The best way to manage your personal finances is by creating good financial habits that support your financial goals. This involves inculcating into your daily life those good financial habits such that they become an automatic routine in your life. The things involved here could be: timely settlement of all your dues, keeping track of your daily expenses, regular deposits to your savings account etc.
They say that it takes 21 days to change a daily behavior into a habit. That having been said, you can then see that it really takes effort to have a make-over in your financial habits. The difference between those who change successfully and those who fail on the way is that those who change successfully do the following:
- Keep a record
Having a daily journal of your new financial behaviors will help you in developing those behaviors into habits. Record all your expenses, savings and any achievement you`ve made towards the attainment of your financial goals. This will keep you motivated and help you identify deviations from the planned strategy early enough, for corrective measures to be taken.
- Organize your environment to help – not to hinder you
Avoid and keep away from things that may tempt you to get involved in activities that hinder you from achieving your financial goals. If you are working on a saving plan, leave your ATM at home if you don`t have any necessary withdrawal to make. Keep away from parties where you may be tempted to spend more than you should; or carry a fixed pre-planned amount to spend and stick to your budget.
- Get the right information
When sourcing for financial information, make sure that the source of the information is reliable. Know the person you are dealing with, get references from them and check out whether they are well trained, accredited or certified. Make sure you also get to know the fees they charge for their services. Most important, don`t fall prey to quacks masquerading as experts.
As you monitor your progress towards the attainment of your financial goals, be nice to yourself. A once in a while self-treatment won’t do harm; though it should not be interfering with your long-term goals. If for instance you are working on a saving plan, a non-cash reward would do better; like going for a hike with friends or family or helping out in community cleaning or helping work at a children`s home in an afternoon.
Once in a while you may need to spend some amount in rewarding yourself; however, keep it in your mind that that is just a reward not a daily thing, and revert back to you financial strategy as soon as possible.
- Select a competent financial adviser
To sail through your financial journey smoothly, you need the experts to help you read through the navigation maps accurately. When choosing your financial adviser, you may get recommendations from friends, relatives or colleagues. However, when making the actual selection of whom to take as your personal financial adviser, you need to consider their competence and how well you fit-in together; and whether they customize their services or offer generalized services.
- Keep going – even when you feel down (especially when you feel down)
One thing done over and over again successfully gives one a feeling of personal accomplishment and at times power. When the times come when you feel down and demotivated, just sit down and write down what you have achieved so far from your financial strategies. Account for the amounts saved and the financial discipline you`ve acquired so far, plus the bad habits you`ve quit too. This will then energize you and keep you going on as you focus on your future goals other than your present discomfort.
There you go; you now have the information and the implementation part is now in your court…good luck in your financial endeavors..:)