E is for Energize the HOW right NOW!

Now is the HOW!

Mindfulness Meditation:

Think about how you like to take risks. Do you measure the distance? Do you jump first ask questions later? Each person enjoys different kinds of risks and when you choose to Live Ahead in your finances and reach for your Dreams, there is risk involved.

When you take time to make one Big Jump Ahead and have one full month’s income set aside, you are telling yourself a new story. You are learning to trust yourself with money - maybe for the first time or perhaps finding that trust after a series of complex financial obstacles. Either way, you're taking a risk when you find a way to make a Big Jump Ahead and begin each month knowing you have enough to cover your bills. It’s a risk that you can continue this pattern, it’s a risk that you might need that money for something else, and it’s a risk that you may not have the willpower to wait and not touch it. But it’s a risk worth taking.

If you choose to Live Ahead with a full months living expense in the bank at the beginning of each month, you will be able to:

1) Make money and not spend it immediately

2) Stop making desperate decisions and instead make intentional decisions

3) Break the paycheck-to-paycheck cycle

4) Have the mental bandwidth to dream again and grow your financial intelligence.

Action Steps:

The Live Ahead System is a way of structuring your finances. You can plan to Live Ahead by taking a Big Jump in your finances. The goal is to get a full month ahead into your savings account. This is NOT an emergency fund, although everyone should have that and it may come later. If you have an emergency fund that’s great! Keep it that way. If you don’t, no worries! Let’s start with the Big Jump Fund. This is the Operating Expenses for Your Household Inc. This is money that will help you leave the paycheck-to-paycheck cycle behind forever.

How do you take such a Big Jump? Many folks do it in different ways. Some folks save their tax return, save stimulus money, or sell an extra vehicle. Others pay off a high-interest credit card with a 0% introductory offer and use the payment to slowly work up to a full month’s expenses in savings. Again, this is not an emergency fund that you won’t touch. This is going to be your Operating Expenses and a way to get a full month ahead.

Steps to Live Ahead:

1) Make a Big Jump and get a full month’s expense in Savings for your Operating Expenses. Get the whole household on board with ideas to “find the money.” This is just temporary, not cutting out a coffee. This is starting a new side gig, selling big ticket items, or tapping into significant savings by eliminating a major monthly expense (credit card to 0% card).

2) Track Your Expenses for One Full Month to make sure you have the right Need to Operate Your Household Amount. You can also take the average for the last 3 months to help guide you. ***See the “Tracking is the Key Sheet” below.

3) Save your Big Jump money until the 1st day of the next month. So, SAVE everything from Month #1 paychecks and on the 1st day of Month #2 you deposit that money into your “houseold operating” checking.

4) Be sure to set up your paycheck to go straight to Savings NOT Checking. Automate this step to help your will power. Make the decision once and don’t second guess yourself. Your Checking Account already has all the money you need to live on for the month.

5) At the 1st day of the next month transfer all your paychecks - yes, you haven’t spent a dime all month of the money you made - into your checking. Now you’re living a FULL month ahead and you know exactly how much you have to work with at the beginning of the month. Allocate this wisely to spread your expenses out!!

Warning - Obstacles Ahead!

We ALL face financial obstacles and you’ll find that as you step out in faith, creating new financial self-care habits and dreaming big, you absolutely WILL face real obstacles. Actually, just expect that you will and plan now to GROW past those obstacles.

One of the main obstacles that everyone faces is Variable Expenses. Variable expenses could be car repairs, emergency medical, or graduation/wedding gifts. All of these are necessary to one degree and should be planned for but it’s challenging to get the right number!!

Look back over the last year and see what kind of amounts you’ve spent in each category. Your bank or credit card app may divide these up for you in a useful chart or list. Don’t spend forever here, but do get a good estimate. Then look AHEAD to the coming year on your calendar. Either paper or digital, put upcoming variable expenses onto your calendar. Is your niece graduating? Do you know your brother is getting married? Start putting that amount away on the 1st of every month when you make your savings transfer. This means you should have the following

Bank Accounts:

1 Checking Account to pay bills and use a debit card (yes, stop using credit cards for regular purchases, no the points aren’t worth it).

2 One Account where your Big Jump Money is at first and then where your paychecks go when you make the switch to Living Ahead.

3 Variable Expense Savings account where you deposit a set amount each month allocated for those expenses that you don’t know when they will happen.

Open those accounts and be sure to nickname them correctly so you can keep it straight whenever you log in. Be sure all the adults in your home have access to the tracking sheet including adult kids who may help with household shopping. Keep logging in to your bank accounts and tracking each morning, maybe after you’ve had your morning yoga, quiet time, or cup of tea.

FAQ’s

What if I live on a variable income?

Hourly employees or self-employed folks have an especially challenging job of finding the right amount to get a full month ahead. Take an average of your income and then check out the 3-level system in the button below. Choose one level at the beginning of the month AFTER you’ve made the Big Jump to get a full month ahead.

What if my household is NOT onboard? How can I work together with my significant other?

Gentleness and respect is key in this area. Also, do understand everyone is at a different place in their journey. As you grow, focus on ways you can grow TOGETHER with your partner or spouse. Cast the vision for your children, even adult children can get involved in Financial Self-care. In fact, it’s vital for the next generation to have a healthy view of money and cultivating dreams of creating big impact for good in our world. Here are several of our favorite books to help you with this question.

Click these Titles for the Amazon Link to purchase. These are our favorites!

Fixing the Money Thing by Gary Keesee

Nasty Gets Us Nowhere by Drenda Keesee

Personality Plus by Florence Littauer

Love & Respect by Emerson Eggerichs

What if I take need money from my Big Jump funds immediately rather than waiting for the 1st day of the next month?

You might need to make that strategic decision rather than go into more credit card debt. But PAUSE first. Don’t make a quick decision to dig into that fund. You’ve made a Big Jump a priority to Live Ahead and there may be a different way rather than going back on your financial progress.

If you do decide to dig into it, then just start again!! This is called Growth (not Perfection) for a reason. You’re GROWING in financial intelligence, so learn from this and ask “What can we do differently next time we have a large unexpected expense?” Write it down and don’t forget! This lesson is expensive and you don’t want to need to learn it again.

What about Credit Card Debt?

There’s always a way to overcome these obstacles but the higher the interest, the more relentless you’re doing to need to be! We all know that credit card companies are hunting and predatory in their business practices - the interest rates and fees are repulsive BUT you can defeat it.