Many individuals have a way of making money on a daily basis but they manage their finances is one thing they struggle with. There are videos on Youtube and online giving tips but it is still a very difficult thing to do.
How can I improve my finances instantly is a question that most people have found themselves asking on several occasions. It is always a difficult one to answer, but this post provides you with some easy solutions that will help you manage your finances better in the shortest possible time.
Managing personal finances can be one of the most daunting tasks that any human can ever face. Unlike companies who have a set budget and strict rules to operate within to avoid overspending, individuals on most occasions are allowed to spend and have fun.
But while having fun is great for all humans, most people usually find themselves wanting after mismanaging their funds. This is exactly why there is a need for one to think of improving his or her finances by using specific strategic steps.
Here, we will provide 4 steps that will help you manage and improve your finances instantly. The strategies include: getting ready for a change, tabulating your list of needs and wants, pruning and most importantly implementation.
Let’s get started!
Improving Your Finances – Be Ready For Change
Undoubtedly, the key element in improving one’s finances is to be ready for a change. Without a desire and an urge to improve, no strategy can be effective in improving your finances.
As an analogy, people who misuse their money can be compared to addicts. Spending at some time becomes a core part of you that it becomes impossible to stop.
You desire everything and are immediately interested in attending every party with friends without the slightest consideration of the consequences that you could face afterwards.
So in a general sense, the challenge of mismanaging should be treated as a form of addiction and like every addiction, much effort is required to implement solutions.
No addict can change their ways without being ready for a change. So the first step to improve your finances and stop overspending is to be fully ready and committed to a change.
One should be ready to implement every possible solution with the sole aim of getting better. Once that has been achieved, we can go on to enquire into the causes of our mismanagement and find solutions to it.
Improving Your Finances – Needs And Wants Tabulation
The journey to improve our finances practically begins from this stage. This is where we find out the things that are essential to our survival and those that just add up.
Most of us usually spend without having a budget of some sort, meaning that whatever comes up should be bought so far as there are funds.
This mentality is a recipe for disaster, certainly. While there might not be short term effects, the long term effects could be grave. In order to improve our finances, therefore, we need to identify our needs and our wants.
In terms of definition, wants are defined as the materials that our hearts or bodies desire, while needs are classified as the very things that are essential for our survival. In essence, we cannot live without our needs but we can do so without our wants.
Our list of needs will include water, food, clothing, housing and to some extent healthcare. The extravagance of the aforementioned including more clothes than needed, buying more gadgets than needed could be bracketed as wants.
In order to improve our finances, we need to literally put onto paper our needs and wants. This could be done on a monthly basis, by listing all the needs for each month and the potential wants for the month as well.
But that is just not it, the list will still need some revision.
Improving Your Finances – Pruning
This stage can also be referred to as the refining stage where you have to take a closer look at the initial needs and wants of a table. In hindsight, some of the elements stated in the needs column might be justified but on second thought, they might be classified as wants.
It is imperative therefore that, one always gives a second look to the tabulation after the initial drawing. In this stage, a mini-budget can be adopted to help make better decisions. Like every budget, the most important elements will be to identify your revenue sources and how you intend to disburse them.
For starters, the goal should be to create an expenditure that will be within your budget to avoid seeking loans that could have severe effects on your finances in the future.
While comparing the budget to the expenditure, one has to also take note of the need to save for future projects that will in the short term not be classified as either need or wants. If possible, space should also be created for emergency situations.
Improving Your Finances – Implementation
This is perhaps the most challenging step among the listed processes. While creating a table for your needs and wants is crucial, the ability to follow and implement it is even more important. Just as indicated earlier, implementation in this setting can be trickier especially because there are no checks and balances.
In a general sense, one cannot be arrested for spending lavishly or overspending beyond what he or she is supposed to. This abundance of freedom on most occasions causes people to mismanage their funds, thus the need for a good strategy.
The most effective strategy against the mismanagement of funds is self-discipline or self-control. Being able to put your body under control is very important in managing your finances, as it helps you to obey the very policies you have set for yourself.
You should be able to control your desires, by telling your body what it needs and not what it wants. It has to be noted, however, that gaining control over your spending can take time and one will need to be patient to see it through.
Conclusion On Improving Your Finances
Managing your finances can be a very difficult challenge for most people especially those who have already fallen into the addiction of overspending, but there is always a way out.
The first step in getting out of this dangerous pit is to tabulate your needs and wants. Once this is done, we can go ahead and refine the list.
Implementing self-discipline and control strategies will be the last step and the essential one that puts everything together. It might appear difficult, but managing your own finances better is never impossible.
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