Unlike the government who has Commission on Audit to monitor their spending and made sure that it was spent appropriately. We ordinary individuals only have ourselves to monitor our finances.

 

"person-holding-pink-piggy-coin-bank" by rawpixel is licensed under CC0

 

Earlier this week, I've attended a one-hour webinar about financial wellness. The topics discussed were pretty similar to the topics that I've already tackled on this blog. The said topics were also mentioned in other blog articles I've read.

 

Now, the question is why with an almost set in stone consensus of what to do, it is still difficult to work with our finances.

 

To give you a straight answer, it all boils down to the circumstances of each person. Meaning, we all have different starting points and tracks to walk to. Aside from the individual's circumstances, having the discipline to commit yourself to fix your finances is also a factor.

 

Here are some of the topics that were mentioned, that can help you to have a head start.

 

 

Have the 'Save for Tomorrow' Mindset

 

It all starts in the mind, your thoughts will affect and/or become your reality. You need to focus your mind that you need to save for your future self.

 

If this is not enough for visualization, use the FaceApp application and picture yourself as an old-timer. Now, visualize yourself having two options: Still working after your retirement age or Enjoying your twilight years.

 

 

Know What You Want

 

Don't just say: 'I want to earn big.' Say/write it specifically. For example, I want to have 150,000 savings by the end of 2021. Having a specific goal motivates you more because you have a clear outline of what you want to happen.

 

If you know what you want, the HOW will follow.

 

 

Develop a Budget Plan

 

This seems pretty obvious. However, many people out there go on with their lives without any budget plan at all. Control your spending by listing all your expenses and compare them to your income. Your income must always be higher than your expenses. If it is the other way around, then you need to remove the unnecessary.

 

 

Know Where To Save

 

Have a separate account for your income and savings fund. If the digital way is not your fancy, you can go old school with the Jar Method.

 

Set aside jars for the following funds:

 

• Budget
• Savings/Investments
• Emergency
• Leisure

 

 

Have an Emergency Fund

 

Before you dive into saving your money for investments, you should first build your emergency fund. The general rule is 3 to 6 months worth of your expenses/income

 

This is for REAL emergency only.

 

 

Take Advantage of Promos and Rebates

 

This is mostly applicable to individuals with credit cards. If you have one or planning to have one, make sure to build your credit score so that you can negotiate for your annual fee to be waived for life.

 

Take advantage of the rebates and promos that establishment give when you use your credit card.

 

Always make it a habit to pay the credit in full and on time to avoid unnecessary interest/penalty fees.

 

If you find it awkward to take advantage of promos, remember that Warren Buffet once treated Bill Gates for lunch in a fast-food chain and paid with coupons.

 

 

Invest According To Your Age

 

When you are still young, you can still afford to get into high-risk investments. However, as you grow older and wiser, you should mellow down your risks.

 

Stocks and Cryptocurrencies are considered high stakes. If you are still young, you can allocate most of your funds here. This is because you still have the TIME to recover in case of losses.

 

 

Have the Abundance Mindset by Giving Back

 

The universe operates in the Law of Attraction. To put it scientifically, every action has an equal reaction (Newton's Law). If you share your blessings with others, you will be given more blessings also. It may not happen instantly, but it will happen for sure.

 

Whenever we give, we teach our brain that we have more than enough (Abundance Mindset). The brain will then see income opportunities in every situation we encounter. Tithing is the bible's way of training us to have an Abundance Mindset.

 

If you happened to observe, the majority of the wealthiest individuals are also givers or philanthropists. They understood the Law of Attraction very well.

 

 

 

Takeaway

 

Having the discipline to monitor our spending and sticking to a budget is a very daunting task. But we need to face this challenge for us to reap rewards in the future.

 

 

 

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