A builder doesn’t just go out and build a 10-story building. First the owner and the architect ask questions to define the finished structure: How tall will the building be? What will it be made of? How much will it cost? How many people will be needed and what resources will it take to build?
Let’s take that same approach with your financial plans.
If you are unhappy about your debt, make a plan to pay it down while curbing your current spending habits.
Begin by asking questions.
What is working for me?
Where am I having challenges?
How can I overcome my fears and move into a new direction?
What is my goal?
What would be my first step?
Facing your finances is the first step. There is no physical harm in facing your financial reality. No one has ever been stabbed by a bank account! You may feel a pang in your stomach – and you are still fine. Acknowledging your financial situation may feel painful emotionally and taking steps to confront your current situation is a good start.
The second step is finding a friend or financial coach to support you. Discuss best practices and prepare an outline for the next three months. A series of small steps or goals will lead the way to a more successful long-term goal. Often the mere presence of a plan can alleviate emotional turmoil.
It is your money and your life, so the third step is to implement the plan for the next 90 days.
Re-evaluate your finances to determine where you can update or tweak your quarterly plan. Be realistic and honest. Did you round up your income and round down your expenses? Did you forget to account for eating out? Sift through any unknowns that popped up and add that information to your next 3-month outline for a better outcome.
By implementing conscious choices and thoughtful actions, you are building a blueprint for your life. Setting short-term plans builds the foundation for long-term success, with a lifestyle you envisioned and crafted.