Regardless of what your finances currently look like today, improving your financial health or maintaining it in a good state should be what you strive for. Unfortunately, it’s very easy to fall into the simple pitfalls that could derail those hopes. Prior to social media, it was already very difficult to refrain from buying attractive products after watching commercials on TV. Now, with the prevalence Facebook, Instagram, YouTube, Twitter and such, we are bombarded with marketing content 24/7 at an uncontrollable rate and the temptations are harder to resist. Therefore, creating your personal plan and living on a defined budget is essential.
A budget is a must. It helps and plays the guidance role in the purchasing decisions that we make. Nonetheless, even the most disciplined person would sometimes fail. It’s ok. We cannot be perfect; and in a lot of cases, a random purchase will not affect you much.
Sometimes, the issues are more serious and they affect us for longer periods of time. Have you been there? Are you currently dealing with some very serious financial hurdles? It may seem like there is no light at the end of the tunnel but let’s not give up.
Taking A Step Backwards Isn’t the End
Human nature dictates that we want to progress along the journey of life in the smoothest of fashions. Therefore, it can feel that backwards steps are a form of defeat. I am sure that you know people who lost it all when the entire economic system busted in 2018. The fact is that some people were able to bounce back while others have given up. Times may be tough but your resilience to bounce back will make all the difference.
During the economic downturn, I worked with individuals who lost their home or had to downsize. Others lost their businesses, their savings, their jobs. One of my friends had to file for bankruptcy chapter 7 following a period of an entire year trying to get back on his feet. This was a tragic experience in his life. Nonetheless, he made it and today, he’s a successful entrepreneur.
The point is: do not give up and embrace failure and step backs. The journey of life won’t always be plain sailing. With the right mindset, even those setbacks need not determine your financial outcome.
Overnight Success Does Not Exist
The digital age has created a wealth of opportunities for entrepreneurs to thrive. There are many inspirational stories out there, and many of them appear to be overnight successes. Remember that the 22-year-old football player who signed a $40-million-dollar contract started playing at 5 years old. The truth of the matter is that any worthwhile success takes time. When you start making the right decisions for your finances, although implementing a budget is no rocket science, be patient in the process leading to financial stability. As they say, slow and steady can still win the race.
On this topic of success, it is also important to note that we all need help. In a business environment, outsourcing may be the solution for you to move at a higher pace. Many entrepreneurs (and employees) tend to aim for perfection and end up wasting time trying to do it all. Oversee the work that’s being done while assembling a kick-ass team.
Learn to Work with Your Current Income
Make no mistake; earning more money in life puts you in a far stronger position. Nevertheless, it’s important to remember that financial stability does not always mean a high income. It’s about managing what you have and make wisely.
You can make as much money as you want but if you can spend it all and have nothing to show for. This principle can be applied on a smaller scale as well. There are expenses such as a streaming service that are very enjoyable but when not budgeted properly, should not make it on your list.
On a separate note, the way in which you invest your savings can impact your long-term financial stability too. When the need to increase an income arises, I always recommend searching for a new job. However, being disciplined with your current salary is the key.
Money-Smart Millennials 