DAY 14: SELF-ASSESSMENT - Personal Finances...Is My House In Order?

DAY 14: SELF-ASSESSMENT – Personal Finances…Is My House In Order?

Welcome to Day 14 of the 20/20 Life Vision Challenge! Personal Finances…Is My House In Order?

Unlock the worksheet for today’s exercise by clicking here.

Today, you will perform the 2nd of 7 assessments – Personal Finances – of the last five years of your life.  The overview of 7 assessments is below, illustrating what is completed, where we are today, and what is to come in the following days:

  1. Career Assessment (Day 13)
  2. Personal Finances Assessment (Today, Day 14)
  3. Health Assessment
  4. Personality & Hobbies Assessment
  5. Relationship Assessment
  6. Place & Environment Assessment
  7. Spirituality Assessment

When it comes to Personal Finances, who is on your Board of Advisors?  Reach out to them this week, if you can, in order to get some feedback, to effectively complete the assignment with a variety of perspectives.  Your relationship to money is closely related to your career, but also has a life of its own.  As a case in point, you can have two people, at the same age, in the same job, with the same salary; but who have entirely different saving and spending habits, and therefore one ends up in perpetual debt, while the other is building a comfortable nest egg.  Let’s take a deeper look.

When are we supposed to learn how to manage our money?  They don’t teach it to us in school.  And then we end up graduating college at 22 or going straight to work at 18 years-old, and get thrown into the fire, with expenses to manage and a pay check for the first time.  So we learn as we go, on the spot, generally without much guidance.  Our parents are only as helpful in this regard as how they demonstrated to us, since we were kids, sensible values and emotions in relation to money – which does not happen in many cases, as they have their own challenges and mental blocks in this regard.  Given the powers of Capitalism that essentially run our society – especially in the West – materialism has run rampant.  Unfortunately, we have come to value things and money more so than internal content – what one of my role models, Dario Salas, calls Cosmic Currency.  However, that does not mean that money “is bad” or that we should not strive to attain it; on the contrary, it is a necessary instrument, that ought to reflect the fruits of our hard work and responsible decision-making in managing our resources.  We need to cultivate positive, realistic and balanced views on money, so that we can utilize this form of energy effectively, as a means (not an end) towards achieving our life’s purpose.

DAY 14 ASSIGNMENT:

  1. What is your relationship with money today (emotionally, psychologically), and how has that changed (if at all) over the past five years?  Use some keyword phrases to describe how the topic makes you feel. (ie. “Excited”, “Nervous”, “Unsure”, “Inadequate”, “Keeping Up with the Jones”, “Tired of Chasing It”, “Overwhelmed”)
    • B) Ask one other person – maybe your spouse or a sibling, or one of your Board members – “How do you perceive my relationship to money?”  Write down their response, in a short summary, using keyword phrases, as above.
  2. What is your Credit Score? [Dec 2015: _____  Jan 2011: _____ ]  Why did it change?
  3. What was your best achievement in this area over the past 5 years?
    • B) How about your biggest disappointment over the past 5 years?
  4. Create a quick personal Balance Sheet using the 20/20 Worksheet as a guide.
    • Reflect on your Balance Sheet.  How does it make you feel, in a few key words or phrases.
    • How does this picture compare to where you stood in 2011?
    • Where do you stand today compared to what you had envisioned for yourself?  [A) I am way behind where I wanted to be; B) I am a little behind but close; C) I am right where I need to be; D) I am a little ahead; E) I am way ahead of where I imagined I would be]
  5. Create a quick personal Profit & Loss Statement using the 20/20 Worksheet as a guide.  It is your choice as to whether to focus on your own individual P&L versus as a couple, if you are married.
    • Reflect on your P&L Statement.  How does it make you feel, in a few key words or phrases.
    • How does this picture compare to where you stood in 2011?
    • Where do you stand today compared to what you had envisioned for yourself?  [A) I am way behind where I wanted to be; B) I am a little behind but close; C) I am right where I need to be; D) I am a little ahead; E) I am way ahead of where I imagined I would be]

This is a comprehensive and emotional assignment.  Take it over a couple of days or the whole week if necessary, as you continue on with other lessons.  Try to be as accurate as possible with regards to your figures, as you are creating your current foundation, from which a meaningful and inspiring 20/20 Life Vision will spring forth!  Good luck to you.  See you tomorrow, for Day 15.

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