Money is one of the most powerful yet detrimental things we will ever experience in our lives. Although money should not determine your happiness, money does affect the way you live your life. Money can be the difference between living life or just existing. Money truly makes a huge impact on the way we view ourselves and others. Understanding how money works can help you to break the financial strongholds on your life that many don't even realize are present.
When you begin to understand the power of the dollar, you can see the different ways that you can adjust your current life and make some real changes.
Understanding money starts with taking a true inventory of your life. It means taking time to educate yourself on your current situation as well as educating your self on how money works in your life. This will help you be able to accurately assess where you are and plan for where you want to go.
What happens next is another key factor; Its time to put things into action to help you manage your current income and save. Studies have shown that most Americans do not have enough money in their accounts to cover a basic emergency. Taking that into consideration will help you to create a budget that will also give you room to start building that emergency fund. A budget will help you assess your current spending and make clear decisions in areas that you are struggling with.
Growing up, many of us are taught money basics and even taught money in negative connotations. We may be told the basic principle in life: pay your bills, but we more than likely weren't told what to do with our money after our bills were paid. Not giving all of your money an actual name and just spending what you have leftover, creates the paycheck to paycheck lifestyle. It is very easy to fall into this pattern, but equally as easy to avoid it with the proper tools in place. Think back on when you were growing up, what were you taught about money?
Personally I never realized how much I didn't know about money until I was forced to change because I was making over $60,000 a year but had nothing to show for it. I couldn't travel unless I robbed Peter to pay Paul. I looked around and there were tons of new clothes, new shoes, the latest makeup, but I had no money to purchase tires that I needed. I was tired of living from paycheck to paycheck. More importantly, there was now a child that was looking for me for everything and I needed to make sure he was well taken care of. This made me take a hard look at my life and make a decision to change the way I was managing my money.
Changing my financial mindset has been one of the greatest moments of my life. I began to educate my self and put these practices into place. Budgeting was no longer something that held a negative connotation on my life but was now a lifestyle. The benefits of understanding money and changing my mindset about money have truly allowed me to break the strongholds on finances in my life. Now, I have bee put in a position to not only share this with my son but with my entire family. My parents have retired and through our conversations have been able to manage their finances to continue to live a quality of life they deserve.
If you remember nothing else from me, remember... Make Money, don't let the money make you.
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