Does money stress you out? Does money give you anxiety? I can’t tell you how many conversations I’ve had over the last ten years with clients about money. About how it gives them anxiety, whether they have a little or a lot, it’s usually the same story. For many, money can be a very stressful conversation, and it goes back to whatever money memories you had early as a child and how you experienced money growing up. One of my jobs as an accountant, as a CPA is to help clients feel at ease about their money and finances.
So here are some tips I give them to achieve that goal. The first step is to assess your financial situation and for many, this can be the most stressful step, the first one. First, it’s overwhelming to figure out what your income is, what your expenses are, and get it all written out. What are your assets, what are your liabilities. Like, what do you own and what do you owe? Putting all of this in paper can really help you understand exactly where you’re at, not just where you think you’re at. And sometimes when you see it on paper, it gives power to the knowledge and helps you make future decisions and set goals.
The second step now that we know how much we have and what we owe and how much we’re making and what our expenses are, we can start to set realistic goals. Do we want to go to Bali? Do we want to live debt free? Do we want to pay for our kids college? What are the things that we dream about doing so that we can now figure out how we can achieve it? Step three is the financial plan. You can’t make your financial plan unless you do step two, right? We need to know what your goals are in order to make the plan. The plan should have actionable steps, all the things you’re going to do to achieve that goal. If you want to go to Bali, what expenses do you need to cut? How much do you need to save to achieve that goal?
A well thought out plan is a roadmap to your financial success, and the last thing I want you to think about, the last step is really embracing a positive money mindset. I know that this can sound all woo woo, but your mindset affects everything you do. Instead of viewing money as a source of stress, view it as something that can help you achieve the future you desire.
Cultivate an attitude of gratitude around the money that you have and earn so that you can learn ways to earn more money and thereby retain more money as well. Sticking with your mind. Knowledge is power, and the more you learn about money, the more you will be better at money just watching this video you’re getting better at money.
So take the time to invest in yourself. From budgeting to managing debt to investing. All of these things will help you understand and learn more about money so that you can have more money.
And lastly, know that you don’t need to go at it alone.
Most people don’t like to talk about money but if you have a trusted friend or colleague or a CPA or a financial advisor. You want to have these conversations and bounce ideas and goals and plans in order to really achieve what you desire.
Remember this is a journey not a sprint so you have to be patient and be kind to yourself. Make sure you celebrate your journey on the road to financial success.
