MONEY MANAGEMENT – THE SECRET TO FINANCIAL FREEDOM
Money management is the key that will unlock the door to financial freedom. People who lack money management skills tend to daydream about the lifestyle they would live, if they were to come into possession of a large amount of money.
What few people realise is that managing their present income is the key to creating a prosperous lifestyle. What even fewer people realise is that to properly manage money, you need a written money management plan.
All successful people in life tend to follow a written management plan. The plan empowers them and gives them control of the process that will lead to success. To rely on your thinking is very hit and miss. It is well recognised that a person’s perception of their own situation is not always the most objective. That is why it is crucial to have a written plan that can make you accountable.
Peoples thinking and perception are subject to their moods and motivation and are often distorted by self-justification and self- interest.
Prolonged financial struggle creates perceptions that may appear to be perfectly normal but which will have consequences, such as creating a victim mentality or the belief that you are destined to ‘never have enough’.
It is well documented that prosperity starts with one’s own thinking. This is where a written money management plan serves to change your thinking. It creates a feeling of being in control and eases the sense of existentialist crisis.
People are often amazed at the ways in which they spend money and have absolutely little or no awareness of what they have done. “I don’t know where my money goes” is an often heard refrain from people who struggle to achieve prosperity.
Total awareness of how you spend your money and how much you earn is absolutely vital in the process of creating financial prosperity.
This awareness can only come from a written money management plan. We are confronted much better by the written word than by our own, often distorted, thinking. To achieve an understanding of why you are struggling financially you need to know exactly what the root cause of the problem is.
There are many causes of financial struggle, ranging from under earning to compulsive spending. Keeping a written record of your income and what exactly you are spending your money on will bring to your conscious attention what exactly the underlying problem is. You must record daily, every item of expenditure, even small items like a newspaper or a bar of chocolate. Keep this record for ninety days and from it you can formulate a budget and spending plan, which enables you to manage and control your money, and most importantly, change your thinking to a prosperity consciousness.