One of the biggest challenges with financial planning is getting past the overwhelm of all the things you need to do and knowing where to get started.
It feels like such a big mountain to climb, and we get stuck with taking that first step.
“Should I pay off debt or invest”
“How do I build strong habits”
“It’s easier to continue avoiding this”
We get overwhelmed, and then we do nothing. Even though we so desperately want to take action. We just don’t know where to start, and we’re terrified of jumping in and seeing what the numbers are saying.
So how do you start to create a plan of action for your finances?
Start by writing down your short, mid and long term goals.
Short term: 1-3 years
Mid term: 3-5 years
Long term: 5+ years
That’s your brain dump. Now you have everything out of your head and you’ve written it down on paper.
Next, list out your top 3 goals, in order of importance, with goal #1 being your most important goal.
Now you have the top 3 things you want to focus on. If that still feels overwhelming, focus only on your #1 goal.
If that #1 goal still feels too big, break it down even smaller. Make your goal as small as it needs to be to feel like it’s something you want to take action on.
For example, if you want to get to $300,000 in revenue in your business, but you’re at $100,000, maybe you focus on getting to $150,000 or $200,000 first.
You don’t have to put pressure on a time frame either. Give yourself permission to take as much time as you need.
Once you have a goal that you’re focusing on, start to break that down. What are the steps you’re going to need to take to reach that goal?
In the example of growing your revenue, how many more clients or products will you need to sell and what sales and marketing strategies will you use to get there?
Maybe money goes out as fast as it comes in and you struggle to save or invest. You can start by being more mindful of where your money is going. Connect your bank account to an expense tracking app and simply look at it every month to see where your money went.
Keep it simple, keep it light, and keep it fun! Remember not to judge yourself. This is a journey and even a small step is a step in the right direction. Showing up is the hardest part, and doing that is a win within itself.
You can go through this exercise and more in the free Money Goal Workbook. You’ll create a big-picture vision for your finances and learn how to take action on that vision today.