Money Matters: What you think you know about money.
Hi there! My name is Jay Johnson and for the next four weeks we’ll be discussing something you hold very dear – your money. January is financial wellness month and as a banking professional it has become clear to me that money (the need, usage, amount, acquiring and maintaining of it) has become somewhat of task for many. Over the next few weeks my goal is to burn and bury some of the myths that have kept you bound in fear of money and all the opportunities you should have.
Let’s start with the thoughts that may be guiding your decisions first:
1. “I don’t need a lot of money just enough to ___ ”
For starters, they lied to you and you lied to yourself. To believe this statement means that essentially all bills are fully paid without hesitation, 1 year’s worth of savings at the ready ( in the event of job loss, spouse death, or emergencies), pension/retirement is fully funded, home is free & clear, yearly taxes are paid on time (yes, you can still lose your home even though you have fully paid it off due to taxes i.e. a lien) insurance policies paid, inflation protected, passive income grows with the cost of living, your assets allocated, estate planned, AND your children’s college education is fully funded.
Let me ask, do you know how much you need to retire? Remember, YOU said “I don’t need much.”
2. Never thinking past your current position in life.
Do you work without expectation? There are 24 hours in a day, how is your time spent? Time is only money when you know the cost and value of YOUR time.
3. Opinions about other people’s money.
Why? Does it increase your finances? Or credit score? Better yet, what are you doing to increase either? My advice to you, never have an opinion about something/someone that is not connected to you, it’s a cost that you can’t afford.
In the next three weeks I will share more about you and your money… until next time.
Rich is the cause, wealth is the reaction.