Are You Keeping Track Of Your Financial Success?

Success in the area of your finances begins with taking baby steps towards the achievement of predetermined financial goals.

Note that these goals do not need to be grand.

For instance deliberately paying off half your debt within a year will not make you debt free, but is a sure sign that you are heading towards your desired end.

One great way to keep track of your financial success is to regularly ask yourself the following questions:

Question #1 – Are you making any deliberate efforts to increase your income?

Although not the be all and end all, increasing your income can go a long way in helping you succeed financially.

However, you have to keep your expenses under control and start investing your money so it can grow.

You have to make sure that your savings and investments are also increasing in line with your income.

Question # 2 – Are you monitoring your level of debt?

Borrowing money to fund a lavish lifestyle does not lead to financial success.

When you amass huge mountains of debt this way, you are setting yourself up for a life of harassment from creditors and financial embarrassment.

You therefore need to get rid of all consumer debt progressively.

You have to track how much money you owe and set up a repayment plan to clear your consumer debt to zero.

Question #3 – Are you happy with your financial achievements?

If all you have to show for years of work is debt, then chances are that you are not progressing financially.

In addition to your financial achievements, you should also evaluate the quality of your life. Are you on track when it comes to attaining family, spiritual and career or business goals?

You have to be careful not to pursue financial success at the expense of the more important things in life.

Question #4 – Is your personal balance sheet growing?

Your personal balance sheet simply lists what you own and what you owe, and clearly points out the difference between assets and expenses.

If all your income is going into expenses as opposed to investments, your personal balance sheet is not growing.

Monitoring the movement of your assets and liabilities over time can give you a good indication of your financial progress (or a lack of it).

Your answers to these four questions can give you a pulse of your progress when it comes to keeping track of your financial success.

However, it is important to note that not seeing immediate results does not automatically translate into a lack of progress

Here’s an exercise for you.

If you would like to challenge yourself to break out of your financial rut, get a sheet of paper and write down how much money you would like to earn over the next twelve months.

Take a close look at that figure.

It most likely represents what you believe you are capable of earning given your current circumstances.

Break out of your comfort zone by multiplying this figure by two, and then write it down.

Put it in a place where you can look at it every day, work towards attaining that goal and see what happens!