3 Tips to Better Manage Your Finances
“I believe that through knowledge and discipline, financial peace is possible for all of us.” Dave Ramsey
You are walking along the beach on a beautiful, sunny day. The warm sand between your toes feels heavenly. The sound of the ocean waves awakens your soul. The soft breeze hugs your body. You smile. You feel alive. You feel liberated. The smell of the soothing atmosphere is tempting your taste buds.” How I wish I could freeze this moment! I have been here many times but this time around, it's different,” you think to yourself. There is a sense of accomplishment.
Laying down, you look at the clear blue skies and reminisce on how you made a financial life-changing decision a few years back that has brought you to this tranquil space.
These were the steps…
1.Seek and Apply Financial Knowledge
Nowadays, getting information in any area of your life is easy. As long as you have the will to improve on a bad habit or behavior, you are halfway close to your destination.
First, appreciate that there are inexhaustible resources to help you gain or build upon your current financial knowledge. Delve into the online world through google, financial e-books, and podcasts. Moreover, you can utilize free service from financial experts in your bank, credit facilities, or investment company.
With all this knowledge, what next? Sit down, either alone or with your financial planner, sift through it and take what will work for you. Then apply, apply and apply. As Todd Stocker once said, “Knowledge isn’t life-changing. The application of knowledge is.”
2.Stick to Your Budget
The sought advice and guidance above will now lead you to make a budget or perhaps recreate the previous one. Kindly note creating a budget and sticking to it are two different things. William Feather articulates it so well, “A budget tells us what we can’t afford but it doesn’t keep us from buying it.”
Why do you do this? Pure lack of discipline.
This has led you to not having a savings culture but rather living on debts month after month. This results into psychological, physical, and emotional drainage for you and your family. If you cannot afford it now, it doesn’t mean you will never afford it. Brainstorm on other ways you can increase your source (s) of income if you want to improve your lifestyle. Meanwhile, live within your means by sticking to your budget!
3.Set Clear Goals
What do you want to achieve in the next year? five years? ten years? It is risky to go through life without knowing where you are headed. I mean, can you board a vehicle or an airplane and say, “I will know where am going once I arrive at the destination.” You will be mistaken for a lunatic.
Use the SMART approach below to clarify your financial goals: –
Divide your goals into short-term, medium-term, and long-term. This SMART approach will guide and keep you on track. It will assist in the avoidance of bad financial behavior and habits.
In conclusion, knowing and applying these tips is the first step towards having a successful and peaceful financial life. It is possible with determination, consistency, and application. And the next time you go to the beach, it will be different. You will feel free, happy, and contented.