Tomorrow the Financial Woman Alliance for Investment Education expert call will be with April Lane Benson, PhD. I discovered Dr. Benson at the Texas Women’s Conference where she was an authority on overspending and compulsive buying habits at a financial workshop breakout session. I am so excited to personally interview and share her expertise at the Financial Woman Alliance.
Money cash flow is such an important step in reaching your financial goals. While one daily purchase in and of itself may not seem to be an issue, the accumulation of those little spending habits can keep you stuck in the same place on your financial journey. One of the steps in my upcoming course is creating structure around your monthly money flow to monitor whether it’s positive or negative; then we’ll explore ways to make it better with either increasing income or reducing expenses. If your monthly cash flow is not positive, then you are actually moving away from rather than toward your financial goals each month.
Take a good look at your spending patterns; are they conscious and deliberate? If you happen to have high interest credit card debt, then be aware that each purchase you make is using money that could be used to pay off that debt and thereby increase your monthly cash flow. I like to focus on generating income more than debt reduction to move in the right direction, but the first step is to create a solid financial foundation that invites wealth to grow supported by good money habits that accumulate wealth.
Healthy spending habits are crucial to long term wealth accumulation, no matter how much wealth you have; it’s all relative, just like everything else in life. A billionaire can spend all of her money just as someone with $5,000 in savings can; it just happens with more expensive products and services. A financial woman knows that spending consciously and wisely gives her the ability to live a life of financial empowerment while having more money to make a difference in the world and reach her true goals.