Money

How much is enough? When to hold on and when to let go.

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Clothes

Spring cleaning is usually a good time to rid your surroundings of unnecessary clutter. It’s also a good time to think about what “enough” looks like for you. When you have enough it allows you to reallocate some of your money from buying new things to saving for financial security, creating new experiences and investing in the greater good.

But, how many jackets are enough? How many pairs of shoes are enough? How many ties are enough? There’s a good chance that you have more than you “need” in several areas, but how much do you “want”? I hope you will take some time to think that through.

If you decide to take on your closet, attic or garage this month below is a list of questions that may help you decide what to keep and what to donate.

 Do I love/need it or should I release it?

  1. How many items in this category do I think is enough? (i.e. How many T-shirts? Pairs of sneakers? Coffee mugs?)
  2. If someone stole this item from me, how long would it take to notice it was gone?
  3. If I didn’t have this exact item, would I to buy it again within the next year?
  4. If I didn’t have this item, is there something else I’d use in its place?
  5. If someone offered me the price I paid for this item would I sell it to them?
  6. How do I feel when I imagine this item meeting a need for someone else?
  7. Would holding on to this item for one more year reduce its value as a donation?
  8. Might someone else find more joy in this item than I do?
  9. Would I give this item away to a friend that kept admiring it?
  10. After answering these questions do I feel more inspired to keep this item or donate it?

What was the hardest thing you ever let go?

Who else wants to have an honest conversation about money?

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Money

About a week ago, we had an opportunity to talk with college-bound teenagers about money. We had their full attention once they saw the charts of average starting salaries for different fields of study. Clearly graduates from some fields (mostly in the hard sciences and technical disciplines) made much more money than others. Some fields required additional graduate degrees and that meant a potential for larger student loan debt.

We still encouraged the students to follow their talents and passions. We talked to them about how passion would play out in the long run which was loosely defined as 10-15 years into their career. It’s passion that drives people to work harder, smarter and network better. Then those passionate people get promoted, make more money and far outpace their peers financially. Passion is still an important factor for long term financial success.

Honest Conversations About Money

So why even give them the starting salary data if we still think they should consider any field they like? The point was to have an honest conversation about money. It was to help them make an informed decision about which field to pursue. It’s a complex decision. We also discussed the social and emotional impact of making more or less money than their peers at any stage of life. We acknowledged that some jobs would always pay less than others even if they’re successful at them. This talk was to help them make decisions about their life and the role money will play in it. Deciding how important each factor is to them is something they will have to do on their own.

Even as adults we are often left uninformed about the social and emotional factors surrounding money. When I was single, it was hard to make decisions and place priorities on my money. Should I save more for a rainy day or take a trip with my family? When I got married again it became even more clear that I needed to learn and communicate my financial needs better. I say “needs” and not “wants” because how much we derive pleasure, connection and/or security from money is core to who we are. These factors aren’t simple preferences that can be ignored. This is something you may already know if you’ve ever managed money with someone that doesn’t share your financial values.

Luckily, there are resources to help us get informed about our financial preferences and have more honest conversations about money with each other. The link below will take you to an online tool that will “find your money mind” and uncover your personal biases about money’s value. A friend suggested this site to me and I wanted to pass it on.

Three Types of “Money Minds”

  • Happiness: The Pleasure Seeker
  • Committed: The Giver
  • Fear: The Protector

http://findyourmoneymind.com/

Once you take the quiz for yourself you can also take it with someone you manage money with. This will give you insight into your collective priorities and styles. You will also get communication tips to have better and more honest conversations about your needs.

So what does this have to do with service? Everything. Money has a huge impact on our relationships and resources. Our relationships and resources will have everything to do with how and who we serve.

Who else wants to have an honest conversation about money?