My 7 Step Map To Getting Your Finances Back On Track
If you know you have got to do something about your finances but you are clueless where to start. Here is my map to getting back on track with your finances. In fact you can apply this map to any area of your life that needs to get back on track. It works because it is the same process that I take my clients through and their results speak for themselves. I am confident that if you follow it that it guide you to your desired destination like it did for Amanda:
Prior to meeting Michelle Tascoe, I was struggling in every aspect of life. I was extremely depressed and severely in debt. I spent days crying in bed, frustrated with my parenting skills, drowning in pity and completely failing in every relationship never realizing I created it. Since using the skills Michelle has taught me, I am learning to create the life I want. I have seen tremendous improvements in my relationships, my mental health and my spiritual growth. I can finally breathe again!
~ Amanda M. | Massage Therapist | Winnsboro, TX
Here is the map with turn by turn directions.
1) Take inventory. Answer the question: What exactly is going on in your finances?
- Write out all the income that is coming in
- Write out all your spending divided it into two groups: 1) fixed and 2) variable spending
- Write out all of your debt and include the type of debt, balance, available credit, minimum payment, due date and interest rate.
- Find out what is left over. (income – fixed spending – variable spending – debt payments = leftover)
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2) Create a realistic plan. Answer the question: Where is my money really going? Note: I have a simple way to do this that I cover with my coaching clients.
- Gather your past 90 days of spending
- Categorize each transaction to the appropriate category (groceries, eating out, gas)
- Get the rolling average that you spend each month in each category (this is the average of the 3 months)
- Create a realistic spending plan based on what you naturally spend. *too many people set goals that aren’t based on reality, a goal that is realistic and based on facts is more doable and thus more likely to be achieved
3) Accelerate your goals. Answer the question: How fast do I want to reach my goals?
- Write out goals of debt to pay off, money to save and money to invest
- Decide on what you want amount you want to have leftover to reach these goals
- Review your realistic spending plan and re-evaluate categories that you can trim down
- Create a leaner meaner spending plan based on the new numbers
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At this point half of you are stoked and will get going and the other half would rather bury their head in the sand. I get it. Telling you what to do is much easier that doing it on your own. I totally understand. Some of you will be able to follow this no problem and the map was all that you needed. For the rest I’ll say this, if you knew how to do this you already would be doing it so give yourself some oxygen and grace.
You may need this next.
Here is the second part of the map. Think of it as the 2nd leg of the flight. Some people just need the steps above and can fly direct. Others have a layover and hop on the next plane. I don’t know why it is. It just is what it is.
4) Clarify your commitment. Answer the question: Why do I need to face my finances?
- Write out your response to: Why you need to do this now?
- Write out your response to: How long can I keep going like this?
- Write out your response to: What needs to change for things to change?
- Write out your response to: Why it is different this time?
5) Weigh out the facts verses your feelings. Answer the question: What is holding me back?
- Think about how your finances this makes you feel against what basically is going on with your finances *Remember that a passenger side mirror on a car says “Objects in the mirror are closer than they appear.” Your feelings will magnify in your mind to make your financial issues appear bigger than they really are.
- Make a list of the facts in your situation and see the logic of what needs to happen next
- Make a list of your feelings in your situation and see how your feelings get in the way
- Rewrite your story based on what you think you can do instead of how you feel about it. *Feelings will keep you at bay from doing anything about it. Focus on the facts and what you know, think and believe you can do.
6) Decide and define your meaning. Answer the question: When my finances are completely off track, what am I making this mean?
- Have you made it mean that you are a failure?
- Have you made it mean that you can’t do anything right?
- Have you made it mean that you are just not good at this sort of thing
- Have you made it mean that you will never be able to get ahead?
The lesson is it is up to us what we make things mean. What positive meaning can you create instead?
7) Partner up with someone to keep you on track. Answer this question: Who do I know that will hold me accountable?
- Realize that you don’t have to climb the mountain by yourself
- Plug into a newsletter or podcast that will encourage you and feed you the guidance and direction you need to keep on track
- Find a “friend” friend that you trust to help you one on one to keep you on track
- Find a financial coach that you trust to help you one on one to keep you on track
Now that you have the map there is no excuse to get unstuck and get back on track. On of my mentors says, “Excuses are well planned lies.” So follow the map, get unstuck and back on track. Keep on track for the long term by keeping away from excuses along your journey and I promise you will reach your destination.
Your financial coach,
Michelle Tascoe | Life Coach
Money | Debt | Accountability
Office | 209.532.4030
Email | mimitascoe@gmail.com
If you want to find out how financial coaching can help you reach your money goals call or email me for a complimentary coaching consultation
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