OK, this is the very last post in the series about “Cleaning Up Your Financial House”. Thanks to traveling, sickness, and wonky food trials, this has taken me much longer to finish than I had planned. Thanks for sticking with me!
By this point, if you’ve followed the advice I’ve given, your finances should be solidly in the realm of “manageable” – or at least on their way to that point. You should know where your money is, where it is going, and have a basic plan to pay off debt.
Now you’re in the position of being able to try and cut corners where you can, because you can clearly see where you can gain the most benefit from a cost-saving measure.
That’s a beautiful place to be!
The last step on this journey is to design your dream life.
In the end, straightening up your financial house is as much about determining your personal goals for the life you want to live as anything else.
Sit down and think about what you want your life to look like; then figure out how to make your money fit that picture.
There is no one size fits all approach to financial planning. Everyone has different goals.
Some people want to make MORE MONEY NOW. They want to be wealthy, and the picture they have for their lives will be far different from the person who simply wants to live the life they have, just without any debt hanging over their heads.
That person will have a picture of their future life that looks different from the person somewhere in the middle; who wants to live a slightly better life but is too burdened by debt to be able to attain that life at this time.
So first decide what you want your life to look like. Design your money management plans around that goal.
All I hoped to do with this series was to serve as a “training wheels guide” to getting started on the road to good finances for folks who really had no idea how to start.
It’s time to take the training wheels off, and head out on your own.
Here’s where it gets tricky: there’s a lot of bad advice out there.
Even some of the books I have read that I gained some bit of knowledge from have gotten reviews that said some of their advice was either misguided or even pure rubbish. I decided it was better to not recommend any specific sources, as I would hate to steer anyone into a situation where they read something that would make their situation worse based on my advice.
Instead, I’m going to share some general thoughts on how to keep your finances orderly and allow you the freedom to pursue life on your terms.
When it comes to money, con artists and snake oil salesmen are standing by, ready to submarine us on their own personal quest to “get rich quick”.
So be careful. Read as much as you can about personal finance, but take it with a grain of salt until you can prove the advice is sound.
In the quest to control our personal finances, I tend to keep the fable of “The Tortoise and the Hare” in mind; slow and steady tends to win the race.
There is NO method for getting rich quick; don’t be taken in by charlatans who promise high returns on an investment, or people who “guarantee” anything – they’re full of baloney and likely to rob you blind.
We all strive to do more with our money; to make more, save more, get more return on our investments.
But keep in mind the purpose of all that striving. Keep in mind your picture of what you want your life to look like.
If you keep that picture firmly in your mind, you’ll be able to see which financial information will help you, and which information just doesn’t apply to your goals.
Make the right decisions for your goals every day, and in a year you’ll be much closer to your dream life than you ever thought you could be.
In the end, this is what I believe is the key to true financial liberty:
- Know where your money is going
- Slash expenses where you can
- Live beneath your means
- Save for a rainy day
- Avoid gimmicks
- Decide what you want for your life
- Read and learn as much as you can – but keep the salt shaker handy!
Good luck on the rest of your financial journey! I hope this has been of some help to anyone who simply didn’t know where to start.
Now that you’ve gotten a start, YOU can design the life you’ve always dreamed.
Read the rest of the series here:
Part One: Where Are You Standing Financially?
Part Two: Organize Your Debt
Part Three: Make a Plan
Part Four: Focus on the Details
This was a great, well written series, Carrie!
Thank you, Rebecca! 🙂