Today I wanted to write about what you need to have in order before you go ahead and set some New Years Resolutions or goals around improving your finances.
I am a big fan of setting New Years Resolutions but only when they are meaningful and I have every intention of following through.
I always have something to focus on and I love to take the time to reflect on the previous year and acknowledge the growth and areas of improvements I can be making (also remembering you need to do this much more than once a year)
2020 was the year that YouChange was born and we are already helping many people improve their financial position, habits and achieving goals.
When I talk to people about YouChange and what we do I often get responses like “Wow that’s really needed” “I know someone who could really benefit from that” or “I really should look at how I can be better with money”
EVERYONE wants to improve their financial position and I mean EVERYONE but the amount of people who are actually willing to admit they could use some help or are prepared to really put the effort in and be vulnerable enough to give it a go is a much smaller number.
Be brave enough to admit that you could do things better
This is a huge first step that is so important. Society tells us that to be financially secure and successful you need to show that you have all the newest things, flash house, flash cars, designer clothes. I am here to tell you that as long as you follow this thinking you are running dangerously close to becoming broke.
Be brave enough to turn your back on this expectation and work on your own finances and look for ways to do things better. Trust me you will be happier and much more successful in the long run.
Be prepared to make changes
If you think that making ongoing improvements in your financial situation won’t take effort and require some changes then you need to really reconsider creating a New Years resolution around your money.
To make meaningful improvements you have to be willing to make meaningful changes and you have to know where to make the right changes that will bring you the biggest bang for your buck! If you are focussing on the wrong areas you wont get the results you are wanting quickly enough so you may loose motivation.
Understand that you will not change your financial position overnight.
You have a lifetime of financial habits to reassess and adapt so you need to be prepared for a journey that will last you the rest of your lifetime.
Choose your quick wins and improvements and then continue to look for new improvements, adapting your financial plan to suit your life and make sure the plan is applicable to your current life stage.
A financial plan should be reviewed all of the time to make sure that it is meeting your current and future needs.
Be prepared for people to turn their nose up at you “budgeting”
There will be some people around you that will applaud you for taking your finances into your own hands. But be prepared for some to turn their nose up – you might hear comments like “I would hate to not be able to spend whatever I want” “I would hate to feel restricted with my own money” “I don’t need to have a budget for my money”
These comments link back to the what society deems as success and people who are uncomfortable with their own financial situation are likely to attempt to make you feel silly for wanting to improve your own situation.
I love reading about and listening to really successful and incredibly wealthy people, you won’t find someone who is very wealthy say that you shouldn’t worry about having a financial plan and budgeting your money carefully! People who win with money have a plan with their money
When creating your financial goals DO NOT TAKE ADVICE FROM PEOPLE WHO ARE BAD WITH MONEY
Here is a really crazy piece of advice I have heard many times first hand “Just go and buy it and tick it up”
This is hands down the worst advice and please do not ever listen to someone who says something like this. If someone has this mindset when it comes to money, then they are bad with money so they are not the right person to be talking to about your financial future.
Also do not take advise from someone who has read “something” “somewhere”. Finance self help books can give some great ideas on areas of improvements, but please remember that these are very generic. A financial plan should be personalised and very specific to YOU and only YOU. This is how you get the best results.
So taking advice from other people who do not know your situation well is not a good idea.
Everyone likes to think that they are doing ok with their own finances and some people might think they have it all figured out. Only take advice or listen to people who truly know what they are talking about, have good experience and most importantly know what you are trying to achieve.
So if you still think you are ready to make some meaningful improvements in your finances, its time to actually sit down and assess your full situation and make those improvements. Set some small goals in the short term so you can build momentum and see quick results and then continue to challenge yourself to be better and find more ways to make improvements.
Remember your journey starts now and goes for the rest of your life, so if you are not ready for a life long commitment to being better with money – think about a different New Years Resolution.
You can either book a consultation, or get in touch if you want to discuss how YouChange might be able to help you set and achieve some awesome financial goals for 2021. Contact us