Do you believe in the saying, “If you cannot measure it, you cannot manage it?” Well, regarding your finances, this adage holds more truth than you might think. Tracking your money energy is the key to better financial management and overall well-being. In this article, we’ll explore the importance of measuring your money energy and how it can impact your life, along with a fascinating case study to illustrate its significance.
The Power of Measurement in Financial Management
Measurement is an indispensable aspect of effective financial management. It lets you quantify your financial goals, track expenses, evaluate performance, assess risks, and make informed decisions. While this may sound like common knowledge, how often do you implement it in your life?
If you’ve ever found managing your money to be increasingly challenging, struggled with a lack of financial clarity, felt that your resources could be more efficient allocated, or feared potential financial pitfalls, it may be due to inadequate monitoring of your economic well-being. This lack of oversight can lead to unnecessary financial stress.
The connection between financial stress and physical health is well-documented. Chronic muscle tension, stomach pains, and even long-term heart problems can result from financial stress. However the relationship between physical health and the ability to generate opportunities for financial success is equally significant. It’s not just about measuring wealth; it’s about measuring health.
Enter Heart Rate Variability (HRV)
In today’s world, there are numerous metrics to measure physical activity. We monitor our heart rate, body fat, cholesterol levels, steps taken, exercise routines, and sleep quality using fitness bands, smartwatches, apps, or smartphones. One intriguing measurement, Heart Rate Variability (HRV), has garnered attention.
HRV captures tiny fluctuations between heartbeats, measured in milliseconds. Unlike blood pressure, higher HRV (greater variability between heartbeats) indicates a stronger ability to tolerate and recover from stress. HRV provides insights into physical and mental health, showcasing our body’s resilience to stress and change.
Managing Stress and Managing Money
Why focus on HRV? Because it reflects our capacity to manage stress, and money management is inherently stressful. Our relationship with money instantly affects our heartbeats due to its influence on every decision we make. Just as HRV builds awareness around coping with stress, Money Energy builds awareness around our ability to generate wealth and be financially fit. It’s about self-knowledge, as monitoring stress and strengthening your financial opportunities are essential to avoid financial “un-wellness.”
Measure the Ebbs and Flows of Money Energy
Just like anything worth achieving, measuring the ebbs and flows of Money Energy is necessary. As mentioned earlier, what you don’t measure, you can’t manage. The stress related to money will eventually become evident. Conversely, monitoring your relationship with money amplifies its positive power. Only through measurement can you understand how your money energy changes with life events.
Introducing DNA Behavior’s Money Energy Measurement
DNA Behavior is at the forefront of scientifically measuring and managing Money Energy. They validate an individual’s Overall Money Energy (Overall ME) Score, consisting of three primary components:
- Internal motivation to save and make money requires wealth creation drive and the ability to take and tolerate risk.
- Capability to integrate money awareness into all areas of life.
- Opportunities to make money.
Opportunities Amplify Overall ME by Quantum Leaps
Opportunities can amplify your Money Energy by astounding margins. While it may not be humanly possible to seize every opportunity, the formula and score represent your ability to produce and integrate money more easily into all aspects of life.
Case Study: Craig Moon
Meet Craig Moon, a 52-year-old entrepreneur and owner of a successful software business. Craig’s investment objective is wealth protection as he approaches retirement, leading to increased anxiety and stress. He’s concerned about protecting his wealth, ensuring some of it grows to reduce longevity risk, and leaving a legacy for his children.
Fortunately, Craig employs a financial advisor who understands Money Energy. With guidance, Craig began his journey to understand, measure, and manage his Overall ME. He discovered his Overall ME was relatively high through DNA Behavior’s Money Energy Discovery exercises. This realization empowered him to take control of his finances and alleviate stress.
Key Questions to Measure Overall Money Energy
Craig found that he could answer “YES” to the following ME Opportunities questions:
- Do you have cash representing 6 to 12 months of living expenses in a reserve fund?
- Do you have any long-term guaranteed revenue streams from investments and contracts?
- Do you have a debt management program to prevent financial liabilities from spiraling out of control?
- Do you have the financial capacity to cover your long-term needs beyond 12 months and achieve some of your long-term lifetime wants?
- Have you protected your life against unexpected events to avoid significant financial exposure?
- Do you have a written financial plan, including a budget and daily and weekly tactics to achieve your goals?
- Have you worked through how money is integrated into your life and where you want it to flow?
- Have you developed a risk/reward framework for assessing risk based on your financial capacity?
- Do you have sufficient financial capability to understand the critical decisions you may need to make?
- Have you developed and regularly followed personal energy management practices that build your personal clarity and reduce stress?
- Craig Moon’s journey illustrates the impact of Money Energy measurement. He can now track indicators that measure his ability to generate and maintain wealth, ultimately leading to a Quality Life that combines happiness and health as he moves towards retirement.
How Would You Answer These Questions?
So, how would you answer these questions? Are you ready to take control of your Money Energy and enhance your financial well-being? Remember, if you can’t measure it, you can’t manage it. Start measuring your money energy today, and watch your financial and overall well-being thrive.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.