Quick! Make sure you have your 2016 budget handy before we begin. Don’t have one? That’s what I thought. Don’t feel bad. Most other people don’t have a written budget either. But wouldn’t it be fair to suggest that in a world rife with ads begging you to buy more things, rampant mismanagement of personal finances and the ever escalating cost of living, a written budget is more necessary than ever?
When it comes to spending, most people learn the hard way. Over-spending, excessive credit usage and ignorance of available funds causes destruction. Avoid chaos in your finances through smart decision making, because it’s all in the choices you make with your money AND time. Many growth-minded entrepreneurs make sound financial decisions based on what their current expenses can reasonably handle, not what their projections forecast they can handle. They then budget accordingly to allow for additional spending to fund future developments in their business. These choices allow for new ideas. New ideas create the spark for new dreams and new dreams fuel the flames for a more interesting life. You can rationalize spending so easily with the choices you make.
Here’s 6 ways to avoid financial chaos:
- Mindshift through simplicity
Deciding, “I want to be better with money.” doesn’t involve a life-altering series of events, but it does take a mental commitment to break the habit of being poor with money. Recognize this and work through your debt. Find out where you can save money. Trim the fat. It’s as simple as finding the courage to examine each transaction in your bank account(s)
- Get help through tech
Start with visiting www.everydollar.com. This free site takes 10 minutes to set up and will help you take the first step in getting your financial life in order.
- Just say NO
Remember, it’s all about choice. You don’t have to put it on the credit card. You don’t have to drink the expensive coffee every day. And you certainly don’t have to be persuaded by advertisements of things that aren’t critical to your everyday life. Saying YES to everything leads to financial ruin, stress and strained relationships. It’s much easier to say NO!
- Time is money too
Budgeting dollars is one layer. Budgeting time is another. Time is your biggest resource and the most wasted resource. If you write down what you are doing by hour and see how much time you are currently wasting, its shocking! Start calendarizing your life and watch your efficiency go up. If you could add in one more hour per day of lead generating, what kind of financial impact could it have on your life? That is seven hours per week. That buys you an additional 45 work days per year just by being smarter with your time. TIME IS MONEY!
- Make a list
Once you make a list of the critical activities you need to perform in a day, week or month, you’ll be able to decide what fits the budget. You’ll also be able to determine what financial sense it makes, whether or not to delegate the task altogether or prioritize what needs to come first. www.Trello.com is an excellent resource for logging and assigning tasks and it keeps you very organized and communicative along the way.
- Don’t be a rebel
Ask for help when you need it. Use your resources early and often. There isn’t a single successful person on this planet who achieved their greatness without the support of others.