The 1-2-3 Money Plan
It’s a new season – Hello, Autumn! I am feeling the shifting of earthly energies and hope that you, too, are enjoying the brisk and fresh enlivening that comes with fall.
Seasonal changes are the perfect time to evaluate ourselves and implement adjustments (or even full revisions) to improve our lives.
Shedding our leaves (old habits) to create room for new growth is an ongoing cycle we shouldn’t ignore, but rather tend to with love and attention.
With that in mind, I’m going to write about something that has been coming up a lot in my new client consultations in case you, too, might need a little seasonal change with your money habits.
Here’s the new client question:
WHERE IS ALL MY MONEY GOING?
To which I reply:
DO YOU HAVE A MONEY PLAN?
Momentary silence, then the response:
THERE IS NO PLAN!
If you’re wondering where all your hard earned cash is going, it’s likely to be found in someone else’s pocket.
Nowadays, marketers are coming at us from every direction, and the good ones know how to bleed you dry with their savvy techniques.
But instead of looking backward to figure out where it all went, how about looking forward and setting intentions for where you’re gonna put it?
The #1 reason you are probably avoiding making a budget is because you’re overcomplicating it.
But, it’s as simple as 1-2-3.
Take your monthly income & calculate it by these percentages and that’s how you figure out what you have available to spend in these 3 categories.
For example, let’s say you take home $5,000 per month after taxes. The breakdown looks like this:
50% - NEEDS: $2,500
30% - WANTS: $1,500
20% - SAVINGS: $1,000
If you are spending more than 50% of your monthly income on needs, it may be time to figure out how to lower your cost of living or raise your income (for entrepreneurs, this means decreasing your costs, raising your prices or signing more clients).
If your wants are taking up more than 30% of your income, maybe it’s time to check out your local thrift shops for your clothing or plan a girls’ night in rather than hitting the local club.
If you’re in debt, the 20% savings is actually the money you should be putting toward those credit cards. Once they’re paid off, this is the money you’ll be saving.
If you got stuck at Step 1, it likely means you don’t know what you’re monthly income even is, and that’s where I can help you! Book your free consultation today and let’s get your books in order!
I hope you’ve found the simple 1-2-3 Money Plan helpful. Next week, I’ll tell you about a money ritual that may help you to implement your plan.
Disclaimer: This post is written for those who are not in serious debt. If you are facing extreme credit card (or other) debt, you would be best served by 1:1 coaching or my signature group coaching program, Magic #9 Debt Warrior.