New Year, New Financial Goals: Why Women Should Enroll in Money Management Courses
Reflecting on your progress of your new year money goals creates access to navigate the challenges that arise in managing finances. New year goals become distant memories as time begins to shape our places and actions. Creating awareness of the flow of your money is key to accomplishing your goals and staying committed to your promises.
In this article I will journey with you to reflect on the impact of accomplishing your money goals of budgeting, paying debt, contributing to retirement accounts and building your fun bucket. Even more, coupling your goals with help and guidance from a money management course could compound your progress and accomplishment of your goals. Let’s dive in.
Budgeting simply means monitoring how much money is coming in and going out of your accounts. That means ALL accounts - your bank accounts, credit cards, savings, retirement accounts, and investment accounts. By knowing the full details of your account balances and savings accumulated you are better equipped to make powerful decisions about where your money is going. How epic would it be to know without a doubt that you can throw cash at your next purchase without hesitation? Add your numbers for expenses and income, set aside 20% for savings, find your limits, and crush your money goals with full power.
Paying off debt opens doors for opportunities to spend money or invest knowing that the interest being paid is for positive compounds. Clearing credit card debt, mortgage payments or student loans allows for allocating those expenses to savings, investments, retirement, additional property, or fun. Free yourself of negative compound interest by paying down debt with the debt avalanche or debt snowball method. Both would have you pay the minimum on all credit accounts. After that, you can choose to pay extra toward debt with the highest interest rate (avalanche) or paying off the smallest debts by throwing “snowballs” of extra money at it.
Now that you have a handle on savings and debt, begin looking for extra cash that you can put towards retirement. The average amount of money needed to retire is between 10-12 times your annual income at retirement age. To retire at 67 with an income of $75,000 you would need to accumulate $750,000 to $900,000. However, consider how much you will pay on your mortgage, healthcare, wellbeing, and any debts leftover after you finish working. You will most likely need 13-15 times your income to leave money for grandchildren or family. Aim for $1 million of combined assets, cash, 401k/IRA, and investments. When you reflect on your budget make sure it includes 10-15% for retirement specifically.
Retirement savings and debt can bring emotional torment and unsatisfying personal finance experiences, which wreak havoc on your mindset, motivation, mood, and relationships. To help balance these challenges, it's important to set aside money and time for fun. Yes, enjoying what brings you pleasure creates space for you to express the motions stirring in your mind and body, which lead to long-term life fulfillment and perseverance. To create this outlet, designate your fun bucket alongside your budget. Determine a certain amount of income to fun each month after your bills, expenses, debts, retirement and savings contributions have been completed. If it’s a tight squeeze, spend time researching how to have fun for free. Your fun bucket is your reward, whether expensive or cheap, that you give yourself as a reminder of why you do what you do.
Budgeting, paying debt, planning retirement and trying to have fun all at the same time stirs deep-rooted and hidden fears. Having support to identify and manage money worries, burdens, and panic supports you in accomplishing your money goals with confidence and clarity. Before managing my money properly, I had no clear path and endless websites of research telling me the supposed “secrets” of wealth building. Learning with coaches, advisors, and mentors provided me with skills and knowledge to take on managing my own money while being able to have fun.
The impact of accomplishing money goals catapults us into a state of awe, inspiration and pride. Being able to take charge of your promises to your money goals can prove challenging. The rewards speak for themselves and offer incentives for persevering through tough times and forgotten resolutions. The freedom and security we get from financial independence can enable us to dream big, plan for the long-term and have fun. To help you get there faster, join my webinars, courses, and events that will compound your progress on your new year goals and beyond. Remember, the highest rate of return has always been on getting yourself educated to win your own game.
