Podcast Summary
Reflecting on financial and life goals during the holiday season: During the holiday season, reflect on accomplishments, practice self-efficacy, and set clear goals for the upcoming year using a tool like Katie's 2024 Wealth Planner.
During the holiday season, it's an ideal time to reflect on our financial and life goals for the upcoming year. This period of gratitude and introspection allows us to set intentions and practice them before the new year begins. Katie, the host of Money with Katie, emphasizes the importance of self-efficacy and believing in our ability to shape our lives. She encourages us to reflect on our accomplishments and recognize the role our hard work plays in our successes. The launch of her 2024 Wealth Planner during Black Friday offers a tool to guide us through this process, including a free annual review template. By taking this time to set clear goals and visualize our desired future, we can build the confidence and motivation to make them a reality.
Reflecting on the past and setting intentions for the future: Consider what matters most when reflecting on past year and setting intentions for the future, write down goals, rate yourself in personal, professional, and financial areas, and think about what a 10 looks like in each category to unlock value and set foundation for success.
Reflecting on the past and setting intentions for the future is a powerful tool for personal and professional growth. The speaker shares her experience using a framework from Shanna Skidmore's blueprint planner to review her previous year and look ahead. This framework includes asking questions like "where am I today?" and "where do I want to be 1 year from today?" The speaker encourages listeners to consider what matters most to them when answering these questions and to write down their goals, even if they seem unattainable. She also emphasizes the importance of rating yourself in three categories - personal, professional, and financial - and thinking about what a 10 would feel and look like for you in each area. By going through this process, the speaker was able to achieve goals she once thought were out of reach, such as growing her business revenue and moving to a desired location. Overall, this exercise can help individuals unlock more value from their experiences and purchases, and set the foundation for a successful year ahead. For more information, visit americanexpress.com/businessgoldcard.
Setting personal and professional goals for growth: Visualize a state of extraordinary happiness and success, identify areas for growth, and set clear goals to lead a fulfilling life.
Self-reflection and setting personal and professional goals are essential for personal growth and overall well-being. The speaker evaluated her progress in three categories - personal, professional, and financial - and identified areas for improvement, such as having hobbies outside of work and traveling more. She also emphasized the importance of visualizing a 10, or a state of extraordinary happiness and success, to clarify goals and motivate action. Using the "more than anything" questions from Shanna Skidmore, the speaker identified her desire for confidence in running a business, happiness in waking up early and engaging in hobbies, becoming a multidimensional person, and doing something that challenges her. Overall, the discussion underscores the importance of setting clear goals, identifying areas for growth, and visualizing success to lead a fulfilling life.
Reflect, assess, and plan for personal growth with intentions and financial data: Setting intentions, like choosing a word for the year, helps reflect, assess, and plan for personal growth. Reviewing financial data, such as income, provides clarity and enables setting realistic goals.
Setting intentions, such as choosing a word for the year, can provide valuable insights and focus for personal growth. This practice allows individuals to reflect on their past achievements, assess their current situation, and plan for future improvements. During this process, it's essential to review financial data, including income, to gain a clear understanding of one's financial situation and set realistic goals for the future. By jotting down income sources and anticipating future cash infusions, individuals can create a data-driven forecast and align their financial objectives with their overall intentions for the year.
Analyzing spending patterns for informed budgeting decisions: Regularly reviewing spending patterns can help identify trends, overspending, and make informed decisions for future budgets. Use tools like a wealth planner or budgeting software to simplify the process.
Regularly reviewing and analyzing your spending can help you identify trends, overspending in certain categories, and make informed decisions for your future budget. The speaker shared her experience of discovering unexpected expenses and overspending in some categories, like miscellaneous and pet care, in 2023. She emphasized the importance of understanding your actual spending compared to your goals and adjusting your budget accordingly. The use of a wealth planner or budgeting software can simplify the process and provide valuable insights for the upcoming year. Remember, even with a well-planned budget, unexpected expenses can still arise, but being aware of your spending patterns can help you prepare and make adjustments as needed.
Assessing Alignment of Spending and Saving with Personal Goals: Regularly evaluate spending and saving to ensure they align with personal goals, prioritize expenses, and check for discrepancies or old automatic transfers. Set realistic goals for net worth growth.
It's essential to assess how your spending and saving align with your personal goals and priorities. When considering expenses, think about how they contribute to improving your overall quality of life. On the saving side, evaluate your progress and ensure your contributions match your priorities, and check for any discrepancies or old automatic transfers. Lastly, review your net worth growth and set realistic goals for the upcoming year regarding savings and investments. By staying mindful of these aspects, you can effectively manage your finances and work towards achieving your long-term objectives.
Assess Your Personal Profit Margin and Reach Financial Goals: Set savings goals, review income & spending, pay off debt, evaluate irregular spending, and plan for future expenses to reach financial targets.
It's important to assess your personal profit margin, or the value you're gaining from your time and efforts, especially when it comes to your finances. This means setting a savings goal for the future and reviewing your income and spending to get closer to that target. Another area to focus on is debt payoff. Look at how much debt you've paid off this year and consider focusing on high-interest debts. Lastly, evaluate irregular spending and assess the return on investment for big expenses. As you look forward to 2024, consider potential expenses like weddings or international trips and plan accordingly. Remember, both income and spending are pieces you can adjust to reach your financial goals.
Accounting for irregular expenses in budget: Include planned and unplanned irregular expenses in budget, track progress toward goals, and assess cash position, asset allocation, and net worth regularly.
It's important to account for irregular expenses in your budget, whether planned or unplanned. These expenses, such as trips to see family or adopting a dog, can impact your save rate or net worth. The 2024 wealth planner includes a section for planned irregular expenses, and there's an opportunity each month to add unplanned expenses. Additionally, linking accounts to certain goals in the actively contributing and goal account portion of the asset section can help with tracking contributions. Progress toward financial freedom can be assessed by looking at your net worth, savings progress for specific goals, and current tracking toward total financial independence. It's also important to assess your cash position, asset allocation, and projected timeline to financial independence. Overall, these steps help ensure that we are moving toward our financial goals.
Understanding your finances with tools: Use financial planning tools like the PHY tab and a wealth planner to input and adjust spending and income, visualize progress towards financial independence, and make informed decisions about your money.
Using financial planning tools like the PHY tab and a wealth planner can help you understand your current financial situation, make adjustments, and work towards financial independence. The PHY tab allows you to input and adjust your spending and income, giving you a sense of how small changes can impact your retirement timeline. The monthly tabs in a wealth planner provide a visual representation of your progress towards financial independence, allowing you to see your growth month by month. These tools can help you identify areas where you may need to adjust your spending or saving strategies to stay on track. Additionally, taking the time to reflect on both qualitative and quantitative aspects of your financial situation can lead to valuable insights and help you make informed decisions about your money. Remember, it's important to regularly review and adjust your financial plan to ensure it aligns with your goals and changing circumstances.
