Money Management
Most people believe that if they only had more money all of their problems would be solved. Then they get a raise or change to a better paying job and their money situation doesn’t change. They just can’t understand why. They live in a perpetual circle of “not enough”.
The fact is that most people have that extra money spent before they get it. How many times have you heard someone say what they are going to do with their tax refund? The same thing goes for a pay raise. Normally, they never even notice any change in their lifestyle after they get the raise. The key to prosperity is Money Management. This puts you in Control.
What most people don’t realise is that they suffer from a condition of ‘terminal confusion’.
This is characterised by a constant state of stress and feeling powerless and overwhelmed.
Actually the answer to this dilemma is quite simple and straightforward. Create a BUDGET.
It is well recognised that only about 35% of people have financial budgets. This is because many people are afraid of budgets.
It restricts them when they find something they want to buy. If they only knew that a budget is the only means for them to get what they want and be sure they can afford it. A lot of people suffer from the impulse to buy and this impulse is fuelled by the illusion that they can buy when and what they want and there will be no adverse consequences.
This is known in therapy circles as ‘Santa Claus’ thinking.
Santa Claus is for small children, and this kind of thinking is not helpful in being financially responsible. Nor can it lead to financial prosperity.
With a carefully developed budget, which is money management in simple terms, you not only have money for your bills, but you can plan for the things you want.
There are a lot of ways to find money. By learning how to cut your current spending, you will probably find that between 10% and 25% of your spending is unnecessary. There are also several money saving web sites that will give you literally hundreds of money saving ideas.
Most of the time it’s the unexpected expenses that catch people off guard and create havoc with their finances. Again, with a budget, you can plan for this too.
So if you think more money will solve your problems, just look for it right there in your pay check
Start by keeping your numbers. This is a carefully written record of everything you spend on a daily basis. It may be difficult for you to trust that this will lead to financial prosperity, but at the heart of a lifestyle of debting lies indiscipline.
Lack of discipline starts in the mind and it is only here that it can be addressed. A whole lifetime of financial irresponsibility cannot be set in reverse overnight. The first step in the process is to keep a strict record of all your spending.