262 | Take the Next Step

Many lawyers get stuck in the cycle of learning about personal finance but not making real changes.

But taking action—one step at a time—is the key to transforming your finances.

In this episode, let’s talk about why taking the next step is important and how each step forward builds momentum for your eventual financial success.

• • getting caught in analysis paralysis
  • doing things that feel good but don’t lead to your goals
  • taking the next step to achieve financial success

You’re listening to Personal Finance for Lawyers. I’m Rho Thomas, and as a busy wife, mom, and former Biglaw associate, I know all too well the tension between the culture of the legal profession and pretty much everything else you want to do in life. That’s why each week, I’m bringing you the information and tools you need to improve your money mindset and manage your money to create true wealth. Because ultimately, it’s not about the money. It’s about the freedom and flexibility the money affords.

Hey, friend. Welcome back.

Today we are talking about the importance of taking the next step.

I think sometimes we get caught up in analysis paralysis of looking at all of the things and getting all the information and making sure that we research and figure out what the best thing is and what the right thing is and all of that. And it often keeps us from actually taking steps to make progress.

So one of the examples that I’ve given on my class, I do a monthly class where I talk about money and manage your money better to improve your net worth.

But one of the examples that I give in there is about baking a cake and how I can go around to all the best bakeries and get all of the information about the best cakes and research how to bake the cake the right way and gather all this information. But if I get all the information and I just sit on my couch and I don’t do anything with it, I can’t expect to have a cake.

And the same is true with personal finance, where you can learn about money, you can listen to this podcast and other podcasts. You can read books, you can watch YouTube channels, you can talk to people in forums and on social media, and whatever else about personal finance, but until you actually put the things that you learn into action, it really is all just kind of productive procrastination.

You are doing things that feel like you’re doing something, but you’re not, actually achieving the goals that you want to achieve. You’re doing things that feel good but that aren’t actually getting you to the goals that you have.

So we want to make sure that as we are doing things that we take the next step to move ourselves forward.

So yes, listening to podcasts. Learning is great. What’s that next step that you’re going to do? How can you put those things that you’re learning into practice?

Let’s say the next thing is you’re going to look at your spending. OK, great. You’ve looked at your spending, but then that’s still not getting you to the goal that you have. So what’s the next thing? It’s not enough to just see where you spent before. Now we need to do something with that information.

So now you’re going to create a plan for your spending going forward. You’re going to create some sort of budget that says, OK, I bring in this much, I’m going to spend out that much. You have to take that next step.

So now you’ve created the plan. It’s not enough to just create the plan and just tuck it away and never look at it again, which I know a lot of you do because that’s what you tell me when we get on our calls, right?

It’s not enough to just create the plan or create the budget and then never look at it again. You have to follow it. So you need to look at it. That next step is looking at that plan and using it with your spending. OK, great.

So now you’re going through and you are spending less than you make. You’re spending according to your plan, but what’s the next step? Like, OK, I’m spending less than I make. That doesn’t do anything until you do something to make that money work for you. Right?

I’m no longer spending all of the things that I make or I’m no longer spending above the money that I make, but what’s the next step? It’s making that money that you’re no longer spending work for you.

So now I’ve got this surplus of money that I’m not spending anymore. Now I’ve got to figure out what is it that I want to do with it?

For a lot of people, that next step is probably going to be saving. Maybe you don’t have any savings, you don’t have an emergency fund. So we’re going to save some of that money. Now we’ve got you an emergency fund, but that’s not enough, right? Now, we got to think about what’s the next step.

All right, you created your emergency fund. You’ve got that money in savings. Well, I’ve also got all this credit card debt, this high-interest debt.

So now I’m going to take that money and I’m going to start paying off that debt.

OK, that. That’s great. But then what’s the next step after that?

Because having savings and paying off debt is a great first step, but once you pay off the debt, that doesn’t do anything more for you, right? You get yourself back to 0, but you also want to be making that money earn you more money, which means investing.

And so do you see how we just keep taking the next step?

Each step almost builds on the previous one, but if you just stop like ohh I read this book, that was great. No, you got to take the next step and apply what you’ve learned.

OK. I looked at my previous spending. Wonderful. Right? I feel like I’ve done something. And you have, I don’t mean to diminish that. Right. That is something to be proud of. But you can’t stop there.

You got to take the next step. And the next step and the next step so that you’re actually achieving your goals and not just feeling good about having done something, but that something isn’t actually leading to what you actually want.

The main point that I’m making is you want to make sure that you’re not stopping too short with the things that you’re doing. When you’re thinking about your money, when you are learning about money, even as you start putting things that you’re learning into practice, always be thinking about what’s the next step.

And the thing that I like about that approach is you’re taking each thing in bite sized chunks, right? Like you’re taking this overarching journey that might feel complicated. This whole process of managing your money and you’re breaking it down.

OK, I read this book. Now the next step I’m going to do this thing and the next step I’m going to do that thing. But you always want to be thinking about what’s the next step. What is the thing that’s going to move you forward so that you don’t get stuck having done something, but that’s something not being enough to get you to your goals.

So I want you to think about it right now. What is the next step that you need to take with your finances? Whatever that thing is, go do it. You’ve been sitting on it long enough. Go do the thing.

Take the next step so you can start getting closer to your goals.

Alright. That is it for this week’s episode. I hope that you find it helpful as you start taking those steps that you need to take because step by step, you’re going to walk yourself right into your goals.

Please take a second and share this episode with a friend or two who you think would find it useful. Sharing is the best way to get this information to more and more people. And as always, I appreciate your support.

As we close out friend, I pray that you take the information you learn here, apply it in your life and open up to the realization that wealth is available to you. As you do that consistently, week after week, you’ll continue to take steps to take back control of your time, build wealth, and live the life of freedom and choice you deserve.

Talk to you later.