Last week, I asked you if you are mad enough to really make a difference in your financial situation?
Getting mad is important because it motivates you to make a shift in how you see things and it motivates you to change course.
If you were driving down the road and you hit a pothole that popped your tire, you’d probably be frustrated. You might even be mad that you have to get a brand new tire for your car, but the next time you’re driving, maybe you avoid that road, or if you are on it, you’re looking for that pothole so you can swerve around it. You change your course, even a little bit, so you don’t have to feel the pain of another blow out.
The same can be done with your finances.
Those unexpected expenses that pop up, should be enough for you to realize, “I should have money put aside in case this happens again.” Those times when you’re paying your bills and you’ve got more outGO than INcome, you might say to yourself, “Maybe I need to find out where my money all goes…”
These tiny shifts can and will make a huge difference. As you move along, you’ll shift a little more, and ultimately you’ll find yourself heading in the direction you need to be. Think of it like driving a car:
First Gear – you need to have a budget. A written budget. Not just going through it in your head, actually writing down your income and expenses. NOTE: If you find that you’re budget doesn’t work out – you’re running in the red, or feel more like you’re driving in reverse – IT’S OK. Your budget is your road map, or your GPS for this journey. It will guide you into ways to make your trip go as smooth as possible.
Shifting into Second Gear – you need money for emergencies. Expect the unexpected, something is going to happen eventually, the difference is being prepared. If you’re going to be paying off debt, you need a Starter emergency fund of somewhere between $500 and $2500. If you have no debt, make sure you have at least 3-6 months of living expenses set aside.
I cannot stress to you how vital these first two steps are. Without your GPS (budget) and Money for the Road Ahead (emergency funds) – you won’t be going anywhere.
Let’s get on the road with a plan and the tools we need to get there.
Shift with me!
Your comments are appreciated – you can email them to: firstname.lastname@example.org
As a resource, if you need help creating your budget, I’m happy to assist with that as well.
Thanks for reading!