by Todd A. Williams
Many People are challenged by managing money because they have no idea where it all goes. They may make a good wage; yet have no understanding of how they manage to spend everything. An important part of building a positive and lasting financial legacy is knowing where your money goes.
In order to execute any plan for success it is imperative that you know where your resources are, and where they go. Napoleon was a great general for France because he knew the capabilities of his army, and he knew where each regiment of his army was placed for battle. That knowledge helped him win many battles. Your money is a resource and you must know where it is, how it works for you, and use it appropriately in order to make your financial goals a reality.
Although money is not the most important thing in the world, it is a medium of exchange that is necessary to obtain creature comforts of life. We need money to buy food, clothing, and shelter. Nothing is wrong with using money to gain material goods. However, something is very wrong when we squander our resources and misuse it.
Five steps to take to better manage your money:
Step 1: Stop budgeting!
The word “budget” is a restrictive action much like the word “diet”. We all have been on diets and have stopped because it is hard to deny ourselves of things we like. Why torture ourselves?
No longer use the “B” word. Instead, implement a spending plan.
If we change from “diet” to “nutrition”, it becomes easier mentally because we know we are eating for a healthy life.
Likewise, we are used to spending,. Creating a self-directed spending plan gives us greater psychological control of where we will spend. We can spend to a savings account, an investment account, or any other accounts.
That is a more positive action.
Step II: Be diligent in tracking resources.
As the ancient saying goes…Know thyself!
Keep track of where you spend you money. Develop a spending journal. Maintain the journal and yes, keep track of the smallest amount that you spend. Remember, disaster does not strike all at once. The little signs of trouble lead to the big ones!
Like Napoleon, be a great general; know where your troops are.
Step III: Have courage.
Don’t let the fear of financial matters derail you from your dreams. Take charge be in control, believe you can do it!
Step IV: Have a plan.
Have a clear vision of what you want to accomplish, and go for it.
Fuzzy goals give fuzzy results. Have a purpose and let your purpose drive you to successful money management
Step V: Positive reinforcement.
The law of physics states that an object will continue in one direction until a greater force alters its course. If you are headed in the right direction, make sure you don’t let anyone or anything change your course. Success is in your hands. Grab hold tight!
Maximize your dreams
Overcome obstacles by organizing your life
Network to net-worth
Enjoy the moment
Yield abundance
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