Managing your finances effectively is crucial for peace of mind and overall well-being. Michelle Cooper, a financial expert, outlines a straightforward four-step process to help you take control of your money situation, no matter its current state.
- Clarify Your Income: Begin by listing all sources of income to understand what’s coming in. This includes everything from business revenue to personal salary and other income streams.
- Analyze Your Expenses: Categorize and tally your expenses over the past three months to get a clear picture of where your money is going. This includes business costs, home expenses, personal debt, and leisure activities.
- Do the Math: Subtract your total expenses from your total income to gauge your financial health. A positive result indicates surplus funds, while a negative number highlights areas needing attention.
- Review Your Credit: Checking your credit score and obtaining a credit report is essential for financial health. Ensuring accuracy in your credit report can significantly impact your financial planning and decision-making.
For more detailed guidance and support in navigating your finances, consider joining the Biz Money Society for DIY financial management or schedule a consultation with Alchemy Accounting for personalized assistance.
Listen to the Full Podcast for in-depth insights on each step and how to implement them for a healthier financial future.