Let's Be Brutally Honest With Ourselves
Financial success starts with understanding your current situation. Do you know your monthly income, expenses, debts, and assets? Take a 'financial snapshot' by answering these key questions and getting the full picture, even if it means having tough conversations with those managing your finances. Once you have this clarity, you can stop fearing the unknown and create a strategy to move toward financial freedom. Remember, your numbers are dynamic, so monitor them regularly to stay in control of your financial journey.
The first step to financial success is taking a good, truthful look at where you are now. Do you know your current numbers (income, expenses, assets, and liabilities)?
Ask yourself these questions:
- How much income is actually coming into your household each month?
- What exactly do you spend every month (be brutally honest!)?
- What do you owe money on today?
- What investments do you own including stocks, bonds, mutual funds, retirement places, real estate other than your home, business investments, gold, silver, etc.?
If you don’t know the answers to these questions, FIND OUT. And if you need to ask a partner, financial manager, spouse, or someone else for this information, be forewarned… you may find yourself in a tense conversation. The people handling your finances may be hiding some information or feel threatened that you are questioning them about their ability to manage your money.
But don’t let this stop you. Have the courage to get the information you need to start taking control of your financial situation.
Now Where Do You Go?
Once you have your “financial snapshot,” take a look at it. Don’t get frustrated, upset or angry if the numbers are not where you want them to be. So what? You no longer need to worry or fear the worst.
You know exactly where you are right now and can deal with it. This is all part of the learning process and will bring you one step closer to financial freedom. Now you can plan a strategy to move forward based on setting goals, getting the financial education necessary and applying what you learn to make your dreams a reality (the Triple-A Triangle™ of Aspire, Acquire and Apply).
Just remember. Your numbers are dynamic. They will always be changing so it’s important for you to know what they are at all times and check them on a regular basis (and notice I said “you” – not your financial manager, boyfriend, spouse, partner, etc.).
By knowing your numbers, you take control and guide them where you want them to go. But if you are afraid to find out your numbers, or do not watch them carefully, your financial dreams will continue to be just that… a place you can’t get to from here.
To read more go to: richdad.com
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