Money is an uncomfortable topic of conversation, the elephant in the room we have traditionally been advised to ignore or avoid bringing up. Asking for a deserved raise at work, splitting a bill, or even regularly checking our bank balances are all things we tend to shy away from—or, at least, postpone. But getting past this taboo and achieving clarity when it comes to our finances is pivotal to gaining control of our lives and leading more intelligent, conscious lifestyles. So, where to begin if the world of money and finance seems foreign and impossible to crack? The answer doesn’t necessarily lie in learning how to use spreadsheets, investing in the stock market right away, or understanding complicated economic policies.
Money and Mindfulness
Believe it or not, mindfulness and gratitude have a big role to play here, too, and can determine your financial future.
How so? When you integrate mindfulness practices into your day-to-day life—be it meditation, breathing, or journaling—you can become aware of your conscious and subconscious beliefs about money and work towards reconditioning your mind with a more positive attitude about your ability to create a healthy financial future.
An overwhelmingly large percentage of the population grows up with a scarcity mindset ingrained in them when it comes to money. As a result, they limit themselves by adopting beliefs that “money doesn’t grow on trees” or that financial abundance simply isn’t for them. A mindfulness practice will help you identify and dismiss those old beliefs in favor of a state of abundance—which is, in fact, every human’s true state of being.
Gratitude has a similar impact. No matter where you stand financially, there’s always something to feel grateful for, small or big. It could be the fact that you have access to the Internet and can consume content on this very platform; the fact that you could afford to pay your electricity bill and have a well-lit home; or a big bonus to reward months of hard work.
If you make it a regular habit to express gratitude for even the smallest of financial gains in your life, you will automatically put yourself in a position to attract that much more into your life.
Change your mindset and your relationship with money!
“Money is tight for a lot of people; we’ve been there. Changing your mindset and your relationship with money can truly transform your life in so many different ways.”
Healthy finances come back to self-worth and developing a healthy relationship with yourself.
“Your relationship with money starts with your own relationship with yourself. You have to go inside yourself, work on that relationship, and understand that you are worthy of happy things in life; you’re worthy of good relationships. Then, when the money comes, you won’t become attached to it to the point of being scared to lose it, because then you lose everything.”
Take Action
An abundance mindset is only the first step towards building a healthy financial future, and taking action needs to follow. But again, this doesn’t mean you need to study economics at the university level, read every day, and build a complicated investment portfolio in order to get your finances in order. You can start small.
Ask any expert, and they’ll tell you that the foundation of having healthy finances starts with working towards eliminating outstanding debt and building a savings account, including an emergency fund.
Following the basic 50/30/20 budgeting principle. This means dedicating half of your monthly income to everyday expenses, 30 percent to savings, and 20 percent to future investments.
That way, you can achieve a healthy balance where you are looking out for your future while also giving yourself some room to cover regular expenses and occasionally treat yourself too.
But getting there requires organization and carefully tracking your expenses to understand how much you actually spend per month. Having the self-discipline to put away money into savings every month is also a big part of the success formula.
It is recommended that you put pen to paper and write down your goals. This will increase the likelihood that you will be successful in achieving your goals, regardless of whether you commit to saving $5 or half of your salary.
Make it a high priority to add micro-goals to your productivity planner on the first day of each month. For example, you may try saving as little as Rs.(rands) 500.00 every month. Instantaneously, the objective goes from being a conceptual idea in your brain to a concrete activity that you are able to give yourself responsibility for.
Once you have gained a greater level of confidence with your monthly savings, you will be ready to begin establishing more ambitious and widespread goals in your Best Year Journal. Taking an honest look at your spending patterns over the last year, deciding what you would like your current financial status to look like, deciding how much money you want to save each year, how much you want to raise your income, and the quantifiable activities that will help you get there are all important steps to take
Educate Yourself
As you see your savings increase, the next step is to start thinking about investing. By definition, money sitting in the bank depreciates in value, so consulting a financial advisor or actively beginning to invest in the stock or property markets is a smart next move.
It might sound like a scary thing to do, and the traditional education system doesn’t equip us with the necessary knowledge about this type of money management, but the solution is all about taking control and educating yourself on the subject.
There are tons of online resources you can learn the basics from, financial advisors you can consult, and books you can read.
“Don’t fear the market. If you have a fear-based mindset, then you should not be investing,” who recommends doing your own research and investing in companies you are aligned with. Be mindful of ESG (environmental social governance) investing. People are really starting to look at: How is this company running? Is it giving back to its community or making a positive impact on the environment?”
Understanding why you are seeking financial freedom in the first place is another big part of the journey. Society will sometimes have you thinking that if you earn a certain amount of money and buy expensive, shiny things, your happiness levels will automatically rise, or people will miraculously start treating you better.
But that kind of happiness is only momentary—there’s a reason the saying money can’t buy you happiness is so commonplace. You need to identify a bigger reason for seeking financial freedom, one that will keep you truly motivated to achieve your goal. Do you want to provide security for your family? Do you want to invest in conscious businesses and give back to the less privileged? Are you trying to help your parents get rid of their debt or take them on a big, life-changing trip?
Get curious about your why and identify the bigger reasons motivating you to work hard and achieve financial abundance. You can achieve this by journaling about your feelings around money, your ultimate financial goals, and any lingering negative thoughts stalling you in order to discover what really is driving you on that deeper, subconscious level.
“Being in control of your money is being in control of your foundation. Being in control of your foundation is being in control of your freedom.”
So, how do you get there? Let’s break it down into simple steps:
1. Lay the Foundation: Start by building a solid financial foundation. Create a budget, set goals, and manage your debts wisely. It’s all about making your money work for you, not the other way around.
2. Save and Invest: Saving and investing are game-changers on your journey to financial freedom. Build an emergency fund, and then explore investment options that align with your goals. Let your money grow and generate passive income for you.
3. Diversify Your Income: Relying on a single income source is risky. Look for ways to diversify your earnings. Maybe it’s a side hustle, freelancing, or creating a passive income stream. Embrace your entrepreneurial spirit and unlock your potential.
4. Learning: The world is changing fast, and so is the job market. Stay ahead by continuously learning and developing new skills. Invest in yourself, explore online courses and workshops, and network with like-minded individuals.
But wait, there’s more! If you want to dive deeper into the world of finances and learn how to fast-track your path to financial freedom, let’s connect! Remember, financial freedom is not just about you; it’s about creating a legacy for your family. Teach your children about money, empower them with financial literacy, and set them up for a prosperous future. Are you ready to take control of your financial journey?
Let’s embark on this exciting journey together!
In Conclusion!
Your financial independence involves a strong dedication to core ideas. First, develop discipline and delayed gratification, knowing that financial achievement takes time. Set achievable goals and a well-planned budget to manage your spending and savings. Continuously learn about personal finance, investing, and wealth-building to make smart judgments. Diversify revenue streams through investments, side gigs, and entrepreneurship. Build a network of people who share your financial goals and seek guidance from successful people. Keep your financial strategy flexible by reassessing and adjusting it. Recognize small wins and learn from challenges. Financial independence requires self-discovery, perseverance, and a proactive commitment to a safe and wealthy future.