Ever wonder why it is that 70% of lottery winners squander away their winnings within a few years? When you hear this, what comes to mind? Is it, “I’d never do that.” Really? Not so fast.
We also know that when new wealth is created in families, there is a 90% probability that all the wealth will be gone by the third generation. It’s known as “Shirtsleeves to shirtsleeves in three generations.”
So what is your mindset around money? If you received a large sum – millions of dollars, could you hold on to it? You say yes, but how are you treating the money that you have today? Do you respect and appreciate it?
To create, grow, and keep wealth, you will need a healthy relationship with it and an action plan. You will also want to be aware of your beliefs around money, and where they come from. For example:
- How does this idea of having a million dollars feel to you? What about $10 million?
- Does it make you feel uncomfortable or does it feel too unrealistic?
- What would your friends and family think of you if you were really rich?
- Are you triggered negatively by the idea of having a lot of money or those who already have it?
Your relationship with money – how you feel about it AND what you do with it – will have a profound effect on every area of your life. A healthy mindset allows you to ask for what you are truly worth, keep more of what you do earn, invest confidently to make it grow, and to feel secure once you have it.
There are two steps to creating wealth — the Inner (Spiritual) Work and the Outer (Practical) Work of money. Here is a simple three step process you can use to open up to more abundance:
Step #1: Start with the Inner Work- your beliefs around money. Your beliefs around money were formed when you were very young based on what you saw, felt and were told growing up. Many of these beliefs are still with you today, and often become limiting beliefs. I call these our money personality and have found that there are five and this is how they show up in your life:
- Value (I need to prove I am good enough)
- Status (Whatever I achieve is not enough)
- Love (I need to do whatever it takes to get love)
- Security (I never know when what I have maybe taken from me)
- Recognition (I need to prove I’m right)
Once you have identified your disempowering belief, including where and when it was formed, as well as how it’s showing up today, the next step is to release the belief and to create new empowering beliefs. This process could take years or if done with a professional, it can be instantaneous. It’s truly step number one. This one step will shift everything. I’ve seen it happen with hundreds of women, frequently with immediate almost magical results.
Step #2: Now you can begin the Outer Work – Taking Action. Now it’s time to look at where you stand and where you want to go. Are you getting paid what you are worth, do you respect it, are you saving and investing for your future?
It’s time to be brutally honest, to clean up messes, set goals, and get the help you need, which could include:
- Creating a financial plan
- Taking a financial or business course
- Going to a financial counselor if you are in debt
- Working with a coach who can shorten your journey
Step #3: Don’t give up. Don’t try to do this part alone. Get support and surround yourself with like-minded women who are on the same path. You can do this by joining our free Smart Women Community. (link) Each month, we will bring you thought leaders who share their wisdom. You can take free courses at the Academy (link), and connect with our Smart Women Empower Women Partners.
If you haven’t done so yet, download my free ebook, The Five Biggest Money Mistakes and How to Fix Them. This book has inspirational stories and tips you can implement immediately. In addition, you can schedule a 30-minute complimentary coaching session with me. I keep space for five free sessions a month. They key is to take action!
Katana Abbott, CFP®, is a Midlife Millionaire® Coach, founder of the Smart Women Companies, and the host Smart Women Talk Radio with over a million subscribers. For over 30 years, Katana has shown women how to take charge of their life and finances and believes it’s never too early to plan for expected and unexpected events like retirement, encore careers, moving abroad, or preparing for long-term care. She has written several books, created a financial literacy course, and is a popular speaker. Katana has been honored by NAWBO as one of Detroit’s Top 10 Business Women, receiving the Breakthrough Award. To download her new retirement guide, Three Smart Strategies for a Midlife Millionaire® Lifestyle. visit www.katanaabbott.com