One of the mistakes I see people making with their money is NOT HAVING A PLAN for it. Now I’m not judging here because there was a time when I didn’t have a plan for my money. It led to:
- living paycheck to paycheck
- being inconsistent with making financial progress
- limited future financial opportunities
Not to mention the stress I felt which eventually lead to physical health challenges such as headaches and sleeplessness.
When it comes to your money having a plan is key to keeping more of it and growing it. A plan includes money goals and a road map (aka a budget) to achieve those goals. In a recent survey only 67% of people have a budget and of that not everyone is consistent with maintaining their budget. Consistency is key in making progress.
The fastest way to begin making progress with your money is to create a plan and track progress against your plan consistently.
A money plan when followed is a tool that helps break the paycheck to paycheck cycle, helps to stabilize and grow your money, and increases future financial opportunities. Working with a personal finance expert is a great way to get started creating a solid plan and foundation. (To get started, schedule a FREE Money Strategy Consultation.) If you prefer to do it yourself here are a few things you can do to get started creating your money plan:
- Identify where you are financially.
- How is your savings?
- Are you in debt?
- Is your income enough for your needs?
- Decide where you want to go in the future.
- What experiences do you want to have for your family?
- Do you want to be financially independent early?
- What do you need to prepare for the next generation?
- Set SMART money goals.
- Your goals must be Specific-Measurable-Attainable-Relevant-Time Bound
- Create a budget. (Click here to get a copy of a FREE budget template)
- Budgeting will allow you to allocate your financial resources to align with your goals.
- Track your progress.
- Tracking your expenses will reveal when your actions aren’t aligning with your goals and allow you to make adjustments.
Remember “Consistency breeds results and inconsistency doesn’t.”