How to plan your ACTION

July 29, 2010
Volume VI, Issue 3
In This Issue
A Note from Miata
Feature Article: "Grabbing the Reins"
Abundance Bound Recommends: "Artist's Prosperity 101"

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Note From Miata:

Have you ever been horseback riding?

I ask because my 8 year old daughter is attending a day camp this summer where she is learning how to ride a horse. I'm thrilled because, truthfully, I haven't had the best experiences with horses. When I was about her age I went away to camp and during my very first riding lesson, I promptly fell off and broke my arm.

Now, of course, I don't want my daughter to be afraid like I was. After her first few lessons, I cautiously asked her, "So sweetheart, how do you like horseback riding?"

"I love it," she answered.

"The horses are so big," I said. "How do you get them to do what you want?"

She looked at me, and with the wisdom (and attitude) that only an 8 year old can manage, replied. "It's easy Mama. You just grab the reins."

I'll tell you that the simplicity of her answer made me smile. It also made me consider how often in our lives we think that situations are too big for us or beyond our control when, really, we just need to "grab the reins." We need to create some order and structure, develop a plan, and get whatever help and guidance required to turn the situation in the direction that serves us best. I realized that much of the work I do could be described as helping my fellow artists learn to grab the reins when it comes to their finances. How often does money feel like the "big bad horse" in your life, at every moment threatening to rear up and knock you off the saddle?

Starting this month, our next few articles and blog posts will focus on giving you some simple action steps that when applied, will help you start to walk, trot, canter and even gallop down the path to financial stability and confidence. Happy riding! :)

As always,

Wishing you happiness and prosperity!

Miata

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Feature Article
"Grabbing the Reins"

You've decided it's time to take control of your money. Bills keep piling up, creditors incessantly call, and now you know it's time to start. Sound familiar? You aren't alone. Over fifty percent of Americans have some credit card debt. The housing crisis still isn't over. The unemployment percentage hovers around double-digits. Many of us need to grab the reins and find a plan.

Where to begin, though? How do you start turning pennies into dollars, and dollars into ten dollar bills? Here's step number one:

Let's get the word out the the way. The dirty "b" word.

Budget.

Yuck. A budget feels like work, doesn't it? It's nails on the chalkboard. It's the singer missing the high note. A budget seems like hours sitting over a spreadsheet, tracking every box of macaroni and cheese, every stick of gum, every coffee.

No thanks.

I don't like that type of budget either, so let's change the terminology. You need to change the language to change the behavior. I'll propose a new approach. We should start with the job you're trying to complete. You're trying to practice well with your money so you have funds when you need it. We should use a phrase that conjures up the image of taking control, practicing great habits, and achieving your dream.

Instead of a budget, let's talk about a money plan.

Much like a play well performed or a song well played, I like the practice that makes a money plan perfect. Simply put, a good money plan creates successful money performance. It creates the standing ovation from your wallet that you're looking for when you practice and perform well. There isn't room here to detail the entire plan, but here are some important steps:

1) Write out how much money you earn in a month. Be conservative. You'll need to be able to live through those tough months when money isn't coming in.

2) List the expenses you can't live without. Financial planners call these "committed expenses." We'll call them rent or mortgage, basic groceries, utilities, and costs associated with your work, among others.

3) Now write those expenses you can live without, but currently enjoy. Financial planners call these "discretionary expenses," but we'll just call them gifts, cable television, eating out, and other "lifestyle" expenses.

Now here's the fun part. Before we subtract your expenses from income, it makes sense to see if either of these areas can be improved, doesn't it? Here are some questions to ask yourself, to see if you may be able to save some money.

1) Are there ways to improve my income? I never know the answer when I ask a client this question, but, surprisingly, nearly everyone says "yes, I can." Everyone has a variety of thoughts on how they could earn more money. But before grabbing the first income-generating opportunity, ask yourself a more important question: "Is the way I earn more money going to detract from my artistic potential?" If so, search harder for ways to earn dollars that are congruent with your life goals. Don't create a money plan which is detrimental to your life plan.

2) Are there ways to lower my expenses? Most people begin by cutting discretionary expenses, such as coffee or ice-cream. Generally, this isn't the first place professionals look, because although there might be a few opportunities to save a dollar here, the large savings is nearly always in the committed expenses area. Can you somehow change your rent or mortgage situation? Are there opportunities to lower utility expenses? Do you need both the land line and cell phone? How often do you watch cable television? Comb through each expense and ask yourself if there is a method to lower some costs without damaging your lifestyle.

Once you've examined both income and expenses it's time to do some basic math. Subtract your expenses from your income. Hopefully, there's money left over. If not, it's time to really sharpen the pencil and ask hard questions about income and expenses. If so, you're well on your way to working your money plan. Stay tuned to our website for that topic in a couple weeks!

©2010 Abundance Bound, Inc.

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WANT TO SEE MORE ARTICLES LIKE THIS ONE? See our Blog.
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About Abundance Bound

In providing financial education to actors, artists and creative professionals, Abundance Bound aims to illuminate our community's negative associations with money and translate the once-mystical process of money management into the language and experience of the Artist. All individuals deserve a financial fighting chance, and it is our commitment to employ the most innovative and practical methods to share this knowledge and activate the Artist's creative and financial potential.

You can learn more about Abundance Bound courses, programs and products at www.AbundanceBound.com

Abundance Bound, Inc.
PO Box 46517, Los Angeles, CA 90046
Toll-Free Info: 800.768.0281
info@AbundanceBound.com
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Abundance Bound Recommends

Artist's Prosperity 101

Continue your progress with a four-week crash course that integrates the fundamentals of the Artist's Prosperity System. Each module consists of audio coaching and worksheets that organize your money systems from the ground up. Instruction is offered in simple, manageable chunks so you can meet your artistic and financial goals without the overwhelm! Gain clarity AND confidence!

Click here to learn more

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©2010 Abundance Bound, Inc. All rights reserved.