Budget 101: Why Intentional Finances are Crucial to an Intentional Life
Last month I shared my own personal story of practicing intentionality. I shared lessons I learned and questions I ask to ensure my weekly routine is pushing me towards my broader purpose. One reality continued surfacing in my story, and I bet it is the same for yours too: Money plays a crucial role in how we show up & are able to present ourselves fully.
Money matters, and that is exactly why I’m choosing to focus on being intentional with our finances for the next few months .
You may be asking, what does money have to do with living intentionally? Everything! Time and time again, I hear clients cite finances as the number one reason they are unable to move forward with their dreams. But it doesn’t have to be this way. In fact, I believe in your unique purpose so much, I refuse to accept money as an obstacle preventing women from showing up more fully & authentically in this world.
Money is a tool —a resource at our disposal. When we know how to properly use it & talk about it, we open more opportunities to be seen and heard and to claim our space in this world. When we have the right mindsets & approach to our finances, we can be unstoppable, no matter what number is in our bank account.
Developing meaningful financial habits is crucial to living authentically and reaching our goals!
Let’s Get the Assumptions Out of the Way
Everyone brings different ideas to the table concerning money. Your unique perspective is defined by your experience with money from the time you were in diapers up until this very moment.
I’d encourage you to take a minute now & jot what comes to mind for the following prompts:
Money is….?
What did your guardians tell you about money?
Do you have painful memories concerning money?
Do you have positive stories about money?
How would you define wealth?
What does being successful with money mean to you?
What is holding you back when it comes to your finances?
Regardless of how you answered those questions, we all have money mindsets and limiting beliefs. Here’s a few you may encounter:
Having a lot of money is good.
Chasing after a lot of money is bad.
People who have a lot/a little money are _____
Money isn’t everything, so we shouldn’t focus on it.
Success is measured by the number in your bank account.
I’m not good with money. Or, I’m so in over my head, there’s so way out.
It stresses me out, so I don’t want to think about it.
Here’s What We Know About Money:
Your journey will begin with confronting your own personal beliefs or lessons you learned concerning money. Together, our journey will begin by acknowledging the following truths about money, specifically concerning thoughtful financial planning.
Money is a Tool. And Tools Don’t Have Morality: —Simply put, money isn’t good nor is it bad. It simply is a way we express value for products, goods, and services. This means, our morality is not defined by how much money we have or don’t have. So let’s all leave the shame and guilt at the door. We never want to give money the power to define us or control us. Starting today, when we talk about being authentic or intentional with our money, we are talking about our choices on where we express value (ie: spend money), not the money itself. When you think about it that way, it only makes sense to learn how to utilize money as a tool.
More Money Does Not Mean Less Problems: You may catch yourself thinking, “If I only made more money, then I’d….” or “When I get this amount of money in my paycheck, I’ll finally be able to…” However, unfortunately, time and time again, we see this isn’t true. According to a Nielsen study from 2015, of American households making an annual salary of $150,000, twenty five percent are living paycheck to paycheck. The statistics are even higher for women earning 6 figures. This means “living rich” has nothing to do with the number in your paycheck and everything to do with how you are managing your money.
Not Having a Money Plan Keeps Us Stuck: Notice, I did not say “Not Having Money Keeps Us Stuck.” Regardless of income or debt, lacking control over our finances can hold us back. Our financial situation controls us, instead of the other way around, when it prevents us from taking steps to pursue new opportunities and invest in ourselves in the long run. Our handle on money dictates our choices—from higher education to family planning to deciding where to live to health care choices to even the clothes we wear. It can control our present, and also our future. Not having a plan for our money often keeps us stuck in jobs, in geographical areas, even sometimes in relationships. It holds us back from living fully—whether it means we are not able to afford something we want to pursue, or if it simply means stress over money prevents us from showing up as our most confident, authentic selves.
Money Gives Us Freedom: Incorporating a plan for our money opens opportunities we might not have otherwise. I’m not only talking about access to more expensive goods, or better education & housing, or affording to travel. Although that is one benefit, for sure. I am proposing that sticking to a financial plan opens a richer, more abundant life that is bigger than your possessions. When we have control of our finances, we can better choose to whom and what we give our money to. Our money choices take on a more meaningful role when we start treating money as what it is: an exchange of value. So we can ask ourselves questions like: Am I paying myself first before I spend my money else where? What stores and goods align with my morals? Of all the many struggles our world faces, what organizations do I want to support financially? And what percentage of my paycheck do I choose to give away for charity? How am I investing in my future goals? All of those choices are more available when we are intentional with our finances. We get to be choosy, and thus, have a higher quality of life because we will literally be giving value to who we are and who/what we cherish most.
But perhaps the most important question we can ask from a coaching perspective is: what options do we have?
What Can We Do About Money?
What can we do to make our money work for us—giving us freedom instead of keeping us stuck? Instead of drowning under the weight of our loans or waiting around for the promotion we’ll get “one day,” how do we work with what we’ve got in the present, while making plans for the future?
A plan for your money is the Number One way to be able to do the things you want to do.
Look, I get it, this makes me want to groan too! But it is the truth: the only way to afford the life we want is to have a cohesive plan. Budgeting, investing, saving, giving, maximizing earning potential—are all avenues to that.
It’s all about the numbers.
And also, it isn’t.
You see, I have zero intention of becoming another finance blog, supplying a generic spreadsheet you’ll fill out and hopefully get around to next month. And sure, maybe cutting a few lattes from your week can help you jump start your savings & investment portfolio, if that’s where you choose to begin.
The truth is, if you’re solely looking to save money and keep a budget, there are many plans and programs and spreadsheets out there that are already done for you. And yes, pick one & stick with it! I’m totally okay if that’s what you choose to do. After all, my goal for you is financial freedom so that you can live the vibrant, full, purposed life ahead of you.
But if that hasn’t been working, I want to get at the root of why.
In fact, that is the ultimate question we will be asking.
Why are we spending what we are spending?
Why does our budget not align when what we’ve identified as our priorities?
Why does our motivation come and go when we implement a money plan?
Then we’ll ask more questions, and more questions, like:
What is our current loan situation and how do we intend on working ourselves out of debt?
What do we spend each money and where is our money going?
What are our current money goals? Where do we want to see those goals grow in the future?
How do our limiting beliefs affect our money mindset & how can we shift our narrative?
How does our money map reflect who we are, our goals, and who we are becoming?
And after all the questions, we’re going to make a plan that is unique to you & your finances.
We’re going to make a plan as we identify ways for you to live more authentically within your financial situation.
A meaningful plan that will align with your priorities, goals, and the causes you stand for.
A manageable plan that fits within your daily schedule, with rhythms and routines that will become instinctive habits.
A master plan so ultimately, you are confident in how you are handling your money and how it aligns with your mission.
Over the next few months we will work towards intentional financial planning. Don’t miss any post, subscribe to the weekly-ish email today! You’ll also get a Cultivate Workbook & Guide that will help you narrow down your goals & mission statement, which in turn, will be helpful as you sort through your finances.
Keep Cultivating,
Cecelia
