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We’ve all created (or tried to create) a budget at least once. I’m sure keeping it was another story.
Writing down and seeing your numbers on paper is a very useful way to see how you are spending your money. Sometimes that’s exactly what it takes for you to actually see the numbers to understand your financial situation better. And, you do learn a lot about your spending habits while working on a budget.
As soon as I decided it was time to take control of my finances, I sat down with my financial advisor and was told to work on a financial needs analysis. (Yes, I have a financial advisor. It’s not just for the wealthy!). A financial needs analysis is basically writing down all of your assets, income, debts, and expenses.
While working on my financial needs analysis, I learned that I spend a lot of money. In fact, most families spend at least 50% of their income on bills, 25% on miscellaneous personal spending, and 25% on taxes. I was actually shocked that I too fall into this statistic. The great thing was that I saw my numbers and the way I can improve them is by either (1) reduce my unnecessary miscellaneous spending and/or (2) find another stream of income.
The moral here is that sometimes we all need financial help. We all need someone we can trust to help us make and reach our goals. And most importantly, we all need to be financial educated because this is something that most of us do not learn in school or from our own family. I can definitely attest to that!
One thing I do remember from school is that there is no such thing as a stupid question because, more than likely, someone else has that same exact question.
If you have any questions, I am an email away. Let’s connect!