Weekly Summary for MoneyMasterClass: Lesson 2 Review
In the past week, a newcomer to the Money Master Class has been embarking on a transformative journey, pondering deep thoughts and practical steps towards a more balanced and financially secure life. This individual's journey began with a realisation that some harmful habits, such as a chocolate addiction or a Starbucks habit, may not always be easily identifiable.
The Life Pie method, a self-assessment tool, has been instrumental in this journey. This method divides one's life into key areas or "slices," helping to visually evaluate and balance different aspects such as finances, health, relationships, personal growth, and more. By charting satisfaction or progress in each slice, it helps identify areas needing attention or improvement, making it easier to set focused goals, including financial planning.
In financial planning, the Life Pie method encourages reflection on current financial habits, budgeting, and spending relative to other life priorities. It promotes a holistic view where money is aligned with overall life satisfaction rather than an isolated focus. This balance supports setting realistic, meaningful financial goals and strategies.
The Life Pie method also aids in surfacing limiting beliefs related to money and other life areas. Financial literacy experts emphasise that exploring and confronting negative money beliefs is essential because such beliefs can subconsciously repel financial success[2]. By visualising one's life and finances through the Life Pie, one can more easily identify and work on these limiting beliefs, enabling more positive thinking, attitudes, and behaviours towards money.
This individual has been tracking food expenses on a separate page and continues to log all expenses in a spending journal as part of their regular life. They have also used tools like the Life Pie and a budget spreadsheet to make a plan to save money, recognising that negative beliefs were hurting them.
One belief the individual held for years was that they would never have a good enough job to get a mortgage. However, they have chosen to challenge this belief and are looking forward to the journey ahead. They are also aware that understanding the purpose and importance of changes increases the likelihood of sticking with them.
The first money-specific task was to track every food expense, including alcohol and edibles, with medication being a separate line on the budget. The first receipt showed a savings of $0.48. The individual is challenged to track savings in addition to food expenses. They are also excited to catch up on the Money Master Class by checking the Week One Recap and to track their expenses moving forward.
For those interested in tracking savings, a Twitter user suggested examining grocery store receipts as a starting point. The Money Master Class offers a variety of resources and support to help individuals like this one navigate their financial journey and achieve financial well-being and overall life satisfaction[2].
- Embarking on their personal-finance transformation, the individual is allocating a slice of their Life Pie to financial planning, aiming to align their money with overall life satisfaction by reflecting on current financial habits, budgeting, and saving.
- With a newfound understanding of the importance of financial literacy, the individual is challenging their limiting belief that they would never have a good enough job to get a mortgage, striving for a more financially secure life with a focus on saving and realistic financial goal-setting.
