Be Intentional In Changing Your Financial Position
One of my clients posted a gift that she bought herself. Her tribe tagged me in the post so I could see she was spending money. While I thought it was hysterical that they're helping her stay accountable to her money goals, it lead to some interesting comments about budgeting. A lot of people shared they didn't like budgets because it meant restriction to them. Or that they can't buy anything because they're on a budget.
But here's the real, a budget or spending plan as I call it, is a tool used to tell you where you want your money to go when you make it. It gives your money coming in a purpose, so you don’t spend it on things you didn’t allocate money to, thus resulting in overspending and random purchases.
We use a spending plan to forecast our revenue and what expenses we'll have during that time. But I take it a step further, giving the profit purpose. Every client is different, but certain tools just work no matter the business or client, a spending plan is one of them.
For instance, what is your money goal for the year? How did you come up with that number? How much will you have after you cover your expenses? What are you doing with what's left? Lost money disappears if it isn't given purpose.
Now while that may seem like a lot of work, it really isn't. Just like you created a marketing strategy or a sales strategy, you need to work on your money strategy. You can't focus all your time and energy on making money, with none dedicated to changing your lifestyle.
Trust me I know what it's like to have no money, to use your credit card as a savings account. The problem wasn't how much I was making, it was what I was doing with it. That's why I stress money management.
Everyone wants to appear that they're doing better than ok, no one wants to admit that they're struggling. So you're going to stop pretending your financial situation isn't a problem. You're going to start working on it, a little at a time. Let's use these next 3 months to change your money situation and get control of your money.
If you're ready to take a step to see just what kind of ish you're in, do 3 things for me regarding your money.
1. Take a look at your current personal and business financial situation. Even if it's just an overview. Just jot down estimates no digging deep right now use September as a guide.
How much money do you have coming in? Add it all up personal (your 9-5, child support, and suga daddy) then business (sales & other income).
How much are your monthly expenses? Make sure you add all the debt you have. Yep add all those student loans, credit cards, any old balances you're slowly paying off.
How much savings do you have?
2. Determine what you want the next 3 months to financially be like. What's your financial vision? Maybe it's to pay down your debt, start saving, be able to buy some of the things you want, or maybe even go on a vacation. Maybe it's to not be so stressed about money, to have peace, to have more than enough, to just be able to breathe a bit.
3. Do you know how you're going to make the vision happen based on your current financial situation? Hint: part of the answer is YOUR BUSINESS. You're going to use your business to fund your dream lifestyle. How? By changing your money mindset, by working on your spending habits, clearing your money blocks, and creating financial plans.