Now see, I know this is not the most desirable topic to speak on but I decided I’ll touch on it anyway. What I’ve notice most, is the way we do things is due to how we are condition to think, feel, behave, and operate. A lot of the time we are not really cautious of our spending or way of living because it is just the way we always do things. I am simply here to challenge you to look at your habits and encourage you to change them. The first step is recognizing and accepting. The second step is educating and applying.
I want to cover a few things that we do and if these things are some of the things you do, remember to accept it through owning how you’ve always do things and make an effort to change, that is if you are looking to save, invest and live a more wealthy life.
1.) We spend before we Invest.
When we are working, rather it be for yourself or an employer, we usually can’t wait to get paid. Why is that? Well, we usually already have an idea of who we are going to spend our money on. Rather it is a creditor, a bill, a vacation, or even simply for entertainment. It is just what we do. We plan out how we want to spend our money before we even get it. Paying your bills, your debt, your creditors is necessary, of course. So don’t get me wrong, but what if we trained ourselves to invest before we spend? Think investing instead of spending. When we cant wait for that client to pay their invoice or that bonus at the end of the year, what if we thought what we were going to invest our money on, instead of what we are going to spend our money on.
2.) We spend money too fast.
What is the point of working so hard when you spend your money as fast as you get it. I know many of us use Direct Debit. It is the easiest way to pay your bills and not forget about them. So when your direct deposit hit, sometimes so do your direct debits, I understand that. The challenge is figuring out how to hold on to your money a lot longer. Why do we work or wait 2 weeks to get paid and then less than 7 days the very cash we were waiting for is gone. If we look at our spending habits, I’m sure we can find a way to not spend our money so fast. Which leads me to my 3rd point.
3.) We usual have no Budget.
The biggest corporations have a budget for their spending. There is a budget for every department, or location, or even project. If organizations with a lot of money budget, why do company’s with less money don’t? I mean you would think they have the luxury to spend as much money as they want. Truth is, it doesn’t matter how much money you make, if you don’t track and manage the money properly your cash flow will be affected. Everyone should budget. Rather you have a business or not. You should tell your money where to go. You should remind yourself how much money you will spend on what each month. You should also track and see your remaining amount to spend for the month or the year, because budgeting saves money. I’m sure you will be able to invest a lot more of your money if you have a budget.
So those are the three things I wanted to share with you. We are good at creating expenses and not so good at creating income. Hopefully this will encourage you to think investing, don’t spend your money as fast as you get and to create a budget.
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