-Zig Ziglar
Your Money Attitude.
Attitude is everything. And as Zig Ziglar wrote above, attitude will be how we choose to view many circumstances in life—including our relationship with money. It is not easy to make a change to want to be financially different. And nobody will ever change another person unless that person wants to participate in that specific change. It would be easy to just coast through life, not worrying about our finances and whether or not we will have enough to retire. Yes, in law enforcement we have excellent pension plans, but those are slowly starting to disintegrate and don’t cover future medical expenses. If you are willing to put some time and energy into your finances, you will reap the rewards and dividends all of your life.
The other day when the kids and I were planting seeds in our garden I was reminded of a story. The story of the carrot seed. You plant the seed. You water it. And you water it. And you water it. No one else thinks the seed will grow. This goes on for days, but still no carrot. And then one day, all of the sudden, “Bam!” there’s a carrot. Your finances are the carrot seed and changes to the seed will only come with time, and watering.
Anything is achievable with a great attitude, dedication, a little encouragement, and time. First things first, we need to find out what our specific attitude is about money so we can better predict how we will manage our finances and gain control of our money. Below I will list a few types of investors. Some of you will be one or the other. Some of you may be a combination of two or more. No matter what you are, write it down somewhere. It will play an important role as you navigate the journey to your financial freedom.
The Loving Investor.
If you are The Loving Investor, you adore money. If you have it, then you spend it. If you don’t have it, then you spend it on credit cards or open a line of credit. Later when you have to pay the bill, you pay the minimum balance and keep spending. Some words that describe The Loving Investor are cherish, treasure, fall for, delight in. I believe a lot of police officers are The Loving Investor. Spending money to relieve stress so the Loving Investor spends.
The Now Investor.
This investor lives for the moment. You do not invest. You do not care about investing, your retirement, or your financial future. You think you don’t have the money to save it, so why not live for the now. The Now Investor has never made any plan and just cruises through life acting on whatever comes your way.
The Deserving Investor.
If you are this type of investor, you have a feeling of entitlement about money. Always thinking you need to have the house your neighbor has, or you want to buy that new shiny car because you just made it off of training and you deserve it. You may think, “I’m allowed to buy that because John Doe bought it.” I can’t tell you how many times I saw this type of investor in the Marine Corps. The new Marine graduates boot camp and then heads right to the dealership and buys a brand new ‘Ford Mustang’ at about 15% interest.
The Sidestepping Investor.
This type of investor is always trying to avoid money. Money probably makes you feel nervous or anxious. It is easier to not think about the money, and overall, just let someone else handle your finances.
The Suspicious Investor.
The Suspicious Investor is very cautious with his money. A word that may describe you is frugal. You are afraid to take a risk, even if it’s a calculated, preplanned risk, because you might lose your money.
How do we change our attitude about money?
Well, we start the change by writing down what type of investor we are. I’m The Suspicious Investor, and I know why. I grew up with two wonderful parents, three brothers, and one sister, but without a lot of money. My dad was The Loving Investor, and anytime he had money it was already spent. Also in 1991, my parents filed for bankruptcy when I was about 11 years old. You can see that probably shaped my attitude of money.
When I was 11 and starting my second year of Pop Warner Football, I noticed my cleats, shoes with spikes, were extremely worn down. I told my mom. My mom came back to me a few days later, and said, “Don’t tell dad but we are going to get some new cleats.” I love my mom to death. She’s the most amazing woman I know, but she was trying to do her best by me and not upset my dad with the added expense. But, I told myself that day–I will not live like my parents in a divided home with such financial struggle.
Now, I choose to change my view of money. Save. Share. Spend.
We want to be The Common Sense Investor. This Save, Share, Spend idea makes you truly see the VALUE of money. Invest 10% into a low-cost mutual fund or exchange-traded fund (ETF), give 10% to a charity, and spend the rest.
The Common Sense Investor.
If you have a plan, and you follow the plan, you will put yourself in a better financial position. You value yourself, you value your relationships, and you value your life. You are involved and aware of your financial situation. The Common Sense Investor follows the Save 10, Share 10, Spend 80 idea.
Your Assignment.
Not in a relationship—list your investor type.
In a relationship—list your investor type and ask your significant other to list their type.
P.S. You will not be successful without your significant other, so you must be on the same page, not necessarily the same investor type, but definitely the same overall goal.