Dare to Change Life Coaching & Mentoring

Tag: financial priorities

Your Big Badass Dream Plane & THREE Levers to Upgrade Your Financial Life

What would it take for you to feel wealthy?

How many millions?

Or maybe just having “more than enough”?How many homes/yachts/planes?Or maybe just having more choices?How many children/husbands/lovers? (OK, this topic is for anothertime/place… LOL)Or maybe just having more free time, working less?Obviously, being wealthy means different things to different people…And it’s great to have Audacious BIG Badass Dreams.And my question to you is: “Are you actually ready to bring your currentfinances into harmony with your BIG Badass Dreams?”Because dreaming BIG is great! However, in order to take this BIG BadassDream plane off the ground, you’ve got to get very clear about it (is it REALLYworth the efforts?), then map your way forward and learn to pilot it, so youcreate the momentum.Because if you don’t… well, let’s stay positive here.So, what is your “BIG Badass Dream” plane?What do you REALLY want for yourself and your loved ones?

Can you describe it as if you were living it in the present moment?What do you do, what do you feel and see, where do you live, who are youwith?Make time and space for yourself to “normalize” your Big Badass Dream –make it SO NORMAL that you start embodying this dream!Then you can get to map your way forward.How do you map your way forward?By mapping your money according to your desired level of financial fitnessand using three cash flow levers to accomplish your desired results.Money Mapping is about discerning what’s REALLY important to you in life(and this may change as you go through different phases in life) and thendesigning your lifestyle so that it supports your values and your BIG dream.Money Mapping is Budgeting 2.0, because it’s NOT just about counting everypenny you spend on groceries. That’s tedious and unnecessary for mostpeople.Money Mapping is about you focusing on your BIG Badass Dream, translating itinto numbers, then reverse-engineering it into the money map so that yourlifestyle and choices are coherent with your goals.In my programs, I talk about 4 stages of Financial Fitness:1. Less than enough2. Just enough3. More than enough4. AffluenceYOU DECIDE what financial fitness level is next for you. THAT will determineyour spending patterns, your saving patterns and your investing patterns.That’s what the money mapping is for.

My clients come to me at different levels of financial fitness spectrum and withvery different ambitions. And they ALL evolve to much higher but differentfinancial fitness levels. Because they have different definitions of “wealth.”That’s why I asked you at the beginning “What would it take for you to feelwealthy?” Your answer will determine your specific money map.In other words, your answer to this question (which only YOU know theanswer to), will guide your choices and financial decisions.For example, you may have a BASIC money map (to track your money, youcan use an Excel spreadsheet or an app) that reflects just basic needs(groceries, rent, utilities) and paying off debt. This may support a simplelifestyle, living debt-free, in a rural area, and have less pressure…Then you can create another COMFORTABLE money map that will includesome comfort items like massage, mani & padi, trips, restaurants, privatecoaching, etc.Finally, you can create another AFFLUENT money map that will cover allyour intentions and desires – from millions in the bank, to having a personalchef, jet-setting to French Riviera, and having vacation homes in resort-likelocations.Having these money maps will help you “land” your BIG BADASS DREAMplane with concrete numbers that will back it up, support your desired lifestyle.Finally, the time for the HOW question. What levers do you have to controlyour cash flow and upgrade your financial fitness?I invite you to consider these THREE levers to control your cash flow:1. Income2. Budget (pattern of spending)3. DebtAnd here are THREE ways that you can use to improve your cash flow:1. Identify your current ‘financial leaks” and make necessary adjustments.2. Brainstorm and uncover additional long-term sources of in-coming cash.3. Brainstorm and uncover immediate prospects for incoming cash flow.In summary: You Big Badass Dream can be your reality. Being FinancialIndependent is NOT a pipe dream. You’ve got to get your money map inplace, get strategic about your choices and get this plane onto the runway,ready to take off.

With love, health and wealth

P.S. If you feel sick and tired of being restricted by money, feeling worryingabout your retirement, anxious about investing – let’s connect! Here’s the linkto schedule a complimentary Money Breakthrough session with Millen.What do you have to lose? Fear, money anxiety, indecisiveness. What youcan gain? Clarity, direction, specific strategies and concrete steps to moveforward.

April 27, 2019
7 Steps to Regain Control Over Your Money: Step #5 – Pay Yourself First

In step #4 we talked about tracking your money, remember?

If you don’t know where your money goes, if you don’t have ANY mechanism (call it budget, call it a money tracker, call it whatever) – you don’t have control over your money. Money controls you!

You may feel that you have to make more and more money to live.

Yes?

What if you could spend less so you won’t need to work more to make more?

And if you feel that you’ve already trimmed your budget to the bare minimum, then it’s possible that it’s time to look for an additional source of income.

Ok, that was a quick reminder of key #4 – Track Your Money

Now the next, step #5, is to Pay Yourself First.

There’re THREE Aspects in this step:

1. Pay Yourself First

So, once you figure out how you can better control your optional spending, your unnecessary expenses (your “wants”), the next important money habit to develop is to pay yourself before you pay anyone else!

For many people, a good way to start saving regularly is to have a small amount transferred automatically from paycheck to a savings account.

In other words, have some savings automatically set aside!

If you don’t see it, you don’t miss it.

How much can you set aside?

The common suggestion is between 5 and 10 percent of your gross annual income.

Of course, this can be much harder than it sounds.

So, if you’re currently living paycheck to paycheck without clear opportunity to increase your income in the near future, begin by paying yourself with WHAT YOU CAN now. It could be one percent of your income, or $20, $50, $100.

ANYTHING is better than nothing. Train yourself to allocate consistent contributions toward your savings. That’s the goal here.

The next question: what is the purpose of these savings?

Here are a couple of suggestions:

2. Maintain an Emergency or “Peace of Mind Fund”

Before you commit your newfound savings to ANY investments (ALL investments involve risk), make sure you have at least three to six months’ worth of your lifestyle expenses saved in an emergency (aka peace of mind) fund.

Life happens to all of us; cars need repairs, houses need maintenance, medical emergencies, or other unforeseen circumstances.

Keeping your emergency fund liquid will ensure that you don’t have to panic and sell your investments when their prices are down, and guarantees that you can always get to your money quickly.

If you have trouble deciding how much you need to keep on hand, begin by considering the standard expenses you have in a month.

If you have dependents (e.g. kids, parents, etc.), you’ll want to keep more money in your emergency fund to offset the greater risk.

Once you fill your emergency fund, you can redirect money to your investments.

3. Give yourself an allowance

Here’s the fun part. Once you get to the point that your basic expenses and savings needs are met, you can decide how much money you want to spend guilt-free on anything you want (like shopping, eating out or entertainment).

You and your spouse can have that amount in cash each month but when the money runs out, it’s gone until the following month.

Anything you don’t spend can be carried over.

This may add some fun and money flexibility into your relationship because neither of you can question how the other spends their allowance.

Leave a comment and let me know what resonated with you and what you want to implement into your life right away.

To your Health, Wealth, and Freedom!

For more resources on various financial topics, check this page on my website:

WORK WITH MILLEN

For additional real-time support, join my private Facebook group:

WEALTH BUILDING FOR POWERFUL WOMEN

Free Resources:

DOWNLOAD MY FREE WEAL TH PLANNER

February 14, 2019
7 Keys to Regain Control Over Your Money: Step #4 – Track your money and identify money leaks in your cash flow

Do you sometimes feel like you’re living paycheck to paycheck and don’t know where your money went by the end of the month? You work really hard to make money but then spend most of it on just…living your life?

Regardless of how high your income is, what really matters is how much you make relative to how much you spend.

In other words, pay attention to how much money you keep every month.

If you’re earning $3k and spending $2k a month, you’d probably be less stressed out about your finances than if you’re making $8k but spending $9k a month.

I recently spoke with a professional single-mom in this situation. She works multiple jobs and takes home about $5,400 per month, which is well above the median household income.

Yet, she spends about $6k a month.

This is leaving her with no savings and a growing mountain of credit card debt.

Since she’s struggling to pay her bills and have been late with payments, she has seen the interest rates on the credit card debt jump to as high as 29%. Even worse, the financial stress has put a strain on health. She started experiencing migraines, anxiety and insomnia.

If any of this sounds familiar to you, you’re not alone.

Many people who have seemingly good income suffer from lack of “intentional money management”. Yes, situations like an unexpected job loss, medical bills or other financial emergencies happen.

But for the most part, it’s how you manage your cash flow – incoming and out-coming – that will make a difference in your financial life.

Here are some simple suggestions to help you track your money so that you get back control over your finances:

1. Evaluate Your Income. How much money do you have coming in?

It may seem like obvious knowledge yet it’s not the case for many people.

You may have several sources of income – from part-time jobs, freelancing, your mate’s income, annuities’ payments, etc.

So, get really clear what you total monthly income is. Using one centralized account for your in-coming cash flow could be helpful.

Then you can decide how much money you want to keep every month (aka “pay yourself first.”)

The difference is what you can now allocate to various lifestyle expenses.

2. Figure out where your money is currently going.

You can’t improve what you don’t measure.

Take a look at the last 3 months of your bank and credit card statements and categorize each of your expenses in a spreadsheet (you can create your own or find money tracking spreadsheets online).

That will cover everything purchased by automatic withdrawal, checks, debit or credit cards.

While you can’t see what you bought in cash, you can at least see how much cash you withdrew.

By looking at 3 months’ spending, you can get an average of monthly variable expenses like transportation/gas, groceries, and entertainment that aren’t always the same every month and monthly fixed expenses like utilities (electricity, water, internet, etc.), rent/mortgage, medical insurance premium, gym membership, etc.

You’ll also capture quarterly or annual expenses like some property taxes, home insurance, personal tax returns, etc.

However, that still leaves some spending that may happen once or twice a year like a summer vacation or holiday gifts.

You can divide what you spend on those annual expenses by 12 to convert them into a monthly amount.

For example, if you tend to spend about $4,800 a year on a family vacation, you would say that you spend $400 a month on vacations.

There are sites like mint.com and yodlee.com that can help you to continue tracking your spending online for free.

This is especially useful if you have lots of different accounts since they consolidate everything on one site. You can even get set up to be alerted by email or text message if you start spending more than you budgeted for in any particular category.

3. Find where you can cut back.

Start with your fixed expenses and think about how you might be able to spend less on each one.

Shop around for lower cost insurance, cable, internet, and/or phone service.

Are you paying for insurance coverage, services, memberships, or subscriptions you don’t really need?

Can you be more efficient with your energy and water use to cut down on utility bills?

Have you taken advantage of coupons or warehouse clubs for groceries?

Can you refinance or negotiate down the interest rates on your debt?

And if you really need additional money, you might even want to consider working a part-time job, moving into a lower rent apartment, getting a roommate, or renting a room in your home.

Always be mindful of where you can cut your unnecessary expenses if you want to save more.

To Your Health, Wealth and freedom!

For more resources on various financial topics, check this page on my website:

WORK WITH MILLEN

For additional real-time support, join my private Facebook group:

WEALTH BUILDING FOR POWERFUL WOMEN

Free Resources:

DOWNLOAD MY FREE WEAL TH PLANNER

P.S. If you like to see a big picture for your financial life and want to start upgrading it beyond “survival”, you would enjoy and benefit from my new Wealth Planner Companion Training.

It’s a step-by-step, easy to follow online program and will only take you 30 mins at most to watch each of the 6 training videos! You’ll get lifetime access to the videos, audios and transcripts for this program. And I made it a complete “no-brainer” for you at only $48! Your return on this investment could be at least 100X of this amount or as high as you allow it to be!

February 9, 2019
7 Steps to Regain Control Over Your Money: Step #3 – Pay off your debt

Do you or someone you know is dealing with a mountain of debt?

Paying off your Debt is Key #3 to regain control over your money!

Here’s the NAKED TRUTH:

You either MASTER your Money OR get MASTERED by MONEY.

When you accumulate Consumer DEBT, YOU get MASTERED BY MONEY!

It’s that simple.

For many people, debt becomes an addiction. Just like with drugs, getting into debt is as easy as popping a pill. And getting out of debt is just as difficult as getting rid of a drug addiction.

Consumer Debt is a form of financial addiction.

It’s the way banks and credit card companies make profit by charging you insane interest rates and getting the compound interest.

Did you know there were no credit cards until 1946 and as late as 1970 only 15% of Americans had one?

Today credit card companies send out billions of new offers each year!

The debt addiction enslaved millions of people to their lender.

Whether it’s a credit card, car loan, student loan or even a mortgage – debt has gotten out of hand for millions and millions of people!

Consumer Debt is a poison for your financial success.

You can’t leap ahead because it’s constantly chasing you down.

Consumer Debt is a poison in your personal life. It breaks you down, destroys you dreams, destroys your health, decimates your family, and leaves you broke.

It truly causes havoc in your life.

And even if you don’t have a mountain of debt right now, I want you to realize the enormity of debt addiction in people of all walks of life.

You must be wide awake if one day you face a dilemma about using Credit cards or other consumer loans to pay for something you want but don’t have money in the bank to pay for… AT THIS MOMENT.

All debt is NOT created equal.

Wise Debut and Unwise Debt

I divide debt into 2 categories: WISE Debt and UNWISE Debt.

WISE Debt: borrowing to invest in APPRECIATING asset.

Wise Debt is often referred to as Financial Leverage.

UNWISE Debt: Borrowing for Depreciating Items

Unwise Debt is also known as Consumer Debt.

The Bottom line: ANY DEBT = RISK.

In most occasions Consumer Debt is unnecessary and often dangerous.

It’s unnecessary because there are usually gradual and less expensive ways to get what you want.

It is dangerous because it often becomes a downward spiral, a ‘catch 22’ that ruins your health, your relationships and your overall wellbeing.

And here you have the key #3 to regain control over your money.

To your Health, Wealth and Freedom!

If you want more resources on various financial topics, sign up for my YouTube channel Millen Livis Channel Wealth

And for additional support, I invite you to join my Wealth Building for Powerful Women Facebook group.

February 3, 2019
4 Common Mistakes People Make When Managing Financial Priorities and How to Avoid Them
Do you want to be Financially Independent? Do you want to have more Freedom? More Choices? More Money?

OK, these are rhetorical questions…. Of course you do!

And what I’ve noticed is that there are two immediate mental reactions that most people have when they are asked these questions.

Some say: “It will not happen to me because __________ (e.g. “I’m broke”, “I’m not good with money”, “I don’t have a right profession / business”, “I’m single”, “Wealth makes people greedy”, “I don’t know how”.)

Others say: “What needs to happen so I have more Freedom, more Choices and more Money?” “What do I need to change? Learn? Do? How to Be?”

While having a nice income, or a rental property, or a portfolio of stocks is great, creating financial independence is waaaaay bigger than choosing the right stocks, buying properties, or making money at your job or in your business!

Financial Independence is about your way of being – taking choices that are congruent with your values and goals (financial and personal), having confidence and competence to manage your financial priorities so that the decisions you make get you closer and closer to your highest vision for life and work!

And it’s also about creating multiple streams of income by using your skills and passions (business), your money and knowledge (investing), other people’s money and resources (leverage) or all of the above in order to have the lifestyle you dream about.

There are many factors that play a role in how quickly you can become financially independent. And one of the most important factors is becoming really good at managing your financial priorities.

This one factor allows some people to live free of financial worries and anxiety while others to feel like they have to slave for money…for the rest of their life.

And this is true across different sociological and income groups!

So, what common mistakes people make when it comes to managing financial priorities? And how you can avoid these mistakes and get well on your way to financial independence?

Here’re some common mistakes that I’ve observed:
1. Lack of Awareness about Core Values.
When you’re not aware of what is REALLY important in your life, you act sporadically. You make yearly resolutions not to spend more money than you make, not to have more debt, not to buy more “stuff”….

BUT then you get off track when you see a new shiny object like a designer dress or an exotic vacation offer, or _______ and you get your credit card out of your wallet and… get into debt again!

Be clear about your Core Values.

For example, if one of your core values is to have more freedom, more choices, more peace of mind – this awareness will help you avoid the financial temptations and make decisions that are congruent with your Core Values.
1. Not Setting Intentions.
When you don’t set your financial intentions, you create randomly, often from a place of fear, doubt, and powerlessness. Since you’re creating all the time, why not to be intentional about your creations?

You want to have an emergency fund by a certain date? Set the intention!

You want to grow your wealth by making strategic investments? Set the intention!

You want to receive income from passive investments to support your desired lifestyle? Buy a new car? A house? Set an intention!

Intentions direct energy. Intentions set in motion possibilities.

Intentions direct experiences that you need to have so that your intentions become your reality.

Setting the intentions is the way to leverage the infinite organizing power of the Universe.
1. Focusing on Problems instead of Solutions.
What you focus on, expands. You know that, right?

So, when you focus on how you cannot afford to buy _________, or how you cannot invest in __________, or how unlucky you are because you don’t make enough money – you focus on problems instead of solutions.

Choose to Focus on what you say YES TO when you manage your financial priorities!

For example, you can ask yourself “what would need to happen so I’ll be able to _______?” “What can I do today, this week, this month to make more money? To pay off my debt AND save more? To invest and grow my wealth?”

You can brainstorm different options, write them down, choose which ones excite you the most and take the first step…and the next…and the next.

With the focus on solutions, you’ll be able to take inspired actions!

And even small actions taken towards your desired financial results will help you make better financial decisions.
1. Not Living in Integrity with Your Financial Goals.
You may know your core values and even set your intentions and financial goals. But if you don’t practice financial discipline, if you don’t live in a way that supports your financial goals, it’s unlikely that you become financially independent any time soon.

Because knowing what you need to do is not enough!

Implementing your knowledge, doing what needs to be done even if it’s not easy or uncomfortable – THAT shows your commitment and determination.

THAT will lead to results! Because “devil is in execution”, agree?

And even if you made some financial mistakes in the past – it doesn’t matter! Because you are NOT your experiences!

Managing your financial priorities well is a skill that you can attain and practice!

If you’re not where you want to be in your life, financially – it’s time to change.

Manage your financial priorities in the ways that support your financial goals and core values.

To Your Health,Wealth and Freedom!

Millen

P.S. For the next 24 hours ONLY – special offer to celebrate Independence Day! If you haven’t benefited yet from working with me or speaking to me in person, I offer you a complimentary Make Money Work For You strategy session!! You can book it HERE
July 4, 2018
Competing Financial Priorities: 3 Human Biases About Money
Fin

I recently saw the statistics that 60 % of baby boomers are more afraid of running out of money in their retirement than they are afraid of death. Millennials are buying cryptocurrencies, often using their credit cards, with hopes of become overnight millionaires.

Over 70% of businesses fail within the first 5 years because of cash flow problems.

From my personal experience and observations, awareness of your money habits, planning your financial future, and having financial discipline are the most critical factors for creating a comfortable retirement.

As Robert Kiyosaki once said, “It’s not how much money you make that matters most, but how much money you keep. How hard it works for you and how many generations you keep it for.”

Making a good living does not automatically put you in the “more than enough” or “affluent” category. Because it’s not just about how much you earn but also what you do with what you earn. Do I hear “Yes”?

Now let’s go over different ways you can choose to manage your competing financial priorities.

If you want to become financially independent, one of the most important skills you must acquire is managing your money intentionally, so that regardless of your current income, you become richer every month and every year.

How do you accomplish this?

By managing your competing financial priorities while saving and growing your money.

When it comes to managing your financial priorities, it’s a good idea to be aware of the three human biases that may affect you financial choices and decisions.
1. The Present Bias
As a human being, you are wired to take care of immediate needs first, making sure your essential requirements for food, shelter and security are met. So it’s understandable that when current, short-term financial needs and goals compete for your attention, saving for the future gets neglected. For example, when you focus on car and home repairs, your kids’ day-care or private school, or a new heating/cooling system, your long-term savings for big purchases such as education, financial emergencies, or retirement go to the back burner.

The famous Hierarchy of Human Needs by psychologist Abraham Maslow outlines the progression of human needs and human awareness as we ascend from meeting our immediate survival needs to the need to feel fulfilled and self-actualized.

We like to say: “Live in the moment”, right?

Right, but not when it comes to your money; with money you must be intentional.

Most people have difficulty envisioning distant events. It’s easy to envision, associate with and express immediate financial needs. This is something that financial professionals refer to as “the present bias.” The “present bias” makes you handle competing financial goals by assigning your highest priority to immediate needs and nearest goals, and overlooking the long-term financial priorities.
1. The Availability Bias
The availability bias is another mental pitfall when you are very comfortable with your current available income and assume that you will always have it. So, why bother thinking about long term financial goals?

While this bias pertains to all humans, it’s especially common among new entrepreneurs and famous sports figures, who often go through feast/famine experiences and some end-up in financial ruin. Many of the currently well-off folks treat their businesses or contracts as their piggy banks that are available to cover any and all desires.
1. The Busy-bee Bias
The busy-bee bias is very common among highly paid professionals who are so busy making money that they don’t make time to plan how they can grow it, let alone how they can make their money work for them!

These people rely heavily on the easily available information and often don’t do their due diligence on the accuracy of the advice and integrity of the source from which they receive their financial advice. As the result, they put more value on the easily available solutions rather than more strategic ones and end up disappointed.

The tendencies and biases I have mentioned often cause people to spend everything they are currently earning. They want to enjoy their money to the fullest while they can, or save and invest first for their family’s educational goals, rather than diversifying their savings across different financial priorities like planning their financial future, retirement, health-related needs, and creating financial independence.

More often than not, goals like buying a new car or a house, financing private school or college tuition for your kids, become top priorities relative to retirement or financial independence goals. However, you don’t want to burden your kids by depending on their financial support when you get older, right?

So, how can you manage competing financial priorities, the immediate and the upcoming ones? The solution may be as simple as asking yourself if the financial priorities you’re focusing on now are really the most important ones, given your overall goals in life, not only your immediate needs.

Here are two simple questions you can ask yourself:
1. What are my short and long term priorities in life?
2. What are my core values that help me experience more joy and fulfillment in life?
The answers to these questions will help you sort out your financial priorities.

For example, one of my core values is FREEDOM. I can be content driving an older car, leading a modest lifestyle and wearing stylish but not necessarily designer clothes and shoes. However, I am willing to do whatever it takes to achieve financial independence so that I can have the Freedom of Choice in my life.

Now, pause and write down answers to the two questions above.

Share your experiences in the comments. I would love to know how you manage your competing financial priorities.

And here’s the recording of the mini-class on this topic

To Your Health, Wealth, and Freedom!

Millen
March 7, 2018