Some Key Personal Finance Questions to Ask Yourself
Talks about personal finances is not a subject that most people enjoy. The reality is people generally assume that personal money difficulties are from a lack of money to work with. However, money management and handling proves to be more of a challenge than not actually having enough money.
It may surprise you to know there are as many high income earners that have challenges managing their money as there are those in the smaller income categories. Happiness and success in dealing with money have little to do with the amount of money you have but, rather what you expect and want from that money and what you desire for it to bring to your life.
What are the common mistakes that many people make with regard to managing their personal money?
From our experience, we have found that many individuals experience practical difficulties with:
Organization and Structure
Many people don’t have structure in how they manage their personal finances. Everyone needs to have a somewhat formal direction and plan for how their money is in use now and into the future. Although it is easy to talk about this, the next step is having a workable set of activities that keep your personal finances on track. You need to have a practical set of good money practices in place to effectively deal with your money. Only with structure and organization, can a good money plan be adhered to and the benefits realized. Once these personal money practices are in place and tailored for you, then momentum can take over and it becomes part of your day-to-day actions in dealing with your money.
Money inflows and outflows
Are you one of the few that know your money inflows and outflows? What this means is the money that your earn (inflows) verses the money and your spend (outflows)? Furthermore, do you know why you have these particular money inflows and outflows each month? These answers are the keys to being able to put together a true understanding of what you have been doing with your money and what behaviours you may need to change.
The realization that money is not meant to be all used at once. Some of it is for your current use, but an amount must be left for near-future use and then a portion for further-future use. Preserving and safekeeping your money for the time ahead together with using money for cultivating strength and fun in your overall life is important and essential for you to be able to work with your money. Having a specific method of understanding what you want from your money and clarity about your intentions for your money, are key.
Building your money confidence is at the center of actually working with it. Having a better connection with your money and learning how to approach the whole question of money is stronger when you have confidence. You must work to build your confidence about money through enhancing your money mindset and character. You will achieve this when you allow yourself to think differently and to adjust your thinking and alone will free you to the point of building confidence with your money.
Keeping the Fun
Your personal money is not just about earning money and paying bills! Remember that you need to have a certain degree of fun that comes from enjoying your money. Coming to terms with how using your money with make you happy, is part of the goal. You may find that buying for yourself or your family will make you happy. However, you may also wish to buy for others, including giving more to those in need. In order for you to know what the “fun” in your money is, you need to carefully think this through. You also need to position yourself towards this goal. All too often, people work for things they don’t want while ignoring what they really do want. Making decisions, being in tune to your desires and having a plan will greatly help you to stay true to your purpose. It will also help you to eliminate that which you don’t want with your money and your life.
Dealing with your personal money can be one of the most intimidating and frightening subjects for people to deal with.
However, it need not be if you learn how to:
- Work with your personal money inflows and outflows
- Preserve and safe keep your money for the future
- Create your money intention for strength and for fun
- Enhance your money mindset and character
- Build your money confidence
To your personal money confidence . . .
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