How to Manage Your Money

Extremes are always easy. Striking the right balance is what keeps life moving forward. Taking risks is also what makes life worth living, because without them, there is no room to grow. Life is what you make of it, even when you have so much on your plate.

In business, we are usually met with high demands for the sake of the company, but we have personal lives too. You may have deadlines, meetings, conferences, a pile of responsibilities, but how do you strike the right balance so that you are advantageous personally and in business?

Your personal life and business both add up. You need adequate time for recreation so that you can be the best you can be at work. This will in turn make the company more money, which will then make you more money, giving you a better quality of life for yourself, your family and your employees. Money isn’t everything nor can it generate happiness, but research shows that it’s how you spend it that makes all the difference.

Sometimes we may purchase things to make ourselves feel better like food, clothing, and gadgets but these things aren’t going to keep most of us happy and fulfilled nor will it contribute to personal growth. In short, the best thing to invest in would be yourself. In terms of finances, paying yourself first is investing in your future.

As your business expands your goal of personal growth should change as well, be it small little habits that add up or one giant change. Whatever decision you make for your life, financially and career-oriented, here are 3 steps to achieving financial success while succeeding in both facets of life.

#1) Invest In Yourself

What you hold off on buying right now can mean big savings for the future. Investing in yourself isn’t simply not purchasing goods that have no long-term value. Instead, it is about thinking about the financial state that you would like to be in the near future or beyond.

Assessing your current situation right now will get you on the right track to figuring out how much to save for the future. That can include skipping out on driving to work and bus it, or foregoing beauty regimens such as an expensive haircut. This doesn’t mean that you shouldn’t enjoy certain familiarities such as these.  Rather than going so often, perhaps it would become more beneficial to you if you made a habit of spending money on luxuries once a month, rather than weekly.

By figuring out a comfortable budget for yourself, you’ll be on the road to enjoying life more. Remember the key is about balance. You might have business expenses on top of personal obligations. It is imperative that you figure out what needs to be payed now. When it comes to setting aside money for leisure time, you can put aside as little as $5 every pay period to spend on small indulgences.

#2) Plan Better

Some of us are planners and some of us are the “fly by the seat of your pants” types. Whatever your mantra is, having a plan will help to navigate where you are going. If your goal is to improve the quality of your products, then you might consider cutting back on some things that won’t put a huge dent into your business, but will still deliver until you obtain your ideal product.

Although planning is the cornerstone of success, sometimes life leads us where we least expect it. When we have a goal in mind with the knowledge that everything might not fall perfectly into place, then it puts less stress on us. Instead of throwing in the towel, we simply create another pathway to reset our goals.

For example, your goal might be to lose 50 pounds in 3 months , so you exercise more, make your workouts a little more challenging each day.  Add protein to your diet and perhaps, get rid of the junk.

In business, we sometimes do not see the future for the junk. If you put so much into the advertising and the pomp and circumstance, that leaves little for proper equipment and other more important areas, setting you up for failure. By adding on incremental improvements, it helps us to see what works and what doesn’t.

By achieving little by little, there is the added benefit of also being able to see how far you’ve come, which will help you move forward.

If your business isn’t making enough money, then cut back, look at what needs to change, set goals. Until you reach that goal, look at what is working and get rid of what is not. Simplicity isn’t about being bland, but is about getting rid of what is holding us down and only keeping what we need to succeed.

#3) Understand Your Financial Situation

There are those who always have a little saved up no matter what current financial situation they are in. Then there are those who struggle to keep their heads above water regardless of how much they make.

The best managers of money know how their money is coming in, how it’s going out, and where it’s going.  If your goal is to become a better money manager, then the former is what you’ll need to know.

One way of setting boundaries on your current financial situation is to figure out whether or not you are a borrower or lender. Perhaps you owe more than you make. In which case, you’ll need to add up your finances up against your debt, and how much you make against how much you owe.

Setting up a budget is very important otherwise you might find yourself confused as to where your money goes every pay period. Practice paying off your debt, even if it means little by little and learn to invest in something that will grow your money rather than make it disappear. Maybe there’s a hobby that could turn into a lucrative business for you, in which case your investment could come back if you play your cards right.

Understanding the coming and goings of your transactions will lead to less stress and disorganization when it comes to handling business at the office and in your daily life. Categorize, prioritize, and plan to ensure that your finances and other areas run as smoothly as possible. After all, life is about fulfilling your calling.

Please let us know what you think. Do you have a difficult time prioritizing your financial situation at work and at home? Let us know what you plan to do to improve in certain areas. We’d love to hear from you!