Master your personal finances in 6 easy steps

Mar 6, 2014 by Askia Roberts

Mastering your personal finances using the 6 steps identified below will change your life the moment you begin implementing them. You will immediately began reaping the rewards and satisfaction that comes with financial security. You deserve a secure future that provides the life style that you want. So read the steps below and go get started on the path of personal financial mastery today!

 

1. Identify your current financial status. This can be a little intimidating for some but it is essential to a better financial future. This entails knowing three important things: your expenses, financial problems and financial desires.
2. Be aware of how much you spend vs. how much you can afford. Ok you got me…I am referring to budgeting but nobody likes that word, however it is essential to personal financial mastery. Write down your monthly expenses if you have time, or use a personal finance program (I love “Mint.com”). Make allowances for problems that may arise such as unexpected doctors’ bills, car repairs, and tax returns.
3. Set goals for your ideal lifestyle. Taking note of your desires will help you decide which ones are reasonable and which ones are not. Focus on the reasonable ones as they will provide the motivation to manage your personal finances.
4. Start being honest with yourself today.  Honesty is another key attitude to managing your personal finance plan. If you decide not to accept the facts surrounding your current financial status, you are not likely to move ahead. Be honest with yourself in how much you can afford and how much you owe, otherwise your financial plan will most likely end in financial trouble.
5. Develop discipline, discipline, and more discipline. Discipline is perhaps the most important of all steps when mastering your personal finances. Once you have discovered what you truly can and cannot afford, you must learn to say no when needed. This is easier said than done, but if you are determined on having a financially secure future, discipline is imperative. I call this Jedi finance because you must trick your mind into delaying instant gratification. May the force be with you!
6. Begin increasing your personal financial knowledge now! You must be wise in your investments if you wish for success in your personal finance. Consult accountants and financial planners, research on trends on the market or speak with your friends and co-workers about their investments. This research is sure to pay off whereas lack of it will surely lead to more debts and deviating from your personal finance plan. Also, diversify your investments to reduce risk and leverage out your financial investment.

 

If you implement these steps you will begin to immediately reap the benefits. Remember to keep it simple as the most effective method to improve your personal finances is to spend wisely and never more than you earn. Make sure all your expenses are covered first. Understanding this will allow you to manage your personal finance a little better. Do this and you will definitely begin saving more and living rich!