Money - What's the Purpose?

6 Important Questions You Need To Ask Yourself About Money

Money, it's a relationship in life we will never be without. We all have to deal with money day in and day out, so it can be easy to forget what our purpose is in the midst of the money questions and details.

Let’s discuss six important money questions you need to ask yourself when it comes to this very important relationship.

What does wealth mean to you?

Often times, the answers aren't what you think. Here are some real-life responses.

"Having enough money to live and give without having to think too hard or worry too much. Bills paid, saving and investment coffers filled, and the ability to tithe."

"Personally, for me, when I think about what wealth means to me, I differentiate money and wealth. Certainly, when I was younger or even 5-8 years ago, it meant being as rich as I possibly could. However, now, wealth doesn't need to revolve around money. For me, now I much prefer being wealthy with my family, friends and other memorable experiences throughout my life. But if we are talking from a financial standpoint, wealth is about being able to do what I enjoy for a living without worrying about having enough money."

"Freedom and flexibility. Not beholden to people outside family. Free to make choices within our means."

"Wealth means security to me, security in all aspects of life. Wealth also gives you more control: control financially, personally, for myself and my kids."

Can you find the common tone woven through each of these answers?

Very little of it actually has to do with money! Peace of mind, freedom to do what you love, security. Wealth is not about money but, rather, what money can provide for you. What is your personal wealth definition?

What are your top financial concerns and how are you working towards stabilizing them?

Responses can range anywhere from not having a plan to living under a bridge, destitute and that isn't exaggeration but direct quotes. Often times, these feelings are lying under the surface, not confronted, and we are medicating the issue with busyness. Let me tell you a secret. Busyness does not necessarily produce results! Here's a mantra I use in my own life:

Replace busyness with productivity and replace productivity with effectiveness.

Just because you are busy doesn't mean you are making an impact. It is not good to ignore or neglect financial fears. What is effective is answering those money questions, making sure you have a plan and finding peace, knowing you're doing your best. Nothing lasting is built overnight.

If you are out of work, how long could you cover expenses before having to take drastic financial steps?

If you don't have an emergency fund, this is a huge reason to get one in place because knowing how long you can float your own boat is critical to survival!

What's the minimum amount of money you need each month to keep your financial life afloat?

Before you can determine how much needs to be in your emergency fund, you need to know the total of your regular expenses. Don't just think about bills. Instead, think through all aspects and needs so nothing takes you by surprise. If you are self-employed or a sub-contractor, it is critical to know how much you need to stay afloat in order to know how much business you must generate before expenses and taxes. How do you know how much you need to keep afloat? Through budgeting!

What did you learn about money from your parents and which of these beliefs have you adopted as your own?

The overwhelming response is usually "Nothing." Even if your parents were proactive in teaching you about money, you likely caught more than you were taught. I suggest you evaluate these learned traits before putting them into practice to see if they are, in fact, healthy.

Do you have specific written goals?

If you don't, you are sailing a ship with no rudder. How will you know you are gaining financial traction if you don't have a plan or destination? I know you are getting told everything is important, which can make it difficult to gain clarity and can lead to some serious money questions. Take the first question I asked today and this last question and use them to develop a plan of action and steps to get there, which will ultimately help you find more money to fund your dreams.