Here’s what managing personal finances does NOT mean:
Anxiously connecting every day to your bank’s website to “see where your accounts are”
Recording all your expenses on a small notebook (next step: suicide listening to Justin Bieber over and over)
Have an Excel file with the family budget over the last 10 years
Allowing your bank mails to add-up in a special batch called “later”
Managing your finances means:
Having a car breakdown and being able to smile and say “Sometimes these things happen” without worrying about how you will pay
Check your accounts and have an adrenaline rush on seeing the huge amount of savings compared to when you wondered as to how to reach $1,000 in savings
Pay cash a significant expense as a contribution to your home, a wedding or a nice trip without any guilt
Here are 3 simple rules that will help you manage your finances
Rule # 1: If you do not know why it’s a lost cause
The why is the first key. Why do you want to manage your finances? If having money is a motivation, be more specific. The more you know precisely the reason why you act, the more it will make sense to you.
Do you want examples?
I want to offer my family a nice house
I want to write money off my debts
I want to pay for a beautiful vacation
I want to pay for the best possible education for my children
I want to go to the restaurant every week without skipping dessert because it’s too expensive
I want to have a healthy diet with the best products on the market
Managing your money allows you to choose your priorities. What’s yours?
Do not take this rule lightly, this is the most important.
Rule No. 2: no more than 30 minutes per week
No, I’m not talking about sex. I’m simply saying managing your money should not take long. For this to be fast and pleasant (I am still talking about your finances), you must have a clear methodology.
At the same time, you need to devote time to your money.
Love does not exist. The only proof of love is visible. And while you do not have to be in love with your money, show it at least that it matters to you by devoting some time to it.
Set a method allowing you to track your expenses, your income and arbitrate this in a few minutes.
Rule No. 3: it must be a pleasant moment
Imagine you wake up one morning with the urge to draw up your accounts? Would it make you sick? Do you need to see an anti-capitalist friend as soon as possible?
The key is that managing your money should be enjoyable. It is your future: from your first step to financial independence.
It’s up to you whether it’s nice or not. Exactly, you may decide that it’s a nice moment. Put on some good music. Plan a fun activity to do after (see Rule # 2 for ideas) and do it!
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