Why Simple Financial Strategy Works

Photo by John-Mark Smith on Unsplash

In life and in finances, simplicity is underestimated.

The truth is, simple things get done, the complex usually don’t.

In the end results matter so getting things done isn’t optional.

Within finances, having a complex “master plan” can be overwhelming and lead to paralysis. (Not to mention unnecessarily costly)

Rather than fixating on the massive master plan, simply take the first step or begin with the most important action.  By getting the first step right you’ll be setting yourself up to powerfully take the second step.

Said another way, doing the most important and obvious things first, you lay a solid foundation.

Anything large starts as something small. In fact, the complex is merely made up of many simple, interlocking parts.

Photo by JJ Ying on Unsplash

In finance the first steps may be obvious, but not glamorous. Take them anyway.

For example: begin saving 10% or more of your income AND NEVER STOP.  As your income increases, your 10% savings should too. This seems obvious, but many won’t take the time to carry it out.

If you don’t have one, then use that money to build up your emergency account. Start with 1 to 2 months worth of expenses so that you can begin building peace of mind and confidence.

Next comes another simple step: if you have inefficient debts (anything over a 7% interest rate) begin using that “savings” to pay off the debts.  Paying off a 17% credit card has the same impact on your bottom line as earning 17% in an investment… WITH NO RISK. 

Paying off bad debt isn’t sexy, but it’s incredibly effective. Don’t skip this step.

Once the bad debts are paid off, continue to save until you have 3-6 months worth of expenses.

Again, this is simple but it continue to build your confidence and help your mindset become one of abundance rather than fear or scarcity.  This is a HUGE shift.

If you simply continued to save 10-20% of your income, and never invested a penny, you’d still end up ahead of 80% of people in our country by retirement.

It won’t make you uber rich, but this plain and simple practice will single handedly change your life.  It takes time, but even with no other action it works.

Photo by Aron Visuals on Unsplash

Of course, once you’ve begun to build up savings things can get more complex, but only if you let them. You’ll want to put your money to work earning for you, but that can be a large learning curve.

The truth is developing a financial strategy doesn’t have to be tricky, but with so many people looking to “help” you manage your money, it can be difficult to determine which way to go.

Some will show you intricate plans with many moving pieces and in depth flow charts. Others will ask you to hand them your money and never look at it until retirement.  Neither of these is a good idea because if you don’t understand what’s happening, it’s easy to lose confidence or get bamboozled.

The good news is that you CAN keep wealth building simple and allow yourself to focus on what’s really important: your loved ones, your health, and your work. If you get those right, you’ll be winning the game of life!

---

LIKE WHAT YOUR READING? THEN YOU’LL LOVE OUR VIDEOS ON YOUTUBE. YOU CAN WATCH HERE>>>

If you’re ready to let go of all the complexity and simplify your finances, we can help.  Our focus is to get money out of the way so that you can live your biggest life. If that sounds like what you want, let’s talk.

You won’t get a bunch of technical jargon or smoke and mirrors. Just a clear, easy to execute strategy that fits your lifestyle and will help put your mind at ease, so schedule a free conversation here…