5 Things to Do For a Financial Reset: Take Control of Your Money

In today’s fast-paced world, it’s easy to lose track of your financial goals and find yourself in a situation where your money management feels out of control. Whether you’re dealing with unexpected expenses, struggling to save for the future, or simply feeling overwhelmed by your finances, a financial reset may be the key to getting back on track. By taking a step back, assessing your current situation, and implementing strategic changes, you can regain control of your money and set yourself up for long-term financial success.

Let’s see what this could look like for you.

Assess Your Current Financial Situation

The first step in any financial reset is to take an honest and comprehensive look at your current financial situation. This means:

  • Gathering all of your financial documents, including bank statements, credit card bills, investment accounts, and any outstanding loans or debts.
  • Creating a detailed budget that accurately reflects your income and expenses, including both fixed costs (like rent or mortgage payments) and variable expenses (like groceries and entertainment).
  • Identifying any areas where you may be overspending or where you could potentially cut back in order to to free up more money for savings or debt repayment.

By taking the time to assess your current financial situation, you’ll have a clearer picture of where you stand and can begin to develop a plan for moving forward.

Set Clear Financial Goals

Once you have a better understanding of your current financial situation, the next step is to set clear and specific financial goals for yourself. These goals should be:

  • Specific: Instead of setting a vague goal like “save more money,” set a specific target, such as “save $10,000 for an emergency fund within the next 12 months.” Did you know that in 2023, the personal savings rate in the U.S. was 3.9%, which is significantly lower than the recommended 10-15% needed to fund retirement and cover unexpected expenses? So, try to get a head-start in your finances by being specific!
  • Measurable: Make sure your goals are quantifiable so that you can track your progress and know when you’ve achieved them.
  • Achievable: While it’s important to challenge yourself, make sure your goals are realistic and achievable based on your current financial situation and income.
  • Time-bound: Give yourself a specific timeline for achieving each goal to help keep yourself accountable and on track.

Some common financial goals might include paying off debt, building an emergency fund, saving for a down payment on a house, or investing for retirement. Whatever your goals may be, make sure they align with your values and priorities, and that you have a clear plan for achieving them.

Create a Debt Repayment Plan

If you’re carrying significant debt, whether from credit cards, student loans, or other sources, creating a debt repayment plan should be a top priority in your financial reset. There are two primary methods for tackling debt:

  • The Debt Avalanche Method: With this approach, you focus on paying off your debts with the highest interest rates first, while making minimum payments on all other debts. This can help you save money on interest over time and become debt-free faster.
  • The Debt Snowball Method: This approach involves focusing on paying off your smallest debts first, regardless of interest rates, while making minimum payments on larger debts. As you pay off each small debt, you gain momentum and motivation to tackle larger debts over time.

Regardless of which method you choose, the key is to create a plan and stick to it. Consider consolidating your debts or negotiating with creditors for lower interest rates to make your debt more manageable, and look for ways to free up extra money in your budget to put towards debt repayment.

Boost Your Savings

Building a strong savings foundation is crucial for long-term financial stability and success. Some key savings goals to focus on include:

  • Emergency Fund: Aim to save enough to cover 3-6 months’ worth of living expenses in case of job loss, unexpected medical bills, or other financial emergencies. According to Bankrate’s survey, more than 1 in 5 Americans have no emergency savings – which is scary.
  • Retirement Savings: Start contributing to a 401(k), IRA, or other retirement account as early as possible to take advantage of compound interest and employer matching programs.
  • Short-Term Savings Goals: Whether you’re saving for a vacation, a new car, or a down payment on a house, setting aside money each month can help you achieve your goals without relying on debt.

Look for ways to automate your savings, such as setting up automatic transfers from your checking account to your savings account each month. Consider cutting back on unnecessary expenses and finding ways to boost your income through side hustles or freelance work to accelerate your savings progress.

Seek Professional Advice

Finally, don’t be afraid to seek out professional financial advice as part of your financial reset. A qualified financial advisor can help you:

  • Develop a comprehensive financial plan tailored to your unique goals and circumstances.
  • Identify areas where you may be able to optimize your finances, such as through tax planning, investment strategies, or insurance coverage.
  • Navigate complex financial decisions, such as buying a home, starting a business, or planning for retirement.
  • Stay accountable and on track towards achieving your long-term financial objectives.

At Brogan Financial, our team of experienced financial professionals is dedicated to helping individuals and families achieve their financial goals through personalized, comprehensive financial planning and investment management. Whether you’re just starting your financial journey or looking to take your finances to the next level, we’re here to provide the guidance, support, and expertise you need to succeed.

Work With Us

Embarking on a financial reset can be a challenging but ultimately rewarding process. By taking the time to assess your current financial situation, set clear goals, create a debt repayment plan, boost your savings, and seek professional advice, you can regain control of your money and set yourself up for long-term financial success. Remember, small changes and consistent progress can add up to significant results over time, so don’t be discouraged if your financial reset feels overwhelming at first. With commitment, persistence, and the right support, you can achieve your financial goals and build the secure, stable future you deserve.

If you’re ready to take the first step towards a brighter financial future, we invite you to contact Brogan Financial today to schedule a consultation with one of our experienced financial advisors. We can develop a comprehensive financial plan that aligns with your unique goals and values, and provides you with the tools, strategies, and support you need to achieve long-term financial success. Don’t wait – take control of your money today and start building the future you’ve always dreamed of.