Step 1 – Facts vs. Myths
Bach debunks popular notions today:
Money has very little to do with love… and a lot to do with how much you fight.
I’m actually surprised he started the entire book off with this statement. Right away, Bach confirms the close relationship between money and marital problems. Everyone has their own spending habits and merging them is one of the toughest challenges for those who choose to do so.
It takes very little money to make money… but lots of patience and discipline.
This pretty much ties into the next point…
Everyone makes enough to invest.
Definitely agree – many friends have told me they don’t invest because they think they have to start with large contributions. But investing is long-term, so any contribution no matter how small makes a big difference in the end – what type of investment you choose plays the crucial role.
Taxes and inflation are never under control.
After 2008/9, we’ve all experienced the volatility of the economy. I should probably educate myself more on taxes and inflation but then again – that’s what my financial advisor is for. Hopefully there’s more coming on this topic…
If you don’t talk about your money, you will finish broke.
Bach encourages you to find out how your partner feels about money compared to your own responses. Great resource tool here – a financial knowledge quiz that identifies critical aspects of your financial well-being. This step really highlights Bach’s motivational skills and was very well written.
Step 2 – Discover the True Purpose of Money in Your Life
Bach believes that life values should determine every life decision you make. By identifying what’s really important to you and tailoring your financial behaviour to your values, a breakthrough in personal fulfillment can occur.
He also helps the reader understand the difference between values and goals – as there’s a big difference. Under the guidance of Step 2, we identified crucial values that we have both individually and for our marriage; this technique actually revealed security blankets we keep even as adults in marriage…
This played a crucial ice-breaking conversation – makes simple sense and we’ve reviewed our current techniques to see how this would change them and if for the better… I think where it gets hard is when those values are worth $$$$$.