Monday, July 16, 2018
Must-Have Mid-Year Money Recap
We are into the second half of the year and before you know it, 2018 will be in the past. Back in January, I kicked off the year with goals you can set as the year goes on to get your money right. How are you doing so far this year? Have you started spending less and saving more? Have you vowed to maintain a balanced budget? Have you implemented a budget at all? It is important to make milestones throughout the year so that you can track your progress. As we roll into the second half of 2018, I have for you my Mid-Year Money Recap. Go through these 10 items to see if you are on track for your money goals.
1) Your Job
I often preach that if you ain’t getting ahead, you’re falling behind. Work is a sticky issue, mainly because our economy over the past 20 years has flipped to make us believe we are privileged to even have a job. Now that might fly in places where employment is non-existent, but I think we can aim higher. How is work going so far for you this year? Are you slowly but surely advancing your position? Do you see a future within your organization? If you are self-employed, how has 2018 been so far? Always watch out for stagnation in terms of your career. History has shown us that no job is secure, and you should keep that in the back of your head. This is why you should always be proactively trying to advance your position.
2) Cashflow
Many people have the New Year’s Resolution to stop spending money on useless junk. Cash flow analysis is HUGE when it comes to your finances. You MUST run a surplus every month if you want to get ahead. So far this year, how is that going? Do you at least balance at the end of every month? If you haven’t been keeping track, answer this question: Have you ever felt like money was too tight this year so far? If that feeling has arisen, you may have a cash flow problem. If you have seen your bank balance with one of these in front of it, (-), then you have a cashflow problem. Take this time to reflect on the year so far and how you have felt about money. Remember, cash is king and your mastery of it will determine your success.
7 Steps to a Budget Made Easy – My Money Coach
3) Savings
If Cashflow is King, savings is the Queen. Have you implemented a savings program this year? Do you have one already started? If you started one this year, how have the results been so far? Do you feel burdened by the amount you are saving? Do you notice when the withdrawals come out? Do you feel happy when you see the balance of your new savings account? If you already have a savings program from before the year started, have you been keeping consistent with your contributions? Did you have to pull from those savings? Are you investing those savings for short-term or long-term growth? You must save money to get ahead, so use this time to recap how your savings plan is going or think about starting one as soon as possible.
4) Debt
Having debt is a gross feeling, and if it isn’t to you, it should be. If you have debt, have you made any progress towards reducing that debt? Has your debt grown this year? The reason why I mention cash flow, savings, and debt in that order is that they all lend to each other. Bad cash flow leads to no savings and debt accumulation. Debt leads to even worse cash flow and no savings. It is like a Jenga Puzzle that needs all three to be in harmony. If you have debt, make sure you are on a path to eliminate it. It would be a noble goal to get rid of, or a large chunk of, your debts by the end of this year.
5) Protection
I talk about this a lot, but only because it is that important. Have you taken the steps so far this year to protect your income and protect your household? Many of us think we are covered and we aren’t or aren’t the way we wish. It is simple to say that you will think about insurance protection once other priorities are taken care of. Wrong. Protection is the first priority. You don’t build the roof before you put the foundation down for a house. Remember that if the worst happens, having protection may be the only thing that keeps you afloat. Take this time of the year to review your financial security plan, including life, disability, and critical illness coverages to see if they are adequate for your lifestyle. If you have nothing in place, make the call to see your options.
The Cost of Cancer – Budget Boss
6) Benefits
I am a licensed health insurance provider but to be honest, I wish I wasn’t. I wish I didn’t have to provide these benefits because my wish is that everyone had them provided for them. If that was the case we would have a healthier, more successful society. Do you have health insurance benefits through your place of work? If so, are they adequate for you and your family’s needs? If you do not have coverage, is out of pocket costs crushing your monthly cash flow? Take this time to evaluate your current coverage. If you don’t have coverage, take this time to find some or seek out an employer that does. They are crucial as health problems can ruin your financial plans.
7) Lifestyle
Almost always your lifestyle will dictate how your finances go. What that means is that if you have a happy, healthy lifestyle, most of the time your finances will be as well. Do you find yourself having a regression in lifestyle this year? Are you going out more? Drinking more? Hanging around people that bring you down? Do you have a healthy support system including family and friends that care about you? It is important to remember that your finances often reflect your overall mood. Feelings of despair often lead to destructive financial decisions. Take some time to reflect on your life outside of money to see if it is heading in the right direction as well.
8) Health
One thing I have noticed about myself is that as my finances and business have advanced so far this year, my health has taken a step back. It is important to focus on your health as much as you focus on everything else. Are you eating right? Are you exercising as much as you can? Are you taking medications and supplements to improve your health along with seeing your doctor and dentist regularly? Managing your health is the most important thing you can do to be successful. Remember that a healthy man has many wishes, an unhealthy man only has one.
9) Organizational
Implementing a system to keep you on track is important to your financial success. This includes using spreadsheets for your budget, a journal for your spending and a calendar for important dates. Another forgotten tool is keeping track of tax write-off’s as the year goes on instead of once a year. A spreadsheet is a good way of doing this, but a ledger works just as well. Keep those receipts and take advantage of as much as you can so you get a juicy return next spring. If you are self-employed this is especially important
10 Steps to Developing A Wealthy Mindset – Budget Boss
10) Your Mentality
Having the right money mentality goes a long way in determining your financial success. Do you feel depressed, anxious or uncertain about your finances? Are you confused about how to better them or what should be your first step? Is there something within your financial plan that you feel exposes you? Are you optimistic about the future, regardless of what life throws at you? Your mentality is your reality, so it is important to take the steps to put you in the right state of mind in terms of your finances. Addressing them is the first step to doing that. Stand up for yourself and stand up for your future.
While 2018 so far may seem like a standard year, there is still time to make it a great year. Take some time to review everything you have done so far this year and enhance how you go about the rest of the year. You do not want to go into 2019 having the same resolutions you had this past January.
“The real man smiles in trouble, gathers strength from distress, and grows brave by reflection.” – Thomas Paine
Email – joe@budgetboss.ca
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