Graceful Personal Finance - Manifesto Part 6

Introduction

This piece is part of our Manifesto about 7 areas of our personal life: (1) Education (2) Physical Health, (3) Mental Health & Mindset, (4) Relations, (5) Work & Career, (6) Personal Finance, and (7) Personal Development (coming up). In the midst of this COVID-19 global pandemic, where our society and our lives have come to a halt, we were inspired to write this Manifesto. For every area of our personal lives, we will challenge the way we viewed it “back then” and articulate a vision on “how we should go about it in the future”. Our Manifesto is meant to open up discussions. We don’t intend to stereotype anyone or anything, but just want to give a generic perception of our lives and society as a whole and the systems behind it.

Looking back

The pandemic exposed us financially

As we learned barely anything about personal finance and how to manage it, we were especially exposed during this sudden COVID-19 pandemic. In the 10 years of a growing economy, we had more than enough time to fill our emergency funds. Instead, many of us lived paycheck to paycheck, sometimes spending more than we earned. In that way, we collected even more debt after already sitting on a pile of college outstanding payments. 

Our lack of financial education

We always lacked money, therewith trying to hold on to our jobs for financial security. Our society taught us that we must find a job, work for money, and accumulate enormous debts to study and buy a house. If the purpose of education was to teach us to find a job and earn money, why didn’t we learn anything about money itself? 

Entitlement and negative beliefs

We believed that we were entitled to have, experience, or own certain things. By possessing things, we show that we are successful and it boosts our self-esteem. Not surprisingly, there were lots of pains around money, even in relationships. It was even the most common argument between couples.

Many of us think negatively about money in general and those who have it. “Money is the root of all evil”, “Money won’t make you happy” and “Money will change you for the worse” are some of the limiting beliefs people spread around. 

Vision for the future

Money as a reflection of our created value for others

What if our financial situation would be a reflection of the value we create for others through our work and investments? We would all earn a lot because we deployed our biggest strengths and passion to solve problems, large and small. We would live way below our means and spend our money on meaningful and joyful experiences, personal growth, and the well-being of ourselves and our loved ones.

What we would do with our savings

The amount we save should properly be allocated over:

i) an Emergency Fund for sustaining our current lifestyle when we lose our source of revenue; 
ii) an Unexpected Expense Fund for things that need to be fixed (car, washing machine, etc.;
(iii) a Freedom Fund that is invested in assets and is providing a return and;
(iv) a fixed percentage to donate to causes.

This entire system would radiate abundance, ease, contribution, and wealth. Earning, spending, investing, and saving money would be immensely more rewarding and fun.

Personal finance – a cornerstone of our education and upbringing

What if we all learned the essentials of personal finance in our youth? How money is earned, kept, and multiplied? So we can let money work for us, instead of only having to work for money. And what if we eliminated our limiting money mindset and beliefs, letting go of pains & fears of having money and losing it? What if we wouldn’t abuse money by spending it to fill an emotional gap?

Using money for higher goals

Humanity invented money as an instrument to store and trade value. It’s a beautiful invention that lets us elevate our own lives and that of others. There’s an abundance of money and we should truly believe it. By doing work that solves someone else’s problems we create value, so money will flow to us with ease and in high quantities. We can then gracefully spend it on our own wellbeing and that of our loved ones, investing it so it can multiply, and finance causes that we believe in.

Check out our (video) podcast on Personal Finance, including personal experiences here.

Want to comment or give your input? We’d love to hear your opinion. Click here to share it with us. 

Do you know or are you an expert in one of the life areas we discuss? We’d love to talk to you about the above and your vision. Click here to talk with us.

Growtribute is an international community and platform for personal growth and professional contribution. Behind it are Lennart van der Ziel and Rachelle Leerling. They are entrepreneurs, speakers, and coaches.