8 Keys to Improving Personal Finances
Here are some ideas and proven financial concepts that can dramatically impact your personal life and finances. I hope you will take the time to read through them. More importantly, I hope you will take the time to implement some of these ideas into your own personal finances.
- Our Choices, Have Consequences – We must accept full responsibility for our own financial futures. We must understand that our financial decisions and choices today will impact our lives tomorrow. Therefore, we must evaluate all of our financial choices, expenses, purchases within the context of our overall long term financial goals and objectives.
- Stop Consuming. Start Controlling: When was the last time you reconciled every dollar you spent for the last 30 days? I challenge you to track every expense for a minimum of 30 days to see where all the money goes. Use this exercise to look for ways to reduce unnecessary expenses. We live in a consumer driven world. Our spending habits are consuming our future. We must take control of our spending habits to start moving towards achieving financial freedom.
- Create & Live Within A Budget A budget is absolutely critical for anyone that is committed to achieving financial freedom in their lives. A Budget is simply purposely directing where more money is going BEFORE you spend it. A budget provides us accountability. It provides us a tool to work on achieving our financial goals. A budget will dramatically impact your personal finances. It will provide you the roadmap to achieve your financial goals.
- Become Debt Free –Debt is what keeps us from pursuing our hopes, goals and dreams for our lives. Debt robs us of our future. The only way we can take control of our financial lives and our future is by becoming debt free and never going back into debt. Living debt free must become your passion and your unrelenting goal. Debt free living can be a reality for anyone that is willing to commit to the goal. What if you were debt free? How would it change your life?
- Establish Cash Cushion A cash cushion is an emergency fund that is created to cover your living expenses for 3-6 months. It is also used to cover unforeseen expenses, repairs, etc. that come up in everyday life. The purpose of a cash cushion is to keep you from incurring more debt when emergencies arise. A cash cushion will also provide you peace of mind that you have 3-6 months living expenses in the bank at any time.
- Commit Time Everyday to Improving Your Financial Literacy. How much time will you spend on the internet and watching TV today, this week or this year? How much time have you invested today, this week or this year improving your financial literacy? What is more important? There are countless free resources available on the subject of Financial Literacy. Remember, we must take full responsibility for our own financial lives.
- Create Clear, Concise Financial Goals – This is one of the most important steps in achieving financial freedom. Without clearly stated goals we will abandon our financial commitments for the future and only think of our immediate wants and needs. We cannot afford to waste our precious time, money and resources consuming our future by our lifestyle choices today. Therefore, it is absolutely essential that you take some time and write out your vision and goals for your finances and life. You want goals that will inspire you. Goals that motivate you to achieve financial freedom and live the life you have always imagined living.
- Practice Generosity – Our lives will not be remembered for how much we earned , but by how we impacted the lives of others. Therefore, we should look for more meaningful ways to use our money, time and talents to impact others. Generosity creates wealth when we take the focus off our own desires.
My hope is this article has been educational and/or inspiring in helping you in make your financial goals a reality in your life. If you know someone that might benefit from this article please forward them this link. Thank You and God Bless