Learn to Overcome Financial Insecurity
How confident are you about your financial situation? You do not have to answer that question immediately. Whether your financial insecurity is from childhood, family, poor financial habits or constantly changing government policies, it is not the end of the world. Being financially insecure can come in various forms, and this piece is about to help you answer that question on your financial confidence.
You can however, work on conquering your insecurities about money. A conscious effort can help you save money, pay your mortgage, pay your debt, save for rainy days, invest and start building wealth.
It is clear money is a huge source of stress for many people, however, it does not have to be like that, here are five tips to help you create a secured financial future for yourself and your family.
1. Create Short and Long-Term Goals
Without well laid out goals it is very difficult to achieve financial freedom. Creating financial goals can help you conquer your financial insecurities because it will help you turn your focus onto something positive. One of the best ways to encourage yourself to accomplish your goals is to write them down.
A written down goal will propel you to stay disciplined because it is a visual representation of your objectives that constantly reminds you of your goals. These goals must be aligned with your actual income and practiced with utmost discipline. If need be, get someone to monitor you in this regard, your friends, mentor or a guardian. In all, set realistic goals. What are your financial short- and long-term goals? Write them down already.
2. Get a Financial Manager
Most people think that having a financial manager will always cost you money, but this is not true. Just like the pro-bono in the law sector, some financial managers give out free advice to their clients at least until they can afford to pay them. Many people have become financially uneducated because they have not been able to understand basic things about their finances. For example, some are scared to invest so they just avoid every and anything that oozes investment, hence they remain poor.
Rather than allowing your fear prevent you from building wealth, get yourself a financial manager who will guide you through every step of your finances. They understand better how money works in every economy, they understand risk management and they detach emotions and bias from their profession to enable them serve their clients with the best of advices.
3. Create an Emergency Fund
After you have rolled out a plan, it is important to also put money aside for rainy days. Situations should never take you unaware, if it does then you are still financially insecure. Make sure to choose a budget plan that is easy for you because you did have to stick to it for a while. Truth be told, creating an emergency fund could be difficult when you do not even have enough to pay your bills, however we advise that you try your possible best to put something aside no matter how little from time to time.
One of the easiest budget plans is the 80/20 plan where you save 20% and spend 80% for everything else, then you can try to keep aside 5% from this 80% as emergency funds. This funds always come in handy when the unexpected happens, something that is inevitable from life.
4. Celebrate Your Financial Wins
Celebrating yours every financial win will only motivate you to achieve more goals. There is absolutely nothing wrong in spoiling yourself a little bit when you hit a jackpot. Learn to put some money aside for this purpose, this has a way of nourishing your work-life balance and giving you more strength to move on. So, whether you are a lover of gifts, adventure, food, cloths, gadgets or whatever the case may be in your regard, always make sure you reward your wins. You deserve it!
Do not be deceived, overcoming your financial insecurities is not rocket science, it will take time and effort. However, be rest assured that with these tips you will overcome being financially insecure. The most important thing to remember after all has been said is to be patient with yourself.
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