Getting Your Personal Finances Under Control
Posted in Money Matters
As promised a couple of weeks ago, I’m starting a new category focusing on personal finance. On Saturdays, I’ll post something of the information I’ve learned—and continue to learn—about keeping personal finances in order. This is an area with huge challenges for me and maybe I can share something that is of benefit to you.
Everybody manages their finances differently, but most fall into one of three spending profiles.
- They spend above their means
- Spend exactly what they have
- Spend less than their means.
Simple or is it? The key to good financial management is to determine which profile you fit and learn how to change your spending/saving habits.
Good financial management requires good personal discipline. Once you decide the path your finances should take, make a commitment to stick to it. Within a few months, your lifestyle will adjust to your new habits, which in turn will reinforce the changed behaviours. Long term financial gain often requires short term pain. The trick is to find the balance which allows you to meet those long term goals while enjoying a full life over the short term.
The first step to making any lifestyle change is to set goals. I’ve covered the topic of goal setting before, so I won’t visit it here again. Click the two previous links to read what I’ve said.
The next step is to have a plan, otherwise known as a budget. Next week I’ll take a look at some of the basics of creating a personal budgtet.
- Reader input: what kinds of things do you think are important for managing your personal finances?
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