Life balance experts cite five areas to achieve harmony: finances/career, spirituality/self care, relationships, health, and fun/recreation.
Achieving harmony in your life is a process – a five step process we will explore together. The first step is to examine your finances. You need to know where your money is, what it is used for, and how you spend money. “Debt is dumb,” says in your face financial guru Dave Ramsey. He adds, “You are where you are right now financially as a sum total of the decisions you’ve made to this point.” But, don’t despair. Right now you are in a perfect position to make a financial change for the better. Changing the way you think about money and how you spend money is the yellow brick road to harmonic wealth.
Reflect. Think about it, reflect. Ask what led you to make those mistakes in the first place. Was it job loss, divorce, impulsive spending? Make sure you know and understand what pulled you out of life balance so you don’t repeat those mistakes.
Get organized. Organize your bills and debts. Create a place to keep incoming bills. Pay your bills. Avoid late fees-make sure you send your check early so that it gets to the payer on time. Also it is a best practice to write down payments, check numbers and date sent so you will have a record in case a payment goes unrecorded. Put all payments in your finance ledger and balance that ledger against what payments are outstanding each and every month.
Plan. Tackle your debt! You created the debt, now plan. Take time to establish a plan to pay off debts. Without an debt freedom action plan you darken your life. You want harmony, so be disciplined and plan harmonic wealth. Think about what you need to do here… figure out the most important debt to be paid off first, generate more income, spend less and save more money. That’s the simple formula for achieving harmony in your finances. Set the plan and stick to it.
Save. You must save more than you spend. This is the truth! Worrying about how you are going to pay your bills every month is misery. The best way to handle your financial life is to save.
Now is a perfect time to is a time restore your financial balance, achieve harmony.
Total Money Makeover, Dave Ramsey
Your Life or Your Money: 9 Steps to Transforming Your Relationship with Money, Vicki Robin
Low Fee Socially Responsible Investing: Investing in your worldview on your terms, Tom Nowak