5 Reasons People Struggle with their Finances (2 of 5)

2) Not knowing your numbers

Faced with making a financial decision which would you prefer; complete and accurate financial statements or a dart board, a wish and a prayer? When faced with making a financial decision which would you prefer; complete and accurate financial statements or a dart board? When credit, debit cards and ATMs became the new norm I witnessed a significant shift away from personal money management. I’d see folks using the account balance reported on the ATM slip as the way they “knew” how much money they had. Easy access to credit also opened the door for immediate satisfaction and living well beyond current earnings. The number of people living paycheck to paycheck and the average amount of personal debt is staggering. If you desire to change your financial landscape, knowing your numbers is an absolute must. Financial tracking and reporting is the M.A.P. (Money Action Potential) that clearly shows where you are (you are HERE) and allows you to create strategies and tactics to get you to your desired destination (X marks the spot)

.… and what to do about it:

Before anything else can happen you must DECIDE that knowing your numbers is a priority. Only then are you ready to move on to strategy and implementation. Get clear about how and why knowing your numbers will support you. Identify WHY you are ready to shift and change long standing patterns and how you will feel after you shift these patterns. You already know how it’s felt so far, get clear about the benefits you anticipate from creating new habits around financial tracking.