What Is and How do you Find Financial Balance
From our title you may be wondering what is financial balance? Money and finance are not always all or nothing. We have often heard from pundits who tell us “pay off your credit cards first” or similarly, “pay off your student loans first.” Likewise we often hear advice such as “don’t rent – buy!” or “save your money – don’t spend.”
While this advice may not be wrong, it assumes we are living our lives in an absolute mode, which is never the case. So, we should not approach our financial planning in this way. You may be able to accomplish micro goals more easily, but we do not live in a small bubble. The world is lived in the macro and not micro.
What affect does this thinking have on our finances? For starters, make sure you have proper reserves and proper protection for those “what if” moments that can blindside us when we least expect it. Learn to make debt work for you and not become a slave to debt payments. Have a strategy that takes care of your short and long-term goals at the same time. Financial balance begins with you and the goals you are trying to reach.
For this we have mapped out some basic steps:
1. Take stock of your habits
How do you spend your money?
Are you mindful when spending?
How do you optimize your payments?
Do you have a spending strategy?
2. Ask yourself the hard questions
What brings you happiness when it comes to money?
What is the value of money to you?
3. Identify which goals are the most important in your life.
Be sure to look at goals at a macro level first and then narrow down. Here are some areas you may want to consider building goals around:
4. Evaluate these goals each day and modify your behavior to stay on course.
Be gentle with yourself. Every day will not feel like a superhero day and sometimes, we do slip but as long as we stay focused on what we are trying to accomplish, adjust, and keep moving, we get there.
The key to getting started is having a plan and making sure to implement clearly defined goals. Success is a series of small wins. Making daily adjustments and continuing on your path.