You Must Want to Fix It – Take Financial Control
Money is an emotional issue when it controls you. It can be a daunting journey if your finances have gotten out of control and you don’t know where to start. Financial control leads to financial freedom, financial freedom leads to peace of mind, it allows you to sleep at night.
If you are like me, you did not learn about finances from your parents, and are probably reading this because you are now learning the hard way.
I have always made great a salary, but let’s be honest, I love to spend as well, I was not a saver.
When the recession hit, I had to start over, I got laid off, divorced and was not paying attention to my finances, I found myself in a hole that I had crawl out of, I had to get back on my feet. I felt defeated and alone.
Funny thing, I was able to run other people’s business’s successfully, but fear kept me from taking care of my finances the same way or starting my own business.
One day it just snapped in my mind, “cash flow, measure my cash flow”. That made sense to me, and this built the foundation that I currently build upon. I have never liked the word “budget”, so I ignored how I spent, budget to me was emotional, something bad. Once I came to grips with the emotional trigger, I found that I liked making my finances a game.
These seven steps are what helped me and I use these same steps to help others.
1. Gather your mess – You need to know where you are, so pull out all of your information and let’s get organized.
This step requires going though every box and drawer to find your stuff. It also requires you know where your stuff hides.
• All Statements (bank, credit card, car loans, mortgage, student loan, etc.)
• All credit cards (pull them out of your wallet)
• Your credit scores (one is enough to start with)
• Your assets (list them all)
• Your paycheck details (what are your deductions)
• 401k info (old and current)
• Any investments
• Bills
2. The Book
This step will walk you through recording your monthly stuff.
• Analog vs digital
• Pay on time
• Create your day
3. Cleaning Up The Credit Report
This is the hardest of all your stuff. Take a deep breath, you can do it!
- Getting to know Your Credit Report, What to do Next? Pt 1
- Your Credit Report and Score and How to Improve Both Pt 2
4. Find Your Net worth – Financially/Internally – Must be Able to Measure
Once you find all of your stuff and have a monthly plan , you want to measure it monthly to be sure you are not missing anything.
5. Creating Good Financial Habits for Success – Make it a game
Challenge your stuff to grow. Where are you now and where are you going? Create your plan to get back on track.
Apps to Try
- Mint
- Personal Capital
- Acorns
- Robinhood
6. Educate Yourself
Once you start growing you money, you will want to learn how to grow it faster.
• Read
• Seminars
• Subscriptions
7. Create Goals – Short Term and Long Term
This is a must! You do not grow your money by floating, you grow it by giving it the attention it deserves. You wouldn’t neglect a person and expect a healthy relationship. It’s kind of in the same head space.
I will detail each step in coming articles so that you will have the information to move forward. Or if you are just starting out, using these steps will help set up the proper habits to increase your future financial success and financial control.