A friend recently told me that all he wants to know about his finances is how much money he needs before retiring. He doesn’t care about understanding his spending—or even looking at it! He knows his spending is high today, but he believes he can reduce it at any time, and the best time seems to be retirement. This mindset will not lead you on the path to financial success.
We are too good at beating ourselves up and in our finances that happens most with our spending. While I love knowing what your spending is, be careful not to be too critical too quickly.
Just like exercise, a little bit of financial health is much better than none. Finances can be overwhelming when we try to think of all areas at once. We know it is important to have all areas of our financial lives working together, but it is simply too scary to do it all at once.
What is Financial Planning? I like to think about it in a very simple way. You need to have clarity in your finances before you can have control. Once you have control, you can be very intentional.