Seven steps for taking control of your financial future
How engaged are you in your finances?
Some avoid dealing with their personal finances because they experience financial fear or believe they lack expertise, with many married women today still leaving investments and money management to their husbands. Or, perhaps you just haven’t taken that extra step to ensure you’re on the right track to maximize your wealth.
Many years ago, I realized that if I truly wanted to achieve my goals, I needed to approach my finances intentionally. How could I run a successful business if my own affairs weren’t in order? So, I began running my household finances much as I would a business. I became the CFO (Chief Financial Officer) of my own life.
Just like a CFO, I provide strategic leadership and direction. I perform financial forecasting, risk management, budgeting and planning.
Becoming the CFO of my life completely turned things around. It removed much of the worry and pressure I felt about my finances because I was now fully in control, and it helped keep me motivated and focused on my goals.
If the state of your finances is underwhelming or in disarray and you’ve been putting off addressing the issue, this is the wake-up call you need to make a change today!
Here are the seven steps I took to become the CFO of my own life, so you can do the same:
1. I gave myself permission to take charge. This can be the hardest step, especially for women. In many cases, it’s been ingrained in us that we don’t know enough about wealth management. But the truth is, you are more powerful than you realize and more than capable of taking your finances into your hands to create a legacy for yourself! Give yourself permission to take control of your financial future.
2. I took stock of my financial health. I’m talking about taking a brutal, honest look at your financial posture to see where you are versus where you want to be. This part is uncomfortable, but necessary. Lay it all out there, and take responsibility for your circumstances. No more ignoring it or sweeping it under the rug!
3. I set financial goals.
Once you’ve assessed your financial posture, it’s time to make a long-term plan for the future. Sit down as a family and set goals together. You can’t get to where you want to be if you don’t know where you’re going first!
4. I built a budget.
In business, it’s all about budgeting to ensure a positive cash flow. After all, a company that continuously spends more than it earns will go out of business, period. Why would you view your personal finances any differently?
5. I tracked every penny.
And I mean Every. Single. Penny. The thing about budgeting is, once you’ve made a budget, you need to stick to it! Part of your job as CFO is tracking expenses and always looking for ways to cut costs.
6. I scheduled regular “board meetings.”
Just because you’re the CFO doesn’t mean you have to go it alone. Schedule regular meetings with your whole family to discuss financials, make decisions together and hold each other accountable!
7. I began reevaluating my finances quarterly.
Are your earnings outweighing your expenses? Is it time to recalibrate the budget? Every three months, create a profit-and-loss statement to see how you’re tracking to your financial goals.
Meeting your goals isn’t just going to happen – you have to make it happen! Become the CFO of your own life to take charge of your financial future.
Join the NewVIEW NewCHALLENGE Facebook group to download a FREE template for creating your own personal financial statement. Accept the challenge today and take the first step to achieving the best version of YOU.