The Power in Knowing Three Types of Money
There is power in knowing the distinctions in the money circle.
Let’s look at the three types of money inside this small Money and Finance Circle of Wealth®.
There are basically three types of money here.
The first, which is the focus of most financial professionals, is your Accumulated money. This is the amount of money you currently have invested and are currently saving. Concentrating ONLY on this type of money is a disservice to you.
On a scale from one to ten, how would you say you are doing in accumulating the dollars necessary to meet your future retirement needs and goals? (Any answer less than ten would mean that perhaps you could or should be putting more money away).
One reason people don’t save and add more accumulated money is that they believe to save more they must, by necessity, take money away from their current lifestyle.
The second type of money is what you currently spend. Lifestyle money represents the dollars that you are spending to maintain your current standard of living. Where you live, eat, vacation etc. How much energy would you like to spend towards reducing your present standard of living so that you can save more? We know we need to save more and want to do so but the only way we know to get the money is from our lifestyle. At least this is what we have been taught.
The sad truth is that most of us believe there are only the two types of money – we don’t learn about or truly understand is that there is a third. Understanding the third type of money can make a major difference in our life.
This brings us to this third type of money: Transferred money. It is a problem for some. Knowing about it and understanding how it works can be a solution for many – especially because we know good financial decisions made today regarding money that could be transferred away can allow us to keep our lifestyle throughout our life and also leave a legacy for others.
So what is Transferred money? Transferred money represents the money you may be transferring away unknowingly and unnecessarily. Obviously, if you knew where the transfers were taking place you would have already solved those problems.
The process of sharing ideas and concepts with you has already started, but we’ve only just scratched the surface. We are here to help you develop Personal Financial Power through our Wealth Strong® Life Solutions programs and services.
Circle of Wealth® and the three types of money are courtesy of Don Blanton and Moneytrax, Inc.