One of the most overwhelming things for many people to do is sit down with their financials and create a budget or plan for saving and spending their money. This may be due to past financial traumas or the influence of others on their money relationship. There are so many factors to consider when calculating your numbers for the day, week, month and year, including: income, essentials, wants, credit, investment, insurance, savings, debt, etc.
So how do you manage your money without losing your mind?
Start by taking a deep breath and repeating a short mantra to calm your apprehension and boost your confidence. Repeat this out loud so that you can hear yourself say it.
I Am Enough
I Have Enough
I Do Enough
God is my provider
Take a deep breath and relax.
So what are the numbers you need to know?
First you’ve got to face the big bad wolf by taking a look at your bank account balance(s). You need to know how much liquid cash you actually have because keeping track of your cashflow is how you’ll control how much you keep. Then you need to know how much stashed cash you have available through alternative resources. Review your credit balances and availability. Review your investments for gains and losses. Finally, review your insurances to ensure that you’re neither over-insured or underinsured.
Then there are three LIFE numbers that each person should know for themselves.
Net Worth is the number that identifies the value of your assets over liabilities. (Bag)
Break Even Point is the number that identifies when your income amount equals your expense. (Seesaw)
Retirement Requirement is the number that identifies how much money you need to support yourself through a lifetime when you no longer work to exchange your hours for dollars. (Beach chair)
With these numbers you will be able to put your financial picture in clear view. The planning process becomes an exciting venture rather than a weighty task. The only remaining question is, how then do you calculate these numbers for your financial plan? That’s where MarimorLife Mindset & Money Management is available to support you with motivation and accountability through education, encouragement and empowerment. Contact our office to connect with a financial advisor who can guide you on the journey to self sufficiency, one step at a time.
Kevette Minor Kane
Financial Liberation Expert
MarimorLife Mindset & Money Management