Creating and following a financial plan (your financial story) is an important step to taking control of your finances.
If you’re like most business owners, you know that it’s important to have a financial plan in place. But do you know how to effectively use your financial plan? Keep reading for steps on how to put your financial plan into action!
In this blog (and vlog), I’ll share four tips on how to effectively use your financial story. It doesn’t matter if you’re just starting out or have been working on your financial plan for a while. It’s always good to learn something useful or brush up on something you’ve perhaps not paid much attention to up till now.
How to use your financial story effectively
Here are my four golden rules to follow when it comes to using your financial plan. You’ll see that it all really has to do with being familiar with your numbers and continually going back to them to check if you’re doing a good job realising your business targets.
So, let’s see what the four tips are.
- It’s about setting targets and sticking to them
- Use and access your data
- Decide how often you will review and monitor your performance
- Review, analyse and take action
The bottom line is that you need to use your financial plan as a tool for accountability, for monitoring your progress. If you do that, it can be one of the most valuable tools in your arsenal.
Once you have a financial plan and use it, you can start making meaningful decisions and changing your beliefs. You’ll get yourself back to where you want to be, budgeting, saving, and reaching your financial goals.
Don’t forget – if you want more tips like these, make sure to subscribe to my channel so you don’t miss an episode. We talk about money and business in a way that is easy for everyone to understand.
Using your financial plan – summary
Numbers are important, but they can also be overwhelming and scary. That’s why it’s so important to focus on the four things about using your financial story I talked about in this video. It’s about setting targets, how often you should review your financial story, using data, and lastly, feedback and action. If you do that, you’ll find that numbers aren’t so bad after all.
In fact, they can become your best friend. So don’t be scared of them anymore!
Helpful resources
If you want your numbers to be more accessible and easier, then grab a copy of my book I Hate Numbers. According to one reviewer:
“This is the best, most straightforward, pragmatic and enjoyable book I’ve ever read on finance for business. It’s a must-read for all entrepreneurs. Your clarity, humour, wisdom and great advice shine through as you make numbers accessible and easy for everyone.”
Sign up for your FREE trial to Numbers Knowhow, the revolutionary cashflow software designed to empower you with the numbers you need to transform your business. With Numbers Knowhow, you’ll have access to powerful tools and features that will unlock a world of financial understanding and growth.
Recommended reading:
Why Financial Planning is Healthy (blog)