When you are struggling, it is easy to get overwhelmed with your finances. Taking control and getting ahead with your money can be a difficult process. You may not know where to start. You may struggle with the fear of not being able to do it. There are so many emotions surrounding money, and those emotions can paralyze you.
To get started, you need to stop the overwhelm. Simplify the process and focus on one step at a time. As a financial coach, I guide people through their financial journey and help them overcome those emotions. But the steps are simple, and you can get started on your own.
Let's go over 3 simple things you can start doing today. Commit to each of these, and you will notice an improvement in your finances.
If you have tried doing this on your own without success, I'd love to talk with you. With a free Discovery Session, we can talk about your individual circumstances and see how I may be able to help. There's no shame in needing some help to get your head above water. I can be that accountability and the guide you need to get through this. |
3 Simple Steps:
Create awareness with your money. I know sometimes this is scary, but I promise it will be worth it. So much of what we fear about our finances is the unknown. You may not know exactly how much debt you have or even how much you make. What's worse is when you don't know how you are even going to pay all the bills.
The first step is to bring awareness to your current situation. You need to know your numbers. I call this your financial snapshot. Look up and write down the details of your finances so there is no longer any unknowns. Here are some of the things you should pay attention to:
Monthly income
Current bank account balances (including checking and savings)
Current debt balances (all consumer debt)
Regular monthly expenses (rent/mortgage, utilities, subscriptions, etc)
Approximate irregular monthly expenses (i.e. groceries, fuel, etc)
Investment balances and monthly contributions
Make a plan. Another name for your plan is the budget, the plan for your money. Building and following a budget each month will give you control over your money, further removing the fear and anxiety. The budget will show you exactly what money you have coming in and where it is being spent.
This is probably the most difficult step in that it takes some time to build the budgeting habit. The budget is essential to bring awareness to the current state of your finances and give you a clear picture of where your money is going. Without a budget, there are too many variables that can derail your progress. It will help you stay on track and hold you accountable.
Now, here's the catch. You can build a budget, but you have to do more than that. You have to actually follow the budget. This means tracking transactions daily and paying attention to how much you have left in each category throughout the month. Your budget should be detailed with multiple categories and line items.
That's the challenging part. Many people get excited and feel accomplished after creating a budget, but it's challenging to actually follow it and build the new habit. Stay committed because it will get easier and become a part of your daily life.
Make financial goals. This is one of the first things I do with my clients when we begin working together. These goals will help keep you motivated as you work through your financial journey. It is important to be working towards something.
When you are making goals, be sure they are S.M.A.R.T. goals. This acronym stands for Specific, Measurable, Achievable, Relevant, and Timeline. Your goals should be very detailed and specific. "I want to have financial freedom" is not a specific goal. Instead, change that to "I want to pay off all my debt in 3 years so I have more options for my money." See how there is a specific goal of paying off all debt instead of a vague goal of having "financial freedom"? The timeline is 3 years, and it is measurable with a goal of no debt. Make sure this goal is relevant to you, not a goal society or your parents or your friends say you should have. Make it realistic and achievable. Paying off $50,000 of debt in a year is simply not achievable. But with a good income, paying off $50,000 of debt in 3 years is absolutely possible.
Take some time to consider your goals and talk it through with your spouse. Write your goals down and refer back to them regularly. Sometimes you will need to re-evaluate and adjust your goals. That's ok too! If you are keeping your goals in the forefront of your mind, you will be more intentional with your money as a result.
Final Thoughts
These steps are simple, but I understand that the process is not easy. Taking these first steps will absolutely make a difference in how you feel about your money. If you commit to the changes, you will see incredible improvement in your progress.
Your finances don't have to be a source of stress in your life. I want you to know there is a different path. Don't give up, and if you need guidance, reach out to a coach or a trusted friend to be your accountability partner through this journey.
Finances should not be cause for strain in your marriage. If you are ready to get on the same page with your spouse, start with a regular money date. It will be fun and you will feel more united in your relationship.
Get started with my FREE guide -
From Financial Strain to Financial Intimacy: The Simple Secret to a Stronger Marriage.
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