Do you know how much you & your family spent this year on clothing? How about travel? Childcare?
If you don’t have a way to immediately answer these types of questions, I can guarantee you’re missing an essential piece of the foundation that will allow you to live a life of effortlessness and freedom.
Now, there are a number of connected components you need to have in place to achieve financial freedom. And, I’ll save that conversation for later. But because we’re rapidly approaching the end of the year, now is a perfect time for you to do one of three things (or all of them if you’re already next level).
These things are:
- Create a budget
- Review your budget regularly, and
- Take action to adjust your lifestyle accordingly to meet your goals
Creating a budget is actually fairly simple. Just find a template you like and run with it for your first try. The outcomes from this exercise are profound: you’ll know how much you save, you’ll know what you don’t need to spend on any more, you’ll have less stress on vacations… the list goes on and on.
Once you’ve created a budget, schedule time to actually review it against reality. Having a budget is pointless if you don’t also take the time to actually review your progress and then make appropriate adjustments. At first you’ll want to do this often (e.g. monthly), but as you start to build this habit, your review frequency will quickly move to bi-annually. With these reviews, you’ll quickly find that you’re moving towards ALL of your goals, not just financial ones!