What does that even mean? “Get your financial life together”? The answer varies from person to person because everyone has their own idea or opinion of what that means for them. Being financially savvy can be anything from cleaning up your credit score to paying off your debt to building a nest egg. Depending on your personal goal, I might not be able to tell exactly what you need to do to achieve it, but. I can share with you have I manage to reach mine.
Wants and Needs
The first step should be determining what you want versus what you need. Everyone wants to be given a million dollars, but what you really need is to get to that point in life you’ve earned that million dollars over the course of your career. To prove my point, 70% of people who win the lottery go bankrupt within a few years. They got the millions of fast dollars they wanted, but it was not what they needed, which is to develop a financial education and budget. It may sound like something simple and stupid, but budgeting and financial education should be the square one for getting your fiscal life together.
I’m not talking about some zen; center yourself and do yoga understanding yourself. To understand your financial self, you first have to ask yourself, “how much do I spend and on what versus what Learn”? Most likely, you can’t answer this question—nothing to be ashamed of. We are raised to spend and not think about it. If you asked me a few years ago, I wouldn’t have been able to answer that question either. At one point, I was blowing money out the door faster than I could earn it. The spark to get my finances together was 5 years ago when I looked at my W2, saw how much I made that year and had only 50 bucks in my bank account. You feel a certain amount of shock when you realize you’ve wasted $100,000 on just stupid stuff. That’s when I knew that something had to change. (Don’t get me wrong though, it was one hell of a year)
Tracking my Expenses
Once I identified the problem and the need to fix it, how did I decipher what was spending and my actual expenses? At first, I spent hours logging and tracking everything in a spreadsheet. This was a horrible way, and I hated doing it with a passion, which is why I would recommend you not bother with that. That’s when I found Personal Capital, and it made my life so much easier. Personal Capital allows users to track all of their finances online by entering all of their financial information. The site works wonders. It breaks up all of your expenses into categories and allows you to set budget limits. Personal Capital’s main benefit is that it sends you notifications once a week on how you are doing compared to the month before and following your preset budget. Now my favorite feature of Personal Capital is how it tracks your net worth. Nothing motivates you to save money, like knowing how broke you really are on paper.
Bring a Horse to Water.
You know how the saying goes, you can bring a horse to water, but you can’t make it drink. This post is. I can show you how to get what you need, but I can’t make you do it. It’s your financial lifestyle; you can do whatever you want because it’s your life. What works for me might not necessarily work for you, but it’s worth the try at the very least.
Sign up for Personal Capital
I monitor all my money with Personal Capital. Join & we’ll both get an Amazon gift card. Make sure you use my link. https://pcap.rocks/r96342