Do you often think about how to manage your money to the point of being financially independent? Do you struggle believing it is actually even a possibility for you? Well, read on because there is hope, a light at the end of the proverbial tunnel. Let's learn about proper money managing.
According to creditcard.com, over half of Americans have personal debt. Many of them have completely stopped paying on at least one of the credit cards. As I state in my financial seminar, "this is nuts, folks!" However, for almost every one of these in debt individuals, the situation is not too impossible to overcome.
If you become aware of the correct choices to make, you are better able to reach your goal of financial independence. The benefits experienced by getting control of, and learning how to manage your money will manifest themselves into every single area of your life; the stresses you experience each day that appear completely unrelated to money will simply go away.
This stress reduction will improve your physical health and you will think much more clearly about dreams and goals you have. Do you see how all this works? The desire to have more things and do more things that are beyond our income boundaries signify in us a love for money, which is the root of all evil. And yes I consider stress to be evil, as it robs you of so much peace and sound mind.
Effectively learning how to manage your money puts things in the right perspective. And the less stress will give you more time to be with your family, developing and nurturing your most important relationships. Taking small yet effective steps to learn how to manage your money now will help you to enjoy your life more.
Yes, being at financial peace really is closer than you think. Experiencing success (not necessarily only financial) that most others simply dream about happens by taking small conquering steps in these six different areas of money managing:
Yes, you have already been told that you need a personal budget too many times to count. And you know what? I'm telling you again. However, it is my mission to make the complicated simple and help you set up a family budget that is usable an effective. It is easier than you realize. Completing this very first financial freedom step motivates you to learn more about how to manage your money, using your money as a valuable tool to get back control of your sanity.
Spending less money than you earn is the vital key to a successful financial plan that works. You see, once you have goals and know where it is you really are right now and where you want to be, this budget road map provides the direction to get you there with confidence.
2. Saving Money
After creating a financial road map (budget) and are on track to spend less than you bring in, you are now ready for money saving strategies that work. Your short and long-term savings goals become joyful when you are taking the known right steps. This is where some personal financial coaching will really give you a dose of reality and boost in confidence of being out of personal debt in three years or less.
Once you are saving towards personal financial goals, waking up every day gives you more excitement and drive to keep them a reality. In turn, your family gets excited also! The dark clouds of debt are replaced by rays of sunshine that brings hope. I know, a bit of touchy-feely stuff, yet it really does work! Learning how to manage your money effectively simply makes you feel good.
3. Getting Out of Debt
Do you wish to remove the knots and butterflies in your tummy every time you visit the mailbox? Start adding to your savings account consistently. You will have piece of mind knowing that the person ringing your phone is not some big ugly hairy guy saying, " Eh, gimme your money or I will make your life miserable."
Why will you have this peace of mind? Because all of your bills are paid in full, you have no personal debt and you are ready for the unknown with an emergency fund. When you are free from the shackles of debt, you are able to live the life you desire. However, as I tell my children, " you may do as you please as long as which you do pleases the Lord."
It does not matter that the financial mountain appears high at first. The only way to get to the top is small steps, one at a time. The key ingredient, however, is by taking action steps which lead you in the right direction. Knowledge is not power until acted upon.
Learning effective strategies to get out of personal debt will not get you very far in and of itself. Effective implementation of them will. You will feel exhilarated when you get closer to being debt free and have more feeling of being in control then you ever felt before. Well worth the price of that alone.
A key piece of your financial road map in knowing how to manage your money is learning how to wisely use credit as a tool, not a lifestyle. In its proper place, credit can be used judiciously such as buying a house. However, using credit to purchase a car, food, electronics, or even a college education has a great potential to suck you in two decades of payments. Do you realize that the average college student graduates with $20,000 of personal debt? (creditcards.com).
Using credit to purchase things in and of itself is not bad. However, not being in a position to pay it off when the statement comes is the dangerous part. It is symptomatic of refusing to live within your means. Solution? Learn how to manage your money effectively now.
Ensure you take steps now to get credit use under control. Use it in a way that is wise and responsible. As you discover and apply effective strategies for getting out of debt, you will become exhilarated by moving closer to a debt free lifestyle.
5. Bringing in Extra Cash
An area of financial stumbling is not finding a way to earn the income that will accomplish your goals. However, there are strategies to combat this such as a temporary part time job, selling things, or creating a service or product to sell on the side to supplement what you are currently making. And certainly cutting expenses can be seen as a form of new income.
By taking action with the determination for success, there are opportunities that are ready to present itself. Simply look around asking God and others for guidance.
6. Protecting Your Identity
An often overlook strategy of effective money management is protecting yourself from identity theft. This and other types of money crimes could, through no fault of your own, derail even the best of efforts. Protecting yourself is a lot easier than you may realize. Sign up for a theft protection service and have the peace of mind knowing identify theft will not happen to you.
Your financial freedom is much closer than you think. However, the choice is yours. You can either stay a couch potato with a paralyzing fear and living the stress filled life or take the simple steps beginning today which will lead to a much brighter tomorrow. Your family will be grateful if you do.
Take action by learning how to manage your money and creating a road map based on realistic information, eliminate your personal debt using effective strategies, use credit in a wise matter, and save regularly. Proper money managing techniques will help you to experience real financial freedom that so too few realize.