- 3 Powerful Budgeting Tips to Maximize Your WealthPosted 2 years ago
3 Powerful Budgeting Tips to Maximize Your Wealth
If you start applying these simple budgeting tips to your everyday life, you’ll begin to notice significant changes in your financial situation as well as your own ability to generate long-term wealth like never before.
If you’re sick of having that dreaded feeling of working day after day, week after week just so you have enough “to get by,” then you really need to be reading this and learning how to change the way you treat money before it’s too late.
When it comes to your financial success, a lot of it boils down to how resourceful, smart and organized you are with your money. Notice I said “smart and organized you are with your money,” I never said you had to be smart and organized to become financially successful, although it would be a plus if you were. There are plenty of people who aren’t exactly the sharpest tools in the shed, yet they have all their finances under control.
Are These Budgeting Tips Suitable For You?
Anyone can follow simple budgeting tips, learn how to be smart with money and live a debt free life, you just have to want it badly enough that you stick to the process and keep improving even if it’s only a bit every day. So before you start reading these tips, make sure you ask yourself first if learning how to manage and budget money for a brighter financial future is what you really want and if your committed to taking action in order to get it.
Keep in mind that anything that’s easy to do, is also… you guessed it, easy not to do. That’s the slight edge principle and it applies to everything you do in life (it’s always either working for you, or against you) whether you’re aware of it or not. If you’ve never read The Slight Edge by Jeff Olsen, I highly recommend you check it out. This was the book that truly changed my life and the way I approach everything in life including my health, wealth and relationships.
While reading these tips, keep in mind that the first few steps you take in learning how to manage money may seem like a big challenge at first, but the more you educate yourself on how money really works, the easier it becomes and the more money you’ll have in your life. The tremendous benefits of knowing how to budget, manage and organize your money so that you can accumulate great wealth over time really does outweigh the efforts required to learn it.
3 Easy to Follow Budgeting Tips (More to come, subscribe and stay tuned!)
1. Your Mind is Not the Best Place to Keep Things
Make sure your budget plan is written down somewhere else other than in your head. As simple as this sounds, you’ll be surprised how many people still don’t do it! Having a budget plan is quite similar to having a goal in the sense that people who usually achieve their goals are the same one’s that have their goals written down and easily accessible. If you create a budgeting plan for yourself in your own mind, you are setting yourself up for major disappointment.
Any rules or regulations stored within your mind is subject to change as your emotions change. Even if you think you’re the most logical person in the world, your emotions still control a lot of your thought process.. a lot more than you can imagine. The emotional part of your brain is so deeply rooted in you that many of the decisions you make are emotional in nature followed by logical rationalization. To keep things simple, make sure you write your budget plan down and keep it somewhere accessible so you can re-visit it often to re-evaluate where you currently are.
Let your written budget plan be your money goal and have some aim because “if you aim at nothing, you’ll hit it every time.” – Zig Ziglar
2. Don’t Worry About Step Two Until You’ve Taken Step One
The biggest reason most people fail way before they even start is because they’re too busy thinking of every detail that needs to be covered. They’re worrying about how to take step ten or “what’s the best way to perform step seventeen” before they’ve even taken step one. This is an excellent and efficient strategy.. if your goal is to quickly overwhelm yourself and remain stuck in your not-so-fun financial cycle forever.
However, If you really want to achieve your financial goals and live a truly rewarding life, you must take that initial step as if it’s the only one. It’s important for you to fully understand that before you can run, you have to learn to walk. Don’t even think about step two or step ten until you’ve taken the first one. The biggest reason people fail at budgeting is not because they can’t budget, rather it’s because they never even get started.
If you try to do everything at once, you’ll end up getting very little done or like most people, you won’t even get started in the first place. I believe that almost anything in life can be accomplished by simply taking one step at a time. If you’ve already taken that first step, give yourself a little pat on the back. If you haven’t yet, what are you waiting for? There’s never going to be a better time than right now. Make the decision to take action today and begin your journey towards financial success.
3. Christmas is Not an Unexpected Expense
No matter what people tell you, most of the time these “unexpected expenses” are not unexpected at all. What I mean to say is, each year you expect to have a Christmas, you expect to attend the Birthday’s of your closest family/friends and you expect your kids to need new clothes. So if you expect all these events to happen each year consistently, how can you say that the expenses associated with each is “unexpected”?
Since you expect to have these so-called “unexpected expenses,” it would make complete sense that you also set aside a % of your monthly budget to accommodate them. Figure out how much your expenses might be on a yearly basis and set aside a monthly budget. By simply keeping aside money for such events that will no-doubt occur each year, you eliminate the probability of it catching you unexpectedly. This will help you stay out of holiday debt while tremendously reducing your overall stress levels and making your path to financial freedom that much easier.
Did you know that about 78% of us will experience a major financial crisis within any given 10-year period of time? If you didn’t know this, you do now. This means you can’t consider it an unexpected expense anymore since you know its very likely to happen. You must also do yourself and your family a big favor by setting aside an emergency fund for that rainy day. Invest in the most important insurances, namely: life, health, vehicle and home insurance. You may have heard this before but prevention is always easier than treatment. Prevention is also way cheaper too, so budgeting a small portion of your money for emergencies, yearly events and invest in necessary insurances to protect yourself and your wealth.
If you’re looking for a way to get started on your path to financial freedom, I recommend signing up a free account at Mint.com. Mint keeps track of all your finances and shows you exactly how your spending decisions will affect how much you have left at the end of the month or year. You can learn more about Mint here: http://www.mint.com
Did you find this article helpful? Share it with all your friends.