In the USA, the most significant of national holidays is just around the corner:  Independence Day.  It celebrates the birth of an independent nation.  What milestone will mark the birth of your own independence? 

Freedom is a function of the ability to make one’s own choices, and a large component is the choice people make about their finances.  Do you work to live or live to work?  Do you work because you must or because you love what you do?  Could you do what you love to do, even if it was not an income-producing activity?  If not now, do you know when that will be possible for you?

We assume people we see and hold in high regard have their money handled.  Many do not.  You may even be ahead of them.  People who make a lot of money may not have two nickels to rub together because they don’t know how to save, invest and spend, or because they “choose” not to focus on it only to regret it later.  This is illustrated by stories in the news of celebrities whose financial investors defrauded them without their knowledge or pro-athletes who filed bankruptcy because despite multi-million dollar incomes they spent more than they made.  US Supreme Court Chief Justice E. Warren left only a self-written Will.  But while this legal instrument gave his entire estate to his two children, it failed to give any power to the people named to execute the Will.  And he made no provisions for estate taxes, costing the estate thousands of dollars in taxes that could have been available to the family, to support an individual interest or to create a legacy for something personally important to him. 

By contrast, two famous rock stars for whom it appeared money was unimportant, not only followed their dreams and created considerable wealth during life, but had detailed estate plans to succeed them.  Jerry Garcia, leader of the Grateful Dead not only provided in his Will that his beloved guitars be given to the man who made them, but also set up Trusts for the care of his minor aged children.  John Lennon, who immortalized the song “Imagine” and the idea of a world with no possessions, likewise had an estate plan detailing the distribution of his estate to his wife Yoko Ono and to a private Trust allowing the property to be “held and distributed in accordance with the terms of that agreement . . ..”

Does your money truly serve you now?  Will it when you can no longer work?  Will it serve your interests after you are gone?  At IV, we like to say “for things to change first I must change.”  You can change how you look at money if the way you look at it now doesn’t serve you.  Many people resist taking the first step to making such a change because financial independence often brings up the idea of aging and not being physically able to work, the reality of mortality (life IS a terminal condition), the nagging truth that we're overspending our budgets or worse don’t have one, or the fact that we may be underutilizing our talents, under earning for our skills or not living our dreams.  Maybe the biggest change is to wake up, put those dreams into action, tell the truth about where we are financially and begin to take steps to do something different.  No time like the present. 

When you strip away all the mental/emotional aspects surrounding money, it is mainly addition and subtraction, with (hopefully) a lot of multiplication thrown in.  None of us get out of grade schools without mastering these basic aspects of math.  Like any other subject, whether practicing law or practicing the guitar, the focus and practice of personal and business money management can lead to significant accomplishments.  Where in your money management do you need more focus and practice -- increasing income, minimizing outflow, keeping more of what you earn and making it multiply over time?   Listen to the answers that come up for you.  What is one thing you can do today to address what comes to you?  If you are reading this, you are smart enough to figure it out or find the support you need to take action.  So what blocks you from focusing and implementing a regular practice to improve your financial picture? 

Some people respond to these questions by saying money just isn’t important, or isn't important to them.  Truth is, in the physical world in which we live, money is important.  A bankrupt company never did its customers or employees much good.  True, as well, for a financially mismanaged (or non-managed) family or household.  On a priority scale, money may not be the number one item, but it certainly enhances one’s ability to achieve the other priorities on the list.  Where can you see money as a tool in your life to enhance your other priorities?  Record your answers, and then identify what you need to learn (focus) and what steps you need to take (practice) to maximize this resource in your life.

Ingenuity Gem:

 If you want to change and get on the road to financial independence, you only need to start.  What could you do, where could you begin?  Here are some ideas to get you started:

*  Read a book.  Do a search on Amazon.com, Barnes & Noble online (BN.com) or another online bookstore for books on “Personal Finance.”  There’s even a “Dummies” series book on this topic!

*  Read the business section of the newspaper everyday.  Learn the language of money and how it works.

*  Hire a financial advisor.  Interview several to learn how they work and what they cost.  Ask your friends, particularly those who are well off, who their advisors are.

*  Eliminate your debt.  Why pay others for the use of their money when you could use your own if you had it?

*  Simplify your life and live as if you had nothing.  Many people are simplifying their lifestyles in many different ways.  There is very little you MUST spend money on, shelter, food, taxes.  Learn to be creative and find a no or low cost way to do the rest.

*  Marry a millionaire.  OK, it’s an option even if unlikely and doesn’t eliminate the need to properly manage money or you both could end up like the pro-athletes mentioned above.

*  Take a class on budgeting, becoming debt free or investing.

*  Decide on a sum of money to put away every day or once a week and deposit it into an investment account.

*  Cut your expenses by 50%.  If you had to, you would.  Well, maybe you have to.  You may find you spend your money simply to distract, divert, or medicate yourself and avoid discovering you true ability to be active, healthy and productive.

*  Double your current salary or income, or start a side or home-based business (and work it!)  You may be under-earning.  Find a better job, get retrained for a profession that pays more.  Develop yourself in other ways if you need to.  

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