Developing the Framework
Intentionality. The fact of being deliberate or purposive. This is the definition given by the dictionary. Everything we do should be done with our intent to accomplish something. It doesn’t matter if that something is taking a shower in the morning or getting out of bed to make your morning cup of coffee.
When we move with purpose in our lives, we are able to accomplish more in a shorter period of time. This can be seen when we are completely focused on a task for a period of time compared to when we are trying to do that same task, but also answering emails or having a conversation at the same time. The task won’t be completed to the same degree as if it was the only thing you were doing.
How does this compare to our financial lives? If you are able to develop the framework for your finances, it will be as if they are put on auto-pilot and the system begins to run itself like a well-oiled machine.
So, what is this framework?
It is all based around the flow of money in our lives.
Most people operate where all the inflows of money in their lives goes directly into their checking account – I’ll call this an expense account because it’s really where we all live our lives out of.
The month goes on and expenses are continuously pulling from the account – and do we really have any idea of how much will be left over at the end of the month?
According to the U.S. Bureau of Economics – in November 2022 the personal savings rate was 2.4% after taxes and spending.
The framework is around our mindset to become intentional with our consumption. Be more direct with how much money we are spending and that starts with paying ourselves first. Have a set amount each month to be deposited into a separate account away from our expense account creates a world where we take back control of our financial lives.
The amount may be smaller in the beginning, however, small changes compounded over time will have a greater and lasting impact on our lives. With this framework we are giving ourselves the permission to spend the money in our expense account guilt free.
As the reservoir of money builds up, we then get to decide what we want to do with it. Maybe some will be used for a vacation or starting to invest or pay down more on a loan or credit card balance.
It all starts with developing the framework in our lives and being more intentional.
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