View your personal finances like a business

Do you remember your first job?

You probably had a great time. You met new people, learned new skills. If you were like me, you and your work pals laughed hysterically. Like, all the time!

One thing we didn’t do was think about the company’s finances. We got a paycheck, did a mix of exciting and boring (maybe even gross) tasks, went home.

Easy!

We were just along for the ride.

Thank goodness there was someone behind the scenes paying attention. Somebody put together an annual financial plan. They worked those numbers to ensure the company made a profit. Their diligence ensured the company could survive for years to come.

You’re not a kid anymore. It’s time to stop hitching a ride and start navigating your own future. Make sure you can survive financially for years to come.

Putting together your personal savings plan is similar to what a business does. You should be mapping out your personal profits.

When you’re putting together your budget, make sure you have a financial end goal. A profit. We’ll be covering various savings funds in the coming weeks but get started with saving right away.

These are non-negotiable dollars that go straight into your savings account first.

Ideally, setting aside about 10% of your take home pay to start would be fantastic!

Realistically, you might have some fixed costs that can’t be changed right now. We’ll attack those in the future, too, but, for now make a goal and stick to it.

Again, non-negotiable.

Treat your savings like a fixed cost . . . that $5 a week or $500 a week falls into the “must pay” category. As you watch your savings grow, your mindset will change from “I must pay myself” to “I get to pay myself.” It’s motivational!

At first, these savings will give you some breathing room so you can take care of the unexpected and handle life’s little “oopsies!”. Over time, these savings will help with larger purchases you’d like to make (car, house, college), fun opportunities that crop up (ladies’ weekend, vacations, glitzy charity events) and, ultimately, retirement.

Taking that initial step of paying yourself first will lead you down the path of financial freedom.

You’re on your way to being the boss of your bucks!