When we check our priority lists, our finances tend to be near the bottom. However, when we check our “worry” list, finances are usually near the top. There are three main reasons for not making money a priority: lack of time, lack of money, and lack of knowledge.
While they are all good reasons, making time for a financial check-up can help us sleep better at night and motivate us to achieve our financial goals. Did you know that so-called “high” planners – those who show a greater willingness to plan their finances – have an average of 20% higher net worth than “low” planners?
Consider the story of two savers: Jenny and Phil. Jenny saved $100 a month from age 25 until age 35, then stopped. Phil started saving $100 a month from the age of 40 to 65. Who had more at 65? Jenny did — though she stopped saving when she was 35!
Start on the way
How many of us have wanted to start our own business years ago, but are so worried about losing a steady paycheck from an employer or having financial constraints that are constant obstacles in living our dreams? Your dreams can come true. You can achieve this in the short term by taking some basic steps:
o create an automatic savings account,
o Refinancing loans at a lower cost,
o Plug leaks in your monthly spending (do you really need a cappuccino every afternoon?),
o Move your money into higher-yield savings (such as money market or very short-term bonds).
Plan design
When faced with a significant financial challenge, such as saving for retirement or eliminating credit card debt, finding the time to design a plan can offer huge rewards. By doing any of the following, you can start to see the light at the end of the tunnel:
o Learn the monthly amount to save for retirement (check out an online calculator at a financial site like http://www.money.com or http://www.kiplinger.com),
o Examine your monthly spending (including annual expenses such as vacation and professional services).
You can start sleeping better at night before you know it!
Time, money and knowledge
Are you still worried about getting enough time? no. Once you design your personal financial health plan, you don’t need to monitor it every week. You only need to schedule a checkup every six months. For money, you can start saving and investing right away – even if you don’t have any money saved up. To gain knowledge, if you don’t motivate yourself, take a course, hire a consultant, or read a book. Make it a priority and get started now!
Consider these wise words:
“Money is the opposite of the weather. Nobody talks about it, but everyone does something about it.” — Rebecca Johnson in Vogue
“Don’t spend your money before you have it.” – Thomas Jefferson
“I would like to live like a poor man who has a lot of money.” – Pablo Picasso
“This step — choosing a goal and sticking to it — changes everything.” – Scott Reed