Your financials are a direct reflection of the choices you’ve made in life. There is no such thing as a financial finish line, but there is an expectation of stability. A Melbourne Based Financial Advisor can guide you the correct way. But staying on course with your finances is still an individual responsibility.
Saving is the best way to set up your future. Without savings, you’re planning your finances day to day. That’s a dangerous game, and it will often leave you in a bad position when life hits hard. Saving is about building up your bank account and confidence. When you have a savings account, making some hard investment decisions seems less daunting.
2. Move Forward
A financial rut is something that is hard to avoid, even if you’re responsible with money. It’s more important to learn from these downtimes so that they’re less likely to happen in the future. Did you make a bad investment? Then move on from it instead of doubling down and losing more money. To build a relationship with money, you have to be willing to cut your losses at a moment’s notice.
3. Avoid Late Fees
Late fees from various sources eats into money that can better be used elsewhere. When bills are due, pay them on time. You may not realize it, but watching even a small amount of money get lost due to negligence is a confidence killer.
When your savings account is meeting its goals, put your extra money to work. It’s vital that you simultaneously work for money while making it work for you. This synergy keeps the cash flowing so that your wealth builds up rather than stays stagnant.
5. Don’t Rush
Financial goals are good to have, but be realistic. It’s irresponsible to move money around before you’ve built a foundation. That foundation starts with a savings account, and from there moves to paying bills on time. Remove money sinks like late fees from your payments, and then consider investing. Trying to do all of these simultaneously will only lead to failure.
You can’t have a relationship with money without understanding how it works. One of the greatest gifts to a financial mind is the abundance of accounting information available online. You can even take an introductory accounting course for free. Learn the basics, and you’ll already be several steps ahead of everyone else.
7. Stay in Sell Mode
Get rid of material items that you don’t use or need. The amount earned may be small, but that is still money you can work with. Do the same with digital items by finding a platform that handles the transaction. By the time you are done selling useless things, you’ll have more money than when you started. It won’t make you rich, but it can help with building a foundation.
Make sensible financial goals in steps so that you can enjoy the successes. By not rushing, you can cultivate your relationship with money to reach its fullest potential. Follow the 7 pillars, and watch as everything else worth having falls neatly into place.