Did you know that all it takes is one incident or one forgotten bill to wreak havoc on our financial standing? On a different situation, many people out there are still trying to pay catch up when it comes to debts. For most people it’s just a hole that just keeps getting deeper and deeper. Those are several of many instance when mismanaging your money results in headaches.
For those of you out there that might feel that your money situation is controlling you – not the other way around – I’ve mapped out 4 simple steps to help you take control of your finances and get out of the financial hole before it buries you.
Step #1: Commit to Gaining Knowledge on Finances
Knowledge is power. Start off by actually learning about finances. Read books by economists and financial experts. Educate yourself on this topic, know inside and out. But it’s important that you don’t try and learn all there is to know about money and financial planning in a day, a week or even months.
Take time and read 30 minutes a week or so. Make sure you’re understanding what you’re reading. And don’t be afraid to ask someone who might already know a lot about the subject.
Step #2: Have a Date With Your Money
It’s not uncommon for the very wealthy to plan “money dates”. In fact most millionaires spend an average of about 10.5 hours a month just planning and mapping out their finances.
8 hours may seem like a lot and it is for the average person, so just plan on anywhere from 20 minutes to an hour a week, sitting down and looking at upcoming expenses and mapping out your financial strategy.
It’s crucial that you make a consistent practice of this. The consistency is where you’ll see the results. For me the idea of sitting down once a week for about hour is somewhat intimidating and doesn’t sound enjoyable. And that’s why you have to make it enjoyable. Set up a reward system for yourself for completing it, or listen to your favorite music or audio book. Do whatever it takes to make sure you enjoy it, so that you’ll actually do it.
Step #3: Trial and Error
There’s not necessarily a right or wrong way to budget. There’s many ways and some ways will work for you and some ways won’t. The best way to figure out which one works best for you is trial and error. Choose one and give it a trial period. If it doesn’t work then don’t use it and move on to the next one until you find which one that best suits you.
Step #4: Practice
Practice Makes Perfect. If you want success and results when it comes to your finances you have to keep practicing these tips until you get down a rhythm, a lifestyle of financial responsibility. It’s important that if you want to have financial freedom that you don’t give up. You have to invest time in these practices but if you stay with it the results will be life changing.
Apply these 4 tips and in time I believe that your debt along with your stress level will decrease and you’ll have a new sense of financial freedom. Fingers crossed!