Our modern world of finances is anything but simple. Numerous credit cards, automatic payments and many other conveniences have made it more difficult to face our current reality. These tools for money, designed in the name of convenience, have a dark side which allow us to disconnect from money. Yet the first step to financial freedom is to FACE our current reality.

Financial
Awareness
Creates
Empowerment

Gain Control

 Financial Awareness is the first step to gaining control of our finances. When we feel as if we are operating in a whirlwind, financial awareness gives us a firm grounding to stand on. Once we know where we are going financially we will be able to take control in that area of our lives.

Practically, financial awareness is simply laying out our income and expenses. Take a single sheet of paper and document monthly expenses. We can use bank statements to accurately chart our expenses and income. Including our spouses is imperative as we need to engage in our current reality together and not leave one person to make decisions on their own. While we may fear arguments arising from an honest appraisal of the situation it is not meant to throw the blame on one person or another. It is a simple evaluation of where you are, not anger over what has happened. Have the courage to take stock of your current reality so you can regain control of your finances.

Slow Down

Financial Awareness forces us to slow down our decision making. Rather than walking into a store and emerging unsure whether our bill can be paid at the end of the month, financial awareness empowers our buying and helps us prioritize our decisions.

Our culture pushes us at a speed too fast to maintain. Slowing down and taking time to consider purchases and how they work into our heart’s desires is important and yet few of us find time to do so. The more financial awareness we have, the less worry over our spending habits is necessary.

Make it Simple

There are two types of people in this world: those who like spreadsheets, and those who do not. For some of us there is nothing more exciting than a new method to look at numbers. For others, numbers cause our eyes to glaze over and their only hope is in disconnected endurance. Financial awareness does not have to painful, in fact it is intended to be simple. In this first step we are not making a strategy, just determining where we stand.

Remember these questions when creating a “current reality.”

1) What is your income?

2) What are your expenses?

3) Is your balance positive or negative?

4) Has your debt increased or decreased?

These questions are to be answered and reviewed each week. Remember: Financial Awareness Creates Empowerment. When we become financially aware we are empowered to be free of worry and fear in relation to our finances. Then we can truly have hope for today and freedom for tomorrow!