Over the last few years, I've really begun to focus on money, currency, energy, and how this whole thing works. By understanding the different aspects of how we interact with money, we can gain a bird's eye view over this energy that seems to rule our lives, and adjust our mindset and actions to increase our abundance.
When we break it down simply, we interact with and use money in three ways.
1) Receive/Earn
2) Spend/Exchange
3) Save/Invest
1) Receive/Earn
For us to be able to have money, we first must receive or earn it. We generally receive money as an exchange of value when we offer something valuable to the marketplace, whether that's working a job at a company, selling a product, or providing a service.
We're all used to receiving and earning money, but the amount we earn isn't fixed, it's adjustable based on the value we offer society.
Once we have money then either step 2 or 3 happens.
2) Spend/Exchange
I'd assume that when most people think about money, they see it first as something that must be spent or exchanged. Unfortunately, most of us are in financial debt and don't have the extra money needed to save or invest.
Our largest expenses in this life are shelter, food, and transportation. Because we often don't have enough money saved or invested, we have to take out loans from banks to buy our homes and cars. Because we don't grow all of our own food, we have to spend/exchange our money at the grocery store.
Beyond these necessary expenses, we often spend our money on entertainment as well as physical goods and 'things' that bring us some type of perceived value.
This is a part of our experience, but if we pay attention to our costs, we can manage and reduce our expenses, thus increasing the amount of money left over for the future.
If we are focused and are planning for the future, we interact with Step 3.
3) Save/Invest
It can start with a rainy day or emergency fund by putting money aside just in case. Soon this idea can turn into a "pot of gold" for the future by continually saving or investing to gain a return.
Unfortunately, many more people are not interacting with Step 3, due to their position in an increasingly changing economic environment, but this is the one area where everyone should focus, as being on the other side of debt means YOU can now earn interest as opposed to being the one that's paying it.
So here's today's questions and exercises. I challenge you to reflect on your finances and discover new opportunities.
In what way can I increase the way I handle money across all three categories?
Is there anything I can do this week to earn more money?
Are there any unnecessary bills or ways to save so that I don't spend as much?
If I save that money, where can I put it so it's safe, and so that it collects interest and makes me more money?