It’s December and before the holiday parties kick off, this is a great time to look back on the past twelve months. So for just a few minutes, set aside the tinsel, cocktails and holiday cheer to review your year. Your future self may thank you!
The best way to evaluate this ending financial year is to ask yourself some questions. Hopefully you had a good year and this should be no more than a tweak of this year’s success. If your year was less than stellar, you may need to take a hard look at what went on.
Here are some questions to consider to
Design Your Future Today
and ensure that
2017 will be your best year so far!
What bad habits are preventing me from being financially successful or stable?
To become wealthy or build your wealth, you may need to modify your actions and behavior. Don’t allow the good you have achieved, such as saving or investing, to be negated by any bad financial habits such as over spending or debt.
You can’t build or maintain wealth, without creating an environment of positive thoughts, surroundings, habits, and behaviors. Replace any negatives in your life with new positive people, thoughts, and behaviors. The best way to do this is to clean house. Just as you can’t add more books to a full shelf, eliminate or pare down the negative or excess and make room for the good and beneficial to flow in.
What are the habits of those successful people around me that I need to emulate?
Part of reorienting yourself towards greater success is to look at the people around you. Motivational speaker Jim Rohn famously said that we are the average of the five people we spend the most time with. Is your circle lifting you up or dragging you down?
This doesn’t mean you need to immediately stop seeing your childhood friends or run after those who are more successful than you. It does mean that you should re-orient your contacts and behavior to be more like those you know who you admire or are significantly more successful than you.
Be cautious around people who are negative. Even though they may be your best friend, don’t get sucked down that vortex of negativity. It uses a lot of energy and will never produce positive results. If they are truly in need, you can serve them much better once you have created your own success and wealth.
If you think that is unfeeling, remember the airline safety instructions: Secure your own oxygen mask before attempting to help others. You cannot successfully help anyone if you are in distress yourself!
What financial habits do I need to improve to be, or become, financially comfortable?
This is a good time to review your finances and prepare for next year. Good goals are to eliminate any debt and to have sufficient savings. A good benchmark of a healthy savings account is to have enough to cover living expenses for six to nine months.
Surprisingly, most people don’t have a plan to save income on a regular basis. Some people think that their income from work will be sufficient to cover their expenses. This may be true – until some life event such as illness or job loss affects the family. It is not negative or inviting misfortune to think that there may be some large expense in one’s future. Most people will have them – even if it is something expected - like a roof replacement. It is prudent to have savings and these situations are exactly what savings are for. The worst-case scenario is that a person will be prepared in advance for retirement.
Another habit worthy of adopting is insurance. For the sake of your own peace of mind if not for your loved ones, insure your valuable possessions such as your home or car. Perhaps your most asset is your ability to provide for your family. Even if you don’t have a family now, a term life insurance policy is a good way to provide for your family’s future needs in the event of a tragedy.
Where should I focus?
Success is often defined as a high paying position. True success would be better defined as financial freedom to pursue one’s passions.
In order to do this, a person must design their own life’s plan.
Most people would prefer to enjoy their leisure time following personal interests. However, using some of that time now to master skills that will increase your financial health for your future will ensure that you will be the master of your own destiny and able to enjoy your time for years to come.
“If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much.
-Jim Rohn
It takes discipline, but living within one’s means is key to accumulating wealth. Being financially responsible in the present is a good way to ensure a comfortable future.
These steps are good places to start a more conscious and directed route to achieving your financial freedom. Read, reflect and take what will work for you.
Bottom line is that there is no blanket strategy. Each person must evaluate their own circumstances, needs and desires. Get the help you need to achieve financial freedom.
Above all, believe in yourself and believe that you will achieve your goal!
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Sources:
Lynda at Sonoran Sun | Private Equity Investments
Sources:
Lynda at Sonoran Sun | Private Equity Investments
