact that a new car and home were purchased without having any financial margin (savings) stored up “just in case of” a major negative financial event. Therefore, the real root causes of the situation are:

1. NO SAVINGS  “Not having financial margin stored up”, and
2. NO MONTHLY MARGIN  “Living against the edge by having all income pledged away to loans”

Do you see the process?

Here are some helpful questions to ask when determining the root cause(s):

1. Did this happen because of one major poor financial decision or because of a series of poor ones?
2. When did the situation become unmanageable? What made it that way?
3. Why did you decide to declare bankruptcy?
4. What could I have had in place that would have prevented bankruptcy from happening?

This is not about assigning blame and creating guilt. It is all about identifying the real culprit of bankruptcy so it can be addressed and prevented from ever causing bankruptcy again!

Read the entire series (available after 3/25/2013)

Read recent posts

“I’ve declared bankruptcy. Now what?”

This is a combination “statement – question” that millions of people have made over the past few years. According to the United States Courts website (HERE), 1,221,091 individuals and companies declared bankruptcy in the U.S. in 2012 alone. We’re launching this series to help people who have went through bankruptcy so they never go back and so they can prosper!

Part One If you are beating yourself up over declaring bankruptcy, STOP IT!

One of the biggest obstacles for anyone recovering from bankruptcy is overcoming guilt and embarrassment. In fact, many people never really get over these feelings. It is perfectly okay to say, “That was horrible. I’m never doing that again!” It is not okay to stay stuck. Acknowledge the very real feelings that come with the territory, and then resolve to move on. As the late great leadership expert, Zig Ziglar, would say, “Today is the first day of the rest of your life!”

Beating yourself up will tell you LIES. Here are some common examples (participate in the discussion by sharing others you’ve heard in the comments section):

1. “I’m not smart enough to win with money.”
2. “I hope I never get money again because I’ll just wind up broke like last time.”
3. “My family and friends believe I’m a failure.”
4. “The world is against me.”
5. “I can’t trust anyone.”

These are LIES. Ignore them. They only allow you to beat yourself up some more. Stop it! (because you can do this!)

Read the entire series (available after 3/25/2013)

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