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How to Get Your Finances in Order!

Starting your journey to financial freedom can seem intimidating, so today I’m going to give you five tips on how you can get your finances in order. First of all, find your why. Why is it so important to you that you get your finances straight? Take a moment and write it out to look […]

Starting your journey to financial freedom can seem intimidating, so today I’m going to give you five tips on how you can get your finances in order.

First of all, find your why.

Why is it so important to you that you get your finances straight? Take a moment and write it out to look back on later. Seeing your goal often can help you stay committed to keeping your finances in order.

Up next, make a list of your goals.

For this part you can dream as big as you like! I like to start at around 10 years out and let my imagination run wild – I suggest you do the same. Where do you see yourself, where do you want to be, and what do you want to be doing? Put your thoughts on paper and from there, you can break apart your goals as much as you like.

Personally, I like to set goals in smaller time frames. I have goals for a year from now, 6 months from now, 90 days, 30 days, and a week from now. Those smaller goals are what it takes to build the life you want 10 years from now!

I speak from experience, I promise! Over 10 years ago, I sat down and planned out what I wanted and it truly feels like I’ve done it! 

Up next, let’s run the numbers.

List out all of your inflows and outflows. For those whose income varies, just write about what’s expected.

Remember: it’s always better to underestimate than overestimate. If it turns out to be more, congrats! You have more money at the end of the month to be put towards your goals. 

To find all of your outflows, start with any fixed expenses and bills. When looking at your ‘fun money’, such as money spent on dinner, drinks, or going out try to be as accurate as possible. This might mean looking at your statement and seeing how much you really spend on fun stuff each month. The more accurate you can be with your outflow number the better!

Now it’s time to take a look at everything you’ve just written down. Do you have a surplus of money at the end of the month? If you do – great! Let’s move that money in an account dedicated to saving for your goals. If not, check out this video for some ways you can increase your income to get that surplus! 

Last but certainly not least, let’s do a values check.

When reviewing their finances, some people can get frustrated because they’re spending money in ways that don’t add joy to their life. This is why reviewing your spending is so important!

Make sure your spending is in line with your values. A simple way to do this is to ask yourself: did this purchase add value to my life? If not, maybe it’s time to switch up what you’re spending on. 

Remember to always keep a positive mindset when working with your finances. Don’t let those numbers overwhelm you! Find your starting point and get started on your journey to financial freedom. 

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