How do you know you are winning financially? This is a topic I shared with Matt Wegner, Financial Coach at FinancialExcellence.net. He was intrigued with the question and thought it would be a good discussion for his internet radio show ‘Living In Financial Excellence’. We talked about it for a half an hour, bringing up discussion points like reaching retirement with a specific dollar amount saved, doing a Net Worth statement once a quarter, and how training for a marathon and running a race is much like learning to live on a budget, spending less than you make and doing something smart with the difference. The discussion could have gone on longer as participants in the live chat were bringing up other thoughts and ideas.
So let me break down the question and then present the question to you:
- HOW do you know you are winning financially? A net worth statement, a progress report, something to look at or measure. Nerd stuff, ya know?
- How do YOU know you are winning financially? The biggest variable in the question. Everyone is different, so everyone’s description of winning with money is different.
- How do you KNOW you are winning financially? “Know” is short for knowledge. It is how your brain measures the start, finish, or progress points and then tells your heart whether you are doing good or not.
- How do you know you are WINNING financially? Winning indicates you are either ahead of others or ahead of a measurable marker while heading towards a goal.
- How do you know you are winning FINANCIALLY? It’s all about money (this is a website about personal finance, after all).
So YOU need to figure out what FINANCIAL goal you want, figure out HOW to get there (with a MoneyPlan), review it periodically to KNOW if you are WINNING.
Much like personal finances, the answer to the question is different for everyone. Is having a net worth of $1,000,000 winning? Does owning a 2nd home get you over that financial finish line? Or being able to give $100,000 at one time to your favorite charity?
What does Winning With Money look like for you? Leave a short comment below. If you are on Twitter then use the hashtag #WinningWithMoney.