Motivation to Get Your Personal Finances Back on Track
Guest Contributors

 Are Your Personal or Business Finances in Need of an
eXtreme Makeover: Personal Finance Edition^TM?

Not satisfied with the current status of your finances? Do you desire or attempt to make changes but don’t get the end results you were hoping for? Statistics indicate that 40 – 45% of Americans make New Year’s resolutions, and money-related goals are usually at the top of the list along with the goal of losing weight. However, it’s also noted that by the end of January, one third of people who made a New Year’s resolution have given up on taking steps to achieve their goal. Why? According to BJ Fogg of Stanford’s Persuasive Technology lab, it’s because when people make big, overwhelming goals they end up failing versus having success if they would break the big goal down into baby steps.

If your financial house is in need of an eXtreme Makeover, you must remember that Rome was not built in a day. Just as it took some months or years for your financial health to decline, it’s going to take applying some practical steps over time to help improve your financial health.

Just as building a new house requires a strong foundation; your financial house requires one as well. Whether it's your personal or business financial house that is in need of remodeling or reconstruction, the following four uniquely, positioned strategies will help you to begin to re-stabilize the foundation of your financial house and build a stable financial future. I’ll be using the parallels between building an actual physical house and a strong financial house as we go along. Are you ready for an eXtreme Makeover: Personal Finance Edition™? — Then grab your hard hat & let's get to work!

1. What Currently Exists in Your Current Financial House? Before you do anything and/or start to make changes, it’s critical that you properly assess your current situation. You can’t change what you won’t confront; therefore, this step requires that you take a hard look at your current reality. Whether with old fashioned paper and pen, an on-line calculator or app on your phone, identify all of your sources of income and all of monthly living expenses, debts, and casual spending habits. Don’t try to guess as what you think your balance is on your credit card or student loan – take the time to look at the paper statement, look it at on-line, or if necessary, pick up the phone to talk to a representative. It is only by assessing what the true numbers are that you will gain a clear picture of your current financial health. For some of you, you will find that your financial house only needs some remodeling with touch-ups (change in behavior). Others of you will find that your current financial house needs to demolition and total rebuilding. Either way, it’s best you know what you are dealing with so that you can implement strategies to a financially sound future.

2. Does the Location Have Restrictions? Before you build a house or add an addition on to an existing home, one normally has to found out if there are any zoning restrictions that would prevent them from implementing their desired goal. As you assess your financial house after completing Step 1 above, ask yourself what's currently preventing you from achieving your financial goals and stability. Is it your current job, impulsive buying, the feeling of needing to take care of the needs of others (family & friends) that impact your personal budget, etc.? If you’ve never examined this aspect of your financial house before, I assure you that completing this step will shine light on some behaviors and/or people that you need to change or remove in order to move in a positive direction on your future financial journey.

3. Is the Soil Free from Contaminants? You wouldn’t want to build or buy a home that has built on land that is full of toxic, cancer-causing contaminants, right? Well, the same applies to your financial house. The “soil” for your financial house is your mind and all of the limiting money scripts and beliefs that you may hold in your subconscious mind. Many people have a sincere desire to better with managing their finances; however, it’s their rarely addressed or identified money beliefs that constantly prevent them being financially successful. To change one’s behavior, you must first change your habits, and to change one’s habits, you must first change your thoughts. One of the best ways to start is by reading books, and getting your money personality assessed by my firm, Visionary Financial Strategies.

4. Are corrections/improvements to your water supply (sources of income) needed for your financial house? You may notice that more personal income or business revenue is needed to cover a shortfall in your finances and/or to help you to live more comfortably (not paycheck-to-paycheck). If this is your case, then I encourage you to look at these possible ways to generate income: 1) Take inventory of things in your house that you no longer or never have used and sell them on Craigslist or EBay. You’ll clear out clutter while also generating some cash for your household.; 2) Consider a home-based business opportunity – there are thousands of them out there so pick one that interests you and doesn’t require you to buy their products on a monthly basis.; 3) Start your own home-based business by leveraging a talent or skill that you currently possess. Whether it’s graphic design, baking cupcakes, providing administration support, bookkeeping, car detailing, making crafts/jewelry, etc., everyone has a skill that can be converted into income. Just identify your passion, create a plan, market your business and generate some additional income.; 4) Get a part-time job – the key here is to get a part-time job that will pay you more than the expenses related to the part-time job (i.e. gas to travel to the part-time job, cost of a babysitter if needed, etc.). Today’s job market is very tight, so if you are going to get a part time job, then make sure it’s worth it and makes sense financially.

While you may have previously had a targeted financial goal in mind with no strategic plan of action, the above four steps will help you to start to put together a blueprint for your financial house of the future. In today’s economy, people are feeling the impact on their personal and business finances each and every day. It’s timeout for just floating along without a plan because that will lead to you to critical care unit of a financial hospital. Be sure to ASSESS the current condition of your financial house, IDENTIFY any behaviors or people who prevent you from accomplishing your financial goals (building restrictions), REMOVE limiting money beliefs from your mind (the soil), and IMPROVE your income flow (water supply). TODAY is the best day to start your eXtreme Makeover: Personal Finance Edition^TM!

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About The Author:

Stacie L. Price is CEO/President of Visionary Financial Strategies, Inc. As an entrepreneur, financial behavioral advisor, business consultant, and speaker, Ms. Price is a strategic visionary leader with over 15 years experience in the financial and information technology industries who has orchestrated implementation of high visibility projects for corporate clients who are best-in-class sector leaders, and who has helped hundred of individuals and families to achieve their financial goals.

 

 

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