From Paycheck to Prosperity: How to Transform Finances
Imagine waking up tomorrow morning and discovering an extra zero on checking, savings, or 401(k) balances.
The contrast between financial reality and future desires can overwhelm most people. However, with the proper mindset, systems, and behaviors, increasing the probability of success is possible.
For example, remember the first significant purchase from working as a teenager and saving to buy that particular item? That feeling of accomplishment usually made the journey seem worthwhile.
Today’s Economic Environment
Fast-forward to today’s economic environment, and the thought of delayed gratification has been replaced by buying now, paying later, or putting everything on a credit card. People must remember that many products related to financing a purchase are designed with one main goal: revenue.
Convincing the consumer that a product will make lives more straightforward, accessible, safer, and more efficient feeds back into goal number one: revenue. Difficulty recognizing the difference between needs and wants can easily lead to expenses exceeding income. Failure to recognize this challenge early creates a cycle that leads to stress, frustration, and shame.
Remembering that a corporation’s revenue represents someone else’s expense is beneficial. This is how business operates, but inflicting financial pain should not be part of the equation.
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Four Strategies to Elevate Financial Life
- Embrace being broke – Two kinds exist: 1) assigning each dollar earned with intention, and 2) spending based on emotions without considering the consequences of actions. The first kind is better.
- Get two side pieces – In addition to money in a checking account, create one savings account for future planned expenses like vacations, holiday spending, or gifts. Use a second savings account as an emergency fund, rainy day fund, “Uh-oh” fund, or “WTF” (what to finance) fund for unexpected expenses such as car or house repairs.
- Keep up with the (insert last name here) – Stop assuming another person’s life is better. Appearances can be deceiving. Start tracking money flow weekly to identify opportunities to expand the gap between income and expenses. This process becomes more beneficial with prior planning on how money should be managed at the beginning of the month.
- Get input from someone who has receipts – Think of one person who never complains about having too much debt or not enough money. Treat that individual to breakfast or lunch, explain money management methods, and ask for advice. This conversation will likely provide a wealth of personal finance knowledge for the low price of $25.
Related Article: How to eliminate debt and save money efficiently.
These simple tips can become the foundation for a new financial life. Personal finance does not happen by accident. Respecting money will result in receiving more respect in return.
When striving for financial success, remember this phrase: Spend more time planning what to do with the next dollar before spending the dollar already earned.
About the Author
Al Riddick is President of Game Time Budgeting, an award-winning financial fitness firm that helps employees develop simple, easy-to-duplicate systems for managing their money.
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Four Strategies to Elevate Financial Life Image provided by Adobe Stock.
