An action plan for taking action and control of your cash flow in the New Year
As we head into the New Year, it’s common to slow down, take stock of our life, and make some resolutions for the coming 365 days. I think that this is healthy and when done right, can be a great catalyst for a new you—a you who thinks and acts differently and effectively.
Who are you working for?
This year, ask yourself this, “Have I been working hard and making everyone else rich?”
Starting early in life, most people are programmed to mind other people’s businesses and make other people rich. It begins innocently enough with words of advice like:
· “Having a large mortgage is good because the government gives you a tax deduction for your interest payments.”
· “Buy now, pay later,” or “Low down payment, easy monthly payments,” or “Come in and save money.”
The road to nowhere
The people who blindly follow those words of advice are often on the road to Financial Nowhere. They often become:
Employees, making their bosses and owners rich
Debtors, making banks and money lenders rich
Taxpayers, making the government rich
Consumers, making many other businesses rich
Instead of finding their own financial Fast Track, they help everyone else find theirs. Instead of minding their own business, they work all their lives minding everyone else’s.
Take action this year
For many people, their financial statements are not a pretty picture, simply because they’ve been mislead into minding everyone else’s business instead of minding their own business. To change all that, I suggest following these action steps in the New Year.
1. Fill out your own personal financial statement
In order to get where you want to go, you need to know where you are. This is your first step to take control of your life and spend more time minding your own business. Download a financial statement and fill it out today.
2. Set financial goals
Set a long-term financial goal for where you want to be in five years, and a smaller, short-term financial goal for where you want to be this year. Make sure they are realistic and attainable.
Here are some examples.
My five-year financial goals are:
o I want to increase cash flow (i.e., passive income—income you earn without having to work for it) from my assets to $_________ per month.
o I want to have the following investment vehicles in my asset column (e.g., real estate, stocks, businesses, commodities, etc.) ____________________________________
My one-year financial goals are:
o I want to decrease my debt by $ _____________.
o I want to increase cash flow from my assets to $ ____________ per month.
· Using my five-year goals, I will complete my financial statement again to show how it will look five years from today.
By doing these exercises, you will know where you are financially today and have set the right, attainable goals to get where you want to be tomorrow. This is the year to take action and to take control of your cash flow. This is the year to start building a great financial future.