Take Control of Your Finances: August is the Perfect Time for a Financial Reset

"An investment in knowledge pays the best interest." - Benjamin Franklin

As summer draws to a close (??), you might be contemplating whether it's time to prioritize "resetting your finances" on your to-do list. Our resounding answer: Absolutely. Without a doubt.

Why?

Well, here's an intriguing tidbit: Recent research indicates that a lack of financial knowledge costs the average US household a staggering $5,059 per year.

August is a great time to reset and take control of your finances. Whether you're a recent graduate just starting out, or a seasoned professional looking to improve your financial health.

As a new season begins, it allows for reflection and planning that may be challenging during busier times of the year. With more free time at hand, now is the ideal moment to reassess your financial situation, make necessary adjustments, and set yourself on the right path for the remainder of the year.

What is a Financial Reset?

A Financial Reset is the process of taking control of your finances and improving your financial health. It involves evaluating your current financial situation, setting realistic financial goals, and creating an action plan to achieve them. It is a great way to start fresh and get your finances on track.

But how do you go about resetting your finances?

Start with A Financial Assessment

The first step in any financial reset is getting an accurate picture of your current financial situation. From here, you can create an action plan for the future and start making changes that will benefit your finances long-term.

• Start by calculating your net worth, which is the total value of all of your assets minus any liabilities. This number serves as a benchmark throughout the entire reset process. Then create a list of all of your expenses and debts.
• As you do this, consider where you can cut back and make changes to save money. Pay special attention to expenses that are either unnecessary or too high — for example, if your cell phone bill is higher than average or if you shop at a store with high prices.

Once you have an accurate assessment of your finances in place, it's time to start making changes.

Make a Plan of Action

Now that you have an accurate picture of your finances, it's time to make a plan of action. This involves setting realistic financial goals and creating an actionable strategy for achieving them.

• Start by setting both short-term and long-term goals — this could include reducing debt, increasing savings, or investing money. It's important to make sure that your goals are achievable and measurable so that you can track your progress and stay motivated.
• Once you have set goals, create a budget and timeline for achieving them. This will help you make the right financial choices in order to reach your desired outcomes. Start by automating payments (like rent or mortgage and utilities) so that you don't have to worry about them each month. Then focus on increasing your savings rate, reducing debt, and building an emergency fund.

Take Advantage of Resources

During a reset, it is essential to leverage the appropriate resources to ensure prudent financial decision-making. This may involve seeking guidance from a financial expert or exploring the utilization of budgeting apps such as YNAB or other money management tools .

Another great resource is your employer's 401(k) plan, which allows you to save money pre-tax and potentially receive matching contributions from the company. Make sure to take full advantage of this by maxing out your contributions and taking advantage of any free investment advice/guidance offered through the plan.

If you're looking for more guidance on how best to reset your finances, check out our complimentary "Money Management Basics" guide , designed to equip you with the essential skills needed to achieve financial freedom. This guide is tailor-made for anyone looking to improve their financial health. ??????

No matter where you are on your financial journey, I hope these resources can help get you closer to achieving your long-term money goals! ??

FAQ Questions and Answers:

Q: What Money Management Tips Should I Follow During the Summer?

A: During the summer, it is important to prioritize your financial obligations and create a budget. Make sure to set aside money for essential expenses such as rent, utilities, and groceries. Also, take the time to review your financial statements and make sure you are staying on track with your goals. Finally, consider investing in personal finance tools to help you manage your money more effectively.

Q: What Money Management Basics Should I Know as a Recent Graduate? A: As a recent graduate, it is important to understand the basics of money management. This includes understanding how to create a budget, how to save and invest, and how to use credit responsibly. Additionally, it is important to learn how to recognize financial scams and protect yourself from identity theft.

Q: What Money Management Basics Should I Know as a Seasoned Professional?

A: As a seasoned professional, it is important to understand the basics of money management. This includes understanding how to create a budget, how to save and invest, and how to use credit responsibly. Additionally, it is important to understand the different types of retirement accounts and how to make the most of them. You should also familiarize yourself with tax laws and deductions to ensure you are taking advantage of all available tax benefits.

Q: How Can I Overcome Financial Struggles if I’m Living Paycheck to Paycheck?

A: If you are living paycheck to paycheck, it is important to create a budget and prioritize your expenses. Make sure to set aside money for essential expenses such as rent, utilities, and groceries. Additionally, it is important to recognize where your money is going and cut back on unnecessary expenses. Finally, consider speaking with a financial advisor or reaching out for assistance if needed.

Q: How Can I Manage My Money More Effectively?

A: You can manage your money more effectively by creating a budget and tracking your spending. Additionally, make sure to set aside money for savings and invest in financial tools to help you stay organized. Finally, consider speaking with a financial professional or reaching out for assistance if needed.

By understanding the basics of money management and taking control of your finances, you can start making progress toward a brighter financial future. There is no better time to take action than now - reset your finances this August and unlock financial freedom.

Getting Help During Your Financial Reset

If you find yourself struggling to complete a financial reset on your own or are feeling overwhelmed by the process, help is available. Enhance your skills by scheduling a quick complimentary call with me to address any money-related questions you need assistance with or even take our free Money Mastery Training Class .

Join our free Money Mastery Formula For Female Professionals & Entrepreneurs online training?HERE .

Final Thoughts On Financial Resetting

Financial resetting is an important part of maintaining your financial health and ensuring that you're on the right track when it comes to your money goals. It can be daunting, but with some planning and the right resources, you can make sure you're making the most of every opportunity. ??????

Take advantage of this summer season to reflect on where you are now and where you want to be in the future. Remember, your financial health is too important to ignore — so take the time now and get started on your financial reset! ??

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Sue Diamond, M.S.W, is a Certified Financial Social Worker, aka Money Coach, and Founder of The Herfinance Club, a virtual platform that provides financial coaching and resources for women to secure their future for years ahead.

Susan is the author of?Smart Woman's Guide.?The Money Belief Formula: Mindset + Behavior = Financial Success .?She can be found at?herfinanceclub.com . Take advantage of her?DIY Money Story Guide ?to gain insights into how your past experiences with money may influence your financial future, then explore?Susan's book ,?1-1 financial coaching and mentoring services , or?money mastery academy. ?To find out more about Susan, visit?here !

Susan is on a mission?to?socialize the idea that it’s OK for women to talk candidly about money and?inspire ONE MILLION women to start the money conversation?with spouses, friends, or colleagues because when women are stronger financially, everyone’s better off.