A while ago, I was chatting on-line to a friend about their finances, and the conversation we had reaffirmed to me why I created my ‘Finance Road Map’.
The edited conversation went like this:
Friend (morning): “Urgh! Finally catching up on my accounts, which I have neglected appallingly for months. Funny how just checking the running total in the bank gives you a sense that you are doing ok, and don’t need to bother.”
Friend (evening): “I got my accounts pretty much done! My goody two shoes goblin in my head wanted me to check through all of 2015 an 2016 as well! Thankfully there were no nasty surprises, and it’s engendered a new found determination to do them regularly; after all, one month only takes about 20 minutes if I just blooming well do them!”
Me: “Woohoo, so chuffed for you. I reckon if you get into the habit, it’ll be like doing finance gym, and you will get that high after you finish them each month.”
Friend: “Ha, ha, I love that – Finance Gym!! Makes me want to tackle it head on and reap the rewards. Thank You.”
Now, this conversation may not sound that ground breaking to most of you, however, it reaffirmed to me why it is so important to be on top of your finances, both personally, and in business. It sounds so simple, and it is; but so many of us fear our finances, and don’t want to see the reality of our situation.
A past client of mine thought that her business was doing financially well, however when I started working with her, it soon became apparent that she was not doing as well as she thought.
After she got over the initial disappointment, we worked together to sort out the problem. By getting her figures up to date and in order, she could get a clearer picture of where she was on a monthly basis. With this new found understanding, she was able to get the investment she needed, and has now grown her company.
This is exactly why I created my ‘Finance Road Map’; in essence it is a health check for your finances. If everything is fine, that’s great; you can rest easy knowing that you are on the right track.
If, however it highlights some issues, it is not a sign to start panicking, because when you can see the issues, you can put the things in place to try and fix them.
You should look after your finances in the same way you look after your body.
If you feel unwell, what do you do?…….. You go to the doctor; and he/she tells you what they think is wrong, and how serious it could be. They then come up with a plan to try and fix the problem (if there is one).
So, get your head out of the sand and take your finances to the gym (not literally).
- Set a Date. Put in your diary when you are going to check your finances. Don’t move it, unless you really have to.
- Get organised. Set yourself a monthly routine (how you will go about the process), and stick to it. Some days you won’t want to do it, and at the start it will be hard going, but once it becomes a habit it will become easier, and you will see the benefits.
- Get Help. Don’t be afraid to ask for help. We can feel embarrassed about our finances, just like we can feel embarrassed by our bodies. Ask an independent person to look at your finances, this can be your bank manager, or an accountant, or a Finance Road Map (wink wink).
- Don’t Stress. Worrying about it won’t help. Take positive actions to sort out any issues.
Good luck! (oink oink)