Wednesday, January 3, 2018
Taking 2018 Month by Month – A Guide to Prosperity (PART 1)
I am a big believer in setting goals and think that every month should be a stepping stone to the greatest goal of all, financial freedom. As 2018 is just beginning, having a set of priorities every month to follow will get you in the right spot for that ultimate goal. Here is a month by month list of things to think about this year when it comes to your finances. Master all 12, and you will be one rich, happy person.
January: Set the Rules of Engagement
It is vitally important that you and your spouse are on the same wavelength when it comes to money. You cannot have one saver and one shopaholic living in the same household. Sit down with the ones you love and have a discussion about financial freedom. Discuss each person’s goals, fears, and dreams and get everyone together on a common playing field. The same thing goes for all you single people out there as well. Write down what’s important to you and what you don’t like about your current situation. Get it all out there because if you don’t address it now, it will address you later, trust me.
Compare My Finances to Someone Else? The Joneses are Broke! – Budget Boss
February: Focus on Debt
I cannot stress enough to you all about how damaging debt is. Debt is the old boyfriend that won’t leave you alone. Debt is that annoying cousin that you never want to see. Debt is that co-worker who always tries to make your life miserable. Every dollar you spend servicing debt is taking away from your savings, your fun, your family and ultimately your freedom. Use the month of February to address your debts and come up with a plan to get out of them. Call up the people you owe and negotiate a smaller interest charge. Organize any debts you have from the must pay now, to the chip away over time ones. I will say it again: Debt must go, and it must go now. We are already at the mercy of a shaky economy, a government that doesn’t truly have our back, and skyrocketing cost of living. Those are all things we can’t control. We can control whether or not we have debt.
March: Cement Your Financial Plan
If you haven’t yet, you need to sit down with someone and discuss your financial plan. I am a financial planner and even I meet with people to discuss my plan. Why do I do that you might ask? The reason is simple: No one person knows everything. It is just too hard to know the ins and outs of every financial topic. It is also important to know what you may be missing. The bedrock of financial planning is education, and your advisor should have the heart of an educator. Know what’s out there and fit it into what your goals and dreams are.
The Power and Importance of Written Financial Goals – Finance SuperHero
April: Get a Basic Understanding of Taxes
Taxes are a funny beast. I don’t think that the amount of taxes we pay is the biggest issue, I think it is the lack of tax education is the biggest problem. Rich people pay fewer taxes because they have the money to hire the best accountants. What do you do if you can’t afford a really bright accountant? Learn on your own, my friend. The internet is filled with tax tips and tricks to save you money. Are you deducting all you can? Are you taking advantage of tax-advantaged vehicles? If you are not taking advantage of every possible deduction you can, then you have no right to bitch about taxes. A simple Google Search will show you dozens of things you can claim. A simple spreadsheet will help you organize all your receipts so that you can make next years taxes much easier. You don’t have to be a tax all-star, you just have to know the basics and it could save you thousands!
May: Change Your Spending Habits
We all know saving money is the right thing to do. The problem is many of us don’t know how to do it. We think that saving what’s left at the end of the month will get us ahead. The core fundamental truth when it comes to wealth is that it is based on a rock-solid foundation of good spending habits. You must not waste money on crap. You must be a saver and not a spender. That doesn’t mean that you never spend any money. What it means is that you only spend money if your obligations are taken care of. That includes your bills and most importantly, your future. Use this month to really hammer away at what in your life is a want, and what is a need. If you don’t have saving money as a need, you must address that.
June: Put Your Savings on Auto-Pilot
In May you determined that you have to spend less money and save more money. The best way to save money is to send it far away before you have had a chance to spend it. How you do that is by automatically depositing your money into an investment account right when you get paid. My main man David Bach describes how useful this concept is in his book, “Automatic Millionaire.” If you can delegate your money correctly the second it reaches your hands, you will be a millionaire. There are no questions of if, just of when. You learn to live on what’s left, that’s the secret. Have a portion of your pay go into an investment before you can spend it and you will be amazed at the results.
BACH WISDOM—15 TIMELESS TRUTHS TAKE THESE 15 TRUTHS EVERYWHERE YOU GO!
If you compartmentalize every month of the year and assign a different task, it will make your journey to financial freedom that much easier. Rome was not built in a day and you will not become rich overnight. It takes hard work, dedication, patience, and persistence. Always be improving and you will see that the sky is the limit.
Thank you for tuning in today as we continue on with our 2018 Kickoff Week here at Budget Boss. Don’t forget to tune in tomorrow when we finish our month by month financial task list for 2018. If you would like to set up your 2018 financial plan, shoot me a message at joe@budgetboss.ca and let’s get started. Have a great day Bosses!
“The new year stands before us, like a chapter in a book, waiting to be written. We can help write that story by setting goals.” – Melody Beattie
Email – joe@budgetboss.ca
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