A Money Management Reality Check for the Overly Creative and Easily Distracted

Listen along!

I am not here to burst your bubble, but so many people sing the I'm broke and it ain't no joke song to me that I just HAD to include this in the Loca Ritual arsenal.

As my CPA tells me each year at tax time, Creativity and bookkeeping are a dangerous combination.

Friends, this is where we have to be a little less non-linear and get with the program.

I know... it's antithetical to all that I stand for, but... in order for your prosperity affirmations and manifestation wishes to take hold, you need to show El Universo you're serious and you'll take good care of all that dinero once it makes its way to you.

Tool #1 : The Truth/ La Verdad

Sit down and get real with yourself. Answer the following questions:

• What is my current attitude towards money?
• What stresses me out financially?
• What relieves me financially?
• What are my spending habits? (Tip: Keep a spending diary for a week accounting for every penny)
• Do my spending habits reflect my values?
• Have I seen my credit report lately?
  

Additional resources:

My Money, My SELF by Kate Lewis.

Get a free annual credit report at www.AnnualCreditReport.com

Tool #2: Chasing Papers

• Set up a filing box or cabinet for all of your statements, bills, accounts, etc.
• Typical categories include Auto, Banking, Credit Cards, Insurance, IRAs, Investments, Loans, Medical, Mortgage/Rent, Salary, Utilities.
• Separate out each account. If you have 3 credit cards, make a separate folder for each.
• Get a safe or lockbox to keep your titles, deeds, birth certificates, etc.

Tool #3: Adding It All Up

This is a great tool to see your net worth and help gather up all your information.

• Download this Universal Residential Loan Application from Fannie Mae. (PDF)
• Fill it out. (Your organized filing system from Tool 2 should make this easy to fill out.)
• If this sounds like utter torture, find a friend to do this with you, join a class, or contact a coach for support.

Tool #4: Credit Where Credit is Due

Many of us burn ourselves badly with credit cards. Here is a great system to help you pay off your cards and save money in the process. This tool has a few steps and requires a tiny bit of calculating but is SO WORTH THE EFFORT!:

1. Get out ALL of your most recent consumer debt statements. That would include credit cards, loans, etc.
2. Write out the following info for each debt:

   Name of Debt (for example "VISA", or "auto loan" ____________ Total amount owed _________ Minimum Payment: $_________ Interest Rate: ____% Magic Number _________ (explained in next step)

3. Find the Magic Number:
   Divide the total amount owed by the minimum payment and write that number: _________ (for example, if you owe $7000 and the minimum payment is $200, it will be 7000/200=35.
4. Write out all your debts, their Magic Number, and minimum payment on a piece of paper.
5. The debt with the LOWEST Magic Number will be your first to pay off. If you have the cash to spare, add to the minimun payment amount and make that your new monthly payment amount. Keep paying the minimum amount on your other bills.
6. When you are finished paying off your debt from the last step, go back to your list and begin the process with Magic Number 2. But here's the catch: Whatever amount you were paying for the debt in the last step, you will now ADD that to the minimum payment for debt #2. So if you were shelling out $350 a month for debt #1 and debt #2 has a minimum payment of $100, you will now be making a $450 payment for debt 2. Keep snowballing this amount down your list to pay off all of your debts. (We're assuming here that you're not creating new debt or offsetting your success by opening up new credit cards) You will save lots of money by doing this.

Whew! I bet you're tired now. But look how much we got accomplished! With this foundation set, and a solid plan underfoot to take your great ideas to new heights, you can only find success.

I like working with people who are ambitious and not afraid to tackle a few uncomfortable tasks from time to time. If you're a creative, success minded person, then maybe some individual coaching might be just the push to take you where you want to go.

Contact me to learn how easy and worthwhile it is to work with a professional coach. From a creative life to a creative project, I'd love to discuss the possibilities with you.