So .. making the decision you are going to take control of your finances can be almost immediate. In that very moment you can decide:
“Enough is enough! This has to stop! Here and no more!
Trouble is .. between the decision to stop spending on crap, knuckle down, get a plan and follow a budget intention… life kind of gets in the way!
I can pretty much guarantee everyone I have ever coached through this process starts off all gung-ho! and strips their budget to the bone and then an “unexpected” expenditure happens along .. a bad MOT, new tyres, emergency repair … it’s like the Universe is testing you .. right?
It’s pretty much a universal truth that as soon as you set a goal the barriers, the resistance and the challenges will start to manifest.
After all, if you are moving massively out of your comfort zone where everything is known, everything is comfortable, everything is “safe” then stepping out into uncharted territory is scary, dangerous, unpredictable and it would make sense for your subconscious to throw up barriers to keep you where you are and mitigate the danger.
So .. as real people, here in the real world .. let’s just acknowledge that!
We are changing and there is going to be resistance. If you decide on a massive change in your life .. expect massive challenges. If you just want to tweak your plans a little .. then the resistance will be much smaller.
But that doesn’t mean you shouldn’t do it .. after all:
All your Goals are on the other side of your comfort zone
What you need if you are making a massive change is a few handy tools, strategies and new habits to get you over the initial period of resistance and into your “new normal”
Knowing that there is going to be kick-back .. plan for that ahead of time!
So .. back to the money stuff!
Got a plan .. going to drive down my expenditure and drive up my income ……
Step One: I waded through my last six months bank accounts and identified what the real necessities of life are going to be over the next few months. For me, that involves keeping a roof over our heads (Mortgage, insurance, utilities & Council Tax) making sure my boys are fed and clothed (Home cooking all the way!) and keeping my little bean-can of a car on the road (fuel, tax, insurance)
EVERYTHING ELSE is pretty much a “would like to have”
Now .. disclaimer! I have registered my new business, set up a bank account and have moved a few of my “personal expenditure” lines into the business instead. After all, the reason I have a mobile phone and the internet is that I will be running a business online and it’s only fair those expenditures go over there!
So yeah – you need to be a big girl and figure out what comes from what budget!
Actually, if I strip out the “discretionary spending” on a month by month basis we are not in too shabby a shape .. ALTHOUGH! I am in the position right now where I am having to generate an income from a standing start. The reality is no matter how healthy my position is .. I currently have a home, two kids and NO INCOME!
So .. Protection Plan One. I have moved all the “no choice these have to be paid” bills over to my current account mortgage account. It’s not ideal but it means that these bills can remain current even if they are being paid out of savings. The goal will be to create a sustainable income every month so that at least my stripped-down bills can be met from earned income.
Step Two: I have released my £2000 Emergency fund and tucked it into a savings account tied to my current account. I know … but look on the bright side, I actually had this Emergency Pot and if being out of a job with no income and a huge amount of back pay accrued is not an emergency then I don’t know what is?
The thing is .. this now has to be the only money I have access to until the new business is up, rolling and creating revenue and although I have a plan .. it could be months before we are there.
So .. £2000 .. to last .. maybe six months? EEK!!!
AND deal with any “unexpected” money emergencies that are bound to manifest now that the decision has been made and battle-lines have been drawn.
How on earth am I going to weather the challenges that are about to come barreling my way?
Well, time to pull out the big guns … or in my case a very simple little weekly budgeting tool that helps me get laser focus on my spending over the first few choppy weeks. My Triple F Budgeting Tool.
So check in tomorrow for a download and tutorial for my tried and trusted one-page budget tool that makes the transition from “not sure where my money goes” to “I have control over every penny and a plan for every saving”
See ya XX