BEING MONEY-WISE CAN CHANGE YOUR LIFE
Category Finance
Money awareness is the ability to understand and manage one's financial situation, including income, expenses, savings, and debt. It involves having a clear understanding of one's financial goals and being able to make informed decisions about how to achieve them.
Research shows that the average South African spends about 66% of their earnings on paying off debt and is out of money by the 1st of the month. This is frightening but avoidable by making only a few important changes.
Your money mindset. How you think about money will determine whether anything you do to rectify your financial position will work, or not. Money has no power, it has no soul, it is not evil; money is only a tool by which an imaginative man can create things. To be clear: Money can't do anything, but you can!
Understanding yourself. Growing up, you have heard your parents and others talk about money in a way that will affect your spending habits in adulthood. "There's not enough money to last us until the end of the month", Let's buy it while we can", "Money doesn't grow on trees", "All rich people are evil", "We are not meant to be rich", and the list goes on. What is your money consciousness? Are you content to accept that you will never enjoy financial freedom?
Knowing what you are worth. This goes beyond knowing your numbers and net worth on paper; it means appreciating yourself and your personal values to the extent that you don't need to spend money or live a particular lifestyle to validate who you are in society.
Learn about money and personal finance. Knowledge of how to budget, money management, and investing is essential in getting yourself in a position where you can relax and enjoy seeing how your money grows. You must take the responsibility to acquire the know-how and stop blaming your parents, society, the economy, or politics. It is time to realise "The Buck Stops Here!"
Start now and take it step-by-step. Cutting back on buying non-essential luxury items and saying no to a good night out, is not going to happen overnight, but your persistence will pay off. Stop living off your credit card, and re-evaluate what you perceive as essential will be tough. But, it will be very rewarding when you look back after a year of saving the money that you would have spent by living in the moment instead of taking long-term enjoyment into account.
Set clear financial goals. Knowing what you want to achieve by giving up on instant gratification will help you to stay focused and motivated. Celebrate each milestone, and before you know it, you will have that nest egg, emergency fund, investment growth, and in time enjoy financial freedom.
Remember, improving money awareness takes time and effort, but it's worth it in the long run. By being more aware of your finances and applying self-discipline, you can make better decisions, reduce stress, and achieve your long-term financial goals.
Start today to develop a Money Consciousness of Prosperity and Abundance instead of Lack and Fear!
Author: Adrie Barnard
