Dear hivers

I have written about the importance of dreaming big. Dreams can be powerful motivators and they can turn your life around.

Yet, if you don’t work on your dreams, they will remain as nothing more than just dreams. What you need to do then is to wake up and start doing something about your dreams.

For me, after looking at my dreams, the next important thing to be done is to look at your present situation. There are many things that you can check and analyze. But the three most important things are your income, expenses, and savings!

Income

How much money are you earning each month? How many sources do you have? Do you have any passive income sources? If you have passive income, it means you’re earning money even if you’re not really putting a lot of effort in it. Examples of passive income sources are rental income from properties you own, advertising income from your blogs or online properties, referral fees and other sources that you don’t really put a lot of effort on.

Expenses

How much do you spend in a month? What are your fixed and recurring expenses? Do you have a lot of variable, discretionary expenses?

To help you assess your present situation, it might be a good idea to track your expenses for at least a month. You can check out our tools: Budget Spreadsheet Monthly; Monthly Expenses Worksheet, and Sample Budget Spreadsheet.

Your Net Income

When you compute your income and your expenses, deduct your expenses from your expenses. How much do you have left? Is it positive or negative? If you have a negative amount, it means that your income is not enough to cover your monthly expenses.

You need to do something about that, otherwise, you will end up in the quagmire of debt.

Savings

Some people advocate saving first before spending anything on expenses. This is a pretty good advice. It’s like paying yourself first before anything else. For some people, however, this is either difficult or downright impossible. Depending on your situation, you can specify a certain percentage of your income for your savings. A 5% savings is better than nothing! How much are you saving right now?

Checking your personal financial help is like going to the doctor. But it doesn’t stop there. After a reality check, you need to do something about your present financial situation.

Everybody needs extra money for various reasons. Go back to your dreams and look for some reasons why you need extra money. Having extra money is not bad. It gets bad if you fall in love with money and you neglect other areas of your life.

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