What does financial success mean for you?  Is it the same as how I would define financial success?  Maybe, maybe not.  Financial success is defined differently for each individual, and that’s ok because we ALL have different goals.  And those goals may change as we progress through life.  No matter what our goals are, the journey to financial success(achieving your financial goals) is a long winding road and it doesn’t just happen by chance.  It is an active journey that requires a plan and more.  Often people say create a budget to achieve your goals.  While a budget is an essential part of the journey, it alone will not help you achieve financial success.   In fact there are 5 critical factors that must be considered.  Those factors include, understanding your financial DNA, knowing your current financial status, knowing where you want to go, creating a strategy and plan and reviewing your progress often.  Let’s take a closer look at those factors.

Understand your financial DNA

Your financial DNA or financial make up is comprised of 3 things, your money personality, your financial habits and your past experiences.  Understanding these 3 things is a necessary part of creating your financial strategy.

Money personality relates to your tendencies when it comes to money such as whether you are a saver or spender.  All money personalities are NOT the same.  In fact some people may identify with a combination of personalities.  Want to find out your money personality?  Email info@moneychoicestoday.com for a copy of the quiz.

Financial habits are how you behave with money such as do you tend to pay your bills late or do you track your expenses to keep on track financially. For a list of financial habits to implement check out my post Financial Habits to carry into 2017

Believe it or not, your past experiences, when it comes to finances, are a driving factor in the money choices you make today whether your experiences were positive or not.  Childhood and impactful financial experiences tend to stand out more than others.

Know Your Current Financial Status

In order to move forward you have to know where you currently stand.  Estimating or guessing here is NOT ideal.  It is important to write down EVERYTHING so that you can create an adequate plan to move forward.

Know Where You Want to Go

Not only do you have to know where your current financial status, you have to know what you want your financial future to be such as being debt free and financially free.  While it may change as you move through life you should write down where you want to be financially for every decade.

Create a Strategy and Plan

Now that you know your financial DNA, current financial status and future financial goals, it’s time to customize a strategy and plan that will help you be financially successful.  I want to stress that your plan should be customized to fit you and your goals.  Once you have developed your strategy and plan, you can create your budget that will help you stay on track.

Review Your Progress Often

The next step of the process is to hold yourself accountable by reviewing your progress often.  During the review you will be checking to see if you are on track and to assess whether or not your goals need adjusting.  Goals tend to change based on circumstances, events or even our desires.  Starting out I would suggest reviewing once a month and then once you feel like your actions are aligning with your plan then you can move to quarterly reviews.

Each financial journey is unique, but incorporating these factors will provide the structure needed to be successful.

In the comments below, tell me what has helped you on your financial journey?