Our day-to-day conversations seem to revolve around the one and only keyword, money. The never-ending bills, rent, mortgage, pay, fees, as well as life pleasures drive us to think of money as a goal that we need to achieve in order to progress in life. Most will argue that money is our most valuable asset in life. Managing money is a role and responsibility most don’t understand is a required skill. Money can be an easy topic to avoid, and it can be overwhelming.

What is your relationship with money?  This relationship affects every other relationship you have in your life–both personally and in your business. It’s easy to think we never have enough. The fact is, there is no shortage of money. There may be a circulation problem because money changes hands frequently. From coins, cash, debit cards, credit cards, to loans, we can see that money is in abundance. Unlike computer chips or lumber, there’s no actual shortage. This scarcity mindset is what keeps many of us from achieving our goals. A scarcity mentality sees limitations instead of opportunities.

What is your word association with money? Is your language around money filled with emotion that is harsh, bitter, resentful, and anger instead uplifting and inspiring? If you think of money as a tool, it takes a bit of the pressure away so you can have more control over your spending with neutral emotions.

Let’s change our perspective for the next few minutes. Most beliefs we inherit from our parents. My mom shared the same advice her grandfather gave her, “make money work for you.” What did she mean?

How Is Money Used As A Tool?

Spending your money the right way isn’t difficult. With an easy strategy, you can find financial confidence. You first need to consider your goals and priorities. One of my favorite quotes is, “The mind is everything, what you think, you become.” Anybody can have dreams. But it takes courage to turn those dreams into goals and get things done. 

Goals don’t merely mean saving money for the future. Financial goals give life and direction to your dreams. Robert Kiyosaki, author of Rich Dad, Poor Dad has a quote, “financial freedom is a mental, emotional, and educational process.” Make goals, make the mistakes, and learn from them can be the simplest formula to secure your future financially. 

Moreover, using money as a tool means you need to keep your emotions aside and focus on the solutions to your money problems.

The following strategy should help you understand how you can use money as a tool:

  • Rid yourself of debt: The perfect way to live a calmer life is to prioritize paying off your debts. Debt stirs up stressful emotions. It’s a burden to carry. Prioritizing this goal allows your mind to release all that negativity. After all, money freedom is essential to enjoy a stress-free life. 
  • Invest more: Little out-of-the-blue investments don’t hurt much since your money keeps multiplying without having to work hard for it. After all, an asset worth a few hundred bucks may gain value worth thousands of dollars in the future. Track your investments. Evaluate their performance. Every industry has its own language. Most importantly know your risk tolerance. Does the amount of risk you’re willing to take match your goals with the return you want to achieve? If you don’t understand, ask the tough questions. It’s your money and it’s your responsibility to understand how investing is the best tool that will ever work for you. As your confidence increases, you will be capable of handling more complex investing.
  • Pile up your sinking funds: Sinking funds are created for the bills you keep aside for a specific expense. It can be for medical bills, debts, rent, taxes, and insurance. This incorporates your spending experience since you don’t have to worry if a sudden emergency occurs, or if you lose your paycheck. A sinking fund is a great safety net. It keeps you out of debt, on budget, and on track for your financial goals. This allows you to be proactive and protect your legacy because life events will happen.

 While it’s easy for financially stable families to think of money as a tool, it can be so for you as well. This way, your mind will be at peace, and money management will become easier than ever.

The Bottom Line

By now, you may have an idea of how money, when used as a tool, helps cut financial problems drastically. All it demands is a good strategy of saving and spending, and you are good to go!

So, by taking baby steps at first and proceeding to your milestones gradually afterward, you can get your finances under control and enjoy money freedom forever! In your personal life and in your business, healthy money conversations create a stronger understanding because we all process things differently. It’s important to communicate your beliefs because they will impact the decisions as you work towards your goals.

Man or woman, there is no shame around money. It doesn’t matter if you have no money, a lot of money, or you’re somewhere in between. We all need money to survive. It’s your choice how to manage it.

Good luck with the money management. You deserve to feel financially empowered! Remember, money is not a goal and it’s not an emotion. Money is a tool. You want it to work for you.