Financial mindfulness is really about being more aware of your current financial situation. Clarity is the key to improving your finances.

The first step is to get clear on where you are right now. This means spending a few hours on a weekend or after work and really assessing your current situation.

I have laid out the steps you should take below:

1. Identify all debt accounts and write them down or put them into a spreadsheet. Include the creditor name, the current balance, current interest rate and monthly payment.
2. Identify all assets (401k, Cash, Savings, Investment Accounts Etc.)
3. Identify your monthly expenses/budget.
4. Identify your monthly net income.

This shouldn’t take more than an hour. The next step is to set a 12 month goal. Identify areas on your budget that you can cut/reduce. Let me show you a few places you can start.

1. Call your cable provider and see if you can reduce your package.
2. See if you can reduce your cell phone.
3. Shop utility providers to get the most competitive rates/prices.
4. When grocery shopping, create a list and stick to it.
5. If you eat out too much, spend Sundays doing meal prep to make it easier.

Most people won’t do the above steps. Whether it’s fear, uncertainty, or lack of willpower, they just won’t do it. As a result, they will continue being stuck in their financial situation for years, and in many cases, forever.

If you want to change something in your life, whether it be finances, your health or your relationships, then you must start taking drastic action. Extreme results require Extreme Action!