Learning how to handle money is the first
step to achieving financial freedom and getting that priceless feeling of being
in control of your money.
Learn How to
Think about Money
Yes there is in fact a way to think about money. You
must always have a plan for your money. Many people are either intimidated by
money or are just plain afraid of it. You should try to understand your emotions
and preconceived feelings about money. Think about how you feel about money;
think about your ability to earn it. Think about ways to save your money and how
to manage it wisely. Think positively and proactively about your money, this
enhances your feeling of control over your money.
Learn How to Act on
Your Thoughts about Money
It’s not enough to just envision the great
things you intend to do with your money, you should learn to act on it and
execute it. It’s not enough to just think about money or plan with it; you need
to take action on it. Set goals for yourself and take guided action on it to
achieve the desired results. Don’t be reckless with the execution of your ‘money
plans’. Be wise, careful and meticulous. If you’re doubtful of how effective
this is, give it a shot and see.
Learn How to Talk about
Money
Money is such a sensitive topic in a wide range of settings;
therefore you must learn how to talk about money to gain better control of your
money and finances. You can’t run away from it, it simply must be done. Learning
to regularly discuss about money helps ease things out and makes money matters
become less of a taboo or a hot topic. There is an acronym called HALT, which
you should consider during or when initiating financial conversations. Don’t
have a money conversation with someone who is Hungry, Angry, Lonely or Tired.
Every other time outside these four are fine; common sense will guide you
through the rest.
Learn to Live Within Your Means
This speaks
for itself. There is nothing more to be said on this point again. Live within
your means. The key to financial success is learning to modify yourself to live
either slightly or even below your means, never above. There are a lot of ways
to live comfortably without spending every penny, but this fact eludes so many.
You should look at your budget and spending habits as a kind of “project that
needs monitoring and occasional adjustments” and be disciplined about it. Keep
tabs on your spending and learn to hold yourself accountable, before someone
else does in an extremely embarrassing way.
Learn How to Budget Better
and Prioritize Your Spending
People wrongly equate budgeting with some
form of self-sacrifice; however budgeting is simply being responsible with your
money. It’s taking care of your money to be sure it’s in the best possible
shape, just like you do with your body and health. Money is too important to be
reckless with it, so you need to learn to budget and learn to budget well. Have
a reasonable budget that responsibly (the key word is responsibly) caters to
your necessary needs, and prioritize your expenses to help you spend wisely. Let
your budget and goals match your spending priorities, this way you get to have
better control over your money.
Learn to Save Don’t just save for
the sake of saving, save because you understand what saving is doing for you and
your future financial goals. Also, be sure to never forgo your ‘rainy-day fund’
or ‘emergency savings’, because whether you like it or not there will always be
a rainy day. Some banks can help with this, as they have flexible and reasonable
saving schemes to prepare for these times. Also, insurance is another good way
to save for rainy days or emergencies. Don’t think insurance and insurance
companies are useless. That could very likely be a mistake on your part.
