Five Ingredients That Make or Break Your Personal Finance PlanningOctober 31, 2017
The success of your personal finance planning will depend upon a few key things, which we’ll cover briefly in this article. I’ve gathered these tips from real life experiences while working with clients who had a goal to achieve financial freedom by managing money better. Once you get these five ingredients mastered, you’ll be well ahead of 90% of the people who are actively pursuing financial security and freedom.
#1: Having a Written Plan
You have to plan to succeed in your personal financing, and planning requires a written plan. This means more than just writing down of specific goals and objectives, but, also, a well structured approach for building good personal finance planning habits on a daily, weekly and monthly basis. If you don’t have this already done, the day to get started on it is yesterday.
#2: Practicing Accountability
No matter how much you can do on your own, you can always do more with someone else holding you accountable. As a part of your written personal finance planning, have a weekly meeting with yourself, and have an accountability partner present as much as possible, but not less than once a month. Again, you might be able to get some results on your own, but you’ll ALWAYS be able to do more when you have someone you’re accountable to.
#3: Your Attitude Towards Money and Wealthy People
If you want to become financially well of, you can’t afford to have a poor attitude about money or about wealthy people. Thinking of money as evil or wealthy people as greedy or selfish will certainly ambush your plans to become financially well off. Take some time to examine your attitude about money and about wealthy people and get rid of the obstacles.
#4: Simple Personal Finance Categories
Many people fail in their personal finance planning because they make their budget WAY too complicated. You really need only a handful of personal expense categories to manage your money well. For example, the four that I suggest are: personal expenses, giving, reserving and investing. Everything that you spend can fit into one of these categories, so make it easy on yourself and keep the accounts under each category simple and few…
#5: A New Attitude Towards Debt
The majority of the Forbes 400 states that getting and staying out of debt is the first key to building wealth. If you have debt, get on a plan to get rid of it and to STOP using debt to finance your expenses. If you follow faithfully the steps in this article, you’ll do very well in your personal finance planning.