Set realistic expectations– the BIG “B”- Budget
Whenever I write “budget,” I immediately think of the famous TV series “I LOVE LUCY.” For those Lucille Ball fans out there, the “B” word was the cause of almost every domestic argument between Lucy and Ricky. I am here to tell you there is another way. I am going to take a few moments to focus on the friendly and empowering approach to a family budget.
There is an art to setting any goal and meeting the expectation of that goal. The goal you select needs to be obtainable, but it also needs to challenge you. This is where it becomes interesting: you – yourself, are setting the financial goal, or you and a partner, so you know what you need in order to challenge yourself or your partnership, and that’s where the fine line of communication breakdowns we mentioned earlier can occur. LUCY…YOU GOT SOME SPLAININ TO DO! So, the first step in taking control of your financial health (and avoiding domestic arguments about finances) is to create a budget that stretches you but is achievable. When creating your budget, it’s a great exercise to take 3 average months (don’t look at November, December, or Birthday months) and list all income and expenses. This exercise will open your eyes and mind to what you are actually spending money on and help you evaluate your spending habits as well as sources of income and how to ensure you are monetizing your time. After this has been completed, realize this first step is more of a forecast (as it can fluctuate to meet your goals) than a budget. Again, if this is your first rodeo, you will likely make tweaks to ensure you are comfortable but also challenged with your goals.
Create on paper the life you want (as it relates to finances)
Project a vision of the future financial picture to help you feel more secure, then weigh it against your current financial picture. Much like the above exercise, stretch yourself a tad bit and get as close as you can to the projected vision of the future financial picture. Remember, these goals are about you or you and your partner/family’s financial health and longevity. After creating your forecast and budget, write out your short-term (1-5 years) and long-term (5-15 years) goals. This is the fun and creative part. I am a firm believer in manifestation and paving the way to your own opportunities.
Support system (accountability buddy)
You have created the life you want…or as it may be on paper. You have listed your goals, and you have an idea of how you will achieve them. Now is the time to call for reinforcements. For myself and my husband, our reinforcement was a financial planner. The first time we met Chris, we were a tad nervous but prepared. We were nervous for his response or what he would think of our current financial situation—You know how you are constantly being told to face your fears, or once you get beyond your fear, you are set free–boy, is that an accurate statement. We met with our soon-to-be lifelong financial advisor, prepared as he had requested with both our short-term and long-term goals as well as our budget and forecast and have never looked back. Our support system or accountability buddy happens to be our financial advisor. Whom we would count as a friend. Either way, engage with a financial advisor or invite a friend or family member to be that person. Just make sure that the individual is financially successful and understands you and your goals.
