Money management

Take Control Of Your Personal Finances

Take Control Of Your Personal Finances

I have been working in finances since I was about 18 years old, most of the time I was just guessing at what I was doing. Then one day I woke up and knew that I had learn the in’s and out’s of finances if I was to be successful. I found out early in my career that people that are financially successful at the ones that take the time and energy to regularly budget and plan out their finances. Most of them like myself have taken the time to get a financial education and continue to expand their knowledge over their lifetime.

Some of us go through life with no formal financial education and then there are others of us that have received a education in finances and receiving a education is a primary component of financial success. Here are some steps that will help you gain the financial foundation to help you to be financially successful.

 Mark your calendar to spend a few hours a week on your finances. 
Millionaires spend, on average, 8.4 hours a month managing and planning out their finances, according research by business theorist, Thomas Stanley. To be financially successful you need to dedicate time and energy just like the millionaires do. When I started my career I found out early that it takes dedication and time to regularly plan out my budgets and my road map to financial success. Don’t think it happens overnight like winning the lottery.

Set up a recurring date on your calendar to study your financial road map weekly and dedicate an hour a week just to your personal finances. Take a look weekly at your budget, look at your upcoming expenses and make sure you have the money in the accounts to cover your bills, then pay your bills which should already be automated to your accounts. Take a look at all the transactions for the week to make sure no one is siphoning money from your account and check to make sure that your accounts are accurate. Be consistent with this weekly money date and make it a fun time don’t think of it as a chore.

 

Commit 30 minutes a week to study about personal finances.

There are plenty of reading material on personal finances and financial education. The more knowledge you have the more you will feel comfortable with your finances. Don’t burn yourself out trying to learn everything overnight, break up your education sessions in to 30 minute increments. I love reading about personal budgets and financial secrets, but like  I said there are thousands of topics when it comes to finances.

Ask for advice from successful people that you know.

Talk to mentors, ask successful people to help mentor you. Seek out advice from people you know that are successful in business. Most of these people have made the mistakes that you will want to avoid, this is why it is best to get advice from them so you do not go through the same troubles that they have lived through. Take their advice to heart and make sure you thank them for sharing their information.

Gather information and put it to work for you.

Now that you have studied some different ideas and asked successful people for advice. Take these things that you have learnt and try them out for yourself. As you have done your research you have seen that there are lot’s of examples and strategies out there on the web, you need to look at these examples and strategies and see which ones best fit your finance goals and give them a try. If you try something and it does not work, don’t get discouraged look for something else that will fit your goals and keep looking till you find the one that best works for you. The key is don’t give up.

Hire a professional.

If at the end of it all you are still not comfortable about your finances then hire a professional to help you get your financial affairs in order. Sometimes we all need that helpful hand from a professional just to get started on the right track, and then there are those that just don’t have the time to dedicate towards their finances.

Conclusion.

Where ever you are in your financial path remember it takes dedication, time, energy and continued education to be successful with your finances. To be a master it takes a person to devote the time and practice consistently to sharpen their skills. If you devote the time to study and commit the dedication to honing down your skills with your finances one day you will be a master of your financial success.

 

Posted by Tom in Finance
Money Management Tips For Your Finances

Money Management Tips For Your Finances

Money management for your financial dreams

Money management is so much more than a few simple math equations and then you’re done. Math does play a part in money management but also does discipline and emotion and goal setting. The simple rule of money management is to spend less money than you bring home and to invest the leftover money wisely. If everyone lived by this simple rule then there would be no financial issues in families.

I remember when I was young (a long time ago) some of the greatest advice that I received was, take $20.00 a week and put it into some investment that compounded interest and forget about it till you’re ready to retire. At the time I thought wow $20.00 is a lot of money, this is money that I play with I cannot do that. To this day I kick myself in the rear-end for not taking that advice to heart. If I would have followed this simple piece of knowledge at the time I would have over $50,000 plus interest in my nest egg.

Of course I was a lot like other young people in my generation, I did not listen to wise old men and I took every penny I made and wasted it on foolish items. Today I wish I would have listened to people that were wiser than I was at the time and not have followed my emotions and wasted my hard earned money on foolish items.

The past is the past and I need to only look at the future now since I am fifty plus years old and I want to retire in ten years.


Obstacles get in our way.

About twelve years ago I had a major setback in my financial situation that was a wake-up call for me. My wife at the time wanted to have a new life and asked me for a divorce. Going through a divorce is a life and financial changing experience that I wish on no one. If you are not psychologically, emotionally and financially prepared then it will be like getting hit over the head with a baseball bat. Divorce can put you in such a financial tailspin that it can ruin your life for many years.

This was a difficult time for me, but God had other plans for my life and he took me out of that situation and today I am able to help others that are in that same boat that I was in. Since that life changing curve ball that I was given, today I am writing and teaching others how to reset you’re financial goals and take steps to get you back on the right path to financial freedom. Let’s now take a look at a couple of steps that you can start with to get you started.

Be Content.

First you need to understand that you will not find happiness in materialism and spending money on things you do not need. You must stop believing that money buys happiness. I remember the days of bringing home $25,000 a year and how I wished I could bring home $50,000 a year, I would so much happier. Well when I did hit that goal of making $50,000 I was no happier than when I brought home $25,000.

 

You need to learn to be happy with what you are given each day, when you make more money and you are not content you will not find happiness. There are no shortcuts and secrets to be financially set. What you need to do is learn how to mentally be happy with what has been given to you and learn to live within your means.

Learn to say no.

Learn to say no, every parent has problems with saying no to their kids, especially when it comes to purchasing back to school items and when it comes to the holidays. Right now is the time of year when families are running around and purchasing items for their kids to go back to school and I am hearing horror stories of families spending hundreds of dollars for new clothes and equipment like tablets, computers and new cell phones to go back to school with This is absolutely crazy. There is no need to purchase these items and go deeper in debt just to make your kids happy. You need to learn to say no, our parents did and we survived and so will your kids.

And It is not just kids that we need to be saying no too, it is us adults also. Many of us want to purchase new adult toys even when there is nothing wrong with what we have now. We need to be looking at cutting expenses and not getting deeper into debt just because we want something new. If you have the cash and you really feel the need to purchase that item them go for it, but do not purchase the item on a credit card or use money that will be going for another bill, only purchase the item if you have spare money laying around.

Use technology to your financial advantage.

When it comes to saving for your retirement use technology to help you stay on track. Computerize you savings and retirement accounts, when you set up monthly payments to come out of your check to go directly into a 401k account or some other savings account you will not miss the money since you don’t see it come from your paycheck. I set my retirement account to come directly out of my earnings and I was amazed at how quickly that account grew over time.

Computerize your spending habits in order to keep track of where you are spending money. Using software like bill pay will help identify where you are spending your money. At the end of the month take your statement and look it over to see where you have wasted money. Take for example, how many times did you go to Starbucks to purchase coffee, how many times did you purchase fast food during the month, and etc. Software like bill pay can shine a light on where you may be wasting money.

Take action now!

Nobody cares about your money and your future more that you do, so don’t procrastinate on getting your retirement started or work to get out of debt. Another thing is; don’t make excuses and blame other for your financial situation. Your financial condition may not be entirely your fault, but stop complaining and fix your situation now. You have the brains and no-how, take your expertise and fix what needs fixing with your finances.

Passion

Make money management a passion, when you do this it will give you the motivation to keep working harder to save and get out of debt. A wise person once said “”I like entrepreneurs who decided to solve a pain point that affected them personally,” says Vasu Kulkarni, Courtside Ventures. “The conviction to solve a problem is always stronger when you are passionate about it, and generally that tends to stem from issues that you can relate to personally.”

If you goal is to build for your retirement or get you and your family out of debt, take time right now to light the passion in your home with your family to be as passionate about this as you are. The larger the support group you have the stronger you will be to break your goal.

 

Posted by Tom in Finance