For five years, I tracked my finances.
You really never know when things might come in handy. I have my business degree to thank for this.
I used two things – my phone, to record what I was spending, and what I was earning, and a free accounting program, to create reports and record my expenses and earnings into categories.
I’m a nerd. It felt good to finally see the monthly reports made automatically. I wanted to hug my accounting teacher at that moment.
What did I learn from 5 years of tracking my finances?
Setting up triggers to activate habits.
The first thing that I learned from tracking my finances, was how to track it in the first place.
Whenever I had money, I just spent it. It wasn’t a habit to write down every single transaction.
So then, I had to build triggers – identify or create cues to get me to open my notes app on my phone, and write down what i spent or earned.
I had to start with the smallest step. I had to identify the behavior that started it all, and would remind me to take note of what I spent.
It started with me putting my wallet back in my pocket.
All my transactions started with me taking out my wallet, whether it was for cash or credit card. After that was done, I then put back my wallet in my pocket.
Which was then the cue to take out my phone, open the notes app, and record the transaction.
At first, I wasn’t perfect. I’d miss transactions here and there, but at the end of the month, I was close, and getting better.
I just kept practicing and plugging away at it, until the habit became automatic.
And I learned this doesn’t just go for recording finances, but even doing exercise, talking to people, getting things done, and going through obstacles.
Identify triggers, build the ritual, have faith in the process, and stay consistent to build the habit.
Money is not evil, it’s a unit of value.
I used to think that money is evil. That it corrupts people, and causes them to lose sight of the most important things in life.
Turns out I was wrong.
Money can provide good things for you, you family, your loved ones, and even random strangers. It’s one of the many instruments we have out there that can do a lot of good for other people.
I had to do a lot of digging and acceptance to come to the fact that subconsciously, I believed money to be scarce, that there wasn’t going to be enough, and that it wasn’t evil to want, and to have, a lot of money.
What’s corrupting and evil is the love of money, the worship of money. The belief that money is the sole god and source of happiness in the world.
Not money itself.
It’s the beliefs and feelings we attach to money, that determines how we see it.
And how we come to have it, work for it, wait for it, wish, dream, or earn it.
It was my beliefs and understanding about money, that was lacking.
I also realized that you get paid money for the value that you provide another person. There is a service, a result that you are giving, that is valuable to them.
Hence, why they pay you.
And the more value that you provide, whether to a few, or to many people, the more money you earn.
Money isn’t evil, and it’s a unit of value.
No judgements there.
Where you put your money, is an expression of your values.
“Put your money where your mouth is” has never been truer.
If money is a unit of value, then where you choose to spend your money is an expression of your values, what you deem important.
Where are you willing to spend something, that can potentially get you, anything?
I learned this lesson the hard way, in the two years I was drifting through life after having failed twice in business.
I wasn’t doing a lot, and wasn’t giving anyone a lot of value. I earned so little during those two years.
What’s more, I spent a lot of money on books, games, computer stuff, clothes, a little travel. Things that made me feel good, because I felt like shit during those years.
I didn’t spend on getting a coach, getting help for my situation, or even towards investing towards a new business.
I didn’t shell out money for what would help me take solid action, and instead spent on what would make me feel good in the short-term, but didn’t help me a lot in the long run.
Lesson learned, a very clear example on spending on what’s important for you.
Of course, all within reason, and prudence, but spend for what you deem important, for what you value, whether it’s family, self, career, your dreams, and even your spirituality.
Where you spend your money, is an indicator of your values.
When I focused on pinching pennies, I got less and less.
The scarcity mentality was at work in my mind.
As I tracked my expenses versus my income, I became so obsessed with saving every penny. I became a penny pincher, a scrooge.
I’d nickel and dime everything, and look for the lowest cost option.
Even if it meant wasting more time waiting for your turn, going through hoops, just to save a measly two bucks.
Actually, I recall a time when I was lining up in the bank, just to save cents on my transaction fees.
Cents, in exchange for 30 minutes, up to an hour of my life.
A losing trade.
When I focused on cutting back all the time, and believing that I never had enough, all the time, it became true.
As I focused on cutting back on expenses, even my income, and opportunities, kept on growing smaller and smaller as well.
I became fearful of opportunities because I saw the cost, instead of seeing the upside and potential.
I was afraid of losing money, when I didn’t calmly see the potential behind opportunities, and risked accordingly.
You might have had experiences like this, when the fear of loss outweighed the potential for growth. That’s scarcity.
Instead of believing that growth is possible, and that there are more opportunities out there, it’s for you to make them, take them, or leave them.
It’s totally your choice. In your head, and in your actions.
Scarcity breeds scarcity.
Fear breeds fear.
But as I thought abundance, gave value, helped others, I got more and more.
As I started helping others, doing more jobs, and taking more opportunities, I noticed that I wasn’t as afraid anymore.
Giving value, helping other get to a result that they want, is a very fulfilling feeling, and people are generally thankful and gracious about it as well.
It wasn’t about the pennies saved anymore, or even the money earned. It was about helping people, and offering them something that they find valuable.
Then, the floodgates opened, and the good flowed in.
I remember doing my first project after the failure of my two businesses. I thought that it was okay for my friend to not pay me anymore. I just wanted to help him.
I didn’t feel confident, but I face my fear, and did it anyway.
Apparently, the end result was so good, that he ended up insisting he pay me.
That shocked me, coming from my scarcity mindset.
I met great people, had a great experience, and found the tools and skills taught to be extremely helpful and life-changing.
Not just for other people, but for myself as well.
Whining and complaining doesn’t help anyone, and it certainly won’t help you.
Focus on giving value, help, and good things to others.
It’s not about the money.
It’s about people.
Bonus: What gets measured, gets managed.
It’s about tracking what’s important for you.
To measure progress, and push yourself to get better and better.
It’s about looking back, and acknowledging what worked and didn’t work.
Inform your next decision, and then take decisive actions.
It’s about setting up rituals to support your success.
Don’t be afraid of the tediousness at the beginning.
Have faith in the process, and keep on going.
What are you measuring nowadays? Please share in the comments below!
Leave a Reply