THE CHALLENGE:

How many times in our life have we faced financial challenge?  

We all face financial crunches.  Most people follow a herd mentality around their money.  For example, the majority of investors sell as the market is falling at or around its all-time low.  The wise investor chooses this time to BUY.  Many companies reduce headcount and cut costs during times of recession.  Many go out of business.  The wise companies prepared for a rainy day, and put aside a pile of money.  

It is the same in personal finances.  How much money do we need to feel financially "independent"?  The key is to build a platform for investing, a platform for getting our money to work for us, and gaining an understanding about the difference between costs and profits and the forces that drive them.

WHAT CAN WE DO ABOUT IT?

The first key to understanding our growth (profit) and cost (loss) centers is to recognize that we can use money to make money.  What resources are available to us, right now, in our own back yard, so to speak?  Do we have gifts that are not being untapped, today?  If so, we are not utilizing all of our resources.

Resources may include knowledge, time, money, physical assets, relationships, or any number of things.  How are we using our knowledge?  How do we spend our time?  Is it productive?  If we are watching three hours of television a day, or spending two hours chatting on the internet a day, or spending our money on things we do not need, we are not using our resources to work for us.  

On the other hand, if we put our resources to work our life begins to become a productivity machine.  Yes, it is important to stop and smell the roses, but if we stand in front of the roses too long, they eventually die from not being watered or fertilized!  

What are ways we can put our resources to work to create growth?

1.  What new ideas or knowledge do you have, that you either have partial or complete satisfaction of the ability to share with other people?  

I did not have my ideas complete before starting AspireNow.  In fact, many of the articles and programs I've written came to me long after launching the site.  The key is to take the initial idea and ACT NOW.

2.  What resources are lying dormant, rather than being used?

If we have a house that isn't mortgaged, there is a possibility that we can refinance and pull money to create other investments elsewhere.  Or, we might have a gift of cooking but never cook for money.  We may have a talent that isn't being used for growth.  Being a successful musician might bring in an extra $500 a month -- all the while having fun doing something you love.

3.  What resources are being wasted?  (here is where we DO want to cost cut)

Examples of wasted resources include:  rent, daily paper/news, magazine subscriptions, cable television, automobile payments.  The way to turn these expenses into profit centers is to buy a home instead of rent and write off the interest payments, cancel the news and receive the news on the internet or by finding the paper at the local coffee shop, instead, cancel subscriptions (especially if they aren't being read or don't contribute to your life in a meaningful way), buy cars with cash, and cancel cable television and spend more time doing things we love, such as dancing, reading good books, playing with our children and/or friends, and making love.  

The key is to turn waste into reward.

FURTHER EXAMPLES OF GROWTH VS COST CUTTING:

What makes more sense:  watching television and not eating for a week or selling something we made by hand to buy groceries?  The person using their resources is creating value, therefore growing their finances.  The person sitting around cost cutting is actually shrinking in value.

Who is making the most of his life:  Manny spends his evenings surfing the internet for cool trivial tidbits, but doesn't do anything with them.  He figures he makes enough money as a butcher to justify his recreational freedom.  Meanwhile, Jack spends several of his evenings playing guitar in a jazz club, and makes some extra money doing what he loves.  Imagine, though, that Manny applies for a television trivia game show, and then earns $30,000 in winnings due to his vast array of knowledge.  This is taking what is in our own backyard and putting it into practice.  

Many people think that growth thinking means being flashy.  It doesn't.  You do not have to be flashy in order to grow your financial success.  Most millionaires don't drive Mercedes Benz and Porsche cars.  Many millionaires drive an eight-year-old Lincoln instead of the flashy or expensive automobile.

THE EXTRA STEP:

The key to growth is to avoid lack mentality.  Once we slip into thinking we lack, don't have enough, our ideas aren't smart enough, or our talent isn't enough to be successful, we set ourselves up for failure.  Instead, we need to think "I can, I will" and then take action and just do it.  Take it a step at a time if you have to, and do what is important now.

WHAT THIS WILL DO FOR US:

Imagine, instead of struggling to pay bills, you now have the freedom to take a trip every three months to some place you've always wanted to go:  Italy, Greece, Spain, Africa, Peru, Bali, Hawaii.  The list is endless of wonderful places to visit or learn about.  Financial freedom may mean the ability to travel when you want, where you want.

Or, imagine, instead of trying to put food on the table, you have enough money to pay for your children to get an education, something you didn't get.  What would this mean for your family?

Imagine, you live life on the terms that make you the most happy, rather than feeling trapped by the tumultuous events that set you back.  What would it mean to overcome those?

Putting growth vs. cost cutting to work in your thinking, and then in practical reality, is the first step to realizing your dreams.  As Walt Disney said, "if you can dream it, you can do it."

We welcome your comments and success stories about living an elegant simplicity life and making your life more fun and abundant (feedback).

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