Wait – didn’t I just tell you a few weeks ago that my accounts are in the red?
Full disclosure: Yes, I did. I also said that it’s no accident and there’s nothing scary about this. Since getting educated about finances, I’ve taken control of my money, and the current situation was very much calculated. I know exactly what I’ll do to pay everything back. What’s more, I won’t have to sacrifice any of my passions for it!
Just the other day, I reflected on how lucky I am to have this luxury now. How good it feels to be secure. And I also thought that I should share a few of the things I’ve learned.
How would you like to always have funds for your passion(s), without “frugality” and making sacrifices? How would you like to never worry about money again?
It’s impossible to teach you the entire system in one article. What I can do, however, is give you a few concrete steps which will put your finances on a solid foundation. Get ready.
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Scarcity or abundance?
It’s impossible to talk about money without talking about mindset. If this sounds a little too “woo-woo” for you, please bear with me! Like everything to do with Coaching, mindset changes are proven to generate measurable results. We’ll get to more hands-on steps in a minute, but in order for those to work, you need to do the inner work first.
See, my problem with money-related advice, books, or even Pinterest boards, is that most of them focus on where to save and how to use coupons and the like. They share advice about a frugal life. My goal has never been to live frugally – I want to enjoy abundance!
This is why my approach is different. As I suggested in this article, learn to receive money with gratitude, even if it’s just a few cents. Spend without grudging; send out money with your love instead. It really makes a huge difference. Mindset is all about habits, and if you habitually associate happy, grateful, abundant emotions with the handling of money, your money will become more abundant and happiness-inducing.
Money for true passions
Let me make one thing clear: When we’re talking about passions here, I don’t mean just hobbies. It’s fashionable these days to talk about anything you vaguely enjoy doing as a “passion”. What I’m referring to is something which truly lights you up, which connects you to yourself on a deep level, something you could do all day.
The distinction is important because only a true passion will stand the money-test. It works like this.
Part of your monthly budget is a “Passion Fund”. Now if you need to learn about budgets, then really look no further than my Wild Money program, which includes a tailor-made budget for your unique financial situation. The short of it is that you budget something like 10% of your earnings to your passion. It won’t be a problem because you’ve also got at least 5% “Play” money to blow on silly things and spontaneous purchases, whilst necessities like clothes and food are taken care of by a different part of your budget.
Here’s an example: I’m currently saving up for a new bow (archery is one of my main passions). If I get tempted to spend that money on, say, a blouse, all I need to do is ask whether I’d actually enjoy the blouse more than the gorgeous bow. The answer is, of course not! It’s almost laughable. This is why it’s so important that your passions are true passions and not just hobbies. That way, you can be sure they’ll pass the test every time.
Your passion fund
Remember, you’re supposed to create abundance, not frugality! So include some Play money in your budget and also something to give – if you’re stuck for cash, start with something like 5 or 10 bucks a month. Donate those to a charity of your choosing or buy presents for a loved one. Play money is for yourself.
Together with the above mindset exercises, this will create a general feeling of abundance and financial security in you. It takes a while to shift, but you’ll definitely feel the difference. The passion fund is another step in the right direction, as it allows you to pay for equipment, tuition, even travel, depending on how much money you dedicate.
Money that’s cherished and enjoyed, tends to attract more money. If you’re truly trying to build abundance in your life, try joy and passion, rather than frugality. The results are dramatic every time.