I made a lot of mistakes in the past month. Why I am telling you this?
This is my monthly check in with my five year financial plan. If you followed me for a while now feel free to skip the next few paragraphs.
So a while ago now I made a financial plan. Basically, my goal is to build multiple streams of income of which some are passive. If you want all the details of it to check out the post about my five year financial plan.
Why do I publicly post my monthly check in?
So often we see and hear about people reaching their goals after they reach them. Even if these people are being 100% honest they still have the benefit of hindsight. Of knowing how things worked out.
There is nothing wrong with sharing your story that way. But sometimes by sharing our stories this way we minimize the rough patches.
Reaching goals can be hard it takes a lot of work. Things don’t also work out the way you want them too. It can be hard in times like those to think long term or to see how this may one day become a positive.
That why I share my monthly check ins as they happen. Because I don’t know how things will work out. If I were to recap this after I reach my goals I could probably wrap it up into a neat and tidy story.
Today, I can’t give you a tidy story and reassurance this will all work out in the end. There are too many things I don’t know. I’m still in the trenches right now putting in the work and figuring things out as I go along.
That why I post these publicly so you can see exactly what it takes to reach long term financial goals.
What happened the past month?
This past month has been interesting. It felt both long and short at the same time. A lot of stuff happened.
Work-wise I picked up some extra shifts this month at my day job. Also, I got 3 paychecks this month instead of 2 so that was cool.
Last month I mention I started a cleaning job. It’s cleaning an office once a week. You’ll see the first paycheck from there this month in my income streams.
There was a lot of Christmas stuff that happened this month as well. We had our office Christmas party which we did a white elephant gift exchange. We also a donation drive where I work so I donated to that. And I bought Christmas presents for my family.
In my personal life I redid my closet and it so pretty now. it was sorta overdue and I’m thrilled with the results. I also made it to to a teddy bear toss hockey game which is something I been trying to do for the past few years.
Other than that I survive Black Friday buying only one thing that I need that day. Good sales are something I still struggle to say no to especially when they are from stores I like.
Did I hit my goals this month?
No. I’m mean yes there were goals in this post that I have reach last month and manage not to undo that progress. And I did have some different income streams. So I haven’t done horribly but overall I have to say no I didn’t hit my goals.
Lately, I’ve been slacking a bit when it comes to managing my money. I have been focusing on the short term and in doing so neglect the long term.
Remember how I said I got 3 paychecks this past month. I spent 1 of them last month. And it looks like the other 2 will barely cover my coming month. It going to be a tight month.
My problem is I’ve been trying to disobey one of the most basic of personal finance rules. Don’t spend more than you earn.
And while I haven’t gone into debt for anything yet. I have been spending all my money as soon as I get it and I’ve been taking money out of my savings so I could spend more.
Much like I redid my closet I need to redo my money management especially my lifestyle. I need to change my mindset and tweak a few little things.
My Income Streams
Once again my paycheck is my biggest source of income. It comes in at 94.76% which is a bit higher than usual. It was higher as I had 3 paychecks and also manage to pick up a few shifts.
This month I also got my first cleaning paycheck. It comes in at 4.35% and it not the most but it a good start. It feels amazing to have money coming in on a regular basis outside of my day job. Finally, have another income stream I can count on.
I also babysat once this month. It earned me .69% and it was fun. As a teenager, I babysat all the time and honestly, I forgot how much fun it can be. Especially when you get good kids. Kinda makes me wish that I haven’t stopped.
Then coming in at the bottom like usual it’s my bank interest. This month it earned me .18% it may not sound like much this is slowly going up over time. It not going to earn me millions but it nice to get some interest on my money.
What did I do wrong this past month?
Spend my money like I had lots of it.
Honestly, a big problem this month was spending too much. Another problem which is starting to worsen is I’m been getting lazy when it comes to managing my money.
Money management isn’t just goals it a lifestyle.
Deep down I know that to be true but this past month I been trying to ignore it. Incorporating it into your lifestyle is hard, it much easier to reach a goal and then be done with it.
Just like most things in life money management takes work, hard work at times. Right now I in the middle of a hard work phase. I need to remember it only a phase this too will pass.
If you are a beginner to this money management thing don’t let me scare you with those last couple of paragraphs. I am going through a hard time but even now I know I have money in my savings. There enough money in my savings to cover any emergencies that may come up.
I may not have a job after May and I’m prepared for that. I’ve been building up my emergency fund. I’m now at the point where I’m planning to go to a concert there is 5 hours away in another city in the middle of May. This will be after everything with my job goes down but I can afford it as I already have the money in my account.
I can look to the future and be hopeful. Yes this past month has been hard and I’ve made plenty of mistakes but I know things will get better.
How will I improve next month?
I messed up a lot lately so I feel like I should have some great advice to give here. I don’t have that. Instead what I’m going is to go back to the basics. And work on my mindset.
I’ve been treating my budget horribly lately but my budget did good this past month. My budget kept my mistakes down to a minimum and it contained my messes.
My mistakes have been coming more from my mindset. I need to stay grounded in reality and be brutally honest about what I can afford.
I’ve been overspending a lot and that on me. And my mindset. I can say no. I can make better decisions. I can spend less without feeling deprived.
How can you apply this to your goals?
Build up a good system for managing your money. And be honest with yourself.
The reason I say build a good system is that once you get a good thing going it takes a while for it to fully stop. So build up a good system and commit to maintaining it even when things are going sideways.
Entering everything into my budget helped my spending from getting completely out of control. As much as I was trying to ignore it I notice when I overspent in a category and when I had to cover it from elsewhere.
Having a good system working for you and your goals is an enormous help. Remember to maintain it even if you don’t feel like it.
And as for being honest with yourself. There not much else to say about that. There are times when you aren’t going to like the truth. You might want to ignore the truth.
Don’t do that. Be honest even if its hard. It will save you from more trouble later on.
Work hard. Build good systems. And be brutally honest with yourself.
Want to see posts like the one you just read? Read all my monthly income streams reports by click through the link.
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