Getting Started with Canoosa Finance

This is the Canoosan way to get started building a solid financial foundation. Anyone can do this, it’s just a matter of making some changes in your life and following the path of someone who has built a firm foundation. The rest is just sticking to the plan.

Here is what I have done that has made a HUGE difference in my finances:

1. Change Your Habits

Our life is built on our habits. To see the results of our habits, we just need to look at our life. Are we getting the results we want? If not, we need to change our habits. It doesn’t matter what area of life we are looking at – our habits are the driving force. If we are broke, or if we are overweight, it usually has to do with our habits. We need to start with looking at our habits.

The best way I have found to see what financial habits we should change is by simply writing down all expenses for a month. This can really be eye-opening! My favorite aspect of this is that you are the one who can decide what to change – it’s not someone else telling you what to change.

2. Channel Your Money

The same way that water can be diverted into irrigation canals, our money can be diverted so that we get the results we want. The problem isn’t spending money, it’s what we spend money on that makes the difference. One of the best thing ways to start channeling your money is to pay yourself first.

3. Invest in Yourself

Kaizen is a Japanese word that means, “constant improvement” or “change for the better”. We need to keep learning and growing if we want to improve our lives. Learning is not something that stops once we graduate from school. If you have not read a book in a while, and you can start by checking out my list of recommended books.

4. Carrying Cash

I learned about this from the book Rhinoceros Success. He wrote about how carrying a hundred-dollar bill will give you confidence. It does! Also, it can allow you to solve small problems that may come your way. I recommend all of you to start carrying at least one or two of each denomination of bill. (5, 10, 20, 50, & 100)

5. Debt Snowball

Most people have more debt than they would like, or more than they planned to have. Our challenge is getting out of debt. The method that I have successfully used is the Debt Snowball. This post discusses how this method starts with easy debts and then builds to pay off other debts.

6. Cash at Home

Like with the carrying cash, we should all have some cash at home. You can start with a week’s worth. I like to have about a month’s worth of living expenses in cash at home. If there is an emergency, that cash can come to the rescue! Even if the banks are not open, I still have cash on hand.

7. Cash in the Bank

Often, this is called the emergency fund. This money can be the minimum amount required so that you don’t have to pay a monthly fee to the bank. Money in the bank teaches self-discipline and you start having wealth in your life boosts your attitude. Having money also gives you the ability to take advantage of opportunities when they come along. This brings me to the next step:

8. Invest in Assets

Saving money will not make you wealthy! When getting started on the road to wealth, you need to put your money to work for you so that you can earn money while you sleep. With inflation being what it is now (I expect it will be here for a while!) assets will tend to rise in price to at least keep up with inflation.

Personal finance is not a complicated topic. The challenge is that a person’s financial position has more to do with how they think than how much they earn. Following these steps will change your financial situation!