I doubt there’s a day that goes by and you’re not making a variety of choices when it comes to these areas of your money: earning, saving, investing, or spending it.
Choices that impact the results you see and that influence how you feel about those results.
Choices that end up revealing not only how well you use your resources, but also the extent to which you may be giving away your financial power.
I am fortunate to have an “insider’s” view of not only what people do with their money, but also how they think about it. (This access is a privilege I do NOT take for granted.)
And one of the things I’ve noticed is that people tend to do a much better job of noticing how they use their resources.
However, they are not so great at noticing the extent to which they may be giving away their power.
Particularly when it comes to earning and saving.
The Subtle Surrender
Very few people say to me, “I want to increase my financial power.”
They do say things like:
- “I want to earn more.”
- “I want financial freedom.”
- “I want to stop overspending.”
- “I lack a financial plan.”
- “I want to stop feeling like I’m wasting my money.”
This is why I always ask follow-up questions, which often spotlight where they are unwittingly abdicating their financial power.
Either to their circumstances, other people, or both.
Because what I know from first-hand experience and professional observation is this:
People rarely give away their power…on purpose.
It happens much more subtly.
It Happens Like This…
With earning:
Under-charging & Under-earning
If you work full-time, every time you don’t negotiate your compensation package (at your current employer or when joining a new firm), you end up earning less and less over time.
If you run a business and have a tendency to under-charge, or find yourself always discounting in order to get the business, you definitely earn less in the moment. And now your business is continuously in financial “catch-up” mode. Your business suffers and so too does the health of your personal finances.
For years, I gave away my power in this manner. I was under-charging for coaching and speaking. Even as I helped others with maximizing their pricing.
But once I fully embraced that having a healthy business is one that centered the health of my personal finances, things began to change. So much so that I created a (now) trademarked framework – that is changing people’s businesses and their lives.
Doing work that is unfulfilling
There’s a difference between doing tasks that you’d prefer not to versus doing work you find demotivating.
And if you and I are being honest, we all have a few items on our to-do list that aren’t fun.
The problem occurs when you find yourself consistently engaged in work that is no longer energizing.
When you are demotivated, the quality of your work begins to diminish. This, in turn, eventually has an impact on what you are and can earn.
Not diversifying your revenue streams
As an entrepreneur or business owner, you can diversify your offers, the audience you want buying from you, or both.
But choosing not to diversify what you sell or to whom is neither financially nor strategically prudent.
The same is true if you work as an employee. Though how you do this will look different: It might look like investing in income-producing real estate; investing in the stock market (beyond retirement investing); or it might include having a side business if it doesn’t create a conflict of interest.
However you may be giving away your earning power, you “pay” a price in the present…and in the future.
Because you don’t experience as much financial independence and freedom as you’d like – and dare I say deserve.
Now, let’s talk about spending:
Are you an impulse buyer?
How many of your purchases in the last 90-days have been unplanned, driven entirely by your emotions, or simply something you wanted?
These questions aren’t designed to cause you to feel bad about your buying behavior. Rather, it’s meant to give you insight into why you’re doing what you’re doing – insight you can only get from looking beyond the numbers.
These questions can help you regain a sense of power that is often lost when the negative self-talk about your spending behavior is very loud.
Do you set financial boundaries?
There are a lot of people who are financially responsible for multiple households – their own and also extended family members.
Out of a sense of responsibility (and maybe guilt), they feel obligated to use some of their current resources to lend out money or take care of the expenses of their loved ones.
This is amplified if they are a high-earner and it is expected that because they are able to do this, they should.
If you are in this position, I know it is a financial and emotional quandary. One without a one-size-fits-all approach for how to navigate saying, “no,” to others and maybe even yourself.
But creating financial boundaries is crucial to maintaining and improving your financial health, and avoiding situations where you sabotage your financial present and future.
Spending to fill an emotional hole?
We’ve all been there. Bought something to:
- deal with a stressful day;
- make ourselves feel better after getting disappointing news or having a disagreement with someone; or
- feel a sense of control in order to offset the situation where you don’t feel you have it.
When you do any of these occasionally, no harm is done.
However, you give away your power when mindless spending becomes a habitual way of responding to things going sideways.
It’s a sign that you are spending to avoid addressing an emotion.
Want to Take It Back?
If you’re realizing you need to take back your financial power, here are three things to do (which also happen to be subtle).
Take a moment to pause
Whether it’s an earnings or spending related decision, pausing before doing so enhances your ability to act thoughtfully. It helps you to align your decision with your short- and long-term goals, values, and overall well-being.
Pausing may seem simple. Yet, it is a powerful tool for ensuring that your decisions empower you rather than diminish your sense of power.
Take a moment to ask “why?”
Asking “why” encourages deeper reflection. It can help you clarify your motivation, reveal the emotional triggers that are underneath the surface, and ensure you’ve considered alternative options.
Asking “why” not only amplifies your self-awareness, it can go a long way to minimizing any post decision regret.
By taking a moment to pause and ask “why,” you’re paying (more) attention.
You are on the alert for details and red flags you may have previously overlooked or dismissed.
Embrace Your Power
Pausing, asking “why,” and paying attention are how you exercise agency over your money, business, and life.
Remember this whenever you feel like you’ve lost your control and your power.
Because this is how you take it back. Especially when you remember:
Your power is deeply rooted in your belief in your ability that you can effect change in your circumstances.
