1. Write down where you are now
Make a list of your:
Assets (what you own or are owed)
Liabilities (what you owe)
Income (how much money is coming in, from where/who, and how often)
Expenses (how much money is going out, to who, and how often)
Your assets and liabilities are your personal balance sheet.
Your income and expenses are your personal income statement.
Sometimes it is easier to make financial decisions when you think of yourself as a business and you are the CEO.
2. Where do you want to be?
Make a list of your goals and why you want them.
I mean why YOU really want them. Not your parents, not society, not your significant other. You.
3. Create a roadmap
How can you get from where you are to where you want to be?
Brainstorm, get creative. There is always a solution. You just need to find it.
If you need help, let me know. I would be more than happy to hop on a FREE First Steps Financial Strategy call to help you determine your best first steps.
If you find your expenses exceed your income figure out how to increase your income or decrease your expenses. As Ben Franklin said, the best way is to do both.
Create- and follow- a budget. There is nothing more empowering than having a plan and sticking to it. It saves so much time and people respect your decisions when they know you cannot be swayed. Saying “I do not have the cash in that spending account (or envelope) right now, let’s schedule that for [whenever you will be replenishing that spending account]” is much more authoritative than “things are tight right now” or “I really shouldn’t”.