Understanding The BE-DO-HAVE Mindset of Personal Finance

We all first learn about money in the way of it being given to us by our parents, then later, working for it. As we become adults, beginning college, we think about our future and careers possibilities, and the subject of money becomes apart of what is "Finance," more specially "PERSONAL FINANCE." And so, what is the successful mindset behind a person's Personal Finance that allows for them to achieve their many life goals and more?  

Well, I’ve created a mindset model, a visual way, to explain better the idea of personal finance for any beginner wants to learn and take care of your personal finance!

It is sad to me that the words “personal finance” still have a disconnected misunderstanding to the majority of people. Thus, this mindset model will empower anyone to learn and know the clear connection between the two words of PERSONAL and FINANCE, how both will work together to greatly impact your overall quality of life choices. 

Moving forwards, simply know that you are the driver of your finances, and your Personal Finance as having 3 parts:

1. BE 

2. DO

3. HAVE

All three aspects make up how you drive your Personal Finance, and your Personal Finance does overlaps with your personal values and who YOU ARE! Like being in control of your life decisions, your are also in the control of your finances!

Be → Do → Have

In that clear order!  If you mix up the orders, you could be going in the wrong direction, causing you more confusion and negative outcomes.  

As you can see, if you have the clear understanding and direction of personal finance, you will go from believing to knowing you can achieve your financial goals.  So, have clarity, and a plan → so that means you have to start with being value-driven!  

Please don't think that by acquiring something like a fancy car or expensive fashion first can make you feel wealthy, unfortunately, it may be short-lived and you may undermine you own ability to lasting financial freedom.  Don’t let the idea of impressing other or the false influence of social media ideas of financial success get to you.  Wait until you’ve build a solid foundation for yourself, you will then feel that you don't even need to impress others to feel great about yourself! :)  

You must BE within your conscious mind to DO the correct things that can let you HAVE all what you want and more.  

“We are human beings” not "human havings." Materialistic things really don’t define who we are internally.  Our capitalistic society encourages CONSUMPTION, but don’t let it tricks us into consuming too much of things we SHOULDN’T have before we have a clear understanding of our own personal finance success.  

For example, most people misunderstanding this...that a dollar SAVED is actually MORE THAN a dollar EARNED (taking into account of tax and inflation).

Think of how much you can save and invest, and plan for the future. Live within your means, so when you have gained your fortune, you’ll then have been disciplined to not be wasteful. 

Don’t HAVE too early such that you may be in DEBT and cause yourself to miss out on opportunities because your don't have the savings or funds necessary to take on those opportunities when they come knocking. 

The model shows the importance of you going from believing that you will achieve your goals to knowing that you will achieve your goals.

In my professional opinion, everyone needs to start with their sense of being first, to then plan accordingly.  Once you know your sense of being - your values, and what you hope for in life - then you will know how to act accordingly to achieve such goals.  You will suddenly become more responsible because there's a plan (like a map) to guide the way.  This plan can be modified as you mature in your mindset and financial assets. 

Personal reflection, internal communication, and proper planning are keys to organize your thoughts and pave ways for the execution of actions to achieve your desired goals.  Don't get distracted with poor materialistic goals (I wish I can get what he has, etc.) - but focus on "what can I do to be financially responsible so that I can get the things I desire without the stress that I may not be able to afford it, if I suddenly lost my job?"

BE value-driven, be responsible, be well-informed.

DO what is needed to strengthen who you are (invest in knowledge AND efforts!), to get to what you want.

HAVE things you desire, WITHOUT the STRESS of being unable to pay for things. 

With this mindset model as a clear guide to your understanding of personal finance, I don't just believe you'll succeed with your personal finance goals, I KNOW YOU WILL!