S O S Help, I’m drowning financially

So financially you seem to find yourself going in circles or worse your drowning. You want to gain back control but don’t know where to begin. You have made a personal commitment to get it sorted, you’re not getting any younger and those goals and aspirations are starting to seem too far out of reach.

However everywhere you turn you see advice like “Save” and “Set Goals”. You’re looking at your finances going how on earth can I save when what I have disappears as fast as I get it.

Well the good news is you can you just need to step back and get your financial foundations right and it’s not that hard to do with a few basic steps.

In this article I’m going to share with you the basics I use to help coach people out of going in circles into a place where savings begin and setting and achieving financial goals can become a reality.

Step 1 Stabilize

If your serious about getting ahead it is important the first step you take is to stabilize the ship. You need to get a clear understanding on what is coming in and what is going out.

I’m not talking about scratching your head to remember what’s due right now. Sit down and write a complete list of all the expenses you know you have throughout the year, usually it’s the not so regular commitments like a veterinary bill for your pet or a school trip for your child that punches a hole in your boat and has you start to sink again so take the time needed to properly evaluate what this looks like for you.

Once you have a clear picture on what you expect your annual expenses to look like you can then balance this against your annual income to see whether you can maintain your expenses within what you earn.

If you can’t you will need to go back over your expenses and work out where you can trim costs or seriously look at how you can increase your income.

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Step 2 Organize

Now that you have better clarity on both your projected expenses and income you need to get organized. It’s time to create a system or find one you can have use to help you organize how you will now manage your finances.

 My golden rule of financial organization is “You cannot rob Peter to pay Paul” we have all heard and been guilty of that before, we simply borrow from one account to fund another telling ourselves e can put it back before it’s needed but how often do we actually do it.

Your system should allow for you to set money aside for those expenses that aren’t yet due so when they do turn up your prepared. Avoid making this complicated your system should be simple. Numerous bank accounts will keep you running in circles and you will break the golden rule I mentioned.

Step 3 Strategize

By now you are a little more confident your income and expenses are balanced and you have a system to help you have more control of your finances. Time to start focusing on those things like saving and goals. Begin by going back over your budget and consider what changes you can make to increase your ability to save whether this be savings for an emergency or savings for something more tangible like a family holiday.

For many, it is not having finances stabilized and organized that gets in the way of them setting financial goals. Getting these done can take anywhere from a couple of weeks to a couple of months for some so be patient and stay the course. You will thank yourself for it.

TIP: Here is a link to a simple calculator where you can work out how much you can start saving right now based on your current situation. Set up your savings first then budget to live off the balance. It is amazing how quickly your situation changes when you put in place this simple foundation.

Download this free calculator and see how much you could be saving right now. Access ‘Savings Calculator”

If you need help putting the above into action, let’s talk, contact me today and together we can get you moving forward financially.

The Pocket Money Guide
Author: Anita Stokes – National Award Winner 2013

Everything a parent needs to know, this handy guide addresses questions like:

‘Why is pocket money important?” and How should I manage it?”

Included also is the 3 golden rules to ensure your system is a success plus lots of
practical hands-on tips to assist your child in becoming financially savvy.

‘The Pocket Money Guide’ is a must have book for those who do not want their
children to grow up relying on you for financial bailouts.