Your finances can have a big impact on how you live, your emotions and generally how much you enjoy life. While you by no means need to have money in order to be happy, getting yourself into huge amounts of debt and completely losing control of your finances could end up making you miserable, so it definitely pays to put some effort into taking steps to become more financially prosperous.
Set Up Your Goals
If you don’t have goals, you won’t know how to go about achieving your dreams, so make sure that you take the time to sit down and work this out. Your goals need to be clearly defined, realistic and written down on paper so that you can refer back to them whenever you need to. You might want to align your goals with your budget so that if you make a decision to start saving each and every month, you’ll be able to work this into your budget.
According to the author of The Game of Work, Charles Coonradt;
If you put one hundred people in a room and ask them how many would like to be financially independent, all the hands will go up. If you then ask them how many have a personal financial statement detailing assets, liabilities, and net worth that is current in the last ninety days… ninety of those hundred people will not raise their hands.
Basically, Charles is trying to say that people might dream taking control of their finances, but the ones that are struggling are usually those that don’t take the time to do the work, budget and plan for the future. It doesn’t matter how much money you earn, if you don’t know where it’s going to, you’ll quickly lose control of your finances and independence will be way out of your reach, at least in the long term.
Delay Your Gratification
Just because you see something great in a store window, that doesn’t mean you need to have it right now. Delaying gratification is an important part of becoming financially responsible, because it helps to curb issues such as impulse buys or spending out of your budget. If you are able to put off your gratification today so that you can build a better future for yourself tomorrow, you will find that you will start meeting your short term financial goals a lot faster.
Live Within Your Means
If you are going to be living within your means, you need to know what they are. Staying within your income bracket doesn’t just mean spending exactly what you earn; it means spending less than that so that you can start saving up for the future. Spending more than you earn, even if it is just a little bit, means that you are slowly working yourself into debt and possibly even poverty.
Have the End in Mind
When you put a goal in place, you might envision it to be so far into the future that it is almost never going to arrive, but this could actually make it difficult for you to remain committed. According to Moneying.com;
Those who are effective in achieving their goals are able to envisage their desired end result in spite of the obstacles.
If you can’t even picture the end of the road, you might end up straying from it many times over and eventually forget what you were trying to achieve in the first place. Keep your goals in mind and actually set a deadline so that you know when your hard work is going to come to fruition.
Financial prosperity is something that you need to work towards each and every day, particularly if you weren’t born to a wealthy family, but the good news is that it is possible if you take the right steps towards it.