Satori Alliance | Financial Counseling | Real Estate Investment Products | Financial Guidance Seminars

If you are a parent with children who are out on their own and even married, you should love this.  It’s the payback or harvest from seeds planted long ago. . .

On Saturday my family will be celebrating my son’s 37^th birthday at our home.  He requested his favorite meal of Lasagna, green salad, and “killer” garlic bread and of course, a chocolate cake.  None of this is unusual but as a parent of 3 grown children, it is so inspiring to have them all here with us to share conversations with each other, a meal, a birthday, and have such fun and closeness sharing life.  We are grateful and blessed our grandchildren will learn by example the behaviors of a close and happy family.

The success of your day, week, month, year, or life is determined by the seeds you sow and not the harvest you reap.

1 - Have a financial mission, vision, and strategy or plan

What is your mission with regard to your finances?  We all have thought about this and yet not many of us write them down which begins the process of fulfilling or attracting what is needed to complete the mission.  Your mission provides purpose and answers the question “why” are we doing something.

What is your vision for you finances?  We’ve heard the cliché’ “without a vision, people perish”, but what does that mean really?  A vision actually provides a clear picture as if we were able to take a photograph of what our mission would look like accomplished.  Something we can see that answers the question “What are we doing”?

What is your strategy or plan for your finances?  People who fail to plan are planning to live life according to someone else’s plan for them.  Said differently if we do not have a plan for living our life, our life and finances will occur but only according to the drift that life offers through random occurrence.  So a strategy provides a plan and answers the question “How are we going to accomplish the picture of our missions we are out to accomplish?

2 - Build strong cash management practices

Managing your cash is really very simple although it is astonishing how many people do not put simple structures in place which practiced over time build a strength and conviction, literally a financial fortress. Some of these practices are:

1. Budgeting, first estimate or track all expenses to determine the amount of income required to pay them.
2. With a budget in place a cash flow system can be used to monitor income, expenses, and savings rate.  This should be done at least monthly.
3. Now create a balance sheet, which is no more than a list of all the assets, or items you own and their estimated value, and any outstanding loans secured against those assets.
4. Finally calculate your net worth which is the sum of your debts subtracted from the sum of your assets.  With this you can track your overall financial progress.

3 - There are only 4 things you can do with money.  They are simple and easy to learn and when practiced together make a mature financial system:

1. Money can be earned - either active income such as a salary or wage or passive income like interest, dividends, or revenue from business activities.
2. Money can be spent - No explanation is really necessary.  This is the category that reduces your account balance.
3. Money can be saved - Anything earned and not spent can and should be saved.  A good target for savings if 5-10% of our gross income.
4. Money can be invested - With enough savings, money will begin to work for you and produce ever increasing asset value through the magic of compounding.

For an in-depth discussion on these and other topics relating to mortgage financing purchase the product “An Unfair Advantage”.