Holistic Wealth: Achieving Financial Balance
Financial balance is often difficult to find in our society, due to the prevalence of debt and lack of personal savings. But financial balance can be easily achieved with the right strategies, and a bit of discipline. Through the use of common-sense concepts, sound strategies, and proper cashflow management, you may discover that financial balance can be easier to achieve and maintain than you might imagine.
As with other aspects of life, most people (professional advisors and planners included) tend to take a rather piecemeal approach to their finances, leaving them out of financial balance.
There are four pieces to the financial puzzle, and if you only look at one or two, to the exclusion of the rest, you will find yourself struggling financially in one or more ways.
The Four Areas of Financial Balance:
1. Earning
2. Giving/Tithing
3. Saving (or Investing, which should be saving, with growth -- not gambling, as noted below)
4. Spending
There are various approaches and opinions as to which order these should go in. However, many people in today's world (at least in America) put the last one first, which obviously causes serious problems!
In any case, our focus is usually on one or two of these, leaving the other pieces lacking, or at least not considering how they all fit together and affect one another. For example, many people place most of their focus on debt -- being in it, getting out of debt asap, avoiding debt, etc. Aside from the new and interesting research demonstrating that it is very likely that you attract more of what you focus the most on into your life, what is wrong with this approach?
There are four pieces to the financial puzzle, and if you only look at one or two, to the exclusion of the rest, you will find yourself struggling financially in one or more ways.
The Four Areas of Financial Balance:
1. Earning
2. Giving/Tithing
3. Saving (or Investing, which should be saving, with growth -- not gambling, as noted below)
4. Spending
There are various approaches and opinions as to which order these should go in. However, many people in today's world (at least in America) put the last one first, which obviously causes serious problems!
In any case, our focus is usually on one or two of these, leaving the other pieces lacking, or at least not considering how they all fit together and affect one another. For example, many people place most of their focus on debt -- being in it, getting out of debt asap, avoiding debt, etc. Aside from the new and interesting research demonstrating that it is very likely that you attract more of what you focus the most on into your life, what is wrong with this approach?
The problem with only focusing on getting out of debt asap, is what about the rest of the picture? Where is your financial balance? What about wealth creation? Savings? Retirement? How does the money you owe affect your other financial goals? And, perhaps most importantly, is there life after debt?
A little financial humor there, but the point is that many people are so focused on "getting out of debt," they forget to think about what happens when it is paid off! Where does the money go then? Most people don't have a concrete plan for this, which is why, shortly after paying those credit cards off, those who become "debt-free" often end up right back where they started.
An equally financially unbalanced approach is to focus solely on your investments, or what "rate of return" you are getting. For one thing, if your nest-egg is completely invested in the stock market, you are taking a huge amount of risk -- let's hope you are not counting on that money for anything within the next 10-15 years or so! If you are "investing" in the market for a shorter period of time than that, there's another word for this strategy: It's called gambling! This is not a responsible way to plan for a financially balanced future.
Besides, if you are only thinking about "rate of return" on your investments, as a stand-alone piece of your financial picture, you're actually focusing on the wrong concern, to begin with.
Why?
Remember that debt we just talked about?
Here is common example shared by a personal wealth-coach and friend. His client, Joe, has about the national average in credit card debt -- about $8,000 -- and he is paying 15% interest. He also has some savings -- mostly in CDs and money market accounts -- totaling about $15,000, which is earning an interest rate of approximately 3%.
When you look at this example as a whole, it doesn't take a genius to see he is going backward! (Hint: If Joe took enough money out of his savings to pay off the debt entirely, he would immediately have a 15% return on his money!)
The situation above is extremely common in our society and is a result of looking at each piece of your financial picture as a separate entity, with no effect on the other areas. Approaching your financial picture holistically, in a responsible and balanced way, as with the other areas of your life, will bring a greater sense of financial balance and strength, as well as providing a more stable and secure future for you and your family in the long term.
While there are various strategies which can help with this (along with discipline and commitment), at New Holistic Living, we favor a financially balanced strategy called "Bank On Yourself" (also known in some circles as "The Infinite Banking Concept").
To learn more about this strategy, download our FREE special report on Holistic Living.
On the other hand, if you are finding that what is causing your financial balance to wobble is a lack of cash flow -- that is, you need to increase your income -- there are so many resources out there, it is nearly impossible to decide which one will work for you, and one must be careful to avoid "get-rich-quick" scams.
While we cannot say any one approach will work for everyone, we have found that the various programs offered by the American Writers Institute, and Early To Rise are quite highly regarded, reputable, comprehensive, and easy to follow. If you are interested in starting your own side business, these may be an excellent place to start.
And to increase your peace of mind and financial balance, meditations such as this Core Meditations for Financial Freedom program can be very helpful. (For more meditations to release limiting beliefs and help achieve your financial goals, visit our Personal Development page.)
A little financial humor there, but the point is that many people are so focused on "getting out of debt," they forget to think about what happens when it is paid off! Where does the money go then? Most people don't have a concrete plan for this, which is why, shortly after paying those credit cards off, those who become "debt-free" often end up right back where they started.
An equally financially unbalanced approach is to focus solely on your investments, or what "rate of return" you are getting. For one thing, if your nest-egg is completely invested in the stock market, you are taking a huge amount of risk -- let's hope you are not counting on that money for anything within the next 10-15 years or so! If you are "investing" in the market for a shorter period of time than that, there's another word for this strategy: It's called gambling! This is not a responsible way to plan for a financially balanced future.
Besides, if you are only thinking about "rate of return" on your investments, as a stand-alone piece of your financial picture, you're actually focusing on the wrong concern, to begin with.
Why?
Remember that debt we just talked about?
Here is common example shared by a personal wealth-coach and friend. His client, Joe, has about the national average in credit card debt -- about $8,000 -- and he is paying 15% interest. He also has some savings -- mostly in CDs and money market accounts -- totaling about $15,000, which is earning an interest rate of approximately 3%.
When you look at this example as a whole, it doesn't take a genius to see he is going backward! (Hint: If Joe took enough money out of his savings to pay off the debt entirely, he would immediately have a 15% return on his money!)
The situation above is extremely common in our society and is a result of looking at each piece of your financial picture as a separate entity, with no effect on the other areas. Approaching your financial picture holistically, in a responsible and balanced way, as with the other areas of your life, will bring a greater sense of financial balance and strength, as well as providing a more stable and secure future for you and your family in the long term.
While there are various strategies which can help with this (along with discipline and commitment), at New Holistic Living, we favor a financially balanced strategy called "Bank On Yourself" (also known in some circles as "The Infinite Banking Concept").
To learn more about this strategy, download our FREE special report on Holistic Living.
On the other hand, if you are finding that what is causing your financial balance to wobble is a lack of cash flow -- that is, you need to increase your income -- there are so many resources out there, it is nearly impossible to decide which one will work for you, and one must be careful to avoid "get-rich-quick" scams.
While we cannot say any one approach will work for everyone, we have found that the various programs offered by the American Writers Institute, and Early To Rise are quite highly regarded, reputable, comprehensive, and easy to follow. If you are interested in starting your own side business, these may be an excellent place to start.
And to increase your peace of mind and financial balance, meditations such as this Core Meditations for Financial Freedom program can be very helpful. (For more meditations to release limiting beliefs and help achieve your financial goals, visit our Personal Development page.)