The word finances can be a trigger, and I can understand that. Money, ever since it evolved or transformed rather from barter trading, brought with it the anxiety to have more, do more to get it, and do even more to protect it. It has robbed us of the essence of sincere community sharing and brought a sense of urgency to acquire it and more of it. Inherently, it has also brought fear and confusion about how to manage it. We are conditioned to be in a hurry to make money but not taught to have the foundations of how to manage what we have before asking for abundance.
So, let's simplify this term called "personal finance." First, the keyword here is personal, not finance. Meaning one size will never fit all, and because of that, there are many ways to get to the desired goals in their personal finance journey. However, the second word attached to it somewhat negates this explanation; let me explain.
The word finance means the management of money. Some will say it also means the creation and study of money. Focus on the term "money management." This money management includes a strong foundation in budgeting, saving, debt management, and planning ahead.
Now, let's combine the two words: personal finance. Based on our brief lesson above, we can agree to conclude that personal finance is a tailored and individualized strategy to manage money in any form and of any quantity.
The next question is how do I manage my money (small or large amounts). I will answer with an old saying I grew up hearing growing up in Ghana: "Cut your coat according to your size." But to cut this coat according to your size, you need foundational, universal, and non-negotiable habits. These habits will grow with you, or not, but practicing them with understanding and diligence is the backbone of personal finance. These habits are budgeting, saving, and debt management. Master these habits with what you currently have and become so good that your foundations, discipline, and habits will not be shaken, tempted, or crushed when more comes to you.
Budgeting is not scary. You can do it in a few easy steps. Read my post on Mastering Your Money: The Importance of Budgeting and How to Do It Effectively to get step-by-step guidance on how to budget.
Turn saving into a fun game and remove the scarcity mindset and fear surrounding it. In my post, How Can I Easily Save $5,000? Try These 2 Proven Methods; I show you how to save and enjoy saving gimmicks. Before jumping into investing of any kind, learn how to save and hold onto money for long periods. Let money enjoy your company and not be afraid to visit and overstay its welcome. When you have mastered and conquered the "I need to spend money now because I have it" syndrome, investing in any form will not phase you as much because you have trained yourself on long-term saving.
And, of course, debt management. This is a tricky one that can keep us in bondage for years and decades. It can be a generational cycle and debt that can be hard to uproot. The goal is to have less or zero bad debt, such as high-interest debt, credit card debt, not paying your balance in full each month, and so on.
Our individual goals and desires differ from the person next door. What we need to manage our money will be different from Betty down the road because as much there might be similarities between your situation and theirs, the stories are not exact, and neither are the factors and characters at play. This means that the tools and setup you need to manage your money will be different, and that is where the word personal takes a stronghold. It is not a competition, and one size does not fit all, but the foundations are the same and will evolve with you as you do. Seeking more wealth without the foundational discipline and knowledge of how to budget, save and manage debt will cripple anyone. It's not always about getting more money but more about how you steward the little you have. You want more, but do you know how to manage what you currently have?
We all need to be savvy in our personal finances, but getting started or staying on track can be complicated and confusing. Habits for mastering personal finances are easy to read and understand but the application is often difficult. And that is where I can help make the most of your income and savings. I will help you learn how to establish your foundations for personal finance: budgeting, saving, and debt management with tailored plans and a mindset that will evolve with you.
What are you waiting for? Schedule a complimentary clarity call today, and let's just chat; it's the least you can do as a first step.
Be gentle with yourself,
Celestina
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