Thought of the Day: June 20, 2018 – Financial Ownership
In order for you to be successful with money you have to take financial ownership of your money.
Taking ownership of your money means sitting down and reviewing your financial picture. Look at where you are today and decide where you want to be in the future. Take responsibility for the choices you have made thus far.
Many people do not make the right decisions with their money. Soon they find themselves in financial trouble. They let bad financial decisions compound and soon they can’t dig themselves out of it.
When you decided to take ownership of your finances, ask yourself, “What are my financial goals?” “What will my financial outlook be if I don’t change?” These questions allow you to see where you are right and help you see if you’re on the path to financial freedom.
You have heard the phrase, keeping up with the Jones. If you want to keep up, then you have to earn like them and control your pocket-book. THEY DID!
Before you can keep up with them, you may need to fix your situation. You cannot worry about where others are spending their money. You have to know where your money is going.
The Jones are out earning you. They are not living on credit and they only buy the things they can afford to pay for. Remember the Jones might be friends, family and co-workers. But they all have different goals, wants, needs and a financial plan.
The people you are trying to keep up with have financial goals in place that allow them to buy what they want. If they don’t, they might be like you, buying stuff to keep up with the Jones.
Most of us are just buying stuff because we want it now. We do not put much thought of how this purchase will affect our finances later. Your goal is to not end up like them, so change your habits and change your life.
If you are a married, this means both partners could be earning money. This also means that both partners have the ability to spend money without the other knowing. If you are married, sit with your spouse and look at past bills and see where the money is being spent.
By knowing and understanding where the money is spent, you can devise a plan to control non-essential expenses. You might need to set a budget, cut up credit cards and go on a cash only option. You have to do whatever you can to take control of your money.
Until you do, your expenses will keep getting the best of you.
Taking financial ownership means looking at where you work and how much you make. Working is not just about collecting a paycheque and do your best to stretch your money.
When you and I don’t earn enough we tend to use credit cards. Soon we are in trouble because you can’t pay off the full balance.
Look at your current job. Consider your potential income over the next 5 years. Look at what your income could be if I worked a little harder and smarter. Let’s say you go from $69k to $75k a year. This is only $6000 more in the next 5 year.
This might sound like a lot. But with an increase in income, you typically pay more tax. Also. inflation would continue to decrease your spending dollar. Decide if you continue to do what you’re doing, if you will get ahead or not.
To keep up with the Jones you might consider siting and taking with the Jones. Find out what they are doing to achieve financial success.
You can read any of the thousands of books written on finances to help you understand, control and change your spending habits. If you can’t afford to spend $20 for a book, go to your local library and pick it up for free.
Lastly, consider sitting with a credit counselling professional. They do cost money, but the money spent will be of great value if you take financial ownership of your future.
Realize you can’t pass the blame to anyone but yourself. If you do not take ownership of your financial future, understand no one else is going to.
Founder and CEO, Discover Your Life Today
Maveen has built his career in Banking, Insurance, Home and Automobile Sales. Providing exceptional customer service is his passion. Writing is a way to share his knowledge and help change the lives of million of people. Like the Facebook Page to support him.