We live in the real world, where life is not based on songs, but of dreams and goals that you want to fulfill.
A client of mine, when came to me for the first time, was bewildered regarding his financial situation. He knew that he wanted to realise and complete his goals and dreams, but was so sure that he did not have the right amount of resources to do so.
The first few minutes into the meeting he kept talking about how if he had a little more money, he would have been able to fulfil them sooner. After listening to him intently, I realised that it was not that he did not have enough resources to fulfil his dreams and goals, it was just he did not have the right relationship with them.
This is a common situation that is persistent in every household. At least one member in the family is unaware how to handle and maintain their finances.
Though not a very common practice, not many people know how to maintain a good long lasting relationship with their capital, in such a way that not only serves them in the present but also will help them accomplish their dreams and goals, without a glitch.
Altering your spending habits is the answer that you are looking for.
Analyse how you spend your money: Spending patterns often depends on one's moods or situations or events. Look at your credit card bills and analyse the same with the corresponding date and you will find out a pattern as to how you spend your money.
Spend but carefully: No financial planner would ever tell you not spend any money.
There are the basic needs that have to be fulfilled. Instead of splurging your resources on unnecessary items that you will use only once, find a non-expensive alternative that will not only fulfill that need but also make sure that you have not created a dent in your pockets. Reinforcing is the key: Psychologists often speak about negative and positive reinforcements in life that would help alter behavior of an individual. Try the same when it comes to your finances.
I started this project with a client who would spend money without a second thought. This was hampering one of the goals she wanted to achieve. To make her understand the importance of this, we set up a little project.
Every time she spent large amounts of resources on frivolous demands, her spouse would negatively reinforce her and would make her invest double the amount she spent, for a fixed period of time.
This enabled her to be careful as to where she spent her money, as she realised that there was a higher amount of resources going out then coming back in.
Look for alternative plans if you feel that your current plan is eating up too much into your savings. Your financial planner can help you get a simpler plan that will help you to invest less in a smaller amount of time, so that you don't have to face a financial crunch in your present.
Ignorance is not bliss when it comes to your debt situation: Try not to pile up your old bills and settle them as soon as possible. One folly that most people do is they collect and pay all their bills together.
This, at times, eats up a larger portion of your resources, as you may miss your bill date and end up paying more than the required amount.
Look for bargains that can help you financially: A well to do client of mine used to consider this to be a thrifty activity and never attended sales. I explained to him that bargains not helps you finds the best deals but also helps you to invest your resources in a better way.
The future of your money lies in your hands. Altering it and understanding it is the first step to a healthy financial life.
