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.