Money is essential. What is often overlooked in the world of finance is money consciousness.
Money consciousness is primary in having sound money sense. Which leads to more cents of course! (I could not resist.)
A cornerstone of financial health is understanding money – where yours goes, how much money you make and what the basic rules are around money. With today’s focus on the digital economy, we lose focus on where our cash goes. There was an “old school” mentality that was born out of the depression where households put money into envelopes marking each spending category for the upcoming week or month. Touching the money and organizing it in this way gave individuals the value of cash consciousness. They had to understand where each dollar went.
Reverting to the ways of almost a century ago is unnecessary. But also bypassing the process by giving over your financial control to someone else is problematic. This sounds like the easy way, even the right way if you listen to the advertisements or some “experts.”
1. Are You Giving Your Power Away?
Being consciously aware of what is going on with our money can raise our vibration and increase our funds. Being unconscious has the opposite effect.
When you give your power to a program or an app, you are not necessarily aware of where your money is going in the moment; Rather, you are doing the math and looking at the result of your spending. The number detail may be important but most important is connecting with a deeper understanding of your financial picture and your reasons for spending.
The YouTube commercial I hate is about subscriptions. Rocket money app wants you to sign up and it will tell you how many monthly subscriptions you are paying for. Sure, it is quick and easy once you enter all your bank accounts and credit card numbers. Essentially, you share all your financial data with a large company to reveal your monthly subscriptions. (Can you say a “Security Breach” waiting to happen?)
The greater cost is giving away your consciousness. Without money consciousness, you are without a guidepost for your dreams and money.
2. Create a Long-term Self-Sustaining Plan
Want an easier, free way for long-term success? No big company was involved. Here are the steps:
1. Read your statements.
Sit down for an hour and review your bank and credit card statements. Identify your monthly expenses and subscriptions that you are paying for as separate categories. Some are necessary like utilities. Other are optional like music and streaming video.
2. Manage those subscriptions.
Set another hour aside. Take one subscription at a time. Ask yourself: Do you need it? Do you use it? Does it have an annual option? Then, pay annually. You may save some money. Best of all, you retain some control each time the subscription comes due, whether you chose to renew or not. The email or text message will be a reminder that you have the subscription and a trigger to ask yourself if you still want it and can afford it.
3. Choose one mode of payment for all your subscriptions.
By lumping your monthly subscriptions together onto one credit card or one checking account, you will always know what you are paying monthly or annually for subscriptions. The monthly payments will be clearly noted on that account’s statements. Step it up a level by dedicating a separate checking account and depositing the necessary funds for each month through a payroll automatically. (Most companies allow up to five different accounts to deposit to.)
Taking these steps commits you to real time accounting. You know how much you are spending on monthly subscriptions. Your spending on monthly subscriptions will be obvious at one glance at a statement. Only simple math is needed.
When you want another subscription, your newly designated subscription account is the lone one you will use for those payments. If it is an impulse subscription, you will know pretty quickly if you can afford it as your paycheck will have to be redistributed to fund this added monthly expense. Knowing you will have to take this extra step may even slow you down as commit with your click to another mindless monthly subscription. By creating this system, you will be in a better position to make decisions and handle your money consciously.
Money is meant to be saved, spent, and enjoyed. Without consciousness, none of those actions are truly peaceful; Nor a reliable source of your ability to make sound rational, well positioned financial choices.
Make 2024 the year you reposition yourself.
Be Cash Conscious.