Will You Get Started Taking Charge of Your Finances?

The  above   BLOG Title  this week has two meanings

arrows pointing  up start small thing big

    Will you take action (get started) in this class? Odds are if you are reading this BLOG the answer is YES. The class may seem a little confusing at first but I suspect that by the end of next week you will find yourself in a pattern or routine that will allow for successful completion of the class this semester.

    Just, the goal of finishing the class with a good grade (although as an instructor I like this) however, is really not what will be of the most value to YOU in the long term. What will be the real value to you is learning how to and then taking action towards financial knowledge and improvement.

What’s on tap for this week?

There are 4 basic themes or modules this week.

    The Overall Financial Planning Cycle

    Beginning your Financial Mindset

    Goal Setting

    Getting Started ($5 per week)

1 – The Overall Financial Planning Cycle

financial planning process from text pg 16

The FP Cycle is about having a method to plan.  I  personally use the same method consistently.  It may seem hard to get started but once you do it gets easier every time.    Having a  Plan lets you see the bigger picture, how everything fits together. As you are completing various course elements over the next months you will see how they all fit together.   One thing to remember is that the cycle is continuous, stuff happens, plans need to be adaptable.  Everyone’s plans are different and they should be because we are at different stages  in our lives and different things are important to each of us.  

increasing bar chart with dollar signs

 

2 -Your  Personal Financial Mindset

A fundamental principle of Personal Finance is that a savings and investment plan starting earlier rather than later can get you ahead of the curve, The purpose of this class is to convince you that it really can work in the long term.  I always have believed this.  Once I started working I  began saving,  Over time I increased  my savings.  It really does work to save for the long term. Plus once you start developing your own personal financial mindset you find that you make  better informed decisions in every area  such as  buying  a car or  using your credit card.

 3 - Goal Setting

hockey player scoring goal

 For me the most important part of your week’s learning to be able to write a clear, measurable and attainable goal. Why? Because  goal writing has so many benefits for you and it’s not just about passing a Personal Finance class.

Odds are that at work, almost every one of you at some point will have your salary increases and perhaps a bonus tied to goal or MBO achievement. You  will want to be in control of your own destiny, with  goals evaluated objectively which reward you for your performance. You don’t want to worry about your review based on the mood of your Boss the day it’s written. Specific measurable goals not only leave no room for doubt, but allow you to double check along the way that you are “on target for success”.  Plus if you are behind in achieving your goal,  you become aware of this early, you know to  ask for help, and take corrective action to get back on track. Sure, goal setting and tracking take a little more time, but the benefits for you outweigh the small extra effort.   In my pre teaching life My employees all had SMART Goals.  This helped them maximize their bonuses and pay raises..

baby tree with coins

 4 - Getting Started ($5 per week)

 Typically the hardest thing to do is to get started. Like anything else once you get started things just become part of your daily routine. The $5 is meant to be a no brainier way to save money that’s painless and helps you to get started towards your savings plan.    For me  one thing I always do is ask for a discount. Between AAA,being a Teacher and AARP  many times there is one,  or even if it’s the  department store clerk finding a coupon to  scan for me.    

man with magnet attracting money

Personally I love to see everything you all post.  Every year students post an idea or two that I can use to save money!  Makes it worth teaching! (jk)