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The 7 Pillars of Financial Wellbeing - #1 Know Your Numbers
Understanding where you are now, where you want to be and creating a plan to get there.
A definition of financial wellbeing involves feeling comfortable and empowered around money both now and for the future. Therefore, a better understanding of where you are now and where you want to be is a great first step in improving yours.
How much money is in your bank account right now, how accurate could you be? Within £100? Within £10? If that was challenging, you are not alone. When I ask that question to a group, the majority has no idea. Yet most of us know how much we earn and will soon notice if an expected sum on payday is different by even a small amount.
So what’s going on? It would follow that the gap in our understanding is in how much we spend.
Know Your Numbers
A great starting point in financial planning and regaining control of your money is to know your numbers.
Make a list of your regular outgoings, housing costs, food, transport, subscriptions etc. Next add on other spending, which is less predictable such as nights out, or clothes maybe. If you total the list, you now have a pretty good indication of how much you spend each month and where it goes.
Setting Goals and Plans for The Future
One of the most popular categories for New Year’s resolutions is around money. Many people set well intentioned ones such as to get out of debt or increasing their income. One of the keys to effective goal setting is to understand your why. Having a compelling reason for doing something will help you find the way to achieve it.
Some things are more under your control than others. For example, getting out of debt is achievable by identifying spare money and targeting debts in a systematic way. Stop spending money on credit cards and look to switch to lower rates of interest will also accelerate your success. Doubling your income is more of a challenge especially if you earn a salary. Mostly because there are more factors beyond your control. However, if you ask powerful questions you can expect to receive powerful answers.
if you enjoyed this episode please share with a friend who may also benefit.
There is also a free download available summarising my 7 Steps to Financial Wellbeing
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By Daniel BrittonUnderstanding where you are now, where you want to be and creating a plan to get there.
A definition of financial wellbeing involves feeling comfortable and empowered around money both now and for the future. Therefore, a better understanding of where you are now and where you want to be is a great first step in improving yours.
How much money is in your bank account right now, how accurate could you be? Within £100? Within £10? If that was challenging, you are not alone. When I ask that question to a group, the majority has no idea. Yet most of us know how much we earn and will soon notice if an expected sum on payday is different by even a small amount.
So what’s going on? It would follow that the gap in our understanding is in how much we spend.
Know Your Numbers
A great starting point in financial planning and regaining control of your money is to know your numbers.
Make a list of your regular outgoings, housing costs, food, transport, subscriptions etc. Next add on other spending, which is less predictable such as nights out, or clothes maybe. If you total the list, you now have a pretty good indication of how much you spend each month and where it goes.
Setting Goals and Plans for The Future
One of the most popular categories for New Year’s resolutions is around money. Many people set well intentioned ones such as to get out of debt or increasing their income. One of the keys to effective goal setting is to understand your why. Having a compelling reason for doing something will help you find the way to achieve it.
Some things are more under your control than others. For example, getting out of debt is achievable by identifying spare money and targeting debts in a systematic way. Stop spending money on credit cards and look to switch to lower rates of interest will also accelerate your success. Doubling your income is more of a challenge especially if you earn a salary. Mostly because there are more factors beyond your control. However, if you ask powerful questions you can expect to receive powerful answers.
if you enjoyed this episode please share with a friend who may also benefit.
There is also a free download available summarising my 7 Steps to Financial Wellbeing