Feeling Overwhelmed by Your Finances? Here's How to Get Started

Budgeting

Jan 8

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Struggling to Make Sense of Your Numbers? Start Here

We've all been there - feeling overwhelmed and unsure about our finances. The numbers, expense tracking, pay statements, spreadsheets, budgeting apps... it can all be so confusing. It's no wonder many people feel lost when it comes to managing their money.

The truth is, most of us have never received proper financial education, leaving us unsure of where to begin. But here's the good news: You have the power to take control of your situation and make positive changes.

Why It's Important to Take Control of Your Numbers

Taking control of your finances goes beyond simply managing your budget or finding the right tool to do so. It's about empowering yourself to shape your financial future. When you truly understand where your money comes from and where it goes, you can make informed decisions that align with your goals and dreams. By taking charge of your finances, you gain the ability to cultivate a positive relationship with money and take those initial steps towards building a strong foundation for yourself and your family.

Addressing Fear and Anxiety

Fear and anxiety often hold us back from facing financial challenges head-on. Thoughts like ‘I'm not good with numbers’ or ‘I'll never be able to get ahead’ can create a negative mindset. However, it's important to recognize that these thoughts are just limiting beliefs and do not define your true potential. You have the power to overcome these fears and shift your mindset towards a more empowering perspective. By acknowledging and challenging these fears, you can start believing in yourself and your ability to take control of your finances.

Identifying and Challenging Limiting Beliefs

Self-limiting beliefs have the power to hinder your progress when it comes to managing your money. It's important to recognize any negative thoughts you may have about money and challenge them head-on. By replacing these limiting beliefs with positive affirmations, you can empower yourself to take control of your finances and achieve your goals.

To get started, check out this free list of money affirmations on the resource page or consider grabbing this Money Affirmation Bundle if you’re looking to dive deeper into this topic. These affirmations will help shift your mindset from one of scarcity and doubt to abundance and confidence. Repeat them daily, believe in their truth, and watch as they transform your relationship with money.

Remember, you are capable of achieving financial success, and with the right mindset, you can overcome any obstacle that comes your way. So, let go of those negative thoughts and embrace the belief that you have what it takes to create a brighter financial future for yourself.

Crushing the Numbers

Diving into the numbers may feel intimidating, but it's a crucial step towards your financial success. To get started, let's determine if your income exceeds your expenses or vice versa. This will give you a clear picture of what steps to take next. If your expenses are higher than your income, it's crucial to bring them down to avoid accumulating debt. On the other hand, if you have some flexibility, you can create a debt paydown plan, closely track your expenses to align them with your priorities, or start saving for other expenses.

Start Tracking Expenses

To start your journey towards better financial management, I recommend beginning with a simple task: tracking your daily expenses. Don't worry about making any changes just yet. All you need is a notebook, the notes app on your phone, or you can even use the free tracker available on my resource page. This step will help you gain awareness of where your money is going and set the stage for future improvements.

Determine Your Net Surplus or Deficit

To figure out if you're bringing in more or less money than you're spending each month, you need to calculate your net surplus or deficit. This is just a fancy way of saying you need to compare your monthly income with your expenses.

I have a helpful tool called the Ultimate Cashflow Control Workbook that can assist you with this. Alternatively, you can also do some basic calculations on paper.

Income - Expenses =

Net Surplus (if the number is positive) or

Deficit (if the number is negative)

Either way, it's important to track your expenses and see how they stack up against your income.

Define Your Goals

Take some time to figure out what is most important to you. This will give you more clarity on where to spend your dollars. Define your financial goals, both short-term and long-term. Whether it's paying off debt, saving for a down payment, or investing in your business, having clear objectives will keep you motivated and focused on achieving them.

Prioritize Your Goals and Adjust Your Numbers

Once you've set your goals, it's time to prioritize your spending accordingly. Take a close look at your expenses and identify areas where you can cut back on anything unnecessary. By doing this, you'll be able to free up some extra money. Additionally, consider exploring ways to bring in more income. This could involve finding a side hustle or leveraging your skills and talents for additional opportunities.

By implementing a combination of cutting expenses and increasing your income, you'll have more financial resources to allocate towards what truly matters to you and your family. Imagine the possibilities that open up when you have more control over your money! This newfound freedom will enable you to focus on the things that bring joy and fulfillment to your life.

Remember, making changes to your spending habits and finding ways to boost your income may require some adjustments and effort initially. But the long-term benefits are worth it. Plus, these goals are not set in stone for the rest of your life. They reflect what is important to you right now. As you make progress, feel free to adjust your spending and focus on the next priority on your list.

Build Confidence with Every Small Step and Accomplishment

Start small and celebrate every milestone along the way. By setting achievable goals and taking small steps towards financial control, you'll build confidence and momentum to tackle bigger challenges.

As you take control of your budget and see progress, don't forget to celebrate each achievement along the way. Whether it's paying off a credit card balance or consistently saving for an emergency fund, these small wins are worth recognizing. Treat yourself to something special—a nice meal out or a fun activity—to reward yourself for your hard work.

By focusing on these small victories, you'll gradually build confidence in your ability to manage your money effectively. This newfound confidence will fuel your motivation to tackle bigger challenges like paying off debt or saving for long-term goals.

Rinse and Repeat

Keep working through these steps and you will eventually start to see progress. As you see progress, you’ll be motivated to keep moving forward! Eventually, you will start experiencing significant transformations and discover the endless possibilities that await in your future!

Challenge any limiting beliefs that may be holding you back.
Track your expenses to determine if your income is more or less than your monthly expenses.
Define and prioritize your goals.
Make changes to your income and/or expenses so that you have a surplus each month.
Use that surplus to make progress toward your goals!
Celebrate your wins along the way!
Repeat these steps for continued financial progress!

Final Thoughts

Taking control of your numbers may seem overwhelming at first, but it is a crucial step towards financial freedom and success. By understanding the importance of managing your finances, addressing fears, and taking the first steps outlined above, you are well on your way to building a positive relationship with money. Remember, you have the power to create positive change in your life and business by embracing the possibilities that financial management offers. Start today and watch your numbers transform from a source of stress to a powerful tool for growth and prosperity.

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