The Fearless One says Bull-Honkey to these 3 Financial Statements
Matters of personal finance are just that, personal.
I know what I earn and where my money is spent.
The rat race of “working hard” and paying a little extra towards my bills each month will set me free and allow me to reach my goals.
Yeah, ok, bull-honkey!!!! Maybe for those who are not prepared to learn how to improve their thinking and actions in regards to financial choices it is a taboo conversation topic. When I finally had enough I made my first fearless decision. I started having these conversations. I realized that I was, by definition, behaving in a way that was insane (doing the same thing over and over again while expecting different results). I learned more from myself and my own words from my first few conversations than from my conversational partners. The reason for this was I needed to find out what the problems were before others could advise me on how to resolve them.
Thinking I knew how much money I made and where it was being spent was probably the biggest financial misconception I had. Yes, I had a list of bills that needed to be paid every month and yes I was the one receiving my paychecks with the amount typed on them. However I, like many other fearfuls, never organized this information in an analytic way. How else can you make decisions if all of the pieces of the puzzle aren’t examined? I, like so many others, was scared to see the truth.
The second fearless decision I made was to actually evaluate my finances. Really, truly, understand them. In the rows of a chart, I listed every creditor, bill, and category of dollars spent (no matter how insignificant I thought the amount). I focused on dollars spent monthly. On the perpendicular columns I listed the following for each category; total amount owed,minimum payment owed, average amount of payment sent during past 6 months,interest rate, due date, amount available. I then performed the following calculations. Total debt owed, Total minimum payments owed each month, total average payments made each month, and total credit still available. I then rearranged all of the categories based on their due dates (leaving categories without due dates such as gas, food, etc at the bottom of the chart). My first few conversations and the process of financial evaluation allowed me to see something that I never realized before. The insane routine of “Go to work, pay a little extra towards bills, cut back on luxuries, and repeat next month” wasn’t working for me. That’s right, the rat race wasn’t working!
I challenge you to take the first two fearless steps. Start talking and start charting. Only after these two steps are taken can I help you learn how to move towards your financial goals. Follow my blog by entering your email address and confirming the email sent to you and you won’t have to worry about developing the chart…I’ll send you mine.