Finding a Financial Plan that Works for YOU! [Guest Post]
"Not all those who wander, are lost" -J.R.R. Tolkien,
Dealing with finances is a daunting task within itself, especially as a mom who has to be the "financial brains" behind all operations. Often you feel like you don't know where to begin, who to trust to talk about your finances with, or is this monthly budget really going to work for me? There are tons of people out there soliciting financial advice, making it sound so simple—and suddenly, they are debt-free and making $500/wk!?
This is not realistic for the average person or mom.
What's most important is finding the financial plan that fits your financial lifestyle. Although these sound like simple words, these self-assessment tips to find out key factors about yourself will make a world of a difference.
Determine which sources you best learn from—There are various types of online and in-person services that cater to all types of financial learners. Finding the resource that will keep you engaged and practically speaks to you is key to effectively processing and applying any new financial information. This may be subscribing to how-to finance YouTube videos, listening to different podcasts (a personal favorite), picking up financial books, reading blog posts, or hiring a trusted financial advisor. It is ok to explore and/or use all of these, but determining the method that resonates most with you is the first step on your financial journey.
Hold yourself accountable—Your financial goals, whatever they will be, will require some form of discipline and perseverance. Establishing a monthly budget takes work and dedication, but maintaining it beyond two months is an even larger feat. Know that it is ok to fail and determine that a financial plan doesn't work for you, but hold yourself accountable with a long-term goal and give yourself some realistic buffer room if something does not work out. I decided to pay down store credit cards and set up automatic payments for the amount to be paid each month. I thought this was all I needed. Then, after the first automatic payment, an unplanned expense came up and I no longer wanted to pay the fixed credit card payment amount. Rather than scratching the entire plan, I reminded myself that I said I would pay it off in six months, so, therefore, decided to give up a luxury cost elsewhere to make sure I caught up in the subsequent months. Be your own motivator and know that the feeling after accomplishing a financial goal is well worth it!
What can you realistically do without? —Working towards any financial goal, whether it's paying off debt, saving for a bucket list vacation, monthly budgeting, or investing in the stock market; something is often sacrificed. This is not just the extra candle from Target you may not need or the overpriced appetizer at dinner—but this can also be giving up your time watching a movie or waking up 30 minutes before the kids and finding a sacred space to read your new finance book. Be realistic with yourself about what you can give up. For me, my goal was wanting to pay more down on credit cards per month, but I know that realistically I like to eat out and splurge on the occasional smoothie. I did not want to eat PB&J every day to get to my goal, but I determined areas that I can realistically have self-discipline (such as giving up the smoothie) to have more money set aside to reach my financial goal.
Remember that the road to financial health and wealth is a marathon, not a sprint. When you sprint, you get tired quickly, a lot of energy is exerted at once and you may not see the light at the end of the tunnel. Take your time to do it right. Find your financial groove that works for you, matches with your lifestyle and think about what you want to teach your kids long-term to carry into their financial futures. Take a deep breath, chin up, smile, and stay the course!
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