Resetting your life should encompass every area of your life, not just your health or habits. It should also include your finances, which is such a big part of your life, and actually impacts whether you can reach your goals or not.
Here are some things to know about working on your finances, and why it should be a priority.
What are Your Financial Goals?
Start simple by writing down exactly what your financial goals are. Be as specific as you can, down to the amount of money you want to earn or save to achieve those goals. While your financial goals will be specific to you, here are some questions that can help get you started:
- Do you have an emergency savings account?
- Is there a certain amount you want to save?
- Are you caught up on bills?
- Do you want to start working on your debt?
- Are you saving money for a vacation or a house?
- Do you have long-term financial goals?
Where Do You Feel You Are Falling Behind?
Looking at the financial goals you have, in what areas do you feel like you are falling behind? Maybe you are having trouble to stick to a budget or don’t even have a budget, or you are spending too much money in one certain area of your life.
It can help to use a journal to figure this out, as it might be hard to just think of right away. When thinking about money and your financial situation, what stresses you out the most? Maybe it’s your student loans you are trying to pay off, or saving money for a house.
When Something Comes Up, Can You Afford to Cover it?
A good way to determine if you are on track to your financial freedom, think about what you would do if an emergency or setback occurred. If suddenly your car broke down, could you afford expensive repairs?
If not, this is probably a good way to start. During a life reset, you are just trying to figure out your priorities and made a good plan moving forward. You want to start with the most important thing first, so if you have no emergency fund, this really should be a priority.
If You Lost Your Job Today, How Long Would You Survive?
Another way to look at your financial goals and figure out where you want to be, is imagine you lost your job today. Whether you work for an employer or run your own business, imagine your job was gone in 24 hours. How would you survive? What would you do? Do you have an emergency fund to cover expenses?
Loving Life — The Reboot!