For many of us, physical, mental and spiritual health are on the top of the priority list in today’s balance-seeking culture. But what about our financial health? Our finances, like anything else, are a product of our personality, history, family ties, spending habits, talents, mistakes and beliefs. How much time, then, do we spend looking after our finances?
Do we take assertive steps to ensure our financial health is at optimum levels, or do we ignore our symptoms in hope the problem may disappear? Self-reflection can be a wonderful gateway to moving onwards and upwards. After all, life is a dynamic set of experiences that shapes us into the people we were meant to become. This includes some serious self-reflection on how and what we think about money.
Here are ten tips for financial health in areas which could benefit from a little self-reflection:
Earn More
When in need of more money, the first thought is often not to increase monthly income. We think of loans, or side gigs, or hundreds of other ways to make money, but not salary increases. Why not? Is it so beyond the imagination you could earn more by increasing your payroll allocation?
Set goals, S.M.A.R.T goals. Specific, measurable, attainable, realistic and time-sensitive goals will open up the possibility of moving forward in this fast-paced world. This may not mean a promotion or a change in industry. Everyone is unique in their talents, their financial needs and their creativity so do what is best for you.
Know your worth and work towards it. Set goals and hold yourself accountable to achieve each one. Increasing your primary salary level is the most sustainable way to immunise your financial health against potential future disasters.
Sweat It
Then again, side gigs are often a great idea if they run themselves effectively. Passive income is a buzzword among savvy financial advisors who believe that money should sweat for you, not make you sweat. Keep your eyes open for potential investment opportunities or business ideas that will work themselves without taking up too much of your valuable time.
Beware of get-rich-quick schemes, however. The ones that seem too good to be true. All worthwhile achievements take some measure of hard work.
Spend Better
If earning more, or a passive income is impossible to achieve in the current climate, the only option remaining is to analyse expenditure more carefully. An effective expense budget helps create awareness about real spending. It also forms a buffer against sly marketing money traps that threaten to tie up your hard-earned cash. Research other options for debt, saving and investment plans which may better suit an achievable budget level.
Borrow Less
Debt is only helpful when it leaves you better off than when you began. If debt is eating away at precious resources, building up worry, increasing borrowing instead of decreasing it, or making life miserable for you – it is not helping. Make a purposeful, step-by-step, measurable (timed) plan to eradicate debt from your life. And then go for it.
Plan More
The maxim “failing to plan is planning to fail” applies heavily in a financial health check. Money comes and goes and life is unpredictable, but a solid financial Plan A, B and C should tide you over until the next upswing can carry you across the finish line. Do not go with the flow when it comes to a wise use of financial resources. Planning is worth it.
Calculate
Surprisingly few people take the time to calculate. People guess, estimate, take other people’s word for it or ignore the figure, but calculations of income and spending are rarely accurate. It is impossible to borrow, for example, if you have not done the final calculation of exactly how much the debt product will cost you in the end.
It pays to be specific and have measurable, realistic figures to work with. A healthy financial position is to know, with accuracy, each rand earned, spent, saved, invested and wasted in any given month. When assessing the exact financial position you find yourself in each month, there are no half-measures.
Explore
Health is the product of a series of good decisions and positive habits. Unhealthy habits can be detrimental to financial health, especially an uninformed habit with no logical reasoning behind it. Look carefully at how you think about money, spend money, invest money and save money. Be objective and open to explore other options, or to ask for advice from those who know better in certain areas.
Notice Trends
Analyse your spending, saving and borrowing habits more often. Is there a certain trend to your money habits that is detrimental to your financial success? Are you derailing well-intentioned plans by impulsive actions or emotionally-driven spending decisions during the month?
By recognising the trends in your personal money habits, you find the power to develop a more effective way of doing things. For some of us, this may mean stepping back from family history or ‘how my parents used to treat money’ into a better way. Find some close friends and family to help you objectively analyse the way you spend and save money; and then change it.
Read More
In a world of technology, you have limitless access to information. Read more about finance, economics, money, entrepreneurship, design, work, business principles, investment tips, the world and your interests. Define the type of life you wish for and think of your money as the means through which you might reach your life goals. That’s all it is – a means to an end.
Worry Less
Anxiety is the enemy of productivity and contentment. Money should be a tool for success, not a weight on the mind and the soul. Master the money, control the spending, think big, save better and enjoy the ride.
Thinking positively about what money can do for you creates a pathway towards lasting financial success. It opens the door to wise money decisions on a daily basis, allowing you to flourish in your current financial position and improve on it, too. Take a few moments to evaluate your financial health – you won’t regret it!
