How do I get started?

When I mentor people regarding their personal finances, there are three emotions that come to light:

• Desire to improve their financial situation

• Embarrassed for the financial situation they are in

• Overwhelmed on what to do

These emotions are very common, and you may be feeling them as you read this blog.  And that is ok.  In this blog post, lets explore each of these emotions and come up with simple, easy to follow steps you can take to begin to improve your financial world.

Desire to improve your financial situation:   This is very exciting.  Having a desire to improve your financial world is a key ingredient to success.  However, be careful not to over do it out of the gate.  Focus on taking small steps to help maintain and build that desire – be careful not to burn-out your desire by doing to much to soon.

Embarrassed for the financial situation you are in:  If you feel a little (or a lot) embarrassed, that is ok, it natural, we all have a past.  Use your embarrassment as fuel to maintain and enhance you desire to improve.  Paint a picture in your minds eye on what your near-, medium- and long-term future could look like.  As you achieve these milestones, you can turn that embarrassment into pride for a job well done.

Overwhelmed on what to do:  When a task seems daunting, break it down into small, easy steps and take one step at a time.  The goal is not to change overnight, but to build sustainable habits that will change your financial future.

The first and foundational habit is to Give Your Income Purpose.  You work hard for your money, so give that money the purpose that works for you.  

Step 1:  What is your current situation:

• Your income

• Your expenses

• Your savings

Step 2:  Find your balance between living for today and saving for tomorrow:

• Set 1 financial goals.  For example, eliminate non-mortgage debt, start to save for retirement, our save to buy a house.  Determine what you need to save to meet this goal.  The Archimedes tools can help you do this.

• Determine your Income to Live On by subtracting what you need to save for this goal from your income

• If your current living expense are greater than what you determined your Income to Live on should be you need to find your balance by either reducing your living expenses or reducing the financial goal.

• For that goal, set up automatic investing / payment from your checking account.  

• You can watch the ____ video for a more detailed explanation of this process.

After you do this for one goal for a 2 -3 months, see if you can add another goal.

It is ok to feel embarrassed and overwhelmed.  But harness your desire to improve your financial world and start to take a few small steps today to build the foundational habit of Giving Your Income Purpose.