Wednesday, April 25, 2012

INCREASING FINANCIAL AWARENESS

Your money is your energy converted into dollars. When we realize this we may want to spend it more wisely. For example:

Say you earn $20 an hour (after taxes) and take a week’s vacation costing $1600. The actual cost is 80 hours of your energy output at work ($1600 divided by $20 = 80 hours). This means you’re exchanging two weeks of your energy output at work for a one-week vacation. And if you pay for this vacation on credit with a hefty interest rate, it may cost you three or more weeks of your life’s energy over time. Then you pay even more for something long gone and have less money for current living.

When you buy something, keep this in mind -- you may be using dollars or credit, but you’re actually paying with your life’s energy. Just as important, don’t consider only the purchase price when spending money. Consider the true value and hidden costs of what you’re buying.

For example, a loaf of whole grain bread bought at $3.50 may actually cost you less than a loaf of white refined bread bought at $2.50. Why? Because the whole grain provides more nourishment (true value). You’d have to buy and eat more white bread or take supplements or eat other food to get the same nourishment, costing you more. Plus, refined bread may have other hidden costs, causing unhealthy conditions such as constipation or weight gain, which you may then need to address.

When making a purchase, always consider true value and hidden costs. Then you can really get the most for yourself. You have limited energy and money to spend, so the more true value you get and hidden costs you avoid, the easier and better your life can become.

Expand financial awareness in these two ways and take another big step toward life mastery.

Goodness and joy to all, Joseph.

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