Are you living paycheck to paycheck? Can’t stay on budget? Or are you struggling to save for your future?
Many people believe that their financial problems stem from a lack of income. They think that if they could earn a few thousand dollars more, then everything would be better. They’d finally be able to pay off debt, save, and work towards their financial goals!
But in reality, it wouldn’t matter if they earned $5k or $50k more. The result would be the same. Their spending habits would still lead to the same money problems they have now, putting them on the brink of a financial hardship – all because they don’t have financial discipline!
Wealth creation has little to do with the amount of money that you make. Instead, it’s comes from following a budget where you’re living below your means, saving, and investing!
As you build financial discipline, you stop wasting money on what society tells you that you need and want. You begin to realize that money is a tool that allows you to break free from your golden handcuffs, live on your terms, and have greater life satisfaction!
Today, ads are everywhere. You see them driving down the street, watching TV, and scrolling through Instagram.
According to one article on PPC Protect, the average person views between 6,000 and 10,000 ads per day. For most of the population, this figure has doubled since 2007, too!
All this advertising distracts us and influences the decision we make. It sends messages that we need products to feel a certain way which can lead to overspending and debt.
When your influenced by advertising, your rational brain is no longer in control, either. Instead, your unconscious mind and feelings have taken over. They tell you to buy things so you can feel good, even when you know deep down you shouldn’t!
But when you have financial discipline you’re able to regain self-control. You’re able to say “No” to unimportant purchases, so you can focus on the ones that matter and are meaningful to you!
Financial discipline is a set of internal money rules that you follow. They establish guidelines for the way you’ll budget and use your money to make your dreams come true!
If you’re like most people, having financial discipline is hard. Every day you’re faced with commercials, shiny object syndrome, and keeping up with the Joneses. All of which only add to the challenge!
Financial discipline removes your distractions and helps you avoid spending on impulse goods that bust your budget. It also allows you to concentrate on your priorities by setting limits on the amount you’re willing to spend. Not to mention, being disciplined helps you stick to your financial plan, even when it appears hard!
When most people get a raise or receive a large sum of money, they spend it all. Or worse, they consume so much that they wind up in debt!
People without self-control are easily tempted. They’ll spend emotionally which makes it harder to save and reach their goals. But, all that can change once you start building financial discipline!
It’s impossible to execute a plan when you haven’t determined what you want. Without financial goals, you’ll end up spending money on any and everything. You’ll spend at will and hope that each purchase you make brings you some degree of joy and satisfaction!
But, when you determine what you want, you can create a plan to make it happen. By using SMART financial goals, you’ll create have a path to follow that allows you to realize your dreams!
Your budget is a plan for your money. It establishes the way you’ll use your resources to satisfy today’s wants and tomorrow’s needs.
The trick lies in finding balance between the two. You should spend on the things that you need today and that add to your quality of life, like your happy expenses. But, that doesn’t mean that you should go overboard to the point where you’re not saving!
A good starting point is saving 20% of your income. With this savings ratio, you’ll have money to pay down debt, build a solid financial foundation, and improve your overall financial position!
Most people know the steps they need to take to reach their goals, yet many have a difficult time executing their plan. They continue falling back into old habits, without building and sticking with new ones.
But, to get to where you’ve never been, you’ll have to do things that you’ve never done before!
One way to stay accountable to your goals is writing them down and putting them in obvious locations. Each time you walk by, you can take a moment to read them and visualize achieving them!
Connecting with your goals and the positive feelings they provide will motivate you to keep working towards them even when it gets tough. Not only will this help you stay accountable, but it will give you the financial discipline you need to reach them, too!
Also, part of being accountable to your financial plan is reviewing your budget and actual spending regularly. In doing so, you’re able to see how the two compare. You can find out which budget categories you’re performing well in and those that need improvement!
If you’re having a really hard time sticking to your budget, consider writing down each purchase you make. This habit establishes greater awareness of what you’re doing with your money and where it’s going. As a result, the next time you’re about to spend unconsciously, you’ll be more likely to snap out of it. You’ll remember that when you buy you have to log your purchase which reduces your habitual spending and pulls you back into conscious consumption!
In addition, consider getting an accountability partner. Find a family member, friend, or coach who will check in on you, monitor your progress, and push you to keep going when you run into challenges!
Many people get tempted to spend every time they walk into a store. Oftentimes, some thing catches their eye that they must have which causes their budget to go out the window!
But, you can’t fall for temptation if you’re never faced with it in the first place. For instance, if you know you can’t resist Apple products, then it’s not in you or your budget’s best interest to go to the Apple Store. Otherwise, you’ll buy something that will cause you to go over budget. Instead, avoid these shops at all cost and when you want to purchase a big ticket item plan ahead!
Truth be told, you’re going to have to say “No” to some things to be able to say “Yes!” to others. Even though saying “No” can be hard, it’s necessary to do it time and again to be able to get the things you really want!
On your journey to financial freedom, there will be challenges. You’ll face obstacles that will test your commitment and desire to reach your goals.
But, having rewards help you preserve and stay on track. They give you something to look forward to when you face tough times and feel like giving up!
One way to reward yourself is by breaking your financial goals down into mini-goals. These are smaller milestones or goals within goals that lead up to a bigger one.
As you reach the smaller goals, give yourself a small reward. It could be something simple like a nice dinner out or a weekend getaway. Then, as you achieve major goals, consider spending more time and money celebrating your accomplishment!
Also reward systems shouldn’t be limited to just your finances, either. Use them in all areas of your life and in building all the different types of wealth, In doing so, you’ll create a subconscious connection in your brain that tell it “good things come from hard work!”
Building financial discipline is a lot like going to the gym. It can be a little difficult starting out, but the more you go, the stronger you get, and the easier it becomes. Then one day, you reach the point where you no longer think about going and it becomes a new habit!
Financial discipline instills a sense of fiscal responsibility and duty to yourself. With it, you’ll have the energy and wherewithal to overcome any obstacle you face. Not only in your personal finances, but in every aspect of your life!
Where can you build greater financial discipline? Comment below.
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