April is recognized as Financial Literacy Month, and there is no better time to reevaluate your current finances and future plans.
Everyone is on a journey to financial freedom. We all fall somewhere on the financial wellbeing assessment spectrum. We are either very confident where we are, think we know where we’re headed or think if we don’t look, it will all go away.
Unfortunately, it’s not that simple. I remember when I was growing up my parents always said, “Money doesn’t grow on trees.” Although they were right, it got me thinking: what if money did grow on trees so to speak?
I’ve planted a lot of things in my life — some more successfully than others. When thinking about the techniques that were successful, I asked, “How can I use those same techniques to my advantage financially?” I found these four simple rules of thumb that work with plants can also help you grow your own ‘money tree’ as well:
Start with the soil
Money success begins with the proper foundation. Like with a real tree, the quality of your foundation determines how well things will grow. Preparation starts with evaluating what you already have. Do you have a true understanding of your monthly income and expenses? Have you reviewed your net worth? Have you established sound financial goals? It’s important to have answers to these questions first.
Choose your tree
Once you’ve determined the soil is ready, it’s time to decide exactly what to plant. To do this, ask yourself what your goals are. Do you want your money tree to bear fruit or is it just for looks? What do you want your money to do for you?
This step requires a bit more consideration depending on where you are in your life. Are you just beginning your career or are you nearing retirement? Does your family have a baby on the way or are you rebounding from a setback? There is no such thing as a bad goal.
Maintain and nurture
Now comes the simpler part: ensuring your tree thrives. All plants require maintenance and nurturing as they grow. Maintaining your financial wellbeing is a critical component of your overall wellness. It’s recommended that you review your budget monthly. You can check your credit report annually for free by visiting annualcreditreport.com. You should also take a hands-on approach with any investments, which allows you to be more aware of how you are doing currently. The best approach to a healthy financial wellbeing is being proactive.
Harvest
The final rule is to make sure to harvest at the right time. It’s never a good idea to think about harvesting at the first sign of blossoms. Be proud when you see your hard work paying off but continue nurturing. Some money trees are in the form of investments and can take an entire career to mature. Sometimes you may even want to save some seeds for replanting or starting another money tree. Other times the harvest is for enjoying now, like when buying a house. If it’s not your season to harvest, just keep on letting it grow.
When it comes to finances, you’ll be able to enjoy the fruits of your labor best when you know where you are, where you’re going, and what you need to get there. Remember that growing a money tree doesn’t always turn out perfectly. Whether it’s an error in planning or an unforeseen life event, some things simply can’t be avoided. Learn what you can from those situations and move on. It’s never too late to replant.
No matter your financial situation, never be afraid to ask for help. Whether you’re a soldier, family member, civilian employee or retiree, everyone can benefit from taking a fresh look at their financial tree. One of the most valuable tools is the Army Community Service Financial Readiness Program. It provides comprehensive educational and counseling programs, as well as a wide variety of online resources to assist you in planning for financial success.
To schedule an in-person or virtual appointment, call 502-624-5989.
