Why is it we can talk about any subject but money. I have had referrals lately going through divorce and for 50% of the couples, their troubles started with financial stress in their marriage. We can give intimate details about our health issues, relationships, the bedroom but not our money situation.
Why is there so much shame and guilt around our finances? We are always looking in the past, we should have done this or if only we had done that. Only look back to learn from the past, not to blame or berate ourselves. Look forward with the goal to empower yourself on how to change in order to give yourself the life you want.
Here are some tips on how financially successful people achieve their goals:
- Devote at least 1 hour each week to manage and plan your finances. Update your budget, review upcoming expenses, pay bills
- Read about personal finance each week. Break up your financial education into chunks and choose 1 topic a week
- Have conversations with financially successful people you respect, what do they do? What has worked and what has not. Most people love to help and share
- Try different strategies and find what works best for you. Try different types of budgets, goal setting
- Know your numbers. What do you need to make to cover all your expenses and fund your financial goals? Get clear on your magic numbers
- Separate your business from your personal accounts.
- Build a cash surplus. It would be optimal to have 6-12 months cash set aside to cover your expenses
- Pay off your debts. Build a plan to pay down your debts every month not just the minimum payment
- Think about your retirement plan. Start now, it is amazing how quickly it will grow
Financial education is the key, don’t be frightened of the subject. Watch your money grow and reduce the financial stress in your life. Have fun with your money!!
Colleen Saunders is a 20 year veteran in the mortgage industry, serving Mississauga, Burlington, Oakville and Toronto and offering all mortgage related services such as 2nd mortgages, private mortgages and more.