Many of us believe that in order to achieve financial security we need a great salary, extraordinary intelligence or simple luck. The truth is that anyone can achieve financial independence. All it takes is a little discipline. Simple money principles, applied consistently, allow you to obtain the financial abundance you desire.
Don’t worry about what other people own
It’s tempting to wonder why you can’t afford all the trappings of life that your friends and colleagues enjoy. But consider this: Most Americans are living paycheck to paycheck. Sixty percent of Americans have insufficient funds to cover even one financial emergency, and more than 50 percent of us have less than $1,000 in a savings/checking account.
Don’t obsess over what everyone else possesses. Your neighbor’s large home, designer clothes or late model car could be driving them straight to the poor house.
Set a goal or two
If you don’t know where you’re going, any road will do. Goals are your fuel for success because they provide you with an ultimate financial destination. For instance, if you set a goal to purchase a home in two years, you’ll find yourself better able to resist financial detours.
Make you a priority
Most of us get it backward. We pay everyone else first, then take care of ourselves. Flip the script. Put yourself at the front of the line. Take the first 5 to 10 percent of your paycheck and apply it toward your financial goals, then use the rest of your money for bills, living expenses and entertainment.
Embrace the small sacrifices
The small sacrifices you make today snowball into massive returns tomorrow. Consider, for instance, eating out less, keeping your car for more than seven years, and going to the hair dresser one fewer time a month.
The small savings quickly add up, allowing you to eventually achieve a level of financial success few others will enjoy. As financial maven Dave Ramsey advises, “Live like no one else today, so that you can live like no one else tomorrow.”
Trim the fat
You have more financial wastes than you think. You simply waste more than you realize. In fact, experts predict most Americans squander 10 to 15 percent of their salary.
But did you know that by saving 10 to 15 percent of your income, you can ensure a comfortable retirement? That’s why it is so important to become a financial detective. Sniff out your money leaks. Get rid of useless junk, hidden fees and unused services. Your pocketbook will thank you.
Find your joy
Don’t waste a single cent on stuff that just brings you fleeting or marginal satisfaction. Spend money only on those things that truly make you happy; and cut back relentlessly on all else that adds little value to your life.
Give each and every dollar a destination
At the beginning of the month, sit down and tell your money exactly where it’s going. Decide which dollars will cover the essentials, which will be used to invest and pay off debt and which dollars will be used for fun and entertainment. Some may call it budgeting. I call it having a plan for success.
Getting your money straight doesn’t have to be difficult. The persistent and patient implementation of simple money principles will guide you down the path to financial prosperity.
BMWK, is there a financial plan or practice that has worked wonders for your family?