Financial Picture Dot-to-Dot
Remember when you were a child you’d connect the dots in your coloring book? With the easy ones, you could tell what they were before the dots were connected. You knew by the rough outline of dots and existing lines that it was a dragon or a princess or a farmer. Those weren’t the fun ones were they? Did you prefer the harder ones that took time and energy? You’d need to connect half to three quarters of the dots to get an idea of what the image was. Yea, us too. The same goes for your financial picture.
When we avoid being Money Conscious we go through life with an unclear financial picture. We are not aware of what we look like financially. Others may see it, but we don’t. We think we know what we want, what makes us happy and where we are headed. The truth is we are very much like the challenging connect-the-dots.
When we ask the right money questions and get the right answers, we formulate a better picture of what we look like financially. We connect our dots. Additionally, when we narrow down the number of unanswered financial questions and decisions, it easier for us to reflect on the picture we are creating.
Below is a list of questions that we ask ourselves regularly to make sure we are connecting the right dots for the best financial picture. Do you have the answers as they pertain to your personal financial situation?
Financial Dot to Dot Questions
1. What are my real financial goals?
2. Do I spend with a purpose? Does it align with my money goals?
3. Am I happy when I spend or do I have buyer’s remorse?
4. Is my spending helping my personal economy?
5. Am I saving? If so, how much? Is it enough?
6. Will I have enough for retirement? If not, what can I change?
After looking at the list, we’re sure you could come up with more. We encourage you to do just that. Create a list of questions that you can use on a regular basis, we prefer monthly; to assess what your financial picture looks like.
Change the Picture
Most people today are either ignorant or have purposefully chosen to ignore their financial picture. Remember the saying, “Ignorance is bliss”? This is true when it comes to your finances, but only for so long. Eventually your financial picture becomes blatantly clear, at which point you have to accept it. For some, this is when their debt rules their life. For others, it is getting to 65 and realizing that they cannot retire when their body can no longer work.
Will you wait that long to get your picture in view?
The sooner you recognize the picture your financial dots make the sooner you can to improve your financial picture. As mentioned above, we do this monthly. Each month we make an assessment of our income, our spending and where we stand financially. This past month we passed a significant milestone with our net worth. It brought a huge smile to our faces to see a numbers that we have been waiting to see.
You, too, can have the same experience. If you need help with creating a financial plan, get our book, #MoneyConscious Financial Planning Guide: 12 Steps to a Richer You. It will help you turn a page scattered with dots into a clearly numbered path to your best financial picture.
For more help with seeing your financial picture, learn about the benefits of mediation with our video here.