What do you do when you get angry or frustrated with your financial situation? Perhaps, like many others you get motivated to set specific financial goals -- for example, to pay off a particular credit card, cut expenses, or pursue a raise. Having financial goals is great, but I want to open your mind to an even bigger step you can take: putting yourself on the Financial Independence Track. When you are on the Financial Independence Track, there is an end point on which you are focused -- Financial Independence -- and having this longer-term vision makes all your short-term financial goals easier to set and to achieve.

"I am barely getting by! Why are you talking about Financial Independence?"
I can hear this question in many of your minds. Financial Independence seems like a fuzzy, almost irrelevant concept when you are in one of the following scenarios:

• Heavy in debt/credit cards maxed out
• Under-earning
• Expenses outstripping income (even if you have a good solid income)
• Out of work

However, no matter where you are starting from, re-orienting around the concept and possibility of Financial Independence can actually make your financial challenges easier to face and to deal with because it provides a new perspective as to where you are, and what is possible financially. I ask you to put aside your preconceived notions about money for just a few minutes and let's explore the opportunity for you to get yourself on the Financial Independence Track.

What is Financial Independence?
What is your definition of Financial Independence?

• Having tons of money and living off the "interest"?
• Never having to work again?
• Never having to look at price tags?
• Alternating between your Mediterranean yacht and your Aspen chalet?

Let me offer you a different definition. Financial Independence is the attainment of freedom, peace of mind, and flexibility, built on a sound financial foundation. It includes:

• Not being a slave to poverty, but also not being a slave to a high income
• A sense of resourcefulness, even in the face of circumstantial setbacks, a sense that you can survive the setback and get back to where you were
• Independence from consumerism
• Having a need that falls below what you bring in

Do you see how reframing the nature of the goal opens up new possibilities of how to achieve it? If you accept the first definition, then chances are you will be led to the conclusion that the only "solution" to your money problems is to GET MORE MONEY! If you can open your mind to the second definition you may be willing to explore the intriguing concept that "Money problems are not solved only (or even primarily) by Money!" In fact, money problems can be solved by many other things, to include the following:

Integrity
Living in financial integrity means establishing an inner alignment between your actual income, your values, and the things you spend your money on. It means knowing how much money you have and committing to live within that amount and no more. It means knowing what is most important to you and spending money on that. It means not making financial decisions driven by comparing what you have with what others have.

Lifestyle decisions
Many times we buy into a lifestyle that is about brand names and buying identity or prestige. Lifestyles that are driven by the opinions of others or by the whims of the adverting industry can be very expensive. Realize that you do have the choice to design your lifestyle to meet your needs as a person, to simplify your life and orient around what is truly important to you, not what other people think is important. Money is like energy and needs to be directed to where it will do the most good for you. Ask yourself these questions:

• Do my expenses reflect my values or something else?
• What do I think I should have?
• What does the advertising world say I should have?

Standards
Standards are those behaviors and actions to which you are willing to hold yourself. Here are some standards that support being on the Financial Independence Track:

• I do not spend/waste money on things that I don't really need or want
• I make sure to save part of my income every month
• I invest in my ability to make more money
• I take care of the things that stop or limit my money-making ability
• I am a grateful for, and a good steward of, the things that I do have

How do I get started on the Financial Independence Track?
Achieving Financial Independence takes some time and commitment, but it is possible for you and very worthwhile. You can put yourself on the Financial Independence Track starting tomorrow and here are some steps to get you started:

1. Create your own definition of Financial Independence
You can start with the definition provided above and modify it as necessary. Notice how the very act of defining what you want to achieve helps clarify what options you have to get there.

2. Make sure you know what you own, what you owe, and what your expenses are
I recently coached a woman in her late twenties who knew she was in financial trouble and wanted to "take control" of her situation. She was unaware of the exact magnitude of her problem - she did not know how much money she owed, exactly how much she made each month (she was self-employed), or how much she spent. I requested that she keep a log for one month of all of her expenditures. She initially resisted the idea very strongly and told me, "I just can't do it because it would be too scary, and besides I really need my daily Starbucks latte." It was clear from her reaction that she was operating under the mistaken assumption that if she wrote down what she spent she would automatically have to give up certain things she thought were essential (i.e., Starbucks!). I pointed out that having a clear idea of what she was spending would not reduce her ability to make decisions about what to buy - but would actually increase it. The "given" in the situation was the amount of money she had available to spend each month. The decision as to how to spend it was still up to her. Don't fall into the trap of believing that it is better "not to know." Remember that the decisions are always up to you and its best if you can make them based on accurate information.

3. Identify and get rid of the Money Suckers
Money Suckers are unnecessary expenses that can be eliminated without a significant reduction in happiness. Try to identify ten ways you spend money that are not really that rewarding -- then give them up!

4. Get in touch with your values and commit to spend your money on what is most important to you
What is really important to you? What are the real uses of money in your life? I have found a technique that works for me when I am in doubt as to whether something is really important for me to buy. I ask myself, "What will I have to give up to buy this and is it worth it?" Usually, what I have to give up is my time (i.e., more time at work to make the money to buy the item). Nine times out of ten when it comes right down to it, I find that I value my time much more than the "object" I am contemplating buying and end up not making the purchase. I never feel deprived for not making the purchase, because it is always my choice to save my money to buy myself more free time!

5. Identify your top five emotional blocks to money and resolve them
We all have unspoken beliefs and assumptions about money, earning, wealth, and work that we learned as a child. See if you can write down your central beliefs in these areas. I personally grew up with an underlying belief that it is always better to buy higher priced "quality" items because they will last longer. However, at given times in my life, this belief did not serve me well; it sometimes drove me to buy the "best" even when I could not afford it! Become aware of your underlying beliefs about money so that you are not driven by them, and be conscious about saying in each new situation: "It will serve me best to operate from THIS (your own new) belief."

6. Don't focus first on increasing your income; instead reduce costs first
In the majority of cases you will find that you have much more ability to control what you spend than what you make. What you make is frequently dependent on the decisions of others (i.e., who will hire you, how much they will pay you, etc.). So one of the best ways to start on the Financial Independence Track is to focus on reducing expenses.

7. Take radical immediate action to save money
People who live at their financial limit often don't believe it is possible to actually "save" money. But consider this: When you step onto the Financial Independence Track you are committing to work toward the attainment of "freedom, peace of mind, and flexibility, built on a sound financial foundation." Freedom, peace of mind, and flexibility all require that you have Reserves (including reserves of money). Do what it takes to put away some money each month.

8. Understand the key distinction between investing and spending
"Investing" means putting money into something that gives you an ongoing payback/return, whereas spending provides a temporary payback. Ask yourself, "Am I investing my time/money right now, or am I spending it?" Both are fine, but it's important to know which you are doing at any given time.

9. Accept Responsibility
To be on the path to Financial Independence you must be willing to accept full responsibility for your financial situation. Avoid thoughts of irresponsibility and powerlessness:

• It's not my fault
• It's not my responsibility
• It's not fair
• Financial Independence is not possible
• How can I possibly do this?
• I'll never have enough
• I'm doing my best
• Nobody I know is making it

10. Identify a path toward specific goals
Once you step upon the Financial Independence Track your ultimate objective is to achieve a sustainable state of Financial Independence. Along the way it is still important to set and work toward specific short-term and long-term goals (e.g., paying off a particular credit card, paying for schooling, buying a house, funding a future retirement). Just remember that the inner shifts you make to orient around Financial Independence will set you free to accomplish your more immediate goals with greater ease.

What is your point of view? Please post your thoughts on the discussion board.

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