Financial Prep Work

Finances.  How many of you have set goals in this area?  Each year we have good intentions of monitoring our money and spending a little more wisely, but when push comes to shove, we probably don't spend or save our money as wisely as we could.  2015 is shaping up to be the year we finally devise some concrete goals, set our benchmarks, and follow through.

Managing finances is probably one of the most unique journeys a person or couple encounters. Everyone's situation is different and there is certainly no one-size-fits-all method to achieving your financial goals.  There are excellent references out there from Dave Ramsey to Suze Orman, but ultimately you need to thoughtfully consider their advice and programs and create a plan both you and your spouse feel comfortable with.

In preparation for The Year to Get It Done, my husband and I have had many discussions about our current financial situation and the goals we would like to achieve.  We've sifted through all of our accounts, recorded our assets and debts, and devised a plan we feel comfortable with.

We will follow Dave Ramsey's baby steps, but with a little modification.  For example, step one is to create a $1000 emergency fund.  Psychologically it is to help you pay off debt faster and then return to saving because, let's face it, $1000 in the bank doesn't go far.  It provides a sense of urgency.

For us, though, the $1000 is a little too uncomfortable for our family of 6.  This is the way we have chosen to address Dave's first three steps:  have a 3-month emergency savings, pay off our debt (other than our home), and return to saving for a 6-month emergency fund.

One of my favorite sayings is, "To each his own."

In the area of finance, I find this to be particularly truthful.  Each person's current financial situation not only reflects choices made in the past, but also present-day decisions.  For some, poor choices in the past may still follow them today.  For others, present-day decisions may be dragging them down or, if they're lucky, raising them up.  

How we spend and save our money is all personal preference.  Setting goals is imperative to financial freedom.  Per one of my inspirational authors, Tsh Oxenreider, figuring out the why behind the goals is even more important.  I suppose this holds true to any goal we set.

Take the time to thoughtfully consider what motivates you and have your spouse do the same.   Determine how achieving each financial goal will positively impact your family's life.  How will these achievements lead you one step closer to fulfilling not only your dreams, but your life's purpose?

Once you have done this, set the plan in motion.  While there are bound to be bumps in the road, if we have a clear understanding of what drives us and the why behind the goals we've set, we are bound to overcome the obstacles and keep moving forward until we are successful.