Do You Need a Fresh Start Financially?

 Money doesn’t buy happiness - it buys choices. It also magnifies who you already are. If you are stingy and see money as hard to come by, you’ll treat wealth like it is fleeting and be less than generous. If you are a giving person, wealth will likely offer many opportunities to give and make an impact.

If you are struggling financially, you may not have the ability to experience the wealth that you want. Perhaps you need a fresh start financially. It's important to live with an abundant mindset and not from a place of lack.

 Fiscal responsibility isn’t innate. It comes through education and having great examples. If you are like me, and you spent your life with parents who just got by or didn’t teach you the importance and value of money, you may have no reference point for how money works to your advantage. It was through trial and error that I learned to reboot my finances and learned to be a good steward of my money. Don’t worry, you can get a fresh start and find the tools you didn’t have when you started out.

Try these simple strategies for reinventing your finances: 

Review your credit rating- You can’t fix what you don’t know is broken. You can get a free credit report once a year or if you have been declined credit. Make sure to get a complete credit report and review it. Look for errors and have someone help you understand the numeric score and any derogatory remarks. It is possible that your report may have errors that can be changed. For any negative remarks, make a plan to fix them as soon as possible. If you have any hint of credit fraud or believe your identity and information have been compromised, place an alert with the three credit bureaus: Equifax, Experian, and TransUnion

 See a financial planner- A financial planner can help you take a look at your long term plans and help you make decisions now that will give you options later. I recommend asking trusted individuals for referrals when it comes to finding a financial planner. It's like finding a doctor, you want someone you feel comfortable with. Retirement planning and investing wisely will make a difference to your future.

 Get some money education- From reading books, to online courses, to other finance professionals, there are multiple ways to better understand money and make new and fresh choices with yours. Get some money education and start making simple changes. I have learned from reading Vicki Robin, Suze Orman and Dave Ramsey. Information is available...reading and learning is an important way of "airing" out your Mental Room.

 Track your finances- Whether you use an app or old-school notebook and pen, track your finances. See where you spend your money and analyze any positive and negative patterns. The book Your Money of Your Life by Joe Dominguez and Vicki Robin helped transform my life. I learned not only about the value of money, but more importantly, the value of my time. I started thinking about the time it would take me to work to pay off the purchases I was making. So before I made a purchase, I would figure out how many hours I would have to work to pay the item off. Be mindful, and cut back on trends that take you away from the financial security that you want. Be honest about what matters to you and don’t shame yourself for your spending. Simply review it and see where you can make change and make a difference.

 Having a fresh start financially can be liberating and have a domino effect for lots of life changes. Do yourself the favor and do what you can to review and revamp your finances for a better experience.

Sometimes, it's not how much you're spending, but how much you are saving. It is recommended that you "pay" yourself first. With automatic payroll deposits and banking, it is easy to set up. I have my personal money market payment made directly, so I don't even see it in my deposit.

If you have credit card debt, take the time to analyze your bills. From my experience, pay more on the credit card with the highest interest rate and only pay the minimum on lower interest cards. When the highest rate card is paid off, use the funds to pay extra on the next highest rate. It's important to make the minimum payments on all the others and curb the spending with credit.

For larger purchases, like a home or cars, a good credit history and favorable credit rating can help you secure a lower interest rate. If you are able, make extra payments towards the principle to pay off the loans sooner. Again, it's not so much about the amount you spend, but it is about the amount you save. Don't pay extra interest payments or late fees unnecessarily. 

Your financial history is very much like your reputation...it's easier to protect it and keep it clear than to rebuild it after it's been tarnished.

What tips do you have to maintain your financial health?

I hope you'll join the Facebook group and share your experiences so that we learn from each other.

Cheers!

Lisa