Do You Have a Financial Blueprint?

Money is a huge part of life.  The lack of it can either limit you or the abundance of it can get you to where you want to go.  If you’re just starting to generate multiple streams of income, this is a good place for you to be because with all the money that is going to be pouring in… you’ll need to learn how to manage it.  This category will help you to do that.  So my first question to you is “What is your financial blueprint”?  You say, “Huh… uh… well”?

Let me first explain what I mean by Financial Blueprint.

When you build a house, you may have several images in your mind of what you want that house to look like.  You convey this information to a builder who then puts together a blueprint.  The blueprint is the design of what the house will look like.  It shows how many rooms you will have, where the rooms will be, how many levels you will have, etc.  It ensures that all of the ideas you had are going to be produced.

Well, it’s the same thing with a financial blueprint.  Jotting down your financial ideas gives a clear projection of things to come.  Having a clear picture of what’s going on with your money will help to put you on the right road to financial success.

T Harv Eker states…

The key between rich and poor or middle class people is their ability to manage their money. Rich people are excellent money managers and poor or middle class people are less-savvy when it comes to managing their money.

They have a Financial Blueprint.

So let’s talk about your financial goals.  Are you in debt?  If so, I’m assuming you want to be free from this bondage, right?  With that said, you’ll need to sit down and figure out how much debt you have.  Maybe you want to get a new car, or buy a house.  How much money will that take?  Whatever your plan is, it’s good to put this in writing with some type of dollar amount so you know what you are working towards.

Now that you’ve set your financial goals, let’s take a look at exactly where your money is going. Take some time to jot down where you think your money goes.  Once you’ve determined that, track your spending activities for a month by keeping a daily log of such items as food and entertainment, as well as fixed expenses such as rent and utilities.  After several weeks, you’ll be more aware of exactly what you are spending your money on.  This process will also allow you to pinpoint wasteful spending habits. Note… you can either jot this down on a piece of paper or use something like Microsoft Excel or some other personal finance software program to track this.

Once you have a handle on where your money is going, determine your available income.  How much money do you bring home?  If you work overtime, don’t include this because you probably should not rely on this.

Now that you have defined your financial goals, tracked your expenses and determined your income, you’ll need to create a budget. We will talk more on this in Part 2 of Creating Your Financial Blueprint.