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How to Keep From Having Financial Stress
When it comes to finances, I had to find out the hard way, through over spending, getting into debt, not saving, but still wanting and needing all the necessities and little luxuries in life, and not being able to afford them.
You see I grew up in a family, where financial freedom, independence and saving money were not topics that were talked about or taught. My mother and father ran their small business from a small shop in the north-eastern suburbs for 30 years, and I all saw was debt and more debt. They borrowed money for everything and once they got to retirement, had no savings, no assets or home owned and no superannuation.
As heartbreaking as this was for me to see, it actually pushed me to educate myself on money and how to get it working FOR me, instead of me working for money.
When we understand that money is simply a tool and a vehicle to get us where we want to go, we can stop worrying about it and get on with making it.
I love numbers, so I’ll make it easy for you to understand your finances, so your business can bloom while making sure we balance a healthy lifestyle and keep you in a positive mindset.
Top Tips on Better Managing Your Money Choices
- Self talk. Changing the way we think about money is the first step to financial freedom and independence. As a child, teenager and adult, I have always heard my parents say: We can’t afford that, we don’t have the money for that. It’s alright for that person or that person, they’re rich, they have money. And what was the outcome of their lives, they never got ahead, never accumulated and let money control them, because they simply did not understand how money worked. So, what you say is what you are.
- Be accountable. To your spouse or friends. To your accountant or mortgage broker if you need to save for a house deposit. Let them know what you are doing and how you will create a goal or savings plan or a reduced spending plan. Then put a time frame on it and ask them to check in on you every month to make sure you are on track.
- Honesty. Be really honest about where your money is going, and how you are spending it. Track your last month of personal spending, and get a clearer picture of what is actually happening to your money. Most people over estimate their income and under estimate their expenses.
- Education. As I talked about earlier, this is a crucial part of being able to manage your business and finances. Listen to podcasts, read blogs and books, enrol in financial literacy course and hire a professional to help you. Knowledge is power and when it comes to money it gives you time and choice also.
- Plans / Goals. This can include preparing a business and household budget. Creating a savings plan. Reviewing debtors payment terms or cutting costs in your business. Whatever you do in this area, remember the SMARTER system of goal setting: Specific, Measurable, Actionable, Risky, Time-keyed, Exciting and Relevant.