* Some people have the perception that understanding money is hard. I often hear people say that they are not good with figures. A lot of them found maths difficult at school, so they automatically think that they will be bad at finances or
managing money. Surprisingly, it is easy to understand money. Can you add one and one and get two? Can you subtract one from four and get three? Then you are great with money! Money only requires you to add up, subtract, divide and multiply. All of which can be done on a calculator. You do not need to do a complicated algebra formula in order to understand money and work out a budget. Anyone can learn about money, you just have to find the motivation and believe that you can understand it.
* You need to feel good about yourself on the inside so that you can start having more money in your life. This is especially true if you have gone through some difficult life experiences such as a relationship breakup, challenging childhood and any other event which has made you feel sad or depressed.
* Change your mind set to believe you deserve to have plenty of money.
* Work on your self-esteem so that you feel good about yourself. Remind yourself on a daily basis that you are powerful and can make a difference in this world.
* It is also important to spend less money than what you earn. You will need to set up a budget and stick to it. The name budget makes most people feel as though they are restricted on how much money they can spend. You can call a budget a money maker or any other name that makes you feel as though you are ‘making money’. Budgets allow you to save money, invest and make more money in the long run.
* Leave your credit cards at home if you know you are the type of person who cannot control your spending. I have even heard of people freezing their card in a block of ice so that they really have to think about it before using it. This may be too drastic for you but if you are prone to retail therapy, then you need to find a method that works for you.
* Credit cards need to be paid off in full on the minimum payment due date, instead of only paying the minimum amount. If you only pay the minimum amount you end up increasing your debt. Only use your credit card if you know you have the money sitting in your account or it is coming soon, to pay off your card.
* Expensive items should be purchased from the money you saved, instead of using your credit card. I see many people using their credit card or taking a personal loan to go on holidays. They then return home and are left with a significant debt. How good does that holiday make you feel afterwards? A suggestion is to actually save up the money for your holiday. That way when you return home, you can relax instead of being stressed while trying to pay off your debts.
* Do not focus on any debt you may have, as it will only lead to a vicious cycle of more debt. Consolidate all your debt and pay it off by setting up an automatic repayment system. Set it and forget it.
* Do focus your energy on sticking to your budget or money maker and saving money to invest or doing something you enjoy.
* When investing you need to educate yourself and ask questions of people who have done it successfully. There is no point in listening to the negative comments of someone who has done nothing or who has failed. Surround yourself with like-minded people.
* More importantly, trust your gut instinct about people and investments. Use what you have learnt about money and investing to work out if your fear is real or just fear of the unknown.
* You need to affirm every day that “I am good at managing money and I have plenty of money. I deserve to have money in my life."
* Swap any bad thoughts about money with your positive phrases.
* Understand that money is neutral; it can be used for good or bad. Imagine being able to set up an orphanage in a third world country.
If you are having difficulty with your finances, you can change your attitude today and live a life free of stress and worry. You are the best person to manage your money and always trust your gut instinct when talking to others. Hope this has helped those of you who may have been concerned about your finances.
Have a wonderful week.