You’ve probably wondered, ‘what are the best apps, tools, and resources to manage your money’? Now-a-days there are a million apps for personal finance, like mint.com. Today I’ll share my top three resources to manage your money.
Spoiler Alert: apps don’t make my top three resources to manage money.
First, why an app isn’t my top favorite money resource…
Getting an instant view of your accounts synced won’t make lasting changes in demolishing debt, your spending patterns, net worth, and relationship with money.
An impulsive, in-the-moment look on your bank account to see, “Hmm ok, yes I have enough to cover rent right now. Phew,” isn’t working! Checking in on your bank account on the regular is stressful and not helpful. It only shows what’s happening in the moment. There’s no big picture, structure, or accountability.
I use what the Fortune 500 (billion-dollar companies!) use: financial statements! I learned ALL about em’ studying Finance at McCombs School of Business. I freakin’ love financial statements. You will too!
Here’s why financial statements are the best resource to manage money.
There’s no handbook on adulting and when to buy a home or how fast to pay off debt. You need accountability and deadlines. Chance are, if you aren’t making progress with money, it’s because you have no accountability.
For example, if I’m out of shape, the best way to get back in shape, is to commit to running a race. I’ve completed four marathons. Purchasing my race registration was the skin in the game for me to commit to training 5-6 days a week, because I knew the race day was coming up.
We achieve objectives in the allocated time that we give ourselves. I always push the students who enroll in Best Money Class Ever, my signature live 4-week personal finance class, to get out of debt in 36 months or less.
I want you to become Chief Financial Officer to manage your money like a boss (versus taking two seconds to sync your credit cards on an app).
The idea that you have no accountability with money, should not exist. ASK ANY CFO or ACCOUNTANT! Accountants account for all the financial transactions in a company.
When you become Chief Financial Officer you’ll have built in deadlines, structure, and accountability when you think in terms of months, quarters, and years.
My top three resources to manage your money
There are three financial statements, you’ll learn all about and fill in during Best Money Class Ever . You’re gonna love it! Here’s a quick run-down of the financial statements.
1. Balance Sheet
A Balance Sheet shows exactly where you stand with money. Think of it as a “define the relationship,” talk with money. It’s your snapshot and big picture. A Balance Sheet shows the total current value of your assets, everything you own- like investments, savings, home, or car. Then it shows your liabilities, everything you owe- like your mortgage, car loan, student loan, credit card debt, etc. Finally with your Balance Sheet you can see your personal net worth, which is assets minus liabilities.
2. Statement of Cash Flow
A Statement of Cash Flow shows exactly where your money goes. If money quickly leaves your hand, then this will show what’s going on. By filling in your Statement of Cash Flow you can see if what you are spending money on is in line with your values (or maybe it’s all going to Target!).
3. Income Statement
Lastly, there’s your Income Statement’s. It’s what you’ll use the most. We’re talking every.single.month. You can project your income and expenses. Instead of feeling restrained by a “budget,” start feeling empowered. Think of your Income Statement as your executive life bucket list. It puts a dollar sign to your to-do list.
When you have a plan with money, you can do MORE of the things you love in life!
Managing money isn’t about managing money. It’s about managing your life, like making your dream trip a reality.
Here’s what everyone’s saying about these resources to manage your money.
Beth got her PhD and saw many of her friends working for six years and building their 401(K) plans. She felt like she was late to the game. “I wanted to make sure I could hit the ground running and not have to retire six years later,” she said. Before landing her first job, she decided she needed to learn about money.
With her job offer she ran through the numbers and benefits. “I wanted to get my budget in order for my first paycheck,” said Beth.
Now she’s automatically contributing to her retirement plan each month and has an aggressive plan to pay off her student loans loans within three years by paying about $600 extra monthly.
Beth completed her Statement of Cash Flow and said, “It was a good exercise to see where all my money went during a month,” said Beth. She recommends tracking your expenses especially when you have a big life change like having a baby, moving, or getting married. It’s a chance to start over.
Read Beth’s story here: How to Avoid Lifestyle Inflation with PhD Beth Cozzolino
Vani, architecture and entrepreneur said, “I’m addicted. This spreadsheet is just so much easier than Quickbooks. Thanks, we are both pretty excited to get this show on the road!”
Jessica and Daniel were adjusting to being new parents on a single income. They paid off $21,000 in a year. Jessica said, “The spreadsheets contained all the advice, facts, and tools that help me reach my goals for me and my family.”
Read Jessica and Daniel’s story here: How Jessica and Daniel Paid off $21,000 in a Year
Where can you get these resources to manage your money?
You can design your own spreadsheets with the three financial statements, your Balance Sheet, Statement of Cash Flow, and Income Statement. Or you can use paper and pen. If you want something done for you, you can access the exact financial statements I use. I created a Financial (day) Planner, it’s like a day planner and financial plan in one!
The Financial (day) Planner is the ultimate money organizer. The spreadsheet has financial statements with formulas; all you need to do is enter your numbers! They help you go from completely disorganized with money to becoming Chief Financial Officer, to manage your money like a boss. You can access this when you enroll in Best Money Class Ever, that starts soon (click here for the class details)! When you enroll now you can bring a friend for free!
There are plenty of resources to help you manage money. Whatever app, tool, or resource you use, remember you only live once. Be smart with your money now!
You don’t need to spend the rest of your life stressed about money!
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**Free Resource for you** Get my new 7-day series on how to manage your money. Plus, you can schedule a free 15-minute money coaching session with me! Click here to access series.