You probably already know how to work
to bring in money, but you only have half the equation unless you’re
taking these steps to make your money work for you.
You don’t have to be a finance whiz kid –
all it takes is being mindful of when you spend your money, why you’re
spending it, and what your true goals really are.
• Have specific, tangible goals for your
money. Take time to really think about what being financially secure
means to you and how you want to spend your retirement. If you have a
partner, be sure to talk it over with them, so you are both on the same
page. It’s much easier to work for a goal when you can visualise it
rather than thinking “Oh, I really should be saving money” simply
because that seems like something you should do. It becomes much easier
to change your spending and saving habits when you can say to yourself,
“I want to put aside money so I can enjoy my retirement or buy a
property in the city.”
• Automate your savings as much as
possible. Your goals and dreams shouldn’t be relegated to what’s left
over. They deserve to be made a top priority. There are many ways to do
this. Discuss different options with your bank or employer. The
important thing is to make the mental shift towards thinking about your
goals as non-negotiable, not something that you’ll get around to
someday.
• Find out where your money is going by
keeping a spending journal. The point of this isn’t to make you feel bad
about wasting money, it is to examine how much happiness you’re getting
per naira spent. Once you know this, it’s easier to change your habits
so you’re spending money on things that make you happy and eliminating
expenses that don’t give you the same bang for the buck. An excellent
book that goes into depth about this subject is “How to be Rich and
Happy” by John P Strelecky and Tim Brownson which includes handy
worksheets that can help you determine where your money will have the
most impact on your happiness. However, even if you don’t read the book,
you can still take a close look at your spending and see the areas
where you’re spending money without any appreciable effect on your well
being or ultimate goals.
• Don’t be afraid to ask questions and
never feel as though you should already know it all. You’d be surprised
how little most people know about money, investments and other financial
matters. You’re only hurting yourself if you let pride or embarrassment
get in the way of asking questions that could help you make the most
out of your money. Likewise, don’t be hesitant to ask questions about
how to reach your specific goals. It will be much easier to make a plan
to achieve your goals if you first know the necessary steps. If you
don’t know how to buy stocks or get a business license or what permits
you need to climb Mt. Kilimanjaro, until you find out you won’t be able
to move forward with your plans.
• Adopt a positive attitude towards
money. This is not the same thing as being materialistic. It’s realising
that money is a useful and necessary tool in our society and that there
is nothing shameful or shallow in thinking about it or wanting to get
more of it, or even not having very much of it at all. Most of us do
carry some negative feelings about money and it’s difficult to move
forward without finding a way to reframe those feelings so that we can
approach money without fear or shame.
For example, you might believe that
money is the root of all evil. Or have a fear of appearing cheap or
poor. Or feel like it’s unseemly to demand to be compensated for your
time or skills. Think about any negative ideas that you have about money
or your relationship with it and look for ways to adjust your thinking.
You can take charge of your money and
make sure it’s serving you instead of leaving you feeling helpless to
deal with it. The key is to understand what you want out of life and
find ways to use your money as a tool to make it happen.
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