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There is a major difference between knowing and doing; between being aware of proper financial management and deliberately setting up a plan for a fulfilling financial future. Most people are aware of the importance of money, but few are the ones that make an action plan to lay down the foundation necessary for a financially stable life.
In this article, we set out to present the steps that can reinforce your financial prospects and build a sustainable, long-term foundation.
Pay attention to money
In other words, keep an eye on your finances on a daily basis. Possibly the first good habit to cultivate, and one present in most successful people, is paying attention to what happens to the money in your life. What are the sources? How many of these sources are consistent and how many are fleeting? How can you bring more such sources into your life? How much money does each source provide? What are your expenses and, more importantly, what can be optimized in that area? These are the basic questions that every financial action plan starts from.
Most people complaining about financial instability don’t pass the attention test. They don’t know, in detail, the aspects mentioned above and they may find themselves having serious financial imbalances that may destabilize their personal and professional plans. An unexpected expense, an expensive event, a company deadlock; all of these can cause financial stability to quickly erode. Paying attention to money doesn’t mean you will become rich overnight, but financial prediction and precaution can diminish the negative influences certain types of financial risks can have on your life, or even eliminate some entirely.
Welthee’s suggestion: create a system to monitor income and payments, not just for your company, but for your personal life as well. Keep your income and payment documents organized, create a financial table that you can always access from your phone, or use a financial management app.
Have positive talks about money
One would be well advised to pick up the habit of discussing money in a constructive manner, whether it is with your family, your circle of friends, or with business partners. Just like many other things in life, talking with others about financial issues may offer new perspectives, or bring solutions for existing challenges. Meaningful financial discussions are worth being turned into a long-term habit — not just when things aren’t going well, but especially when everything seems under control. Often, people either avoid talking about money, or they only choose to see the negative aspects and complain about the things that aren’t going well.
Welthee’s suggestion: find yourself a financial mentor that could help broaden your perspective on money and help you optimize the areas that can be improved upon.
Think one step ahead
Thinking one step ahead sounds like an obvious strategy if you want to change your financial future. In certain Western countries, much of the population grows up with basic financial education from their family or school, leading to adults that tend to plan their financial life ahead of time.
With the added digital layer of our modern lives, everything seems to be stuck in fast-forward and we might tend to rush things. But, on closer inspection, a prosperous financial future isn’t about rushing things — it’s about doing them properly, with a plan of action in mind. Of course, we’re only assuming what the future will look like 30 to 50 years from now, but an action plan for the next two, three, or five years is essential to achieving your desired outcome.
Welthee’s suggestion: create a financial mood board and set objectives you want to reach in the upcoming years. From there you can start structuring objectives in smaller steps.
Build a budget and save up
A lot of the worries related to money arise either due to a lack of proper and long-lasting planning or due to unforeseen events that destabilize your family’s or your business’s financial plans. A properly built personal or business budget plan can help you identify potential financial stress sources that could have an impact on your mental or financial wellbeing. More importantly, it can free you from them. Money-related worries can be a cause of anxiety and, if not tackled quickly, can spiral out of control.
At the same time, the habit of saving up is one of the essential steps on the road to a prosperous financial future. Saving up is part of a financially successful person’s mindset.
Welthee’s suggestion: follow a financial management course or work with a coach that can guide you to the right budget model for you and start saving up today!
Invest in your financial education
Your financial education is a long-term goal; it is the foundation on which you can build your prosperity. Few people without it manage to create financial stability in their lives. For example, let’s look at a significant percentage of the people who won the lottery — often, they lose everything they’ve won within a comparatively short timespan.
Financial education trains the mind, it schools you on proper money management and how to effectively handle your income; it also changes your perspective on potential failures. A person constantly investing in their financial education does not eliminate the chance of failure completely, but they will always start with an advantageous mindset that allows them to catch up much faster than others normally would, should they find themselves in unfavorable circumstances.
Welthee’s suggestion: follow the stories of successful people and learn from their lessons. Be curious and eager to surpass yourself. Be ready to learn something new every day!
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