Truth and Financial Power

Power has gotten a very bad rap.  Thanks to politics, news, movies, TV...even sports...we have confused control with power.  They are not the same.

Control is ego driven and, by definition, creates conflict.  Trying to control something (like the stock market) or someone (like one's significant other or child) means we are engaging in a fight of some kind.  Fighting is the fodder for drama.

Genuine power is a lot less sexy because, amazingly, it involves almost no conflict, struggle, fighting, or drama at all. 

Real Power is quiet.  It's grounded in Truth, and whenever we are living in Truth, there simply is no conflict.  Other people may not like that Truth, but real Truth is enduring and undeniable.  It can be ignored, shouted at, or railed against.  But it cannot be manipulated or changed.

Think about a time as an adult when you knew something in your heart to be true--absolutely positively, without a doubt--but someone said you were wrong, that you didn't know what you were talking about.  Maybe it was a doctor telling you your back pain is psychosomatic and you should see a psychiatrist.  Because you know with certainty that something is medically wrong, you walk out and simply never return to that ignorant doctor.  Period.  Drop the mic.  The Truth in your body is undeniable.  So you seek care with someone who believes you, believes your Truth.  There's no conflict because you know the Truth, and the Truth is not going to change just because that first doctor doesn't see it.  Knowing the Truth gives you the power to move forward and seek better care elsewhere.

There are 9 types of genuine power (which collectively many have called "personal power," but I like breaking that down to its nuts and bolts):

Financial power
Emotional power
Interpersonal power
Sexual power
Behavioral power
Psychological power
Professional power
Physical power
Intellectual power

I'll be writing about some of these over time, but the one I want to start with is financial power, because not talking about it isn't just dumb, it's dangerous.

Financial power isn't just about having enough money to keep you safe (although, God knows, that would be my wish for every human.)  It's about knowing you are entitled to that safety and getting actively involved in creating that safety.  It means LEARNING.  And it means DOING.  It does not mean hoping for the best and trusting others to take care of you.

Suzie Orman has been a pioneer in blowing open this topic.  She is a no-bullshit, truth-slinging badass when it comes to facing your financial Truths.  I love her.  But she is now 71, and while her advice is still rock solid and (in my mind at least) indisputable, she was the voice of my generation.  

For my daughter's generation, there is a new financial power rock star who speaks a very different language.  Where Orman talks about smart, careful money management and investment, Tori Dunlap is talking about Financial Feminism.  Her website, HerFirst100K.com, says she is "Fighting the patriarchy by making you rich."  Dunlap isn't satisfied with being financially safe and secure.  She wants abundance...for every woman who is willing to learn the basics and take action.  

Her podcast is a great place to start.   Check it out and listen to Episode 1 on Financial Feminism. (Start at the 1 min mark to skip the obligatory ad.) If you don't end up liking her style, find someone smart and knowledgeable to learn from.  Please.  

In addition to gleaning the wisdom from both of these financial wizards, I offer three of my own tips that you can start doing today.

1.  Get a highly trained tax professional on your financial team.  Do your research, read reviews, ask your friends, and once you've zeroed in on someone, go and have a free consultation with them to see if they are responsive and informative.  And for heaven's sake, don't wait until tax season to start this process!   Anytime from June to November is a great time to meet them and start building your relationship with them.  Bring last year's taxes with you so they can review it and discuss how things could improve this year.  We were stunned--and I do mean utterly stunned--to learn how many ways we had short-changed ourselves in our previous years' taxes.   It was so dramatic, we are doing our own deep dive of pulling all this new information she wants and then having her refile our 2019, 2020, and 2021 taxes.  (And btw, she's charging us just $400 per filing.)  Seriously.  Get the best tax person you can find.  This gal owns her own H & R Block office here in our small NC town, and she's far more knowledgeable and works much harder for us than the guy we used in Tampa.  (And let me tell you--I'll never use Turbo Tax again!  It had NONE of the information and options we got from our new tax gal!)

2.  The process of digging deep into every crevice of your finances in order to give your tax person everything they need is a great place to start your financial  education, but it is painful, especially to do a whole year at once.  Based on the 16 hours of forensic accounting I just did on our own finances, I fervently offer this tip:  After you've met with your tax person, start doing an end-of-the-month financial review every, single month.  Collate your expenses and donations, keep track of your medical bills, check your credit cards for fraud, make sure your FICO score is the same or improving.  Basics.  These are the steps we started to do this year, and in addition to making our 2022 taxes a total snap come January, it has revolutionized how we spend money.  Doing this kind of data collection is about Truth, and getting to your financial Truth gives you financial power.

3.  Do not pay your car insurance bill until you have done comparison shopping. I don't care that Allstate has been your car insurance company for 10 years and took care of you after an accident.  The price differences between insurers is absolutely astounding.  All of the major carriers are solid and helpful, so ditch that sense of loyalty!  This is financial war!  Marc and I now have a true-blue, honest-to-goodness, old-school, independent insurance agent who does all the comparison shopping for us.  A year ago, he saved us $600, and six months later, he saved us another $600.  Every six month, check the rates.  Don't get complacent on these big ticket items.  These big companies count on complacency to make their millions, hoping you don't notice their yearly increases.  Be a financial rock star and check before you pay.

Financial Truth may not set you free immediately, but it will give you a sense of Financial Power immediately, and that's a good place to be.