Let’s Get Uncomfortable..

In this issue, you will feel uncomfortable, and it’s not your fault. If you are not ready to dive deeper into yourself or not ready to face what you haven’t been doing, go ahead and stop reading this issue and come back to it at another time.

What Does Financial Organization Mean?

Simply put it’s having an understanding of everything that involves your money, the how/when/why across all the categories. *Trigger Warning*

If you need a refresher on getting organized, you can review my year end issue.

Income

Knowing where your money is coming from, when your money will come in and how much of it is being taxed before it hit’s your paycheck. Why — why are you utilizing your time in life for that income and why at that specific place? Knowing how much you will be paying in taxes from this income and what deductions are.

Is your income enough to become financially free?

Tip: Review your w4, increase # of dependents to get more cash per paycheck, helps with Cash Flow Flexibility

Expenses

Only going to focus on the main 3 expenses (otherwise this could get LONG).

Rent/Mortgage

We are sooo lucky to be in a High Rent, High Interest rate environment “insert eyeroll” that this expense hurts more than it’s supposed to. Some Advisors would say to not spend more than 30% of your income on housing….BAHHA good luck in todays world. That being said ask yourself are you living in your dream place? If so, CONGRATS, you are like one of the select few in the world. Like the rest of us you probably are not so let’s focus on how we can use where you live to build your wealth.

If you are renting/own your non-forever home, use this time to live minimally and find/develop what your dream home would be or if you are more into real estate investing, what it would take to own a building/townhome/duplex etc. I want you to use that dream as the new housing expense (if feasible, if not you need to put that goal somewhere) by doing this you are putting your mindset focused on the bigger picture and not somewhere else. What I see often is when renting, shit while owning, you develop your budget around that amount and not about where you want to be thus all your other items get larger and your rent/mortgage just stays, making you feel locked there.

How old is your HVAC system? Have you planned for it’s demise? Roof age? Lawn upkeep?

Tips: Use the equity in your home to build your wealth!

Set payments up per paycheck.

Groceries/Dining Out

Are you a cook at home or a go out to eat person/family? Or both? This is a lifestyle item that is near and dear to my heart…because as you know I LOVE FOOD. I want you to look at these items as one budget line item, for example our grocery budget is $800 and our dining out is $200, so this would actually be $1,000 total.

Once you have decided what lifestyle you want then simply divide this up (each month may fluctuate), for example if you are cook at home people then 80% of your budget should be for home cooking, if you are dining out people flip that to 80% going out. Adjust these percentages to be comfortable but the main purpose is to focus on them so you don’t go over either side.

This expense get’s out of hand when we are home cookers and buy a bunch of groceries but still go out to eat and vice versa, we are dining out people but buy groceries to “stock our homes”, YOU CANNOT DO BOTH.

Tip: Home Cookers: Use Sam’s or Costco, BUY In Bulk, Get deep freezers etc, this can save your up to 30% or more in the long run.

Dining Outers: Don’t feel like you have to finish your meal and use the left overs for breakfast or lunch, One meal can be multiple meals thus reducing need for “groceries” at home.

Car Note

Oh boy, the ol car discussion, full disclosure, on twitter financial planners & personal finance “gurus” argue back and forth about this topic, some argue you should have $0 for car notes and just buy a beater and run her into the ground, others state you shouldn’t have a car loan over $400.

Do you know where your car title is? Do you have enough insurance coverage? When was the last oil change? Tires rotation?

Well here is my opinion, YOU DO YOU BOOBOO! Seriously, do what makes you happy that is reasonable, your happiness will always drive in more income, better relationships etc. Just don’t go buying a new Tesla to be “cool” and realize it will effect your overall situation.

Off my high horse now, that being said negotiate the timing of your payments, set it up to come out when your paycheck comes in, this will allow you to truly not overspend in categories (more on than later).

Tip: Leasing may be a better option, either way look into refinancing every year

Being Organized

I didn’t go into every category for a reason, because it could get long and cumbersome but I wanted to highlight that all these thoughts and focuses are what it takes to be organized. We haven’t even hit, making sure you are covered with insurance or retirement, better yet estate planning. All will be hit in this series!

I decided that this issue will be a multi-part mainly because this is a lot all at once. How are you feeling? Overwhelmed, not sure where anything is? We will get you there do not worry.

Next Week’s Issue

We will continue on this Organization topic, for a resource check out 5 Simple Steps by Clever Girl Finance

Hottest Tweet of the Week….

This 6 week series that will be on NOB$ Wealth Podcast and blasted everywhere, is truly for you. These episodes will be about a client story, the purpose of this series is to give you insight into how other’s journeys are just as tough as yours and the HOPE is to help you on your wealth journey!

#NoBSWealth Clip of The Week

Cannot wait until next week or just want more, check out our podcast @nobswealth and catch us on Youtube. You can always follow me on Instagram and Twitter as well! Or just email me, [email protected].

Most importantly come check out our Website and give us some feedback. Make sure to subscribe to this newsletter and if you are wanting time to chat with me 1on1 you can schedule that here!