083 | Three Steps to Better Money

When it boils down to it, there are just three steps you need to take to improve your money. This three-step process is pretty simple and straightforward.

It’s exactly what I used to improve my own finances; it’s what I work with my clients on; and if you implement it, you’ll start to see the results you want to see with your money, as well.

In this episode, I break down the three steps to better money and what makes this simple process feel difficult for lawyers.

Lightly edited transcript appears after the show notes.

Topics Discussed

• three-step process to improve your finances
• why lawyers find the process difficult
• what gets in the way of doing this process

Listen to the Episode

Resources mentioned

Episode 77: When the Willpower Runs Out

Work with me

If you’re ready to learn the mindset and strategies to master your money, let’s schedule a call.

Connect with me

Social media: @iamrhothomas on Instagram, Facebook, Twitter, LinkedIn

Email: hello@rhothomas.com

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Lightly Edited Transcript

Hey friend, welcome back to the show. I hope you’re doing well and having an amazing day so far. So today we are talking about the three steps you can take to have better results with your money. I say all the time that being better with money is a slow process, but I know it feels difficult at times people sometimes you may feel overwhelmed or stressed with your money. You may think it takes some huge sacrifice work for the overhaul, or maybe you don’t think that it’s possible for you to do better with your money. And so the steps I’m going to teach you today are the same steps that I work with my clients on and I promise if you do these steps, you will improve your money. The very first step is to gain awareness. Where is your money going? Currently? What are you spending on? How much are you spending on these things? Do you like things just anymore? Do you like how much you’re spending? Usually when I first start working with a client, they have no idea. They don’t know what they’re spending on. They don’t know how much they spending any of that like they just have no idea and they know they should have more money than they do each month but they don’t. So getting clear on what you’re spending how much you’re spending what categories are spending on all that’s gonna be so helpful for you. And just that awareness alone is gonna be really eye opening for you. Often people are afraid to look at what was going on because they’re afraid to see you out so they just don’t look they avoid it. But stay in the dark is not helpful. Sure, you may feel fear, but the numbers don’t actually hurt you. Right, you’re already seeing the money. So what is not looking at how much you’re spending doing. How is it helping? It’s kind of like when a kid sees a shadow in the dark and they’re afraid but Let me shine a light on it. They see Oh, it’s just the stuffed animal in the chair or whatever. Seeing what it is that they’re afraid of like shining that light on it confronting it helps to alleviate fear. The fear is almost always worse than they are afraid of. So if you never take a look at what’s happening, you’ll never be able to change it. For example, one of my clients will start working together realize that you’re spending a quarter of his income going out to eat. And then on top of that he was also buying groceries and that awareness made him want to change how he was just like that. So when you look at what you spend your money on at this moment without changing anything, let’s just see where you are. You can see do I like this? Like I like these things that’s been on? Do I not? Do I like the amounts I think why not? But that awareness piece is the first step because you have to know where you’re coming from, to know how to get where you wanna be. Alright, the second step is to create a budget for your spending. So we’ve already gotten clear on what you’re spending on right now. And how much money currently unintentionally but now we’re going to get intentional plan for how you want your money going forward. When you create a budget, it’s not about cutting out everything love and depriving yourself and telling yourself you can’t have this or you can’t have that right your budget is just a plan for how you’re gonna spend your money which will meet your needs but also things you just want to spend on. So the goal is to be intentional with your spending you’re saying things that are important to you that you actually care about, and you still have money left over, you’re not spending it all and then wondering where your money went. When you spend everything you make and then some and don’t have any left in the month. That’s why you’re not able to make on your goals. We’ve talked many times before about how 78% of Americans are living paycheck to paycheck, including 25% of household making $150,000 or more. You wouldn’t expect people making six figures plus two paychecks on time. But there are a lot of people doing just that including a lot of years. Too many lawyers are going through life sending everything and having nothing show for them and they make so that’s something for you even mind as you’re making your budget is being planned for what you spend on making clear. You know the amount you wanna spend on the category, including in that plan, the things that you enjoy, and then loving to estimate and sticking to the plan, not telling you so I have to do this and I hate it but this is what I have to do when I can’t stand them. down like all that you don’t have to do anything, right, you’re wrong. You’re an adult, you can make decisions about how you spend your money. No one’s making you have this goal to prove your money. That’s something that you want. And it goes back to what we talked about with trying to use willpower to put your money back in episode 77. You can’t come from that place and see the results you want long term. It has to be a matter of creating a plan that you love committing to that plan on that plan for the financial future that you want for yourself. Alright, the final step is using the surplus in your budget that money that you now have leftover each month to achieve your goals. When you don’t have a surplus in your budget. You’re not able to make the kind of progress you’re looking to make consistently. You might be able to make sporadic progress. You might be able to make steady progress where one month you decide to enter payment on your debt or something and saving, but you can’t do that consistently if you don’t always have the money available. So that’s why you’ll have a plan for your money that allows you to make progress want to make that allows you to have the extra money available to be able to save or invest or whatever the goal is for you. Having that extra money in your budget is how you’re gonna be able to achieve your goals. Now the key with this step is actually using your money for your goals. It’s sticking to the plan for step two right creating circles that you want and not spending that extra money on other things because that’s another thing that comes up when we plan it’s beautiful I can have this much go toward my goal this month, but then as the month things come up, I see the other thing I’m gonna buy and I spend more going out into plant and then my expenses are adding up and benefits and surplus right hoping praying and wishing that have enough left for my goal as I’m going through buying more things on the card right? But it’s not hope or wish you are in control of that. Making choices about the money that lead you to have the money for your role or not. It’s deciding how you’re going to get your money relevant. Its main plan and sticking to it. It’s choices in the future you see for yourself, not just about what feels good right now. Because you know what else look good. achieving your goal, not having some loan debt, having money in the bank, building wealth, whatever the goal is for you. So those are the steps and as I told you, they’re super simple, right? It’s just a matter of keeping yourself on track. It’s basically if you’re seeing we’re actually spending creatively, making choices in line with the goals that you have for yourself, using extra money in the budget to withhold that instead of whatever customer education things come up. Those are the parts that make the process feel difficult and those are the parts I support my clients with. So if you’re right in front this process and finals are paying off your debt saving money completely turning your mindset around, reach out to me head to rho Thomas dot com slash call let’s set up a time to talk and we had about how I can help. Alright, so that’s it for this week’s episode. Connect me over on social media you can find me most on Instagram at I am rho Thomas or on LinkedIn subscribe and leave a review on whatever platform you’re listening on. Both of those things help the show immensely to help more people to find us and I really appreciate it. Please also share this episode with a friend that you think would find it useful. As we close out, friend, I pray that you will take these steps to heart and start implementing them in your finances. I pray that you will overcome anything standing in the way of you achieving your goals. And as always, I pray that you continue to take steps to regain control of your time build wealth and live a life of freedom and choice you deserve. Talk to you later.

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