Finance News

The ABC of economic empowerment

A quick google search for "financial literacy" returns thousands of results and lists an infinite number of do's and don's that should (and not) be followed to guide you on your financial journey.

However, when you think of financial assistance, what do you think of? Empowerment is in the sense of Merriam-Webster "the act or act of authorize someone or something: the granting of the authority, right or authority to perform various acts or duties. “Regardless of how your current feelings relate to your finances, we're going to examine three key areas that we shouldn't just consider. but to help you prepare for a strong financial future.

awareness

We are all more focused than ever on our money and where it is being spent. The pandemic has created an oversensitivity to how our finances are handled while also realizing what essential expenses are and where they fit into our budget.

Before life as we knew it has to be postponed, many of us don't have to look back too far to remember a time when we didn't check our accounts that often, our savings plan fluctuates from month to month, or ours Emergency The fund was used to get rid of some impulsive expenses.

Make a habit of doing inventory and checking all of your accounts to make sure those days are a thing of the past. Take at least 15 to 30 minutes to review all transactions and deposits on all active accounts. Not only does this improve your self-responsibility, but you can also get into disputes if something seems wrong and resolve it quickly.

Another small but powerful tip is to acknowledge your financial health. What three main areas will you be focusing on? If you don't know easily, review your transactions over the past three months and categorize them. How much of your money went into impulsive purchases or things that could have been bought at a later date? Are you seeing an influx of overheads or credit card payments? Are there spending patterns that you can see explicitly? Let this exercise serve as an eye-opening experience.

To determine where you want to be, you must first truthfully acknowledge where you are. This sets the outline and general expectations for your personal financial journey. Knowing where you are may not feel comfortable, but avoiding it leads to bigger consequences.

improvement

While we hate to admit it, there is always room for improvement and our finances are no exception. The first thing that guarantees the championship is compliance with the established budget. This acts as a guardrail – it is there to keep us informed so that we can greet our financial goal with open and welcoming arms.

Once that is in motion, start looking for ways to enhance your financial experience. Start automating recurring expenses, such as: B. Cell phone service or utility bills. This is why it is so important to be as honest and specific as possible when setting a budget. Outside of emergencies, nothing should surprise you. When you trust yourself and the financial work you have done, your finances have no choice but to follow suit.

If you haven't already (or need to get back on track), work on topping up your emergency fund and savings account. Emergency costs usually arise out of nowhere. Therefore, you want to set a fixed dollar amount or percentage in each pay period. Setting up an automatic transfer to these accounts is a routine and reassuring.

Is there a hobby or skill that you want to leverage and monetize? No matter how big or small, this can definitely speed up your financial goals. The money you make on a passion project can be used for savings, paying off debts, or simply getting back financially to a place where you are financially comfortable. This category also includes vacation pay or preparations for large purchases such as a car or a house. If you want the assistance of a professional, look for financial advisors or coaches who can help you achieve your goals. Preparation is key and your future depends on it!

trust

The foundation stone has been laid and you are committed to meeting your financial goals. The budget and savings goals are on the move; what's next? It's time to celebrate! Put your best foot forward into your financial future. When times seem bleak, remember your goals early and often.

Reinforcements like daily reminders on your phone, goals posted somewhere in your house that you can see on a daily basis, or reciting positive financial affirmations serve as a second wind when you want to throw in the towel. Along the way, celebrate winnings like paying back debt, reducing it, or reaching a new savings goal. Have you never been able to invest and now you have the extra income to get into the game? Celebrate That!

The best way to create excitement is to gather your family together and get them involved. Create family challenges to get your kids excited about saving money and redistributing money. Think of creative ways you can all remember to accomplish a goal by ordering at your favorite restaurant or saving up for a family break.

To be trustworthy, you need to build the courage to start no matter where you are or how many times you've had to start over. Every step counts – every successful budget, every savings goal and every consequent reduction in total costs. Remember, financial freedom looks different for everyone and can spin over time. While some may want to take year-round vacations except for their children's college fund or debt entirely, all are meaningful and make sacrifices. What is the key to such a level of trust? Time.

Be kind to yourself and understand that mistakes should never be equated with mistakes. Your commitment to this financial journey will always be rewarded.

Marsha Barnes (3 posts)

Marsha Barnes is a financial guru with over 20 years of experience striving to empower women worldwide to be financially successful. Financial literacy and literacy are a passion of Marsha and provide clients with practical information that builds general confidence in their personal finances.

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