There are 10 primary areas of finance that should be considered, it you want to be adept at planning a solid financial future:
1. Planning your goals well
2. Living well within your limits
3. Sharing your wealth
4. Reconsider your expenditure patterns
5. Forget the Joneses
6. Become frugal and cut out wastes
7. Manage your very own money and investing
8. Discuss finances with your spouse
9. Get organised
10. Think about your future
Planning your ambitions well:
You want to scrupulously plan goals that are realistic, while also challenging. Occasionally we need to re-evaluate our goals: Are they practical, or are they actually in accordance with our present way of thinking. Do they meet out future needs , or are they just adding luxury that really is unneeded. As an example, while setting a goal to become a millionaire might be engaging, is it totally necessary in order to achieve a practical lifestyle that is satisfying and rewarding. The majority of people can live a very rewarding lifestyle and never spend a large amount of cash. I’ve learned how to spend 3 months in Florida during the coldest months of winter for around $2,000 (That is a good topic for a future article). Some rich people would spend that for one night’s stay at a complex hotel where they spend most of their time asleep.
Living well within your means:
It is a wrong concept to believe that real things bring satisfaction and happiness . Substantial things only bring non permanent satisfaction and contentment that last till the newness wears off , and then it’s back to the usual , but continuing with the strain of coughing up for that new item . The reason why garage sales are so bounteous is that people buy plenty of unrequired junk that is later discarded.
I was reading an article recently how this person was able to live on under $10,000 a year. He probably did it by purchasing and living in an RV. His way of life includes travel to a large amount of exotic locations that most who have way higher incomes cannot afford to frequent often. While most may not need to live in an RV, you can purchase a home of a reasonable size in an older neighborhood and live within your means. I have lived in large homes and little homes and can truly say that either way had nothing to do with my state of happiness. Ironically you can live below your means and still be cheerful, nevertheless it is not likely, if you’re making an attempt to live above your means. Read my article, “How to live a stylish yet simple life.”
Sharing your wealth:
You don’t have to be rich to share your wealth. An often overlooked way of achieving contentment is through giving to others who are less fortunate. The Bible states, “It is more happy to give than to receive”, which means that you will be more happy when you give something than when you get something. Designating some of your salary for benevolence is planning for meaning and purpose for your own life.
Reconsider your purchasing patterns:
As an example, if your routine includes frequenting places that sell coffee for $4 to $6 a cup, you might want to rethink that and save the money for something more vital. Most of us spend cash aimlessly on harebrained things which are nonessential and add little to our life. Take time to make a list of ways you spend your cash every week, and decide how crucial it is to you and what you might do just as well without.
Forget the Joneses:
It is always straightforward to find someone that is ahead in their material status, and it is also simple to be envious and try and keep up with them. When you do think you are eventually caught up to them, they refinance and put you back where you started.
Build your own customized way of living your life and forget about everybody else. Set your goals to meet your wishes not your wants. Be content with what you have; that will be much more than the planet's standard if you have the basics of life.
Become frugal and cut out wastes:
It is estimated that US citizens waste 160 bln pounds of food each year. Often it is perhaps because foodstuffs are left and forgotten in the fridge until they expire. It is. Better to buy smaller portions more often than to waste. There’s also a large amount of waste from buying junky items on impulse and then dropping them later on. Organisation and discipline is the best way to handle waste. Being frugal in the way you spend means looking for the better price, or better deals, or what serves your requirements instead of rashly purchasing stuff on a whelm.
Manage your own money and investing:
There is no dearth of celebrities who have trusted their finances and investments to others and have wound up broke or with great loss. I recently went against my own rule of managing my personal finances and permitted a pal broker to advice me. This was before the collapse of the economy. I saw what was about to happen and called him and questioned if we should transfer the investment into something safer. He claimed, “Naw it’s going to be alright; it’s far better to ride it out.” My mistake for listening to him, rather than following my very own intuition, cost me thousands.
Learn for yourself about finances and investing and manage your own; never trust others to do with your cash what’s in your own interest. Many times they’re more curious about their own firms and self.
Talk about finances with your spouse:
The 1 problem in weddings is finances; up to 90% of divorces are due to finances. Couples think that finances is a hot button better left alone, so it winds up in some cases costing the marriage. Don’t hesitate to chat about finances with your chum and make plans together on the way to best budget, save and invest. It might stop your marriage dying and it will actually save you a lot of agony in the future.
Get organized:
Shortage of organizations is a main factor often , in the fall of giant companies. It’s also a primary reason why people are in a poor financial state. Organisation is as simple as keeping an eye on things such as spending, saving and investing, systematic saving and investment thru a car way if available. Having investment money took from your income before you are paid, or arranging with your bank to mechanically deposit a certain amount into savings at elected times is an organized approach. Keeping good records is another. I ran across a good suggestion recently for keeping good records by employing a three ring binder, one for every year. All of the bills and all other routine documents and so forth can be kept in the binder. Paste a plastic pocket on one of the inside covers for small documents. Critical documents should be placed in one location. I suggest a fireproof, lockable file box or safe.
Think about your future:
Planning your own financial future is down to you; no one else is about to do it for you. You don’t have to plan to be rich, but you do need plans to have an adequate amount when retirement comes, to meet your money needs. As an example, if you’re 40 now, you need to take under consideration what you will need and how much it will cost to live when you reach 65. Most people fail to plan just how much they will need at retirement. Finance establishments like (Transamerica, Fidelity, T. Rowe and Price and Ameritrade, among others, can calculate what you will need for retirement for you.) You may use free calculators from Bankrate.com.
If you do not plan well now for retirement, then you can plan on working for the remainder of your life and I know some that are in that position.
Planning for your future is about being monetarily free when retirement comes and most people by that time are anything apart from financially free; in truth the stats are dismal to say the least. Here is how it stacks up:
Of those reaching 65 and retirement age:
– 1% will be loaded
– 4%will have financial freedom
– 41% may continue to have to work
– 54% will be broke
(Taken from the piece,” 10 Money Principles for Financial Freedom” by Jimmie Burroughs.)
From the same article above,” 85% of folks over 65 could not write a check for $600 above their monthly expenses because they do not have the money. Wow! That suggests that only 15% are anywhere near financial freedom. The explanation why this occurs is that people don’t discipline themselves to save when they are young and continue through their lives.”
“Planning for the future isn’t that hard: By just saving a $1,000 a year and investing it wisely could make you a millionaire by the time you are 65 if you start at age 25 and that’s a lot better than broke at 65. Save $3,000 a year invests it wisely and has $5.8 million at retirement if you begin at 25 and continue till 65. This, naturally, is based on how well investments do. “.
Conclusion:
I would be remiss if I did not add that planning for your material future is only part of planning for a sound future. More important than the material is the religious. To be complete in both the material kingdom and the spiritual brings all of life into proportion and supplies not only security but meaning and purpose. If you are interested, you can find out how to have a spiritual connection with God.
Jimmie Burroughs is a motivational speaker and author who has been concerned in teaching Christian Personal Development for over 30 years. He’s a dedicated disciple of Jesus Christ and considers helping folks his calling in life. His website contains over 600 articles on preparing yourself for success through personal development and the things which go with personal development.
