Money Has It’s Place, Where’s Yours?
Okay so you want to take charge of your financial life, great, but where do you start? Believe it or not the best place to start is to take stock. What do you have? Count your money. What? Yep, count your money.
Do It The Old Fashioned Way
This will take 5 minutes. Take a sheet of paper, make 3 columns. You need a base to start from so add up the money in your savings accounts, 401k retirement accounts and personal investments and put that in the first column. Next, add up your expenses; what does it cost you to walk around every day? That goes in the second column. And finally, in the third column put down your net pay.
Now You’re Ready To Take Charge
Now that you know where you’re at, you can work on moving forward.
Your savings account should be the only account you use for current expenses. Your retirement accounts and possibly your investments should be earmarked for your future expenses. When net pay is less than current expenses, the tendency is to lose focus and stop trying to stay in charge. Wrong approach. If your expenses are exceeding your paycheck, that’s okay if you are working at lowering your expenses. Don’t get discouraged, anything is possible.
Your Financial Life Is All About You
Your financial life begins and ends with you. You are in charge of your money. You are in charge of what you spend. Contrary to what many believe, a high income is not necessary to achieve financial freedom. Guess what is? Financial discipline. If your expenses are exceeding your income, you have two choices, cut back on your expenses or increase your income. With a bit of financial discipline, you can cut back your expenses little by little. You are in charge, now take charge.