Do you wish you felt empowered by your spending habits? Do you wish you saved more?
Too many people in our overly automated world have become disconnected from their money flow. Or they feel overwhelmed by their finances. Yet, energetically, both of these emotions block money.
By taking time to notice your money habits and make positive shifts, you can ensure your money is being put toward what matters most to you in the short and long term.
The more intentional you are with your money, the easier it is to grow.
Financial educator, Manisha Thakor of moneyzen.com, has a great model called the Healthy Spending Pyramid to get you started. Just as healthy eating is important to your body, healthy spending in the form of a simple budget is important to your financial health.
I know, I know. If you are like many people, budgets make you squirm.
But what if it could be simple and freeing? What if investing time to track your spending and savings paid off generously in building your wealth?
Here is what Manisha recommends based on after-tax income (what you take home):
50% of your income is focused on your needs
Housing, transportation, food, childcare, insurance, minimum debt pay-down
30% of your income is devoted to your wants
Fun things in life that bring you joy. Dinners out? Movies? Concert Tickets? Those are wants.
20% of your income is earmarked for savings
Emergency cash needs (your car breaks down!), your retirement (you don’t want to work forever!), and your dreams (a down payment for a house, a wedding, education, etc.)
Are you close to achieving these ratios?
If not, where are you different? Some of my clients reflect that their savings are much lower. Together I help them discover, where can they save more? Where can they pursue opportunities to make more?
Growing your savings is so empowering because savings = choice.
Therefore, any step you take to grow your savings also grows your felt sense of security and freedom.
All amounts are better than nothing. So start where you are at and grow that.
Now, if you are a great saver already, look at your wants. Are you indulging in life enough? Investing in your skills? Sharing with others?
There is so much we can learn from our spending and saving habits. They tell a lot about us, our beliefs and our trust in life.
Need help with tracking? Here’s a FREE TOOL.
Check out Mint.com, where you can organize all of your accounts in one place, categorize your spending, and create a budget to track your progress. You clearly see where your money is going and notice areas to adjust.
This Week’s Invitation
Take time to notice your money as an energy flow in your life. Remember, what you pay attention to grows! Begin using tools such as Mint.com and align with the Healthy Spending Pyramid. You will notice an exciting shift in your relationship with money and have that flow empower you!
Join the Conversation
Does your spending and savings habits align with the Healthy Spending Pyramid? Have you tried Mint.com? Comment below. I’d love to hear.
Love and Abundance,
Paula
