Feel like no matter what you do your financial situation doesn’t change?

When it comes to your money does it feel like everyday is Groundhog day?

If you answered YES, then it is probably time to hit the reset button. Sometimes it is just better to reset and get back on track financially. There is nothing wrong with a restart (I’ve had to do it before), it will put you in a better place to be successful.

Now that you’ve decided to reboot your finances, follow these steps to increase the opportunity for success.

Assess Why You Need to Start Over

The first step with any process where progress is slow is to determine why you need to start over. Is it because your plan isn’t working or you didn’t have a plan at all? Is it because you are still in the same place you started? Knowing why you need to start over is helpful for avoiding the same issues in the future.

Analyze Where You Are and How You Got There

Review all aspects of your finances- your income, debt, savings and credit and identify what is causing you to be stuck in the same place. Do your actions match your goals? Did something come up unexpectedly to throw you off track?

When working with my clients I generally find that their money habits conflict with their money goals. They say one thing but actually do another. Now it’s not always intentional but not enough effort is given to staying focused. It’s easy to fall off track especially if you don’t have the right plan and tools in place.

Prioritize Financial Tasks

Trying to achieve all of your money goals at the same time can be overwhelming. Prioritizing your money goals reduces the stress and increases the opportunity for success. To prepare for any emergencies that WILL come up, the first priority should be to set aside at least $500. (Ideally you want to have more set aside but something is better than nothing. I found that out the hard way years ago.) This should only be used for an emergency and we all know that the sale at your favorite store is NOT an emergency.

Next if you have debt, write down the total amount owed, the interest rate and the amount due each month for each debt. Decide how you are going to pay your debt starting with consumer debt first (credit cards, loans etc.) You can use the snowball method where you pay the lowest balance first or the avalanche method where you pay the highest interest first.

You should ALWAYS be saving something towards retirement. The amount depends on your other financial goals. Whether you can set aside 1% or 20% doesn’t matter starting out, the important part is the habit especially if your employer matches.

Create A Plan

When creating a money plan, identify your short and long term goals so that you can incorporate it into your plan. Consider Needs vs Wants, needs are the basics you need to survive, wants are things that are not necessary to your everyday living. Once those are identified you can then create your road map a.k.a. your budget.

Check out the video where I go into a little more detail on How To Do A Financial Reset

Need help getting started? Let’s talk. Money Strategy Consultation