- Take full responsibility of the financial aspects within your control
In life some things are completely out of your control. A person cannot accurately predict a job loss, an accident or an illness. Stock markets can crash or a war on the other side of the world may send your country's economy in to a tailspin. Income inequality, under employment and lack of growth opportunities within the organization have been affecting employees around the world. These circumstances are clearly out of your control and there is nothing we can do about it. It is pointless to spend your energy worrying about them.
However, it is very important that you take full responsibility of every thing else within your control. It is important to hold yourself accountable for the choices you make concerning your money. How much you earn, spend, save and invest are generally areas you can control. You can make a choice to save a percentage of your income or you can make a choice to spend more than you make on frivolous things and fall in to debt. Either way the choice is yours. If the company you are working for is laying off the workforce, you can become proactive and start to look for a job now instead of waiting until the day you are fired. Again, the choice is yours and the consequences of those actions are also yours to endure.
It is crucial that we take full responsibility about how we manage our finances. Instead of worrying about what you cannot control, you can take positive steps to safeguard your finances. Setting clear and precise financial goals, setting up a budget, creating a debt repayment plan, saving an emergency fund and funding your retirement account early will set you up for a better financial future.
- Exercise self control and be disciplined
For some of us, the simple reason that we fail to achieve any financial stability, even if we have well paying jobs, is that we lack self control. It takes discipline to spend less than you earn and to create wealth. Paying your bills on time or saving money for investment takes discipline. Sticking to your budget takes self control. Your finances won't magically improve if you don't take steps to curtail your unnecessary spending and pay off your debts. You must be disciplined to follow through with a debt repayment plan. You must be aware of your spending habits and be able to identify the good from the bad. Even if you earn a high income, if your expenditure is too high you won't have any savings at the end of the month. Exercising self control will allow you to control your impulse spending and prevent you from falling in to credit card or personal loan debt. Knowing when to say no to yourself and learning the difference between what you can and cannot afford will greatly improve your finances. Make a plan, in 2020 to pay off your debt, or increase your retirement savings or to build a emergency fund and follow it through with conviction.
- Educate yourself
Lack of financial education is one of the main reasons a regular person fails to achieve financial independence. Personal finance is rarely taught in schools and most of us rely on our family to give us advise on finances. Even then, there is hardly an open dialogue about financial matters, with many people being reluctant to share details. Discussions about money are still considered to be a taboo. Fortunately, the internet and public libraries give us access to tools and resources and the opportunity to improve our financial education and, learn about budgeting, savings and investment options. We have to be willing to spend our time to learn and understand the basics principles of personal finance. It is always important to continue learning, and keep up with the current financial situations. In 2020 resolve to improve your financial literacy and to manage your money better to create a better financial position for you this year
Disclaimer - It is important to note that the above tips are my personal views and opinions on money management. These tips should not be considered as professional, financial or legal advice. This information is general in nature, may not be suitable to your individual financial or legal situation. Always consult a competent and qualified Financial Professionals and a Legal Professional before you chose any investment, and, do all necessary research and understand the risks involved before you purchase any financial product.