“Follow the money!” exclaims Rowdy Cents.
This is a popular phrase heard in both movies and politics. It means FIRST knowing where your money comes from and THEN where it goes. It's kind of like a baby crawling before s/he walks. The "money walk" begins with knowing what you have and where it goes before you can accumulate wealth. Managing cash flow is the firm foundation of personal finance and wealth-building.
Cash flow management will help you avoid car shopping for a Lexus if you can only afford a Ford Focus or buying that very expensive outfit when the rent/mortgage payment is due. Get started by answering these personal finance questions, using a worksheet Rowdy has provided below.
What do I have? What do I spend?
You've got to write it down (paper or electronically), otherwise you'll spend it in a snap! The following are free worksheets and/or online resources for budgeting and tracking expenses:
Laugh & learn about tracking expenses - from the Funny Money Cartoon Series: Track-o-matic
What do I plan to do with my money? What do I dream for the future?
This is all about writing down goals that cost money, being able to prioritize them, and working toward accomplishing them. Doing this will show you how much you need to save and how long it will take to afford that goal. A financial goal can range from small to large, like buying an iPod to retiring at age 50 with a million dollars in the bank.
Financial goals are the windows to the future...
| You can access Rowdy Cents'
financial goals
page to find a worksheet, goals prioritizer, and tips about making SMART goals. Make your view of the future a sunny one:) |
Rowdy Cents advises, about your money journey, "Don't be like an Alice in Wonderland!"
"Would you tell me, please, which way I ought to go from here? [asks Alice] "That depends a good deal on where you want to get to," said the Cat. "I don't much care where -" said Alice. "Then it doesn't matter which way you go," said the Cat. "-so long as I get somewhere," Alice added as an explanation. "Oh, you're sure to do that," said the Cat, "if you only walk long enough." --from Carroll's 1865 novel, Alice's Adventures in Wonderland.
