Transform Your Spending Problem Vol 3
From Bad with spending to bad ass
Let me hear you!
By now you should have written out your dreams. Researched the cost of your top 1-3 for the year and figured out how much you would need to save to make it a reality.
Last week you created a spending plan.
You cannot change your spending habits if you do not know what they currently are and how much you are spending on things like food, rent, utilities, going out, etc. We severely underestimate our spending so you have to do the work and figure out all your numbers. This will allow you to see which numbers (if any) seem out of control and could be reduced to free up some money to realize those dreams.
Here is the next step to being bad ass with your money.
#3: Add your dream to your budget.
Now that you have a budget and have been looking at your spending by updating your budget every 1-2 weeks, hopefully you are seeing some spending areas you could change.
For step #3, I want you to add a savings column to your budget. You will include the name of the goal and how much you need to save.
If you want to make progress on your goals, you need to be constantly reminded of what you are working on and you need to track your progress. Adding this goal to your budget will help you accomplish both of these things.
Here are the examples from my own budget.
My husband and I are saving for 2 Years of Mortgage Payments in the bank. This might be overkill but our goal nonetheless. I removed the numbers for this example so I do not shock people that do not live in a big expensive city. On my budget I have the savings goal at the top, the savings accounts and their totals in the middle (not pictured) and the amount we have to go at the bottom.
For my 2nd savings goal, I already spent this money and am working to repay our savings account. Therefore the top number is how much I have left to repay and the bottom number is how much I have left to go at the end of the month.
Client Story: Terrified to action
My most recent client came to me out of pure desperation. She has been talking to me about needing to set up a budget for months without taking action. Now things have gotten so desperate that she and her husband are considering bankruptcy and it is straining their marriage.
The reason she has avoided facing her numbers and doing a budget: “it is terrifying.”
Looking at her numbers is scary and overwhelming. She has so much shame around her money, everything that has happened in the past and everything that is happening now as a result.
When she called me I am not sure she was ready to get started but I pushed her because she needed an expert to hold her hand and move her in to action. Action is the only thing that is going to change her situation and she needed me to get her there. And we did. During that phone call we created a budget and she left with a series of next steps to take. We will meet again in a week with text check ins along the way.
Getting financially on track is not a one and done thing. You are building a skill that will last a lifetime and therefore it takes a few steps and weeks working together to give you the financial confidence and structure to change your life and money story.
Please do not allow things to get desperate. It doesn't have to be this way. If you are already in desperation, do you not have much left to lose and a world of transformation awaiting you. I know I can get you where you need to go.
Click here to book a meeting with me or join my class to learn all the money moves and get 4 - 30 minute coaching sessions with me included with the class.
Disclaimer: I am an educator, not your personal financial advisor. Please make sure to do your own research before moving forward with any actions discussed in this blog post.
Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!