Wednesday, January 16, 2013

What is Your Financial Strategy



                                                        

A resolution is defined as a resolve or determination, i.e. to make a firm resolve to do something; the act of resolving or determining upon an action or course of action, method, procedure; something resolved or determined; decision. A strategy is defined as a plan, method, or series of maneuvers for obtaining a specific goal or result. A financial strategy is a plan, method, or series of maneuvers for obtaining a specific financial goal or result.

Many people make New Year’s resolution and around February or March their resolutions have been forgotten.  When you make a resolution you are initially determined to do something, whatever that something is. I stopped making New Year’s resolution in 2010.  

When you make a strategy you have 4 actions that take place: 1) plan 2) assess 3) implement 4) evaluate.  You first identify a goal you want to achieve.  Then you create a plan on how you will achieve that goal.  You then assess the plan and make any necessary modifications.  You then implement the plan.  Once the plan is implemented you then evaluate your progress and identify lessons learned or ways to improve the next time you implement a strategy in the future.

The same applies with your finances. Many people are determined to do better with their finances. Many want to get out of debt, plan for retirement, create a budget, start saving or become a homeowner.  However, their frustration, lack of discipline and sacrifice outweighs their determination and they continue to practice bad money habits that cause havoc in their lives, in many instances resulting in physical ailments and personal challenges.

Finances can destroy relationships; result in divorce, arguments, sadness, depression, anxiety and fear. Finances have to be properly managed and can be used to generate wealth or can be used to generate debt.  

By creating a financial strategy you will be more determined to achieve specific financial goals because they will be things you want to achieve and need to achieve.  These financial goals should be things you can do throughout the year to improve your finances.

If you don't meet all of your financial goals develop smaller goals that can be easily achieved. Once you achieve those, develop larger financial goals and develop a course of action to achieve them. Track your progress.  I develop a roadmap each year that is broken down into 6 month increments. I develop goals and set a target date for each goal.  Later I develop a course of action on how to achieve those goals. If I don’t meet a goal I extend the deadline and add it to the next 6 month increment.

Ensure your financial goals are positive statements that will improve your finances. A financial goal should be similar to an affirmation, i.e. I will pay off my Visa bill by March 2013 instead of an uncertain or negative goal such as, I hope I can pay off my Visa bill by March 2013.  What is you think, write and say has power so be sure to write affirmative achievable statements that will result in a positive action.

Ask friends or relatives to provide support and encouragement to help you achieve your financial goals.  Purchase self-help motivation books or practice meditation or positive affirmations to help strengthen your confidence to ensure you achieve your financial goals.

Each year should be used an opportunity to correct any past financial mistakes.  Look at the big picture and how your financial goals will help you, your family or your overall life. Examine the long-terms benefits of your financial goals and focus on the benefits to increase your motivation.  If you believe you can achieve a financial goal you will.  Whatever your financial strategy is, the only thing stopping you from achieving it is you. Wishing you a prosperous 2013!

3 comments:

HcoRealEstate said...
This comment has been removed by the author.
Mickey James said...

Marvelous work pals, I love reading your articles.
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Unsecured Loan Provider said...

This post is an ideal piece to reflect on especially when it comes to coming up with financial strategies. Thank you.