Finances and your approach towards them!
Your finances are one of the most important aspects of your life. They decide your well being and enable you to do the various things you intend to do in your life. Managing finances is always a trick. For many, it is the source and the solution for stress.
Managing your finances is something that is very crucial to making or breaking your life. As the financial year-end approaches, a new beginning without the old flaws and with a neutral approach is suggested.
Here are a few tips on how you should approach finances and how you should ignore the pitfalls.
- Save: The magic four-letter word is your way through all the lows of life and your constant buddy in your good time. Always assume that a certain amount of your earnings is meant to be saved. Young adults, starting out in their life, often tend to be lavish and end up spending their entire monthly earnings. Even if you save a very little amount of your money it will grow with time and reward you when you need it. You never know when a certain month will have more expenditure as compared to the rest of the months in a year. Hence, be prepared, save as much as you can. Do not overdo it by saving it all, at the same time be cautious, careful and smart with your earnings.
- Be Alert: Alertness is a trait that is most valued especially when it comes to financial matters. Be alert about every penny and where it comes from and where it ends up going. For most of us, we get monthly wages. You need to be alert about where your money is getting exhausted. We keep assuming that a certain amount is available in our account and then one day we suddenly realise that it isn’t there, this could be because you spent it and then never realised it or in some cases, it could also happen because a certain amount got deducted and so on. Alertness helps especially in times of theft and fraud. Knowing that a certain amount is deducted from your account without your knowledge should make you alert and you should have the knowledge to take the right action further.
- Plan: The approach towards planning should not be pessimistic. Many might discourage you, but planning your finances for your responsibilities and for your future is always suggested. Hire a financial consultant and discuss your current financial picture, your commitments and they’re sure to help you with a plan that will not only take care of your present but will also help you with your future. Many blunders in finances and riches to rags stories are a result of inadequate planning and carelessness. Your plan provides you clarity that helps you understand everything better.
- How much money is enough?: In a world taken over by greed it is very difficult to live without the clutches of money. However, when do you contain your earnings? When your duties towards your family are done or when all your dreams have been achieved? What is the right time? The answer for this is extremely subjective and depends upon your personal ambitions, commitments, needs and so on. The main challenge here is to decide what your limits are. If you are from a family that has struggled financially, then your priority will be money-making and possibly the generation after you will be privileged. However, is financial strength all that you require? No, you need time and family to enjoy your hard work. If all the time is spent in minting money, then you’re surely going to miss out on personal commitments. Wisdom is your way out, be wise and understand, money is your way to fulfil your needs, not your greed.
- Do your bit: In the society within which we operate, some are more successful than others, some are more privileged than others. There are major differences between how people live their lives. Some just dream of a shelter while some are upset about the paint on their wall. Some just think of earning enough to feed themselves, while some are not content even after filling their bank lockers with wealth. If you have food to eat, shelter on your head and clothes to wear. You must know that you’re lucky and privileged. While it is not mandatory that you donate for the under-privileged, it is exceptionally important that you do give back something to the society that has brought you to this juncture in your life. If you choose not to give back, legally you aren’t answerable to any but morally you have a responsibility. Therefore, donate as much as you can, do your bit and it doesn’t matter how big or small your contribution is. What matters is, whether you impact people beyond your kith and kin. Remember, you can buy a house, not a home, you can buy a clock not time, you can spend in a hospital but can’t buy good health. There are things to be understood beyond finance and wealth. Wisdom, humility, generosity, empathy are traits that you should possess.
Finances are significant, they matter but you have to be smart to not indulge too much into it and at the same time give it the right amount of care. A neutral and balanced approach is the best way to sail through.