Where are you financially?

Thats the most important questions! Isn't it? You need to

Do you spend enough time to evaluate your finance?

• Is "Almighty Dollar" the most important thing on your mind now?

• Do you spend enough time to review your financials every month?

• Are you honest in your budgeting?

• Are you in control of your money habits?

• Is your lifestyle helping or harming you to reach yours financial goals?

Understanding where you stand with your finances is the first step towards making any progress. It will determine what actions are required of you to take control of your future.

Now lets look at lifecycle bucket that you may fall into -

Bucket 1: I'm afraid: Deeply in debt and have exhausted most of the revenue channels and are scared to look or think about finances. This happens to most of us at some point in life, the extent of debt would range from person to person. But the good news is you can come of it if you are determined and are ready to make some sacrifices. A lot of millionaires would tell you that they have experienced this stage in their life. And how they got out of this stage by consistently working hard and making some sacrifices.

My two cents, whats expected of you:

• Get used to Frugality, Thriftiness, Miserly and being Stingy: You are expected to make these words your motto.

• Do everything in your limits to increase your income; take additional jobs

• Deploy all the resources/assets you have to increase your revenue

• Live way below your means

• Pay off debts wisely and as fast as your can.High interest ones first.

• "Monitor your financial Habits" and don't get distracted.

• Learn to say "No"

Bucket 2: Plan and Fail: Range of my financial flexibility is 10% up or down. I barely survive some months without being broke by end of it. At this stage you are putting some effort on your planning but you end up being at the same place 6 months from now. This could be like 60% of the readers of this blog. The reason could be numerous: low income, high expense, over commitments, don't know anything about investing etc. You just need some guidance to push yourself up and go to the next stage.

Ideas that may work for you -

• Understand want vs need; asset vs liability; Be frugal.

• Habits are your main issue. monitor your financial habits and avoid situation that makes you spend.

• Learn about saving and investments. Follow financial education materials.

• Put every extra money to work by investing

• Auto pay yourself first and avoid breaking that pattern

Bucket 3: At Peace: Equipped with a stable income source, may be multiple channels. Fully funded emergency funds are ready and all the income is spent wisely to buy experiences and investing. This is a step that will help you sleep at night peacefully and would give a greater control on your life.

Be smart and be long -

• Be long on your investments and give it time to compound

• Buy experiences and enjoy life

• Invest all the extra money

• Make few big educated bets

• Grow your revenue streams

Bucket 4: Over and above: You are doing something that you like/love. You are not bothered about your monthly bills. This would be the ultra rich category. Money doesn't buy you happiness, so you would channel your money to find happiness and hopefully make generous charity/philanthropic donations or solve bigger problems that may impact our future generations.

Share -

• Your knowledge and Life experiences

• Be smart with your donations

• Challenge yourselves with bigger problems

Did you find the bucket that suits you? Write down the actions thats required of you daily and make it a habit to and repeat it to yourself.

Change your financial habits and it will change everything!