Getting to Know Your Numbers

January 7, 2023 Marika Stimac

Getting to Know Your Numbers: The Foundation of Financial Confidence

Embarking on a Journey of Financial Self-Discovery

Hello, intrepid explorers of personal finance! Today, let’s embark on an essential and enlightening journey – getting to know your financial numbers. This isn’t just a task; it’s an adventure into the heart of your financial life. Understanding your numbers is like having a map of uncharted territory; it empowers you to navigate with confidence and precision.

1. The Preparation: Embrace the Challenge

First, let’s gear up for this exploration. Promise yourself that you'll commit to this journey. Set aside dedicated time to dive into your financial world. This isn’t just about crunching numbers; it’s about discovering the hidden treasures and perhaps some forgotten debts in your financial landscape.

2. The Exploration: Uncover Your Financial Facts

Armed with a blank sheet of paper, or a specially designed worksheet (which you can find in my Etsy shop!), let's begin the exploration. Here's what we're looking for:

Your Annual Income: This is your total earnings before deductions.
Monthly Pay After Deductions: What actually lands in your bank account.
Your Tax Bracket: Knowing this helps in planning and understanding your deductions.
Bank Account Balances: Yes, all of them!
Monthly Income from Side Jobs or Investments: Every stream, no matter how small.
Monthly Expenses: From rent to that coffee you love – everything counts.
Monthly Cash Flow: Your income minus your expenses.
Investment Totals and Returns: Understanding your investments is key.
Total Assets and Debts: Everything you own, and everything you owe.
Interest Rates on Debts: These are crucial for planning debt repayment.
Net Worth: A clear picture of where you stand.
Credit Score: Essential if you're planning major purchases.
Emergency and Fun Fund Savings: How much have you stashed away for rainy days and for joy?
Retirement Savings Target: What’s your number for a comfortable retirement?

3. The Reward: A New Perspective

Once you've gathered all your numbers, take a moment to appreciate your work. This isn't just a list; it's a powerful tool. It might be daunting, or it might be exhilarating – but knowing where you stand financially is the first step to taking control of your future.

4. The Next Steps: Harness Your Knowledge

Now, equipped with this knowledge, you're ready for strategic planning. Whether it’s adjusting your spending, increasing your savings, or making investment decisions, these numbers are your guide. You’re no longer in the dark; you have a clear, illuminated path ahead.

5. Accountability and Sharing: The Power of Community

Remember, you're not alone in this journey. Feel free to email me with a triumphant "DONE!" once you complete this task. Sharing your progress can be incredibly motivating. Plus, knowing more about your financial situation is a surefire confidence booster.

Conclusion: Your Map to Financial Confidence

Getting to know your numbers is more than a financial exercise; it's a journey of self-discovery and empowerment. As your Financial Confidence Coach, I'm here to guide and support you every step of the way. Let’s celebrate each discovery and use this knowledge to build a secure, confident financial future.

Until next time, happy number-crunching, and here’s to a journey filled with insightful revelations and empowered decisions!