Money & Momming™ 5 steps to financial success
Set Your Goals
In order to become financially successful you have to determine what financial success looks like for you. First, you have to understand that personal finance is personal. Your goals will not be the same as someone else’s and that is okay. Start with the big picture goal. What exactly do you want from your finances? How do you want your money that you work so hard to earn to work for you? Once you decide that WRITE IT DOWN. Goals that are written down are more likely to be accomplished. After you have your big picture goal written down, break it down into smaller, specific goals that are measurable and with a timestamp. How soon can you accomplish those smaller goals to get to your big picture goals? I can help you determine a plan to organize your goals and your resources to attain them.
Establish a Budget
This is probably the most important financial advice I have received and will continue to give to people. Did you know nearly half of Americans live paycheck to paycheck? This goes for low income earners and high income earners alike. There are several issues that stick out to me when I think of this. First, too many people think of budgeting in a negative way. They associate budgeting with being cheap or being some sort of punishment when in fact a budget is simply a plan for your money. Second, many people do not know how to get started with budgeting. They research “how to budget” and typically come across cookie cutter templates with categories and percentages that don’t always apply to their unique situation. Lastly, some people fail once at a budget and let that throw them off indefinitely. Life happens and sometimes unexpected items come up. If you blow your budget it’s not the end of the world, you just try to be better next time. For this reason I teach people to budget for their paycheck cycle and have created The Money and Momming ™ Budget Sheet. With the right budget you will be able to execute the next three steps towards financial success.
Pay yourself first
What’s the first thing you do when you get paid? If it’s not putting something towards savings then you need to change that right now! My parents would tell me this for years and my excuse was always, “I don’t have enough to save,” but if you look at your activity between paychecks you will see there is enough. My initial thoughts were if I wasn’t saving a few hundreds of dollars per pay then it was pointless. WRONG! I started with $10/week automated to savings and watched that build up. Seeing my savings account grow little by little was extremely satisfying as someone who would typically spend their paycheck the same day they got it. No matter how big or small you save each pay the important thing is you are saving. When you book with me, I teach you the different types of savings you need and how to build them.
There are so many conflicting opinions around debt it can be both overwhelming and confusing. I’ve heard things like, “There’s good debt and bad debt,” or, “You will always be in debt so just pay the minimum.” The truth is that you don’t have to be in debt and any debt you acquire only sets you up for robbing your future self. I have dealt with credit card debt, car loans, student loans, medical debt, and collections accounts over the years and can honestly say the feeling of paying something off is so gratifying. My debt free journey is still ongoing but I have seen people pay off debt well into six figures, not including their mortgages. When you sign up for coaching we discuss your debt and develop a plan to tackle it.
Invest in your future
Living for today and not having a plan for the future is not only reckless, it is irresponsible. Where do you see yourself in 5 years? 10 years? 30 years? To ensure you live the life you envision for yourself in the future you need to make sure you’re working on it now. You deserve to be secure and retire with dignity. You are capable of setting your children up to not struggle financially. I am not a financial advisor and cannot/will not tell you where, when, or what to invest in. However, I will share general information with you about your options such as using IRAs, a 401k, index funds, and 529 college savings plans.