Do you know where you want to be with your money in 90 days? Sure, you might have some idea of how much you want to save, spend, or invest in the next quarter. But is it easy for you to make a plan that leads you in the right direction, and actually sets you up for success? This is where something that a lot of us avoid comes into play–financial planning.
Trust me, financial planning isn’t always the easiest thing. I’ve found over the years that there is a lot of resistance to setting financial goals (read more about getting past that resistance HERE!).
But after years of working not only with clients but also on my own money journey, I have found a way to make quarterly financial planning SIMPLE. Not only simple, but also in such a way that I can put my plan down on paper without getting stuck in emotions and resistance.
Today I’m sharing an exercise that I do every quarter as part of my big picture financial planning. Not only does it help with keeping track of my spending, saving, and investing, but it also positively affects my money mindset–and helps me make those all-important abundance shifts. These simple steps have truly enriched my life and I know they can do the same for you!
So grab a pen and paper and let’s get started.
Step 1: Your Big Goal: What is your BIGGEST money goal between now and the end of the current quarter?
It is essential to know what you want to accomplish first so you can make a plan to achieve it (makes sense, right?). So what do you want to accomplish financially in the next 90 days? Think about the one financial goal that stands out the most.
It could be something like save a certain amount of money, make a certain amount of income, invest a specific amount, pay off debt, set aside money for retirement, make a major purchase, etc. Whatever this goal is for you, write it down.
Step 2: The Practical Stuff: Your Numbers.
This is where we get down to your current and projected numbers. It’s also the part where a lot of us come up against some serious resistance. But when it comes to financial planning, knowing your numbers is essential. How do you do this?
Grab a pen and paper, and answer the questions below.
Answer the following questions:
- How much do I expect to make between now and the end of this quarter?
- Then, how much should I put aside for taxes?
- Next, how much do I need to sustain my lifestyle? (Read: monthly budgeted expenses)
- Any other money commitments outside of the above I need to satisfy?(Birthdays, vacations, events, late bills, car registrations, etc.)
- How much money is left over?
- What is my plan for that money? (See your answer in Step 1)
Step 3: Do The Math: Determine how much money you’ll have available after you’ve met your monthly expenses.
Use this simple formula:
1. Write down your total Expected Income. Use the answer from Question 1 above.
2. Write down your total Expected Expenses. Add together the monthly expenses in questions 2-4 above.
3. Subtract your total expected income from your total expected expenses. How much money is left?
Step 4: Create a plan for that money that matches your priorities and goals. Then kick off each month with the steps that move you towards that goal!
That’s all there is to it!
I’ve found these steps to be very useful for two reasons. First, going through them ensures that I’ll have the money set aside to fulfill my existing money commitments each month. Second, it gives me a solid intention and a plan for the money that is left over. That way I KNOW where my surplus money needs to go to help me truly accelerate my goals–and meet them!
So if you’ve been avoiding financial planning due to resistance, confusion, not knowing where to start, or otherwise, give this a try. It’ll take the stress and confusion out of financial planning, and help you set the foundation to meet your money goals in a straightforward AND intentional way.
Give this a try, and leave me a comment below to tell me how it worked for you!
By the way, of you want help setting up your budget, check out this post here all about making a plan for your money! (That is, budgeting without stress or resistance!) 😉
Until Next Time,
Love, Light, and MONEY, Honey…
Kaylee
