Today I want to talk about something that I believe is very important in our everyday lives, and is something many overlook. Managing your money properly.
If you are anything like me, you have a spending side to you, and a side that likes to buy anything it wants. I’d call this a “Spender” personality. I like to use my money for pleasure and like to spend money in general.
There is something about spending money in mass quantity that makes me feel more rich or prosperous. However, these kinds of habits, if left unchecked, can be real problems in my life.
If my goal is to become financially free or successful, improperly managing or spending money, can become a real road block in the way of me moving towards my goals. That’s why today I will be talking about, “How To Manage Money Like A Pro”, and how to do it yourself!
Why Money Management is Important
When I think about someone successful, I usually visualize someone wearing very expensive clothing, a stunning watch, carrying themselves with an air of sophistication, and having a pocketbook big enough to carry the Empire State Building.
But something I’ve realized about money, is that money itself is not the reason people become successful or wealthy!
I’ve often caught myself thinking about how I will be a success after I obtain huge wealth and quit my job, but is that true? Looking at my life now, and where I was 3 years ago, I can confidently say that I’ve come a long way in very little time, respectively.
I have more money, more education, more help, more resources, and more passion than I had then. I also believe I am happier than I was 3 years ago, and I believe that is because of some simple principles that have recently become a big part of my life.
Something I’ve realized, is that I decide when I am a success, and no one else can define me. If I want to be successful, I need to decide internally that I am already a success, acknowledging where I am winning, and where I am not doing so well.
Everyone makes mistakes, but those mistakes don’t define me unless I let them.
Another thing I’ve discovered is that many individuals are successful or wealthy in life because of how they handle their money. There is a saying that I love to quote, “How you do anything is how you do everything.”
If I can’t properly handle $10 dollars, how am I going to manage $10,000 dollars? If my paycheck isn’t being used to push me towards prosperity and success, what is going to happen when even more money comes my way?
I think we all know the answer to this, if you are like me, more money means more spending and more fun. I do the exact same thing with a large amount of money that I do with a smaller amount. The purchases might be different, but the habits remain the same.
Why People Overlook This
People hold on to the belief that the future will be better. I know I do! The future is unknown, but it’s that thought of a better future that gives us hope and a false sense of security.
Am I the only one who seems to assume tomorrow will be “safe” just like today simply because I don’t know what will happen?
Because of this, I think we unfairly compare ourselves to others, and to the future we have imagined in our minds.
We look at someone who is financially free and think, “Why are they financially free and not me?”, and we think that we don’t need to worry about our future because we are living “comfortably”.
Comparing myself to others, and pushing off my future because I don’t see the need to change… Yeah, I have been there, and there have been instances when I still catch myself doing these things.
Handling Money With Purpose
Why do I want to be rich? Why do I want more money? Why do I want to be free of a job? Why do I want to be a success? Why do I want to learn and grow?
All of these are important questions to ask oneself, and unless I know the answers to these questions, managing money and becoming wealthy will become another job for me, rather than becoming a source of joy and accomplishment.
Think about it, when we look into our wallets, or our purses, or our checkbooks, or our bank statements, how do we react? Are we approaching wealth management and the pursuit of our dreams with passion? Or are we showing up like many of us show up to work every day?
Tired, grumpy, unappreciative, dreaming about when we will get off work and go watch TV or something. Am I the only one who has those days? Please let me know in the comments if I am the only one who wishes he was somewhere else while at work. 😉
How You Can Start Now
Money management is relatively simple, but is often daunting to us because we don’t understand how. Come to think of it, learning to read for the first time was like this for me.
When I first began learning to read, I was frustrated because I didn’t know how, and every letter confused me. Maybe you can relate?
When I think about learning to read, it was difficult at first, yes, but eventually I found that I loved reading, and learning new words and ways to read became an enjoyment for me.
When I read now, I don’t even think about the letters or words individually, reading is like muscle memory for me now. A source of enjoyment.
If you want to manage your money and get ahead financially, I think the first step is to carry the right mindset about money and know how to handle money. There are many great resources about how to manage money and how to get the right mindset about your finances.
My absolute #1 choice for managing one’s money is Mvelopes.com. They are by far the best resource out there to manage money, track transactions, budget, and eliminate debt.
They have a “classroom” with great videos and lessons on how to become financially wiser with your money.
Also, just so you know, if you join now, they will give you 30 days free to try their services. I guarantee you will not be disappointed!
Simple Tips and Tricks For Money Management
As mentioned previously, if I plan to manage large amounts of money, it’s important that I learn to manage what I already have.
There are some very basic tips that I can give regarding managing money and they are the following:
- Be very careful with credit cards. If you have credit cards, unless you are prepared to handle unexpected debt and have backup funds to support payments, don’t use them except to build your credit score.(On a side note, many knowledgeable investors and teachers use credit. If you are going to use credit or loans for investing, a proper strategy and risk tolerance should be present)
- Be specific and label. When I was first learning to manage money I didn’t have even half the number of different “piggy banks” or “money allocations” I do now.But now that I am managing more money and have different goals, putting money aside for different purposes has become an indispensable tool for me, every month.
- Budget, budget, budget. If I don’t have a plan for my money, I am sending my dollars (soldiers) into war without a commander, weapons, or instructions; I am going to lose them.A budget is a plan of action for us in the area of finances. We need to create these guidelines so that we know what we are going to do with every dollar that comes our way.This isn’t as much a recommendation as much as it is an absolute must in the area of handling money. If there is one thing that has helped me achieve the level of financial management that I have attained today, it’s a budget system.
- Don’t spend what you don’t have. A groundbreaking thought I know. When I have had setbacks in my finances, it has often been because I was spending money that was meant for something else, and thus, debt occurred.With a budget, and proper allocation of funds, this can often be avoided.
But be careful, the temptation to spend what you said you wouldn’t, to get what you want now, rather than waiting, has often been source of headaches for me.
How Money Management Can Improve Your Life
I can think of numerous improvements that proper handling of money has done for me. From becoming a source of accomplishment, to helping me have money to buy what I want, when I want it, without feeling guilty, these principles have helped me immeasurably.
But don’t take my word for it! Research what I have been talking about today yourself! Buy a book or consult an expert regarding this topic and start managing your wealth successfully today!
Be sure to take a look at Mvelopes.com, using them has made managing money and growing financially amazing for me and I can’t recommend them enough!
Have and open mind and see just how amazing it can feel when you know exactly: how much you have to spend, how much you’re spending, how you’re spending your money, and how much progress you are making!
Let me know what you think about this. Let me know where you are in this area, how far you’ve come, or where you want to see yourself in the next couple of years, and how well you will be doing.
As always, if you have any questions feel free to email me, and I will get back to you as soon as I can. I would love to help!