You Only Live Once E-Book

Jason Vitug

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 296

Veröffentlichungsjahr: 2016

Beschreibung

Get your finances in order with smart budgeting and money mindfulness You Only Live Once is the guide to achieving your best life through smart money moves. Before you even begin making a budget, you need to think about why. Where do you see yourself financially in ten years? Five years? This time next year? What does money do for you? Once you know your destination, you can begin charting your course. Step-by-step guidance walks you through the budgeting process, and shows you how to plan your financial path to point toward your goals. You'll learn how to prioritize spending, how to save efficiently, and how to take advantage of simple tools you didn't know you had. Next comes the most important part: taking control. You need to really look at how you perceive and use money day-to-day. Chances are, changing a few habits could give you some breathing room and help you reach your goals sooner. You work hard for your money, yet there never seems to be enough. You don't need to live like a pauper, but you need to be truly aware of just where your money is going, and why. Financial awareness is the key to a financially secure future, and this book unpacks it all to help you get where you want to go. * Accept past decisions and articulate your financial goals * Align your lifestyle with your budget * Explore your relationship with money * Re-evaluate financial habits and behaviors You know you need a budget, but you never seem to get around to doing it. Or maybe you did, but you can never seem to stick to it. Smart planning is a major factor in financial security, and it involves just as much introspection as math. You Only Live Once is more than a budgeting guide--it's a guide to revamping your financial behaviors to achieve the life you want.

Leseprobe

You Only Live Once

The Roadmap to Financial Wellness and a Purposeful Life

Jason Vitug

Cover image: © mycola/iStockphoto

Cover design: Paul McCarthy

Copyright © 2016 by Jason Vitug. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Names: Vitug, Jason, author.

Title: You only live once : the roadmap to financial wellness and a purposeful life / Jason Vitug.

Description: Hoboken : Wiley, 2016. | Includes index.

Identifiers: LCCN 2016010707 (print) | LCCN 2016011195 (ebook) | ISBN 978-1-119-26736-2 (hardback) | ISBN 978-1-119-26737-9 (epdf) | ISBN 978-1-119-26742-3 (epub)

Subjects: LCSH: Finance, Personal. | BISAC: BUSINESS & ECONOMICS / Personal Finance / Budgeting.

Classification: LCC HG179 .V588 2016 (print) | LCC HG179 (ebook) | DDC 332.024—dc23

LC record available at http://lccn.loc.gov/2016010707

I am the product of your hopes and dreams.

I dedicate this book to my parents. Thank you for being such an inspiration to me. Your absolute love and support through the years have made me into the man I am today. You have taught me the valuable lessons of focus, compassion, and humility. I am fortunate to have you as parents in this lifetime. I love you both very much.

CONTENTS

Preface

Acknowledgments

About the Author

Introduction

Part I: On the Road to Financial Wellness

Chapter 1: Are You Living YOLO?

The Millennial Experience

The YOLO Mindset

Chapter 2: Financial Education and Living Your Dream Lifestyle

What Is Financial Education?

The ACT Process

Part II: Awareness

Chapter 3: Know Where You’re Starting From

Your Money Mindset

What Is Your Relationship with Money?

How Is Your Spending Contributing to Your Life?

How Are You Using Your Time?

Cultivate a Wealthy Money Mindset

Chapter 4: Know Where You Want to Go

Clarify Your Values

Have a Vision for Your Life

Follow a Money Philosophy

Chapter 5: Getting What You Want

Change Your Financial Behaviors and Habits

The Habit of Spending

The Habit of Saving

Get in the Know

Part III: Creating a Plan

Chapter 6: Building a Lifestyle Budget and Spending Plan

Dealing with Your Fear of Lifestyle Change

Living the YOLO Lifestyle

The YOLO Budget

Chapter 7: Using the Purposeful Money Strategy to Spend and Save

Dual Checking Accounts Method

The Purposeful Savings Method

Chapter 8: Improving Credit Use and Eliminating Debt Forever

Credit Card Debt

Using the Debt Avalanche Method

Using the Debt Snowball Method

Part IV: Taking Control

Chapter 9: Creating a Purposeful Life

Finding Happiness

Increasing Your Awareness

Organizing Your Finances

Managing Your Time

Having Better Conversations

Improving Financial Relationships

Chapter 10: Spending Rules

Spending Mindfully

Spend Less Than You Earn

Pay Less for Every Purchase

Spend on Loves, Not Likes

Use Credit Purposefully

Chapter 11: Living Mindfully

Building Your Freedom Fund

Don’t Quit Your Job

Traveling the World

Lending Money to Family and Friends

Making Money with Money: Investing

Protecting Your Legacy: Insurance

Finding an Expert

Conclusion

Index

EULA

Guide

Cover

Table of Contents

Preface

List of Tables

Chapter 8

Table 8.1

Table 8.2

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Preface

Years ago I remember seeing an old Army recruiting commercial that asked the question, “If someone wrote a story about your life, would anyone want to read it?” The question wasn’t profound because it made me want to join the military; rather, it made me question the life I was then living. I was at a crossroads, wondering what happened to my dreams.

I grew up in Elizabeth—the fourth-largest city in New Jersey— raised by two amazing, hardworking immigrant parents. I was one of five children, the second youngest and the middle boy. I had lived in seven different houses by the time I entered high school. My parents stretched their dollars to provide for a family of seven. My parents didn’t talk about money, but I also never worried about shelter, food, or my health. They made sure those needs were met. I didn’t grow up with brand-name labels, and our idea of fine dining was eating at buffet restaurants. We walked around the mall to stretch our legs, but most of my clothes were hand-me-downs from my older brother.

I was the dreamer and the overachiever who got good grades and followed the rules. As a teenager I made money by delivering pizza, mowing lawns, raking leaves, and shoveling snow. I competed in forensics, played sports, and acted in school plays. I was class president and a member of the honor society. I also graduated at the top of my class.

I had a dream for my life and I was eager to start college.

During my senior year of high school, my mother told me that they couldn’t pay my college tuition. It was the first conversation about money that I had ever had. Although on paper my parents’ income was over the limit for me to be eligible for financial aid, their actual disposable income wasn’t enough to afford to send me to school.

I was devastated.

Without enough money for college, it meant I wasn’t going anywhere after high school. I was ashamed. I didn’t even tell my friends. I quietly got a job at Newark Airport instead.

I deferred going to college for a year and worked long hours to save as much as I could to afford the first year’s tuition. The following fall I was able to enroll at school full time but continued to work at the airport. I did well at work and was promoted. I made good money. After four years I graduated with a bachelor’s degree in finance but with a mountain of debt from my student loans and credit cards.

I never attended a financial-education class in high school or college. I was taught how to calculate the area of a triangle but not the power of compounding interest. I learned the periodic table of elements but not how the banking system operates. I had classes in the arts, music, and physical education, but the important lessons that can impact our ability to have our dream careers—as artists, musicians, and athletes—weren’t offered in the classroom.

I wasn’t prepared to make any financial decisions.

My first experience with a credit card began in college. I was hanging with friends at the common area when I was approached by someone who looked like a student, who asked if I wanted a Frisbee. I only had to do one thing: Complete an application.

I wanted a Frisbee. So I quickly completed and signed the application. A few weeks later, a plastic card of financial opportunities arrived.

My parents used credit cards. I marveled at their designs and was awed by how easily a purchase could be made. I saw my parents pay for groceries, clothing, and essentials with a single swipe. I wondered who gave them free money. I wondered who would give me free money. I imagined that this plastic card would empower me to get anything I wanted. And now, I had my own.

My first credit card had a credit limit of $500. I was responsible for making the small and affordable minimum monthly payments on time, every time. I was rewarded for my money-management skills with a higher credit limit. But my outstanding balance increased accordingly. I never thought of the total balance owed, because the minimum payments were paid. By the time I graduated college, the $500-limit credit card had turned into a $5,000 balance. I cannot recall what I spent with the $5,000, but I do remember the Frisbee.

This is how I bought a $5,000 Frisbee.

After college, I didn’t find myself living my dreams. I was barely living. I just existed to pay off student loans and credit card debt. I found myself working a number of jobs that weren’t at all satisfying. I found myself further and further away from the life I’d envisioned as a teenager. My days weren’t filled with excitement and world-changing work. They were filled with endless consumption, debt, and enough what-if statements to fill a book of their own.

I got a job in banking and progressed in a career, and my salary grew along with it. I went from working a job cleaning toilets and serving drinks to one as an executive who made decisions in the boardroom seven and a half years later. I lived in an apartment in Silicon Valley with a walk-in closet that was the size of a room I once shared with my two brothers. I owned two cars, a bike, a closet filled with clothes, and shelves of unused gadgets. I appeared to be the model of success, but underneath it was a much different story.

I was professionally successful but personally unsatisfied. I was income-stable but financially inept. I was the poster child for bad financial decision making. I paid hundreds of dollars in overdraft penalties and fees for nonsufficient funds. I racked up tens of thousands of dollars in credit card debt. I had student loans. I consolidated and reconsolidated unsecured credit. I took out loans from my 401(k). I used IRA money to pay for monthly expenses. Even on a six-figure salary, I lived paycheck-to-paycheck.

I was dissatisfied. I was unhappy. I was out of control.

Money was the obstacle to my dreams. I came from a place of fear and scarcity. I chased money as the solution to my problems and believed my ability to spend corresponded with control. After one financial mistake and more bad decisions, I no longer dreamed of a better life. I had become indebted to something I had mindlessly created.

I needed a change.

I immersed myself in financial education. I learned how to budget and pay off debt. I paid off over $40,000 in unsecured debt and $15,000 in student loans. I learned how to save money and invest for my retirement. I felt on the top of my game. I was free of consumer debt. I had an emergency fund, as well as vacation and holiday club savings. I was contributing to my 401(k) and Roth IRAs. I was investing through my company’s employee stock purchase program and buying stocks through my brokerage accounts.

I had achieved financial success and set financial goals, but without a sense of purpose I returned to my old ways—mindlessly consuming and obsessively complaining.

All the how-to seminars, blogs, books, and apps helped me to achieve goals, but they didn’t go far enough. They didn’t help me to uncover the real why behind my desire for financial freedom. It no longer mattered that I was debt free or that my savings had increased exponentially. I had reached a point at which I was yearning for something different. I had all this financial knowledge, but I didn’t know how to apply it to living a purposeful life.

Society told me I was successful, but my doctor told me I was stressed. After three years as a successful executive, I became determined to gain this financial freedom. I declined job offers that came with a larger salary. And instead of pursuing the path to succeed the CEO, I resigned.

In January 2012, I made a decision that started a journey that altered the trajectory of my life. For as long as I could remember, I had followed a specific path that society states is the way to happiness and success: graduate high school, make money, finish college, get a job, buy a car, get promoted, own a home—and somewhere in between, find the love of my life, start a family, and begin planning for retirement. Even though I went off track sometimes, I forced myself back on this path.

Eventually I realized that I wasn’t getting any happier, but instead growing more and more dissatisfied. I had no control over my life, and my financial situation mimicked that lack of control. I began asking others about happiness and was repeatedly told to continue on the path.

“You seem entitled,” they said.

They wanted me to accept that if I just continued as I was, I could retire in my 70s and become happy after that. I refused to accept the idea that I needed to work 45 more years to (hopefully) live the dreams I once had as a teenager.

I sold or donated everything I owned and paid off what I owed. I stopped spending and setting up financial goals. I began prioritizing life goals.

I left my executive job to find my way. That step led to a backpacking trip around the world through 20 countries in 12 months, during which I explored Southeast Asia, Central America, and Western Europe. I had new conversations that gave me new insights. I discovered new interests and learned to define my purpose. I came home with a vision for my life.

How was it that someone like me was able to take a different path?

I learned that knowledge is power, but financial knowledge is life changing. My past experiences had shaped my relationship with money, creating an unhealthy money mindset that clouded my mind and limited my ability to do the things I wanted to. My awareness and acceptance of this relationship allowed me to shift my mindset and change my financial habits. This has enabled me to live my dream lifestyle in this lifetime.

I am satisfied. I am happy. I am in control.

In the course of my studies, research, and conversations around the world and during my epic road trip—the Road to Financial Wellness—I learned that we need to evaluate our relationship with money and increase our financial intelligence in order to make better financial decisions and shape our dream lifestyle. By confronting my scarcity mindset and addressing my fears about money, I realized the power of having a vision for my life and setting financial goals that align with my values.

I am living my purpose, and in the pages of this book I hope to educate and inspire you to take the next steps to improve your relationship with money so that you, too, can live your dream lifestyle in this lifetime.

Acknowledgments

This book is based on years of experience and is influenced by the many amazing people who have contributed to my life’s story. I hold you dear in my heart and am appreciative of the love you’ve given me throughout the years.

This book would not have been possible without three amazing people who believed in my message and connected me to my publisher, John Wiley & Sons. Many thanks go to Marge and George Alexander and to Fred Wied IV. I also thank my Wiley team: Tula Batanchiev, associate editor, who after hearing my story and idea for the book, cheered me on; and Kathryn Duggan, my development editor, who took my ramblings and helped develop the story and flow.

To the thousands of people I met on the Road to Financial Wellness tour, I thank you for listening to my story and sharing yours. And to the Phroogal community and those living the Smile Lifestyle: This book was inspired by you.

To my road trip team: Larry Valente Solha, Austin Strickland, Juliana Anselmini, Melanie Lockert, and Will Lipovsky, who made the Road to Financial Wellness tour a success. I couldn’t have done this without you.

To Yaroslav Tashak, who after hearing my story during a Montclair State University entrepreneurship event offered his help in making my dream come true. Thank you for joining me on the road trip and spending an additional 14 days to head back home. Your friendship has been influential and invaluable to me.

There were 47 personal finance bloggers, podcasters, financial educators, and presenters who supported the road trip, and I wish I could list all of you here. Thank you for spreading the word to your communities. I am grateful to each and every one of you.

A very special thanks to Carey Ransom and the team at Payoff for their national sponsorship of the Road to Financial Wellness—they made it possible for my team to trek across the country for 30 days in order to break the social taboo of talking about money.

Thank you to the National Credit Union Foundation, aSmarterChoice .org, the World Council of Credit Unions, and the credit unions that believed in my vision: Denver Community Credit Union, Combined Employees Credit Union, 121 Financial Credit Union, Midwest Community Federal Credit Union, ISU Credit Union, Aspire Federal Credit Union, Lake Trust Credit Union, Camino Federal Credit Union, Affinity Federal Credit Union, Missoula Federal Credit Union, Parkside Credit Union, Horizon Credit Union, Ravalli County Federal Credit Union, and Donya Parrish of Montana Credit Union Network.

A special thanks to Mark Cochran of Jeanne D’Arc Credit Union, Michele Bolkovatz of Warren Federal Credit Union, and Fadhila Holman of Cooperative Center Federal Credit Union—the first three people who jumped at the chance to be part of the nationwide financial wellness campaign.

To the nonprofits that supported our mission across the country—mPowered of Colorado, Inceptia, Creative Portland, Junior Achievement of New York, Greater Newark Enterprise Corporation, Urban League of Union County Young Professionals, Someone’s Daughter, Consumers United Association of Colorado, Equality Washington, New Community Church, and Columbia North YMCA—I thank you.

Thanks also to Republic Wireless, Experian, Wisebread, MoneyCrashers, XY Planning Network, Quizzle, Shim’s Martial Arts Academy, Galvanize Denver, Opodz, Simple Bank, SoFi, Vincent Turner of SF FinTech meetup, and Carlos Abad of LaunchNJ for opening your communities to our message.

And thank you to the Denver Office of Strategic Partnerships and to my hometown mayor, the Honorable J. Christian Bollwage of Elizabeth, New Jersey.

I also extend my gratitude to Barbara O’Neill of Rutgers University Cooperative Extension, Nicole Didomenico of Norwich University, Sharon Waters of the Feliciano Center for Entrepreneurship, and Carmen Cuevas of Montclair State University for giving me the opportunity to educate students about money and purpose.

I owe so much to Philip Taylor, the founder of FinCon, who in 2013 gave me a free ticket to attend his conference in St. Louis, which helped me to build my network and exposed me to an amazing community, and to J. Money, of BudgetsAreSexy.com, for his time and mentorship.

I was also successful because of on-the-road support from Joe Saul-Sehy of Stacking Benjamins, Tiffany “the Budgetnista” Aliche, Patrice “the Money Maven” Washington, Tarra Jackson of Ms. Madam Money, and Farnoosh Torabi—to all of you, much appreciation for sharing your tips and supporting my cause; to Steve Stewart, who coached me on giving better podcast interviews; and to Austin Netzley for my very first podcast interview.

For setting up events, I am beholden to Ralph Carmona, Sandy Smith, Dave Olverson, Kate Dore, Leslie Girone, Chenell Tull, Alan Steinborn, Adam Muller, Alyssa Windell, Abdul Taylor, Eva Baker, Katie Brewer, Deacon Hayes, Athena Lent, Miranda Marquit, Talaat and Tai McNeely of HisandHerMoney.com, and Zach the Froogal Stoodent. I am also beholden to Steve and Annette Economides of MoneySmartFamily.com for opening up your home, Michelle Jackson for rounding up bloggers in Denver, Leisa Peterson of WealthClinic, Aaron Goodnow and William Cristobal of Yoga Belly Studio, Bill Dwight of FamZoo for making sure we ate healthy on the road, and Kate Blanchard and Jeff Fruhwirth for introducing me to credit union sponsors.

Many thanks to my teachers: Jeffrey Schneider, who coached me on the forensics team, to which I attribute my success as a speaker; and Anthony Nufrio, my drama teacher, who gave me the opportunity to shine on stage.

I was also given many opportunities to grow professionally thanks to Tricia Kearney-Casalinho, Ana Fernades-Moreira, Anabela Fonseca, and Emini Gidi, who challenged me in my first job at Newark Airport; Mark Charbonneau and Caterine Dobrzanski, who hired me at age 22 and gave me my first banking job; Marcia Waithe, who taught me everything she knew; Mary Sciaraffo and Ellen McGuinness-Ford, who gave me opportunities to grow; Donna LoStocco, who said I had “compassionate determination”; and my dearest friend Nicole Goodspeed—who took me under her wing and said, “One day I’ll be reporting to you”—you are forever in my heart, I miss you.

My life wouldn’t be where it is today without the opportunity that was given to me by Christine Petro, who became my boss, mentor, and friend. Thank you for believing in this passionate yet unpolished “kid.” Tony Ward-Smith, thank you for your guidance, which helped me to make the tough decision to leave my career and take a chance.

Thanks to my human resources friends who helped start me on this road and are still a part of my life: Cristina Valverde and her efforts to make me part of the TE Menlo Park campus; Linda Grant, who gave the initial recommendation that changed the trajectory of my career; and Darlene Lehman, who managed to fill every seat for every one of my workplace financial literacy seminars.

To some amazing friends—I am honored by your continued friendship specifically during this time, and I thank you for lending your ears through the years: Leonardo Cortes, Jessica Luciano, Oscar Alfaro, Hugo Esteves, Chihui Seo, Renato Carniero, Tony Masia, Ralph Bijasa, Eddie Morais, Ana Dias, Michael Matvienko, Kyle Taylor, Paul Fidalgo, Justin Heaton, and Kelly Hrycenko. Thanks also to Galen Schultz and Michelle Phan, who opened their home to my team in Raleigh; Melba Fidalgo, who offered me my first opportunity to share my story, at Playworks in Newark, New Jersey; Meg Fry for my first newspaper editorial; and Gavin Vallance, Albert Garcia, Chris Fernandes, and Javier Ponce, who helped me through difficult moments in my life. I thank you all.

Thank you to Max Martinez, who believed in my vision for Phroogal and helped me to successfully crowd-fund my passion project, and to the 541 people who contributed to the campaign. I am forever grateful. Thank you to my aunts and uncles who let me crash on their couches and financially supported my goals during this period: Edel and Conrado Bautista and Gil and Jo Ramos.

Love to my wonderful and large family: Jennifer, Jeffrey, Janice, and John; to my in-laws, Francisco, Kseniia, David, and Karla; and especially to my 13 nieces and nephews, who I hope will read this book and not make the mistakes I’ve made: Alexander, Nicolas, Keanu, and Keira; Sophia and Amelia; Adriana, Elena, and Kayla; Greta and the twins, Matilda and Clementine; and my adopted nephew Sebastian.

About the Author

Jason Vitug is an author, speaker, and social impact entrepreneur as founder of personal finance website and lifestyle brand – Phroogal. He is a financial motivator and lifestyle engineer.

Jason is the promoter of The Smile Lifestyle movement, a community of thousands of millennials who are living purposeful lives and making informed financial decisions to stop wasting time and money, and focus on the things that matter. The movement is based on a belief that experiential and purposeful living can be achieved through sound financial decision making.

Jason worked in the financial services industry for almost 8 years and was the Vice President of Marketing and Business Development for a Silicon Valley based credit union that experienced trans-formative growth during his tenure.

In 2012, Jason left his senior executive role and backpacked around the world visiting 20 countries in 12 months. It was in this journey he created his purpose and in 2013 started Phroogal and successfully crowd funded raising $78,501 with the support of 541 people.

Jason is the creator of the award winning project – The Road to Financial Wellness – a grassroots and social media campaign to break the social taboo about money and empower a generation to live their dreams.

Jason grew up in Elizabeth, NJ and attended the Elizabeth Public School system from K-12. He is a graduate of Norwich University and Rutgers University receiving a B.S. in Finance and holds a Masters of Business Administration.

Introduction

This is a book on personal finance. However, it’s not a ­financial-education book or a how-to manual for managing your finances. It is a personal development book to ignite your interest in personal finance, ­empower you to have a vision for your life, and encourage you to set the right goals to live a rich and purposeful life.

The most powerful reason to increase your financial understanding is to make better financial decisions. There are hundreds of great personal finance books that provide step-by-step instructions on how to budget, save money, pay off debt, and plan for retirement. Although I will be providing budgeting steps and answers to many personal ­finance questions that you might have, you may find that this book actually challenges your emotions more than your finances. And I do believe that if you continue reading, you will have a better understanding of yourself and will gain an increased awareness of what is most important to you.

I’ve spent a great deal of time traveling across the country and speaking with thousands of people from all walks of life who have all kinds of financial situations. I’m usually asked for specific advice that will improve a person’s finances or provide that one critical answer to address his or her current financial dilemma.

But here is a simple truth. Managing your finances responsibly can be summed up with the following advice: Save more than you spend, invest early and frequently, pay off debt and use credit sparingly, build assets, and create passive income. These simple guidelines have been restated over and over, yet many still are unable to apply these financial principles to their lives. I was one of these people, and you may be too.

Most (if not all) people are seeking a specific plan or the one guideline they need to follow to manage their finances successfully. Sure, I could write an entire book about a specific plan that I believe you need to follow. However, my experience has taught me that all the time spent on providing plans and how-to guides does little to change ­behaviors. Our behaviors and spending habits are shaped by our money mindsets—how we feel about money. Oftentimes this feeling or relationship that we have with money leads to irrational financial ­decision making that confounds all rational thinking.

This is why I am sharing my story. It’s through stories that we can regain hope. Hope, I once heard during a difficult time in my life, stands for “hearing other people’s stories.” It was through the stories I heard that I learned my life could change and I could regain control over its direction. So this book is not your run-of-the-mill personal finance book. I’ve written this book to educate and inspire you to have open conversations about your finances—to break the social taboo of talking about money—and to motivate you to continue your education and apply the knowledge gained toward achieving your goals and living your purpose.

With that said, traditional financial education has its place. ­Financial education improves your ability to make better decisions ­today that will help you achieve more of your life goals. When you’re making better financial decisions because you have a gained a better understanding of personal finances, you’ll find yourself prioritizing advancing your career over making trivial purchases, you’ll choose better financial services companies, and you’ll find yourself living your dream lifestyle sooner rather than later.

It may seem as if the topics I discuss in this book and the questions I ask of you belong in a personal development book. That is by design. I’ve written this book with the purpose of helping you uncover those forgotten childhood dreams that weren’t dependent on dollars and cents but now have become increasingly unattainable because of your money mindset. Your money mindset is how you think and feel about money, and it creates your money philosophy—a set of guiding principles that you may consciously or unconsciously follow when making financial decisions.

I’ve read many books, attended many seminars, and used many apps that offer easier ways to do the how but have rarely helped me understand my why. Financial education continues to focus on providing us with solutions that will fix the results of our decisions, rather than an effective way of preventing us from making them in the first place.

Your money mindset and money philosophy have more to do with why you’ve been unable to reach your financial goals or live your dream lifestyle than any lack of financial understanding you may have.

Imagine a scenario in which you go into your doctor’s office complaining about stomach pains, and you’re offered an antacid tablet. Your problem may be solved temporarily, but it may resurface if you’re not addressing what caused the problem in the first place. That has been my biggest issue with many of the personal finance books I’ve read: They provide steps, solutions, and how-tos without addressing the root of the problem—your relationship with money and your money mindset.

You certainly can learn the how of managing money, given that there are many ways to access financial information online and ­offline, a plethora of step-by-step instructions, and a growing list of calculators and budgeting apps. But even with all of that readily available information, you’ll still be challenged to make the financial decisions that best support the life you actually want to live.

I decided I needed to write this book in order to share what I’ve learned about living a purposeful and rich life. As you read through the chapters, you’ll begin to realize that this book is indeed written in a self-help style. Although I have filled these pages with motivational thoughts, they are not empty phrases—my purpose is to make them memorable enough to motivate you into action. You’ll learn a great deal about your money mindset, your financial behaviors, and ways to improve your relationship with money. I will also share why you should practice awareness and how you can create a lifestyle budget, save purposefully, spend consciously, and rethink retirement.

The book is divided into four parts.

Part I: On the Road to Financial Wellness: In this part, you’ll learn why your financial journey is your life journey and the importance of financial education in empowering yourself.

The next three parts of the book focus on the ACT process: awareness, creating a plan, and taking control. You’ll learn more about your ­relationship with money and how to cultivate the right money mindset and how to improve your financial behaviors. I developed ACT as a way to help you understand the importance of self-awareness in your journey to living a rich and purposeful life.

Part II: Awareness: The chapters in this part will help you get clarity about where you are and where you want to go. It will guide you in becoming more aware of your spending habits and the power of time.

Part III: Creating a Plan: