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Are your Finances on Fire?

Oct 01, 2022

The term 'on fire' has multiple meanings. One meaning is, ‘I'm on fire" as in kicking goals and another meaning is "is on fire", as in it's a hot mess. Which one do you want your finances to be? 

When I look back at my financial dumpster fire from many years ago. Which I do regularly. I know my business finances went from a small, smoldering, ember into a completely out-of-control forest fire.

Strangely enough, I can make this connection even more as I spent years on the farm becoming fire conscious and witnessing the annual burn-offs on the side of the road. Which was all in aid of fire prevention.

We've all seen what happens when a fire starts, even if it's just the strike of the match placed on the kindling. When a fire gets the right combination of fuel and oxygen, it easily becomes a roaring, controlled, or out-of-control, fire. 

Now, before you get out your matches and look at that pile of paperwork staring at you. I want you to take a moment and think of the pile as the fuel, the fuel you need to avoid creating fire in your finances.  

How do we stop our finances from catching on fire? I mentioned this before about witnessing the burn-offs conducted in the rural area where I grew up. It can be much of the same principle of having a fire prevention plan in place.

This can be as simple as scheduling time to work on your finances, keeping a regular eye on the numbers, and keeping them under control to avoid the fire breaking out. 

If this schedule has gotten away from you, something else to consider is conducting what I call the mop-up. Traditionally, this comes after the fire. However, I also like to think that we can run this for our catch-ups before the big blaze takes hold.

Either of these ways can lead us to "my finances are on fire", but in a good way, all under control and humming along. We can then rest easy knowing that we have them on close watch. So that those little sparks don't turn into a forest fire. 

If we are paying attention and a spark happens, and they most likely will, bam, put that sucker out quick smart. And it can be a tiny spot fire instead of a roaring disaster.

Unlike in the great outdoors, we have the power to control our financial environment. 

With our little radars on high alert, we are far less susceptible to mother nature's wrath. And sure, forecasting can be an ugly word, almost as ugly as budgeting. But if we stay alert we can avoid any inclination of a disaster. 

Which one applies to you? Are your finances ‘on fire’ or ‘ON FIRE’?

Having total control of your finances is a long game. Like many other chores in life, it is tedious, washing your clothes, and cleaning the house, those things need doing and they never go away. Just like these tasks, your finances can reach maintenance mode.

Remember, it's never too late to get in control of your finances. We all need to start somewhere. And if we never start, we run the risk of bigger financial problems heading our way.