Getting Started | How To Manage Your Money Better
How you manage your money can determine the kind of life you'll live.
Money isn't everything...but it ranks right up there with oxygen. - Rita Davenport
Though managing your finances can be very challenging, people who lose control of their finances tend to suffer from financial stress, which in turn leads to higher divorce rates and other difficulties in personal relationships, higher rates of depression, and a variety of other ailments. In contrast, people who are smart about money are more likely to say they are happy, even when they are not particularly wealthy. So if you want to attain happiness (along with any financial goals you might have) you make sure you understand how to manage your money because you will not achieve financial success unless you know how to make smart financial decisions.
While you don't have to be a millionaire in order to be happy in life, understanding how to manage your money better will hold you in good stead for the future. It is a sad but true fact that you were never trained on how to be smart with your money. There are no classes in schools or Universities that tell you what you need to do to become a smart money manager. You were simply equipped with the skills that would hopefully make you some money once you are through with your training. You are probably making money now as a result of that skill.
Formal education will make you a living; self-education will make you a fortune. - Jim Rohn
Therefore, to be smart about money is your responsibility. Yes, your RESPONSIBILITY! You should know that you are solely responsible for your own financial future. Your employer isn't, the government (state) isn't but you are.
Your employer will make sure you get your salary at the end of the month and may be provide you with some work benefits to motivate you. And that's it. He (employer) will never bother to make financial goals or create a financial plan for you. He will not be responsible of your financial decisions. That's your business. Not his.
The government (read politicians) will create conducive economic environment for you. It will formulate economic laws and policies, start social programs that will hopefully secure your financial future. That is its obligation. The bare minimum it can do. However, the government won't breathe on your neck to force you save and invest more for your retirement or child's education. It won't force you to cut down your expenditure so that you are able to set aside some money for your financial goals. It will not be involved in analyzing the opportunity cost of your day to day financial decisions. Again, that's your business.
Now, here are three things that i believe can put you in the right footing if you want to manage your money better:
#1: Develop the Right Money Mindset
Your money mindset is how you think about money. Your attitudes around money do affect how you manage it and how much of it you'll make. Many people still believe that "saving money is BS" or "money is evil" or "money makes people greedy" or "being rich isn't spiritual" or "money is scarce" and many other negative money thoughts.
In order to manage your money better and attract more money, you are first going to have to lose these negative attitudes about the money. You need to develop a healthy money attitude and be comfortable with the idea that you too can make it despite your financial challenges or woes.
Your mindset and any resulting bad financial habits that are holding you back from being a better money manager can be fixed. Raising your awareness about negative thoughts you may have about money is half the battle. The rest of the battle is deciding to make positive changes, seeking the financial knowledge you need, and taking action. - Laura Adams of MoneyGirl
#2: Choose Simplicity
We are currently living in very complex world...a world that is driven by competition and consumerism...a world where a few wealthy individuals are dictating, through their products and services, how we should live our lives.
Lifestyle demands that have been imposed on us, coupled with those we have imposed on ourselves (because we want to fit in), have led us into a none-ending pursuit for things. Wake up for a minute and look at the stuff around you that you have spent money on. You spent...someone else got richer. You need to understand that people are in business. They are in business to make money and more of it. If they have to convince you to buy their expensive products and services, so that they can grow wealthier, bet they will employ every marketing arsenal in their possession to convince you to buy.
Simplicity can be thought of as a tune-up of priorities, habits, skills and values. We can overcome the social roadblocks to living simply and make our lives satisfying and culturally rich while consuming less resources. - By Dave Wann
Life isn't all about money and things. Creating the life you want isn't a matter of making more money or acquiring more stuff, it's a matter of rethinking your values and priorities, then pursuing those things that matter most.
Simplicity is not about depriving oneself or living in
ultra-sparse conditions. Living simply is about reducing the clutter
and narrowing down one's possessions, engagements, and thoughts to
something more manageable. It is about eliminating the noise to find
the essence of the good life.
Living simply costs less. The less you buy, the less you spend. This is simple enough, isn't it? Of course, the fewer things you own means the less maintenance and upkeep you have to pay. A smaller, more modest home requires less money to heat and cool. Avoiding buying things on credit saves you the interest. There are so many ways that a simpler life saves you money! - Jef of My Super-Charged Life Blog
#3: Cultivate Discipline
Nothing of importance is ever achieved without discipline. Life often presents challenges and problems on the path to success and achievement, and in order to triumph over them you have to proceed with perseverance and persistence, and this requires self discipline. Self discipline gives you the power and inner strength to overcome addictions, procrastination and laziness and to follow through whatever you do.
If you are to manage your money successfully, then you need to cultivate, develop and strengthen self discipline in your life.
No horse gets anywhere until he is harnessed. No stream or gas drives anything until it is confined. No Niagara is ever turned into light and power until it is tunnelled. No life ever grows great until it is focused, dedicated, disciplined. - Harry Emerson Fosdick
We must all suffer one of two things: the pain of discipline or the pain of regret or disappointment. - Jim Rohn
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