Creating Your Financial Sanctuary

Sanctuary has many meanings.  One of these meanings is “a place of safety.”  One area many people tell us that they don’t feel safe is in the area of money and finances.  In the last few years especially, we have heard this over and over.  The following tips are not meant to be all-inclusive , but are ideas to help you begin to feel some safety, some sanctuary, with money and finances.

TIPS

1.    Reduce credit card debt: Many people have gotten into trouble using credit cards to live on and now are under a mountain of credit card debt.  Once the credit card debt piles up it’s very difficult to pay it off so if you do have credit card debt make it a priority to pay it off as quickly as possible.  Start with the card(s) that have the highest interest rates and pay those off first.  Stop using credit cards if possible.  Keep one card that is a rewards card and keep a second card that should only be used for emergency expenses.
2.    Know what you are spending your money on: Budgeting is as important for businesses as it is for individuals.  It gives you an opportunity to review where you are spending your money and where you want to be spending your money and making sure you can cover those items with your current income.  Equally as important as preparing a budget is looking at it and comparing what was actually spent  on a regular basis.  Then use the comparison to adjust spending if needed.

3.    Save as much as you can: It is important to save money for a “rainy day” or for a life event (getting married, retiring, education).  Here is where a budget can help as well since you can plan for   savings.   Once you figure out how much you can save  set up an automatic deposit into an account (such as a savings account, 401k or Section 529 Plan).   This is enforced savings—the money can’t be used for other expenses.

4. Buy insurance wisely: Everyone needs insurance for catastrophic circumstances, but you want to be sure you have the correct insurance for potential issues that might come up for you in your life.  Find and use a knowledgeable insurance agent to help you determine what insurance you need.

5.    Use financial advisors wisely: To assist you in setting up and maintaining your financial safety plan, financial advisors can be priceless.  There are different types of advisors so you should understand those types and what they can contribute to your overall financial plan.    After you have chosen your advisors, use them.  Tap their knowledge and skill set.

HHL Group, Inc. provides services which will help you and/or your business review your financial “sanctuary”.  Contact us today at 330-721-1410 or at http://www.hhlgroup.net/ to set up a free 30 minute consultation.

Knowledge is Power…And Relieves Stress

Money- wondering if you have enough, managing it, wondering about your financial future- can be very stressful! Besides the perception that managing your finances is no fun (think of the bad rap budgets get), there are many emotional issues tied to how money flows in and out of your life. But understanding your cash flow and knowing where your money is and how to manage it is very empowering. It doesn’t need to be complicated and if you take charge of your finances you will feel better. So, the theme of my message today is KNOWLEDGE IS POWER when it comes to your money.

Here are a few tips to help get you on the road to a healthy and less stressful financial future:

Create a budget to track your income and expenses. It can be very simple; start with your primary living expenses (rent or mortgage, utilities, groceries, etc.) and work from most necessary to least necessary, creating a category for all your expense areas including those things you only pay for several times per year (examples include car repairs and car insurance).

Use a small notebook to track all of your cash expenses. Often, we purchase things during the day- a cup of coffee, an afternoon snack- and forget to include it in our budget. Those small expenses can add up so be sure to include them in your budget.

Once your budget is on paper, begin to look at ways you can manipulate it to achieve a goal. Do you want to pay off your debt more quickly? Do you want to create a dream fund to take a special trip or make a special purchase? Do you want to contribute more to your retirement savings? This is where the fun begins! Think of it as a big puzzle where you are moving the pieces around and trying to make them fit together into a better “picture”—a picture that reflects the life you want to be living.

Envision your dream. Create a Dreamscape (contact me at email below for a copy of this activity) to give image to your dream life. What will it look like? What will it include? How does money play a role in that dream? Be specific as to how much you will want and where it will come from (better paying job, modified lifestyle, etc.).

If you are feeling completely stuck, enlist help. If you feel like family history or a “bad” financial past is holding you back from moving to a healthier financial future, engage in some activities that will help your re-frame those negative beliefs. I often encourage clients to read The 9 Steps to Financial Freedom by Suze Orman, which offers invaluable step-by-step advice to overcoming unhealthy and self-defeating behavior patterns concerning money. There are also a number of holistically minded financial planners out there. Additionally, I offer several programs that provide money coaching assistance and support. Please visit Transition Consulting and Coaching, for more information.

Engage in these first steps and you will be on your way to a less stressful, happier financial future. Remember- knowledge is power… especially when it comes to your money. Only by knowing where you are now will you be able create the foundation for where you want to be in the future.

Cathy Posner offers career and small business coaching services. Visit her website to learn more, http://www.transitionconsultingandcoaching.com. She can be reached by email at Cathy@TransitionConsultingandCoaching.com.

The New Year…A Perfect Time to Set a Budget

The New Year is a perfect time to create a budget.  Many people consider a budget to be an unpleasant, limiting factor in their life.  Instead, I invite you to view it as a welcome guideline and a fun puzzle.  Nothing feels quite as good as spending within your means.  And I fully encourage you to build in a line for “treats” or “splurges.”  There are many tools available online to help with this activity.  Several sites like Kiplingers and The Dough Roller have especially useful tools.  Or Google search “budget tools” and choose one to your liking.  If you are stuck, a coaching session can help you start the process.  I am offering a new program, Budget Bliss, that can help you be on your way!  Regardless of your method, I encourage you to take the plunge!  It will give you peace of mind and the great satisfaction of having done something to take care of yourself as the new year begins.

From Cathy Posner, Transition Consulting and Coaching/Crossroads Coaching/Sanctuary at the Crossroads
www.transitionconsultingandcoaching
Questions? Call or email cathy@transitionconsultingandcoaching.com or 216-337-2106