What is financial freedom? To some it is the ability to travel. To others, it may simply be knowing that the bills are all paid. I think for many of us, financial freedom looks like spending time with family, ordering some takeout from time to time, and knowing that you will be able to have funds available for a better home, car, or to pay for your kids college.
While everyone’s circumstances are different, it is possible to consider some basic truths about money that are applicable regardless of whether you are a millionaire or if you are out of the work force. First, money is a tool. Simply put, it is the means that we use to facilitate exchange. In trying times we begin to think of money as something else. Too often we idolize money and that gives it power over us.
Second, instead of worshiping money, we need to remember that we are the master and it is our servant. When we properly care for our money, we are able to make better decisions and it can grow healthy. If we neglect it or are afraid to use it at all, it cannot produce for us what we desire, nor is it’s full potential realized. Finally, if we want to see it grow healthy, we have to get to know it. We all want our children to grow healthy and I am sure we can all agree that we haven’t always been the best parents at times. But our desire is to provide opportunities for growth by making decisions for our children. If we think of our money the same way, how are we making decisions that say, “No” sometimes in expectation of better things later.
We make schedules for our kids from which we don’t deviate. School is at this time on these days. Extra curricular activities such as sports, dance, chess club, etc. all have their time and place where we make commitments. A budget is for our money what a schedule is for our children. Sometimes we just need to say, “No.” Other times, we are more flexible. As our children grow, they are exposed to new ideas, experiences and opportunities to learn skills. Our money can do the same. As our discipline in following a budget provides new opportunities, we can begin to invest and save even more.
The reality is that we have to be smart with money. It is nothing to fear, nor worth worshiping. But financial freedom, regardless of how you define it is always within reach. For business owners this means knowing where your money comes from and where it is going. Without a solid understanding of cash flow, it is impossible to make solid business decisions.
For nonprofit organizations, the process can be a little more complex. Just because the money is coming from donations instead of sales, means that we use reports and financial statements with different names and with different plans on how to use the money entrusted to us.
Start with a budget and stick to it. As it begins to work for you, make changes and find new ways to expose your money to new opportunities. Regardless of whether you need a personal budget, a thorough evaluation of your business, or a better way to understand the income and expenses for a nonprofit, we would be honored to talk with you about your goals, dreams, challenges and concerns. Click below to schedule a free, no obligation consultation today.