Getting your finances into good shape is just as important as taking care of your physical and mental wellbeing. You’ll have to invest some time, but if you make a plan and stick to it, you might find that your financial future can shape up a lot quicker than you expected.
Three key principles for enhancing your financial health:
Principle #1: Awareness
The first step in creating a stable financial future is being aware of your financial situation. You need to clearly know what you own (your assets) and who you owe (your liabilities). Without this information, it will be difficult to make the right decisions.
Check-in on your financial health to see where you were unaware. You may not think that this is important but, it’s an essential step to take before establishing any goals.
To get started, collect and organize vital information from documents such as:
- Bank and credit card statements
- Investments, such as stocks, mutual funds, real estate, etc.
- Emergency and retirement savings
- Insurance policies
Once you have this information in front of you, subtract your liabilities from your assets. This will help you determine your current financial snapshot.
Not sure how to track everything? My Financial Snapshot is an easy-to-use tool to understand your financial situation. It can help you make decisions to improve your financial future.
Principle #2: Ownership
The second step focuses on taking ownership of your financial snapshot. If you want to create the best financial future for yourself, you need to practice self-realization. In a world that frowns upon ownership, it is critical that you take ownership of your life and finances more than ever.
Take the time to review some of the experiences that you’ve had regarding money and your personal finances. What are some of the problems you’ve experienced? What steps have you already made in moving toward your objectives?
If possible, identify any barriers that are preventing you from progressing. Also, explore opportunities to develop better ownership based on the insights learned in the awareness stage. No matter what your current financial position may be, there is always something more to learn, and ways to make improvements.
Principle #3: Value
The third step is to realize the value you have in front of you. This includes finding short-term value as well as long-term value.
To truly achieve financial independence, you need to have an action plan with clearly defined steps and goals. Your focus should be on creating long-term and multi-generational wealth.
Build a Stable Financial Future With My Financial Snapshot
Keep in mind that achieving your financial objectives takes discipline and time, just like any other goal. Determining your purpose, making a plan, and getting motivated by looking back can help you progress toward a financial future that pleases you.
As the #1 personal financial statement builder available online, My Financial Snapshot empowers our subscribers to become aware, take ownership, and create lasting value in their personal finances.
We strive to make financial literacy synonymous with literacy. Get in touch to learn more about how we can help you secure your financial future.