Your money is a huge part of your life as it determines what you can and cannot do and where you can and cannot go.
Learning how to manage your money the right way is an important step toward taking control of your life. Before you learn how to effectively manage your money you need to get to know yourself a little better.
Apart from evaluating your income and expenses with a fine toothcomb, you need to take a look at your habits and identify your strengths and weaknesses.
For example, you may be an impulsive spender who will never turn down a special offer that’s staring you in the face, even if you have no immediate use for the item on sale. This means that you have to try and rid yourself of any tempting advertising and/or opportunities to buy stuff – either by unsubscribing from all special offer newsletters that flood your inbox on a daily basis or, by completely avoiding the stores that usually trigger this impulsive spending.
If you tend to spend most of your monthly income before you’ve even opened up the stack of bills piled up on your kitchen counter – then you need to set up debit orders for your bills and, as far as possible, automate your financial plan so that you don’t allow bad habits to completely destroy your financial wellbeing.
Whatever the case may be, you need to take a realistic look at your habits, lifestyle and circumstances to enable yourself to create a sound financial plan that will become your friend rather than your enemy.