Issue #15: End of Year Review

It is that time of year for some deep dive into your SOUL! Well...maybe not that deep just into the information you gathered from Issue #13 check it out if you haven't you can always take the time to go back and do the exercise before getting to the End of Year Review.

So you have completed the prior tasks of;

1. Enjoy Family Time2. Remember and write down the Good Times from 20223. Find 2022 Goal Notes4. Gather up EOY Bank/CC/Investment Statements5. Gather Up The Ol' Budget

Your first step is to go through your transactions on all your statements and start to organize them into correct categories...remember I said this could be time consuming. If you have never done something like this I recommend doing all 12 months. If you have done this and need just a refresher to your plan, I recommend doing the months of Sept, Oct, Nov, avoiding the holidays as best we can.

Once you have them all organized you will be able to take the average of what it looks like for you, now simply add in your average "Paycheck" (yes use the pay check, take home amount, not your gross income). And boom! you get smacked right in the face with your actual spend and your actual income for the year! How does it make you feel?

For item # 5, I need you to stop and really think/feel what occurred in 2022...this is the most important part of planning, understanding your relationship with money aka #moneymindset. Now that we have gone through the anger, sadness, maybe some tears, let's dive in a little bit. I want you to take a look at the areas that stand out to you, some maybe groceries, hobbies, etc. Really look at those and ask yourself can I shave off 10% or 20% without making yourself uncomfortable, go through and do this with all categories, most you won't be able to but some you will.

Now that you have done that, you would have already added more to your cash flow, which is important and allows you to save more or pay down debt. Once cleaned up your budget can look like below - Side note this is apart of Right Capital which we can build out for you!

Key in on the ability to set your new budget (in the boxes) and the average monthly spend on the right side, this will help you stay within the averages. There is a HUGE negative #moneymindset around #budgeting...and it's all because you restrict yourself to that number, that number is just an average, stay around the average and you'll be just fine!Now to #3 and your goals for 2022...How'd you do?!

Good, bad, meh? Well personally, mine were bad. Our personal side we over spent, business we had to deal with a regulatory review (which takes place within the first 3 years of business) so legal fees ate us alive and we didn't get as many clients as I hoped for 2022.

Regardless of what occurred, we move forward, 2022 is in the past now, if you achieved your goals (congrats!) if you did not, then we push for 2023. The focus on goals here is to ensure we keep our budget on the averages, staying in our lane, essentially is the whole purpose. Your goals for 2023 maybe simple as, working on your #moneymindset, hiring a professional to help you financially *Cough Cough :D or something bigger like getting married, buying a house etc. Whatever those are, set those and develop your budget around them to keep you on course and then do a monthly review...because YOU WILL NEED to adjust, every plan changes and adapts, not one single financial plan is ever set and forget for 30 years.

This topic will be hammered on many times through out the year, as financial plans are amoeba's and change constantly thus we need to revisit often. Be excited about 2023, be excited about the growth you can achieve and remember this...this is important for #moneymindset!

Do not focus on cutting "fat" (expenses), focus on gaining "muscle" (Income), by making more money you are able to adjust easier within your plan.

Interested in how we can help you grow your #wealth? Schedule a free meeting with me, to get started.

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