Guest post by Carolyn Moes – Certified Spending Planner

We all want to be successful with our money, right?

So, make some simple changes this year and move forward in your financial journey. Here’s my simple 8 step guide to help you start on the right foot this year and work toward some of those goals you currently only dream about!

Step 1 – Don’t Procrastinate

Why put off until tomorrow what you should be doing today?

Because often our mind tells us it’s impossible to change. The one key element of the mind that makes all the difference is belief. So, the question is, how do you change your beliefs about yourself and your finances? Ask yourself two questions

“What is money to me?”

Some will say, “money is the root of all evil” – you can replace that thought with “money is a resource that allows me to do good”.

What does money mean to me?”

Some will say, “money is there to be spent” and this then creates a problem because you will always find yourself living pay to pay. You can replace that thought with “the money I don’t spend can make me rich”.

Step 2 – Uncomplicate

Look at your current Bank Account structure and how your money flows.

You should have 3 accounts

·       A Predictable Bills Account – your income is deposited into this account and your predictable, regular bills are paid from this account

·       A Weekly Living Account – transfer an amount each week from your Predictable Bills to this account for your weekly living, i.e. food, fuel, fun and incidentals

·       An Emergency Savings Account – deposit a weekly amount into this account from your Predictable Bills Account to save up for the ‘life happens’ events, i.e. the fridge breaks down, you get a speeding fine, the dog gets sick.

Step 3 – Create a Clean Slate

Take the time to sit and write everything down.

What do you owe? – personal loans, credit cards, mortgage, loans from friends

How much do you pay on these each month?

Come clean with your partner about your current financial situation. If you are in a partnership/marriage, you both need to be on the same page about your money journey so sit down with each other and formulate a plan that you can both be happy with and work toward your goals and dreams together.

Remember, ‘when debt comes in the door, love goes out the window’ so don’t let secrets or bad money management get in the way of your relationship!

Step 4 – Negotiate

Call the bank and credit companies and negotiate a better deal on your loans – reduced interest rate, longer term, reduced repayment, payment holiday.

Step 5 – Consolidate

Look at consolidating debt into your mortgage or consolidating debt into one loan with a lower repayment. Talk to a professional about the best way to do this.

Step 6 – Calculate & Contemplate

After you have completed Steps 1-5 calculate how much you can now save. Get yourself a Spending Plan and see the bigger 10 year picture of your finances and start working toward your goals and dreams.

Contemplate what it might mean to you if you can start saving just $50/week – that’s $2600/year and that’s a nice little holiday!

Step 7 – Separate

This can be several things

·       Separate your weekly living money into two accounts if there are two of you in the relationship – this way neither of you is accountable for what you spend and this money is yours to enjoy – remember though, once it is gone there is no more until next payday!

·       If you are in business you need to separate your business from your personal. This means you will need to run two Spending Plans (or budgets) and know how much your business needs to be paying you to run your personal life.

·       Separate yourself from your past mindsets about money. Separate yourself from past behaviours – your past does not define you! This is your new journey, the past is behind you.

·       Separate your self worth from your money worth. Your self worth is much more important.

Step 8 – Congratulate and Celebrate

Congratulate yourself on achieving Steps 1-7 in your money journey. You are now on the road to success with your personal spending and achieving your goals and dreams.

Celebrate! You have achieved the Steps. You are now on a financial journey to achieving your goals and dreams.

If you need further help with the steps or want an accountability partner/mentor/coach of if you want more information on how a Spending Plan can help you achieve your goals – call me – it’s not my job, it’s my passion to help people move forward in their financial journey.

Carolyn Moes
Certified Spending Planner
“BE BETTER THAN AVERAGE…..After discovering the secret to eliminating day to day money stress about 14 years ago I got so excited that I just wanted to share my discovery and I’ve been focused on helping people who want to be better than average ever since.”

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