The 8th and final post in this blog series on Improving Your Life to Improve Your Finances will cover the financial aspect. It is intentionally the last topic I’m covering. You see, at iMoneyCoach we believe that money is the smallest part of your finances. The more people can realize that, the more financially successful they can become.

Having set goals in the other areas of your life, and having realized how the decisions you make in those areas affect your finances, you can begin working on improving your finances. Whether you have loads of debt or are living a great life debt-free, we believe there is always room for improvement.

Here are some of the basic principles we share with our clients and friends that will make a great difference in your finances:

  • Always work from a “spending plan” – yes, a budget – When you have a plan for your money, you can control spending and make sure that you are setting aside enough for saving and investing. You can have a plan for getting out of debt as well as incorporate goals (like saving enough for a down payment on a house or building up enough to pay cash for your next car).
  • Never spend more than you earn. It sounds simple and straightforward, but in our country credit is relatively easy to come by, and instant gratification is a king. We need to turn this around by making sure that we spend less than we earn each month. A “spending plan” will help you do this, by the way.
  • Track all income and expenses. The only way to stick to a budget is by tracking your income and expenses so you know where you stand with your budget. If you say you are going to spend $500 on groceries but don’t track how much you actually spend, you may really be spending $600 (that’s a $1200 yearly spending leak!). Start today by writing down all income and expenses as they happen.
  • Evaluate all “good deals” based on your spending plan. You may see a TV that’s marked down 60% – that’s a great deal, how could you pass that up? Even if something is an awesome deal, it may not fit with YOUR budget. If you’ve been saving up for a TV for a while and know what you can afford, then you can seriously consider that deal. But if it’s not in your budget, it’s not a good deal for you.
  • Get out of debt and stay out of debt. Debt eats away at your dreams and goals. It takes away from your future. When you get out of debt, you are freeing up funds for saving and investing as well as eliminating the stress of making those payments each month.
  • Seek wise counsel and diversify your investment. You work hard for your money, so you want to invest it wisely and make it grow. It is a good idea to talk to someone who knows and understands finances and investing to make sure you know your options and choose the best route for you. You also never know what is going to happen for sure, especially in our recent rough economic times, so it’s a good idea to diversify your investments – but this means so much more than what “diversifying your portfolio” normally does these days. If you want more information on this, be sure to give us a call.

These are just some of the principles we live by at iMoneyCoach. A full list of the basic principles we believe are necessary for a happy and healthy life are available on our Financial Constitution page. We work with our clients and have developed online courses based on these principles. Our goal is to get clients to a place where they can honestly and enthusiastically say, “I love my life!” I hope this blog series has been helpful – if you missed one, be sure to go back and read through to find out how finding balance and improving each of the 5 areas of your life can change your finances. And once you’ve read those, be sure to check out our website  as well as our iMoneyCoach University where you will find fully narrated, interactive, online courses designed to help you make the most of your money and enjoy your life.

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