Last week we investigated your personal definition of success and this week I would like to give you a tool to assist you with defining how your money ebbs and flows.
Once you know where your money comes from and where it goes, you can take steps to change the flow if needed. You may find that your current spending habits keep you from getting ahead.
It took me a year to eliminate a kickboxing gym membership!
I wanted to be able to kick butt, but the fees were the only thing kicking butt. I didn’t even have time to go to the classes. I held on to the membership because I wanted to envision myself as an active kickboxer. I spent over a hundred dollars per month to pretend I was Jean Claude Van Damme. The only weight some people lose by having a gym membership is the money weight they lose from their wallet each month.
Now that you are aware of your Money Nerve, you can begin to assess which expenses really serve to feed your financial growth—and which expenses really starve your financial future.
ASSESS YOUR BUDGET
1. What are some of your beliefs that block financial success?
2. Write the following at the top of your weekly budget: “I am going to list all my money, in and out, for the week of April 24- May 1. I will be completely honest and without judgment.” Lay out Income and Expenses side by side.
3. Make two columns: Income Expenses
Make a list of the income & expenses under each title
4. After you lay out your budget, determine whether the final amount you have is an accurate representation of your cash on hand at the end of that week. How does it look?
5. Determine which expenses you can cut.
6. Begin to analyze the income side of your budgeting and find possible adjustments.
7. Write down the steps you will take to begin building an emergency fund.
8. Have a contingency plan in place.
Write it here.
9. Continue writing in your daily journal.
Download a PDF of the Budget Worksheet here:
Remember, you are taking a snapshot of the money flow. No guilt, no blame, just an assessment of your money. You can take back the power to make new or different money choices to create the life you really desire!
Best of luck & if you have questions, just follow me on Twitter and ask! @themoneynerve