3 Simple Traits That Will Make You Successful In Financial Planning
15/09/2016 at 10:00 pm #568
Successful financial planning is not always easy. You need to have the right mindset in order to achieve your financial goals. Here are three simple habits that are vital to the success of your financial journey.
#1 Differentiate Between Your Needs And Wants
The first step to succeeding in financial planning is to be able to save money. But saving just a little money is not enough. If you do not separate your wants from your needs, you will end up spending unnecessarily and reducing the amount of money you can save.
One way to train yourself in differentiating between your wants and needs is to practice utilising the Ten Second Rule.
Before you purchase anything, think to yourself for 10 seconds: Is the value of this item worth its price? Will I regret my purchase? Am I going to use this many times? This will give you a clear answer to whether your purchasing of an item stems from a need or a want.
Remember that frugality is a virtue and goes a long way.
#2 Be Open To Learning And Do Your Research
With so many free resources online, the excuse of not having access to information is no longer valid. There are many financial literacy articles and courses for your perusal. All that is required is your willingness to learn new things.
When it comes to learning about investing, the learning curve may be steep at the beginning. But giving up at the start will close a door of opportunity to multiply your wealth. Similarly, you should always try to find out as much information as you can before making important decisions such as buying insurance.
Just like most things in life, you cannot do well in financial planning if you do not put in the required time and effort to learn.
#3 Be Disciplined
This is the most important trait of all. Deciding to start cultivating good financial habits is not the most difficult part. It is sustaining them that makes it tough. Once you have chosen to make your financial journey a success, stick to it!
Set your goals and find a way to remind yourself what you want to achieve. For example, to encourage yourself to learn about investing in stock markets, you could set a goal to make your first investment in 3 months.
Meanwhile, to encourage yourself to save more money, you could set a target amount to save by the end of the year, and reward yourself (wisely) once you reach that goal.
With all these in mind, you will definitely reach your personal finance goals much more easily!
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