Improving Your Finances - Step 1

Can you guess what is the most popular goal for the first of a new year?

That's correct!  Improving your finances is the most popular goal.

Although that is a very important goal, why do so many people fail to follow through?  Do they find themselves too busy?  Do they get discouraged because they do not have the dedication?  Do they lack the knowledge or tools to accomplish this goal?

Are any of these your reasons for failing to improve your finances?

In regards to being too busy or not having dedication, you will need to do some type of self-reflection and sort through your priorities.  If improving your finances is high on your priority list, a change in your mindset will be needed to make a success of this goal.

If you feel that you are lacking the knowledge or tools, Financially Mindful can be your resource and help you accomplish your goal of improving your finances.

The first step in improving your finances is to get clarity of your current financial situation.  You must have complete awareness of what comes in and what goes out.  This means being completely aware of all income sources that come in the bank account as well as all expenses that go out of the bank account.

There are two objectives of being aware of your income and expenses.  Objective one is to determine if you are allocating your income appropriately.  Ask yourself...Is my income going to unnecessary expenses instead of necessary expenses?  The best example to help you relate to unnecessary expenses versus necessary expenses is to distinguish between wants versus needs.

Objective two is to determine if you have discretionary income, money left over after monthly expenses are paid.  Ask yourself...Do you have enough income to cover your expenses?  Or, is there more expenses than income; therefore, leaving you in the hole each month?

Now that you have some knowledge, take the time to complete the first step and get clarity of your current financial situation.

If you are looking for a tool to assist you, visit www.lifestyle-checkup.com and purchase Get A Lifestyle Checkup.  This tool will provide all the details needed to help you get clarity of your current financial situation.

Stay tuned for information on the next steps to Improving Your Finances.