The 6 Keys to Winning with Money

Winning with money doesn’t happen overnight nor is it easy. However, with the right components and the right attitude, it can be done and you don’t need a six figure salary.

2013 is nearly here, there is no better time than now to get your personal finances in order. Having the right motives and diligence are more important than the real numbers.

Here are the 6 keys to winning with money:

  1. Alignment of Family Goals: Both spouses must be on the same page. Goals and dreams must be aligned as well as setting milestones along the way. This doesn’t mean two people must be just alike. It simply means that a couple must come to agreement on how money is saved and spent.
  2. Cash Flow Plan (Budget): If a couple has aligned their goals, then agreeing on an on-purpose monthly cash flow plan doesn’t have to be difficult. A budget is a road map for where your money is to go. The budget should be ZERO-BASED meaning income minus expenses should be exactly ZERO on paper. Businesses must run on a cash flow plan to be successful, a household is no different.
  3. Discipline: Discipline is the glue that keeps the plan in place. A well put together financial plan doesn’t mean anything if you don’t stick to it.
  4. Contentment: Learn to be satisfied with the material things you already have. In Sheryl Crow’s song “Soak up the Sun,” she says, “It’s not having what you want, it’s wanting what you’ve got.” Having a mix of discipline and contentment are solid behavioral building blocks to financial success.
  5. Insure your plan with the right financial products: Always insure things that you cannot afford to replace. This is the golden rule for insurance. A car, a house, a death (replacement of a spouse’s monetary contribution) are usually too big of a loss to be able to pick up the tab by yourself.
  6. Appropriate motivation (GOD): Recognizing that GOD is the owner of everything and that we are managers of his resources should give added inspiration. I believe that if you manage his stuff well, he will most likely bless you with more to manage.

As you can see, winning with money is not all about the numbers. These 6 keys are behavioral and spiritual, the numbers and head knowledge are secondary.

If you put these principles into practice, you don’t need to worry about things out of your control such as the recent election or the “fiscal cliff.”

Question: What are your keys to winning with money? Do you have a financial plan in place for 2013?

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I provide one on one financial planning, counseling, and coaching coaching services that will help you develop and implement a plan specific to your unique situation. This may include learning how to create a cash flow plan, save for emergencies and purchases, reduce debt, and build wealth. In addition, I can walk with you through a crisis, such as dealing with harassing debt collectors, bankruptcy, and foreclosure.

Please note: I reserve the right to delete comments that are offensive or off-topic.

  • Allan Wang

    Thanks for taking the time to discuss this I feel strongly
    about it and love learning more on this topic. If possible as you gain
    expertise would you mind updating your blog with more information? as it is
    extremely helpful for me.

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    • http://www.robertjacobs.org/ Robert Jacobs

      Please feel free to go my website and subscribe to my blog. I usually post weekly on Mondays. I am considering adding another day.

  • http://www.robertjacobs.org/ Robert Jacobs

    Thanks for your input Allan. Stay tuned for more information throughout the year as I discuss topics in personal finance.