IS IT TIME FOR A FINANCIAL RESET?
Have you been TRYING to do a better job of managing your money?
Has your attempts at TRYING to adopt this mindset change about money, been going on for years and things haven’t improved?
Or you haven’t moved the needle to financial freedom?
Taking control of your money is not about TRYING.
TRYING AT SOMETHING allows for room to fail and relies on HOPE.
HOPE IS NOT A PLAN! ESPECIALLY WHEN IT COMES TO BEING IN CONTROL OF YOUR FINANCES.
It’s about adopting a new mindset, which means embracing new behaviours and training yourself to commit to a new lifestyle and identity.
You need to think about being intentional with budgeting, paying off debt and saving.
A FINANCIAL RESET means ‘controlling the controllables’ when it comes to YOUR money.
There are External Factors you may be using as excuses and it may be preventing you from taking control of your money:
- It’s not about what the government is doing to validate your current financial situation or what party is power.
- Criticizing the credit card companies for charging outrageous interest charges and continuing to charge it!
- Blaming the state of the economy or marketplace
These are things that you can’t control.
Things you CAN control are:
- Building a solid foundation for your money management
- Understanding your money tendencies
- Being consistent and fanatical about sticking to your foundation and plans.
- Being intentional about tracking your spending.
- Your budgeting strategy.
- Spending less than you earn
Here are 3 ways to manage your money, so you are in CONTROL:
- FIGURE OUT AND RECORD YOUR CURRENT FINANCIAL STATE:
I know this can be a scary activity for some, however you need to understand where your money is going and why.
Here’s how to start:
In a spreadsheet or workbook, record:
- Your monthly after-tax income (include income from partner, spouse etc.)
- Your Essential Payments such as mortgage, rent, electric and water bills, insurance, taxes etc.
- Your debt load/amount owing: Credit Cards, Department Store Cards, Line of Credit, Bank loans, car loans, student loans and subscriptions.
- Any automatic monthly savings amounts like RRSP’s, TFSA’s or 401K’s
Knowing where you stand is half the battle!
Now that you have a visual of your current state and where your money is going, you have a monthly financial picture that you can use and compare your spending habits to.
You can now start to plan!
START A BUDGET PLAN AND STICK TO IT:
According to the financial post, only one-quarter of Canadians have an emergency fund.
According to bankrate.com, nearly 28% of Americans do not have an emergency or rainy-day fund.
Small and consistent steps will form good habits and change how you feel about your finances in the long term.
Budgeting means creating a plan on how to spend your money, so you can determine in advance how much money you have to do and purchase things.
Remember, creating a solid budget where you consistently track your expenses is IN YOUR CONTROL
Once you start tracking ALL of your spending, especially nonessential or luxury items like:
- Take out/restaurants.
- Clothing, shoes, or accessories
- Uber or cab rides
- Buying your morning coffee at the local cafe
- Home décor items
You will understand where your money is going and what can be minimized or even eliminated.
YOU NEED TO BE HONEST WITH YOURSELF ABOUT WHAT IS IMPORTANT.
Be flexible and revisit your plan when needed because priorities change over time. The key message is to stick to the budgeting process and be intentional about how you spend your money.
For tracking ideas and tips visit:
My Money Coach
CREATE AN EMERGENCY SAVING FUND
Life is full of emergencies and you know deep down, the importance of having a savings fund available – just in case!
A good rule to follow is to have 3-6 months worth of savings as a contingency plan.
Remember, having HOPE that something will not go wrong from a financial perspective- is not a plan!
Also, it’s important to understand that what is in your CONTROL IS TO PAY YOURSELF FIRST!
Do not wait to see what is leftover at the end of the month and then decide on a dollar amount to save.
PRO TIP: Instead, consider automating your savings every month for less worry.
If you are on a tight budget, consider removing or eliminating some nonessential items in order to pay yourself first and save!
If you’re looking for an in depth understanding of how to get out and stay out of debt you may consider reading :
How to Get Out of Debt, Stay Out of Debt, and Live Prosperously*: Based on the Proven Principles and Techniques of Debtors Anonymous by Jerrold Mundis
Available on Amazon by selecting the following link:
For more tips, check out the following article :
“7 steps to Saving Money in an Emergency Fund”
Top Reasons Why Americans are not Saving Money:
You work hard for your money and you can rig your financial future in your favour by ‘controlling the controllables’ and not hoping things will get better.
Consider breaking your old money habits and take back control of YOUR money.
Get intentional about your finances.
Start right away by:
- Understanding your current financial state
- Starting a budgeting plan and sticking to it
- Creating an emergency saving fund
It’s time for a financial reset and today is great day to get started!
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These tools will help you grow, reach higher heights so you can become the best version of you!
I sincerely wish you the best on your journey to enhance your life!
George Andreas, Founder