I absolutely love
The Princess Bride, the 1987 film which
centers on a book being read to a sick little boy by his doting
grandfather.
One of the characters in the film is a con man, named
Vizzini (deliciously played by Wallace Shawn). When things go awry, and one of
his henchmen (Inigo Montoya) has lost his way, there is one crystal clear piece
of advice that Vizzini gave to Montoya which saves (or at least, paves the way
to save) the day….
“Vizzini! You told me to go back to the
beginning... so I have.”
What does this have to do
with becoming an awesome wealthy woman?
Everything!!
When you have lost your way…when
you don’t know where to turn…when you don’t know what to do…
Go back to the beginning!
Most of us were never taught
the ins and outs of handling money when we were young (if you were,
congratulations – you are among the fortunate minority!).
When I say ‘go back to the
beginning’, I mean simply that you need to start by identifying everything
related to your money:
· ~ How much you earn
(gross and net – and know the difference between them)
~ What your expenses are, and, when they are due
~ Identify which of your expenses are “fixed” and which are “variable”
~ How much interest you are paying on any loans, credit cards, lines of credit
~ How much you are paying in monthly bank fees, NSF charges, overdraft charges, etc.
~ What contributions are made by you and/or your employer into a registered pension plan
~ What contributions you are making to a TFSA, RRSP or other investment account
~ How much you are putting into an Emergency Fund each month (and you DO need one of
these)
~ What your expenses are, and, when they are due
~ Identify which of your expenses are “fixed” and which are “variable”
~ How much interest you are paying on any loans, credit cards, lines of credit
~ How much you are paying in monthly bank fees, NSF charges, overdraft charges, etc.
~ What contributions are made by you and/or your employer into a registered pension plan
~ What contributions you are making to a TFSA, RRSP or other investment account
~ How much you are putting into an Emergency Fund each month (and you DO need one of
these)
~ How much cash are
you spending, without knowing where it went (hint: ask for
and keep receipts)
and keep receipts)
There is no other way to
start getting a handle on your money situation than by taking the time to sit down
and list all of these items and their related amounts. It’s simple advice but not always easy to
bring yourself to do.
Once you’ve identified every
piece of your financial puzzle, you’ll be able to make some decisions about
where you need to make changes and where you may need help to get back on
track.
It’s a simple process which I
call “I – T – A” Identify, Track, Adjust.
Don’t be one of the Money
Ostriches out there (you know, head in the sand and backside up). Pull your head out of the sand, write
everything down and see where you truly are – right now – in your finances and
know that, whatever the picture is (pretty or not-so-pretty), you can start
changing it into more of what you want if you start right now.
Go on…get out your pen or
pencil, your paperwork and receipts and start writing. The first step is always
the hardest but I know you can do it!