Money Goals & Money Management
Good day, good friends! And happy new year! One of the best
things about a new year is the opportunity to take stock of what went well the
prior year and what may need some tweaking to propel you into the best version
of yourself for this year. Many of my clients, particularly first-time prospective
homebuyers, inquire with me about the best way to set themselves up financially
to purchase a home. Money management is a key element of that and taking a bit
of time to focus on how to set up your finances can go a long way in the dream
of homeownership, eventual retirement or just living a more comfortable life
fiscally. Self-reflection
On an annual basis, Ron (my husband) and I take time to talk about our goals for our family. One of the key elements of this is to take stock of our current finances. For example, this year, we are considering what investments we want to make as we get older. For us, the first step is always looking at our current goals. We make a “dream list” of the things we’d love to do and then narrow that list to 1-2 focuses for this year. The second step we take is to look at our optional expenses – you know, the things we enjoy, but don’t necessarily need to have for our basic needs i.e., subscriptions we don’t use, gym memberships we never visit, etc.
A couple of baby steps to get you started:
- Make a need, want, like list like this one mentioned by the Minimalists and see what can be eliminated.
- Embark on a budget self-care and embrace forgiving yourself for past financial mismanagement.
Create a pilot plan!
I tend to be a person who learns best from experiencing things. Creating a pilot plan for managing your finances can be a great way to learn what works for you and your lifestyle. Start by drafting an ideal budget for a month. Remember to make it realistic and attainable!
Once the budget is drafted, take a month to live within it: revisit it often, make sure to include everything you spend money on, and remember to save! At the end of the month, sit down and evaluate how the budgeting went – did you overspend in certain categories, did you not spend as much as you anticipated on entertainment? Make adjustments and do it again the next month 😊
A few resources:
- Here’s a budgeting spreadsheet from financial advisor, Suze Orman (CNBC)
- Options for ways to budget
Look into other ways to stay abreast of the types of resources you need to keep being a money management rockstar! Meeting with a financial planner can be an amazing resource for your overall financial health. Your personal bank can be a great place to find resources here or the Accredited Financial Counselor website.
I hope these tips help you plan a financial future of success and wellness!
Other resources:
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