Getting our finances in order is important to overall wellbeing, including money mindset, self concept, security and quality of life. It's not the amount of money you have in your life, it's how you spend it, manage it, and create energy around it, that matters. Sarah Blankenship, financial advisor and co-founder of PoweHERhouse Money coaching, shares 5 tips to get your money in order now.
5 Ways to get your finances in order:
1. Know Your Money to Grow Your Money
In other words, you need to do a budget.
Or as we like to call it, a Spending Plan. How are you going to know how much you have to spend and save if you aren’t tracking your numbers? It is too easy to lose sight of what you have (or don’t have) in this world of swiping and Venmo. Don’t let it get out of control. Even if you aren’t racking up debt, you might be spending more than you need to and not saving enough. A budget gives you the chance to get some perspective and ask yourself, do I really need to be spending that much on [coffee, dining out, clothes, etc] or would I really love to save this for that vacation I’ve been dreaming about or something that I really LOVE.
2. Create Goals
Okay, we all want to retire, some of us sooner than later, but what about your other goals? Actually take the time to think about them and write them down. Talk to your spouse or significant other and find out if theirs are the same or completely different. Maybe you want to pay down debt, save for a home, take your kids on a trip, or have that comfortable rainy-day fund…. Either way, by having clear and concise goals in mind, you can then back into the numbers on how you are going to get there and achieve them rather than just thinking you will do that “someday”.
3. Save For Emergencies
You didn’t think the refrigerator would stop this soon, you didn’t realize you would need a new roof this year, you didn’t know that you would get a flat tire today…. But that’s life! Things will always be popping up that you didn’t plan for and what a difference it can make when you have some money set aside. Not only is it easier on your financial world but your emotional levels too. How stressed do you feel when you aren’t prepared!? When you have the cash on hand, you can make smart money decisions. Do you want to pay in cash? Finance it? A little of both? It’s much easier to be savvy about your money when you have options.
4. Get Protection
We typically insure our STUFF. You probably have home owner’s insurance, car insurance, maybe even boat insurance. But what about insurance on the most valuable thing you have- YOU! Your #1 biggest asset is your ability to get up and go to work tomorrow and make more money. However, what if you get sick or hurt and can’t? It can be as simple as a broken ankle or a torn ACL at the gym that needs surgery and recovery time, or a diagnosis of something more serious. Having disability income insurance can make a HUGE difference in how you not only recover physically but financially as it provides benefits while you aren’t able to earn a paycheck. You can have the most amazing spending plan, debt under control and an amazing financial plan but that will all fall apart quickly without money coming in! Check on what you have at work first (its not always as comprehensive as you think) and then consider supplementing with a personally owned policy.
5. Get Creative
Need a little extra money? The easiest way is to spend less! Look at your spending plan and ask yourself “what can I do without”? Do you even watch cable or is Hulu good enough? Can you borrow something rather than buy it? Do we need to go out to dinner or do we have something we can make at home? You can also sell some stuff or find a side hustle! Online venues like Facebook marketplace, Poshmark and Letgo are making it easier than ever to get rid of your used items without having to waste a weekend being nickel and dimed in your own yard. Got a hobby or skill to share? Maybe you can pick up a few extra bucks painting for someone, tutoring or selling some handmade items!
About the Author:
Sarah Blankenship, MBA, COO
With over 10 years in the financial industry, Sarah coaches clients throughout the money process to reach financial goals. She's also a fitness fanatic and can save you money, while making healthier choices. Follow her on Instagram @powherhousemoney Websites: https://powherhousemoney.com/ http://www.wilcoxfinancialgroup.com/