Eliminate Financial Problems Through Self Discipline
Lack of Financial discipline does not come with age or increasing responsibilities. Even if a person has a great personal and professional life, he or she may lack financial discipline. They may be misusing spending as a form of therapy — something to make them feel better when they are depressed — or they may simply be unable to handle their money wisely.
Regardless of the causes, a lack of financial discipline can cause problems in all aspects of life, ultimately destroying their achievement. Debt can strain personal relationships and stymie efforts to pursue meaningful life enhancements that are usual for someone in your position in life.
So, is it possible to establish good financial discipline? Yes, it is the answer. However, it will not be easy, and it may necessitate more than just a strong determination. Here are a few things to think about if you believe your lack of discipline is putting you at a financial disadvantage.
Don’t be a spending addict
Any addiction is based on dependency. You should seek treatment if you are using shopping or spending as a coping method. Examine the underlying causes of your behaviour. They might be as innocuous as having too much spare time on your hands, or they can be far more serious, such as stress or despair.
Once you’ve identified the root issues, figure out how to deal with them more effectively. Have a hobby, for example, that keeps you busy and away from the mall and internet shopping. Exercise, meditate, or do whatever helps you alleviate stress. If all else fails, it’s time to seek expert counselling and cognitive therapy to assist you effectively change your behaviour. That is not an excessive approach if it means leading a more prosperous life and avoiding serious repercussions. Participate more actively
For someone who has never had to deal with money, budgeting and financial planning may appear too abstract. That is frequently the case in marriages where one partner is in charge of finances and the other has just a hazy understanding of what is involved. The remedy is to become more involved. Speak with a professional if you are single or married and want to learn more about how to handle your finances successfully.
There are also numerous online courses available to assist you with the fundamentals. Consult a financial adviser or wealth management professional if your situation is more complicated. Of course, you should be as knowledgeable as possible with your condition and aspirations, as well as involved in your household budget, in order to create reasonable expectations.
It’s your money, your life, and your future at stake. Take charge, even if it means making difficult decisions. If your spending or debt is out of hand, you will almost likely need to cut back somewhere, which could mean less travel, dining out, or shopping. And, certainly, this is the foundation of financial discipline. Determine what has to be done and then carry it out.
Taking charge also entails recognizing the scope of your situation and properly dealing with it. For example, if you owe hundreds of Durhams, cutting back on your daily coffee will not fix the problem – though it is a responsible gesture. However, be realistic; you may require a debt-consolidation strategy.
Furthermore, be prepared to stick to your resolutions in the long haul. It is not uncommon for people to become serious about financial discipline when confronted with a problem, only to revert to their old behaviours after the problem has been resolved. Avoid the debt-relief cycle since it does not always work. Accept financial discipline as a way of life that allows you to stay within your budget and focus on developing your money rather than getting into debt.
The author is a Seattle-based editor and a former Gulf News Business Features Editor.
The fundamental cause of financial difficulties in life is a lack of self-discipline, self-mastery, and self-control. It is the inability to postpone short-term gratification. It is the proclivity of people to spend whatever they earn and then some, usually supplemented by loans and credit card debt.
America’s savings rate is currently too low to achieve financial independence. The average American family’s net worth after a lifetime of work is only approximately $8,000. People keep spending and borrowing as if there is no tomorrow.
The good news is that we are living in the most prosperous period in human history. Today, more individuals have more possibilities to earn riches and prosperity in more diverse ways than ever before in human history. It has never been easier to achieve financial independence than it is right now. But you must first make a decision to do it, and then follow through on that decision.
The Reasons For Financial Problems
The fundamental source of most persons’ financial difficulties is not a lack of earnings. The explanation is a lack of self-control and the inability to postpone gratification. Why is this character flaw so prevalent among the majority of individuals in today’s society? It all started in childhood.
When you were a kid and you got money (whether it was your allowance or a present from a friend or relative), the first thing you did was spend it on candy. Candy is delicious. Candy is delectable. Candy has a pleasant, sweet flavour that fills your lips. When you were a kid, you probably loved sweets and couldn’t get enough of it. Because candy tastes so nice, many youngsters will eat it until they get physically unwell.
You formed what scientists term a “conditioned response” to receiving money from any source as you grew older. When you receive money, you mentally salivate, just like Pavlov’s dog, at the prospect of spending it on something that will make you happy, at least temporarily.
Spending Makes You Happy
This instinctive reaction persists when you become an adult and earn or get money. Your first thinking is, “How can I spend this money to get instant gratification?”
When you travel on vacation to any type of resort, you will see that the hotels and streets are lined with stores selling meaningless trinkets, bobbles, and rubbish, as well as clothes, artwork, and other stuff that you would never consider purchasing at home. Why is this the case? Simple. You are joyful while you are on vacation. You’ve been conditioned to link happiness with spending money. The happier you are, the more motivated you are unconsciously to go out and spend money on anything, or anything.
When people are angry or frustrated for whatever cause, it is fairly usual for them to go shopping. They subconsciously associate purchasing something with happiness. When it fails to perform as intended, they replace it. Unhappy people are known to go on purchasing sprees. They spend a lot of money on goods they don’t really need because they automatically equate buying with happiness.
Use Self Discipline To Rewire Your Responses About Money
The first step toward financial freedom is to utilise self-discipline to reprogram your mindset about money. You reach into your subc onscious mind and cut the line that connects “spending” and “happiness.” The “happy” cable is then connected to the “saving and investing” wire.
Open a “financial freedom account” at your local bank to promote this shift in mindset and avoid financial troubles. This is the account where you keep your money for a long time. Once your money is in this account, you make the decision that you will never spend it on anything other than achieving financial freedom.
Associate Happiness With Financial Independence
Something remarkable happens within you when you start saving in this manner. You begin to enjoy the prospect of having money in the bank. Even if you merely deposit $10, this action will offer you a sense of increased self-control and personal power. You are more confident in yourself.
Because the money in your account is emotionalized by your own thoughts and feelings, it creates an energy force field that attracts additional money into it. If you save $10 per month for a year, you will be surprised to discover that with the extra money you have put into that account, you will most likely have more than $200, rather than just $120. If you save $100 per month, you will most likely have more than $2,000 saved up.
The more money you have in your bank account, the more energy it produces and the more money is drawn into your life. You’ve probably heard the adage, “It takes money to make money.” This is correct. As you begin to save and acquire money, the universe begins to direct more and more money towards you in order for you to continue to save and accumulate.
Everyone who has ever adopted this method of regular saving is astounded at how rapidly their financial difficulties improve.
Once you’ve rewired your mindset toward money, the guideline for financial freedom is to “pay yourself first.” Most people save whatever is left over after paying their monthly bills, if there is any left over at all. The secret, however, is to pay yourself first, on top of any money you receive.