Are your personal finances a leading cause of stress in your life? Are you spending more time sorting through your personal finances than enjoying life? Are you tired of paying late fees or overdraft fees but don’t have enough time in the day to keep up with your personal finances?
Many times we create this unnecessary stress in our lives because we make our personal finances more complicated then they should be. Managing your personal finances can be as simple as you want them to be if you design your finances around the lifestyle you want to live. You can not just wave a magic wand and it will all be fixed. You will have to develop a plan to simplify your personal finances.
Where do I begin to simplify my finances? Here are some steps to get you started on your way to financial simplicity.
* Must first start with yourself in mind. You have created your current financial situation. So here is your opportunity to change it. Look at yourself and ask what do I want my personal financial life to look like in the future. Make a list of what you consider to be the ideal or perfect personal financial life. Take this opportunity to dream. Its your life you can do what ever you want. (Remember anything is possible if you put your mind to it.)
* Determine what are your personal financial objectives? Do you want to reduce your current debt; begin to save for retirement; have better cashflow; start college savings; start an emergency fund or purchase your first home. By determining what is important to you financially, this helps you establish your starting point.
* Write down your financial goals which incorporate how you’re going to achieve your dream financial life which was established in step 1 as well as help you achieve what is financially important to you in step 2. You want to establish specific achievable goals which have real time deadlines. Such as I want to have all my bills paid by the 15th of each month or I want to pay off my credit card balance at the end of each month. By setting specific goals, they are more attainable.
* Perform a self assessment of your current financial situation to determine where you are compared to your dream financial life and what needs to be done to get there.
By following these steps you have now established a foundation to build your simple financial lifestyle upon. When simplifying make sure you are incorporating these principles you have established.
Remember financial simplicity is much easier to manage and causes less stress so take action to simplify your finances.