Unless you are living under a rock, chances are you are always trying to get somewhere with every aspect of your life. For example:

• In career, you are trying to get to the next level via a promotion or hard work
• In relationship, you need more love and support, either from same partner or the next
• In business, there are clear metrics like Profit and YoY growth
• In health, you may be trying to get fitter or get rid of some ailments

Likewise, finances do need constant transformation too. No matter where you are, there is always a next level. In this blog, we are going to see a few examples of A to B transformation and how you can achieve your own A to B transformation in finances, no matter what A (current situation) is for you.

So what is A->B?

A to B transformation is a simple way to give purpose to any activity.

It means you are at Point A and want to go to Point B. It’s that simple.

Let’s define what are the different Points A you may be today regarding your finances.

• You are struggling with your finances – debt, no savings, living paycheck to paycheck
• You are okay with your finances – have savings, investing a little, living below means
• You are excited about your finances – investing quite a lot, researching ways to grow your money, reading about finances and optimizing your money management.

First convince yourself, which one of these Point A scenarios applies to you. If I have not described yours, let me know in the comments below.

Then you can define where you want to go, the Point B. Again depending on Point A, the Point B can be different.

But there is a higher purpose of Point B, that is to live life without any money worries. Everyone wants that, except few greedy people who just want lots of money.

Having too much money can cause worries as well. So having a balance and not having to worry about finances is a worthwhile goal for many people.

But let’s look at some concrete Point Bs for each of the Point A scenarios above.

You are struggling with your finances

• Getting out of debt
• Be able to save and invest
• Live below your means
• Build an emergency fund

You are okay with your finances

• Allocate your money to meaningful life goals
• Saving for college
• Build a Freedom Fund

You are excited about your finances

• You want a predictable flow of your spending, saving and investing
• You want to evaluate return vs. risk of investments
• You want to know all the options and truth about financial products

For each of the above Point A to Point B transformation, you can apply a simple 4 step process.

• Financial Reboot – Take a look at where you are. Defines Point A vividly.
• Financial Plan – Plan your journey to Point B.
• Financial Flow – Start the journey, actually sit on the car/plane/train.
• Financial Growth – Arrive at Point B and now this becomes your new Point A.

So you see, what is Point B for you can be Point A for another person.

That is why, Personal Finance is personal.

Just focus on your Point A -> B transformation at a time.

The 4 step process is described in this post.

Conclusion

In this blog, we have introduced a simple way of looking at your finances. By understanding which Point A you belong to and where you want to go (Point B), you can manage and grow your finances.

Life and Finances are just journeys. Enjoy the transformation.

If you would like to discuss your Point A to Point B transformation, reach out to me:

info@startyourfinancesright.com