Shannon Foreman, CEO and founder of Forethought Planning, said that just as you would spend time with a colleague or friend, you should do the same for your money.
MINNEAPOLIS – Inflation rates have fallen over the past five months, and Forbes predicts they will continue to fall in 2023. Despite the projected decline, we’re still dealing with higher-than-normal prices and the overall financial blow of 2022.
As we head into the new year, Shannon Foreman, founder and CEO of Forethought Planning, said there are simple things you can do to stay on top of your personal finances this year.
One tip she has is to go on “dates” with your money.
“Just like you would date a partner, you have to spend time with them,” Foreman said. “So you need to understand where things are. You need to know where your investments are. You need to know where your bank accounts are, what credit cards you have… what’s coming in, what’s going out.”
Foreman says it can be as simple as a 15-minute “appointment” a week…as long as you put it on your calendar.
“If we don’t have that time set on our calendar, it’s not going to happen!” she said
Foreman suggests people use that time to track their cash flow.
“I think ‘budget’ is a dirty word,” Foreman said. “I think people associate budgeting with ‘it’s restrictive, I can’t do anything fun’. So think of it as cash flow. Money flows in and out.”
First, she says, figure out how much you should be saving.
“Once you know how much you have to save, that’s what you have left over to spend,” he said.
If you need to cut some things out of your monthly budget, Foreman says don’t think of it as a “forever” move.
“I think sometimes when we see inflation rising, we think, ‘none of these things will ever be possible again.’ The reality is that inflation will rise and stabilize,” he said.
If you need help determining what you can keep and what you can part with, Foreman suggests looking inward.
“When you’re looking at, I can do my nails, or voice lessons, or soccer or hockey for your kids … you have to do a heart check and a values check,” she said. “What does it get you and what does it give you? And is there any way you can get the same if it doesn’t cost money?”
Finally, Foreman said, if there’s a month where you overspend, try not to worry.
“What you have to do is come back to earth and say it’s okay to hit the reset button. It’s okay.”
